IRFC FINAL - Indian Railway Finance Corporation Ltd.

ANNEXURE REFERRED TO IN THIRDPARAGRAPH OF OUR REPORT OF EVENDATE TO INDIAN RAILWAYS FINANCECORPORATION LIMITED FOR THE YEARENDED 31ST MARCH 2009(i) (a) The Company has maintained properrecords showing full particulars includingquantitative details and situation of fixedassets.(b) All the owned assets have been physicallyverified by the management during theyear. No material discrepancies werenoticed on such physical verification.Leased Assets have been certified by theLessee (Ministry of Railways) as to theirphysical existence and good workingconditions.(c) During the year, the company has notdisposed off any major part of the FixedAssets.(ii) As the company is not in the businessof trading, manufacturing, mining orprocessing, it does not hold inventory andhence did not require physical verification.(iii) The Company has neither taken nor grantedloan from or to companies, firms or otherparties covered under Section 301 of theCompanies Act, 1956.(iv) In our opinion and according to theinformation and explanations given tous, there are adequate internal controlprocedures commensurate with the size ofthe company and the nature of its businesswith regard to fixed Assets. During thecourse of our audit, we have not observedany continuing failure to correct majorweaknesses in internal control system.(v) According to the information andexplanations given to us, we are of theopinion that there are no transactions thatneed to be entered into the register requiredto be maintained under section 301 of theCompanies Act, 1956.(vi) The Company has not accepted or reneweddeposits from the public contravening thedirectives issued by the Reserve Bank ofIndia and the provision under section 58A& 58AA of the Companies Act, 1956 andthe rules framed there under.(vii) In our opinion, the company has an internalaudit system commensurate with the sizeand nature of its business.(viii) We have been informed that Centralgovernment has not prescribed maintenanceof cost accounting records under section209 (1) (d) of the Companies Act, 1956for the industry to which the companybelongs.(ix) (a) The company is generally regular indepositing with appropriate authoritiesundisputed statutory dues includingprovident fund, investor educationprotection fund, employees stateinsurance, income tax, sales tax, wealthtax, service tax, custom duty, exciseduty, cess and other material statutorydues applicable to it.(b) According to the information andexplanation given to us, no undisputedamounts payable in respect of incometax, wealth tax, service tax, sales tax,custom duty, excise duty and cess werein arrears, as at 31.03.2009 for a periodof more than six months from the datethey became payable.(c) According to the information &explanation given to us, there are nodues of sales tax, income tax, customduty, wealth tax, service tax, excise dutyand cess, which have not been depositedon account of any dispute.(x) The company does not have accumulatedlosses as at 31 st March 2009 nor incurredany cash losses during the year andimmediately preceding year.(xi) In our opinion and according to theinformation and explanations given tous, the company has not defaulted anyrepayment of dues to financial institutions,banks or debenture holders.62