IRFC FINAL - Indian Railway Finance Corporation Ltd.

25. Interest on Loans, Deposits and Advances include a sum of Rs.1349 Lacs receivable from Income TaxDepartment on assessments pertaining to earlier years. (Received after 01-04-2009).26. Ministry of Railways has deducted tax at source amounting to Rs.9133.54 Lacs on the lease rentals payment tothe Company during the year.27. Incentives/PRP includes Rs.6.56 Lacs pertaining to earlier years.28. Depreciation on Fixed Assets amounting to Rs.8.51 Lacs reversed during the year 2008-09 pertains to theamount excess provided in earlier years29. The company has shown Long Term Loans, Lease Receivable and Lease Rent paid in advance separately underthe head 'Long Term Loans & Advances' (Schedule 5) in order to provide better disclosure.30. Certain disclosures are required to be made under the Micro, Small and Medium Enterprises Development Act,2006. The Company is in the process or compiling relevant information from its suppliers about their coverageunder the Act. As the Company has not received the relevant information under the Act till finalisation ofaccounts, no disclosure has been made in the account.31. The Company has a system of physical verification of assets given on lease. The physical verification iscarried out on a sample basis, as 100% physical verification of rolling assets is neither possible logisticallynor considered necessary. In addition, Ministry of Railways (Lessee) provides a certificate each year that theleased assets are maintained in good working condition as per laid down norms, procedures and standards.In the opinion of the management, the aforesaid system is satisfactory considering the fact that the assets aremaintained and operated by the Central Government.32. a) Changes in Accounting Policies:(i) The Company has opted to adopt Companies (Accounting Standards) Amendment Rules, 2009issued by the Ministry of Corporate Affairs vide notification no.F.No.17/33/2008/CL-V dated31 st March 2009 in terms of which the notional exchange rate variation loss for the current yearand the notional exchange rate variation gain (net of tax) pertaining to the previous year has beentransferred to the Foreign Currency Monetary Item Translation Difference Account. This has resultedin the overstatement of profit before tax to the extent of Rs.4306.52 Lacs, understatement of GeneralReserve to the extent of Rs.897.04 Lacs and overstatement of foreign currency monetary itemtranslation difference account by Rs.3409.48 Lacs.(ii) The Company has adopted AS 15 (Revised)-2005 with effect from the current year. In Terms oftransitional provisions of AS 15 (Revised), excess liability (Net of deferred tax Assets) appearing in thebooks of Accounts as on 01-04-2008, amounting to Rs.11.39 Lacs has been transferred to the openingbalance of General Reserve Account resulting in overstatement of General Reserve by Rs.11.39 Lacs,overstatement of deferred tax liability by Rs.5.87 Lacs and understatement of current liabilities byRs.17.25 Lacs.Further, adoption of AS 15(Revised) has resulted in overstatement of profits of the current year byRs.12.75 Lacs and understatement of current liabilities by the same amount.b) Deletion of Accounting Policy:Policy regarding amortisation of Miscellaneous Expenditure over a period of five years, being no longerrequired, has been deleted during the year.33. a) Unless otherwise stated, the figures are in Rupees Lacs.b) Previous year figures have been regrouped / rearranged, wherever necessary, in order to make themcomparable with those of the current year.58