IRFC COVER-final - Indian Railway Finance Corporation Ltd.

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In respect of following External Commercial Borrowings, the Company has executed currency swap to hedge the foreign exchange exposurein respect of both principal outstanding and interest payments:As on 31-03-2010 As on 31-03-2009No. of Borrowing Notional INR No. of Borrowing Notional INRContracts outstanding in Equivalent Contracts outstanding in Equivalentforeign currency foreign currency1 JPY 15 Billion 54911.79 Lacs 1 JPY 15 Billion 54911.79 LacsThe foreign currency borrowings outstanding as on 31-03-2010, which have not been hedged are as follows:As on 31-03-2010 As on 31-03-2009 RemarksNo. of Borrowing No. of BorrowingLoans outstanding in Loans outstanding inforeign currencyforeign currency1 USD 36 Million 1 USD 39 Million Back to back recovery ofexchange rate variationfrom MOR.2 USD 8.79 Million 2 USD 13.45 Million --2 USD 225 Million 2 USD 225 Million Back to back recovery ofexchange rate variationfrom MOR.1 Euro 1.95 Million 1 Euro 4.88 Million --1 USD 450 Million -- -- Back to back recovery ofexchange rate variationfrom MOR.(b)The Company has one (P.Y. one) Interest Rate Cap outstanding in respect of a foreign currency borrowing to hedge its floating ratelinked to LIBOR. The Interest Rate Cap has been executed on a notional principal of JPY 14.718750 Billion (P.Y. USD 100 Mio)As part of hedging strategy, the Company has six (P.Y. six) Interest Rate Swaps / Currency Swaps (coupon only) outstanding on fixedinterest rate rupee borrowings by taking benefit of interest rate movement. The INR value of the outstanding borrowings on which suchSwaps have been executed is R162000 Lacs (P.Y. R 162000 Lacs).7. Office Building including parking area has been capitalised from the date of taking possession. However, the sale / transfer deed is stillpending for execution in favour of the company. Stamp duty payable on the registration of office building works out to about R 122 Lacs (P.Y.R 91 Lacs), which will be accounted for on registration.8. Salary, Allowances and other benefits to Directors of the Company(R in Lacs)Particulars 2009 - 10 2008-09a. Salary / Allowances 28.99 29.30b. Reimbursement 0.74 Nilc. Foreign Service Contribution 4.64 ---b. Incentive Nil Nilc. Sitting fee paid to Non-Executive Directors 0.85 0.7552
In addition, Managing Director has been allowed use of staff car for personal use upto 1000 kms on payment of Rs.600/- per month, inaccordance with the notification of the Govt. of India, Ministry of Finance, Department of Public Enterprises OM No.2(18)/PC/64 dated 20thNovember, 1964 as amended.9. Contingent Liabilities(a) Claims against the Company not acknowledged as debt - Claims by bondholders in the Consumer Courts: R 50 Lacs (P.V. R 50 Lacs).(b) The Income Tax assessments of the Company have been completed up to Assessment Year 2007 - 08. The disputed demandoutstanding upto the said Assessment year is R 1664.27 Lacs against which R 1650.35 Lacs has been deposited by the Companyunder protest and the appeals of the company are pending at various appellate levels. Based on decisions of the Appellate authoritiesin other similar matters and interpretation of other relevant provisions, the Company is confident 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 / lease of rolling stock, if it becomespayable, is recoverable from Ministry of Railways in terms of the lease agreements. Since, there is no sales tax demand and theamount is unascertainable, no provision is made in the accounts.(d) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehabilitation / revival of sick industrial companies,which shall not be less than 0.005% but not more than 0.10% of the turnover or the gross receipts as the Central Govt. may from timeto time specify by notification in the Official Gazette. Since no notification has been issued, provision for cess has not been made.10. Expenditure in Foreign Currency (on payment basis)(R in Lacs)Particulars 2009 - 10 2008 - 09a) Interest / Swap Cost on Foreign currency borrowings 14671.35 13898.17(Net of Amount recovered on account of IRS / IRC and from MoF)b) Processing Agent / Fiscal Agent / Admn. fee 18.65 13.23c) Underwriting / Arranger fee 7555.12 851.46d) International Credit Rating Agencies Fees 57.35 42.46e) Others 70.98 37.4311. (a) The company has not taken on lease any Rolling Stock assets during the year. All the assets taken on lease were in the years prior to01-04-2001, with aggregate value of Rs.157082 Lacs (ownership of the same vests with the lessors) stand sub-leased to Ministry ofRailways. The company has paid future lease rental liability in full on all the above leases as outlined below:Year of Lease No. of Leases Value of assets Amount paid in settlement Year of paymenttaken on leaseof future lease rentals(R In Lacs) (R in Lacs)1999-00 6 102085 37492 2001-023841 2002-0335534 2003-042000-01 2 54997 29423 2001-0222302 2003-04Total 8 157082 152899The amount paid in settlement of future lease rentals as above, is being amortised in the accounts over the remaining period of theleases. During the year, an amount of R10340 Lacs (Previous Year R 18603 Lacs) has been charged to Profit & Loss Account onaccount of such amortisation.Since the entire future lease rental liability has been paid, there is no liability payable for unexpired lease period (Previous Year-R Nil).53
Page 3: ANNUALREPORT2009 - 10Indian Railway
Page 6 and 7: BOARD OF DIRECTORSSmt. Sowmya Raghv
Page 8 and 9: Chairperson's StatementDear Shareho
Page 10 and 11: While the economies the world over
Page 12 and 13: Directors' ReportDear Shareholders,
Page 14 and 15: the Task Force, in the MOU meeting
Page 16 and 17: safeguard its operations against ex
Page 18 and 19: compliant form. A roadmap for trans
Page 20 and 21: Right to Information Act, 2005The C
Page 22 and 23: Attendance at the Meetings of the B
Page 24: Remuneration Committee & Shareholde
Page 27 and 28: Annexure - 'A'Code of Business Cond
Page 29 and 30: ANNUALACCOUNTS2009- 10Indian Railwa
Page 31 and 32: PROFIT AND LOSS ACCOUNTFOR THE YEAR
Page 33 and 34: SCHEDULE-3LOANS(R in Lacs)DESCRIPTI
Page 35 and 36: SCHEDULE-3 Contd...LOANS(R in Lacs)
Page 43: SCHEDULE-7CURRENT ASSETS, LOANS & A
Page 46 and 47: SCHEDULE-11SALARY & OTHER EMPLOYEE
Page 48 and 49: SCHEDULE-13BOND SERVICING EXPENSES(
Page 50 and 51: SCHEDULE-16SIGNIFICANT ACCOUNTING P
Page 52 and 53: 10) Employee BenefitsEmployee Benef
Page 56 and 57: (b)During the year 1999 - 2000, the
Page 58 and 59: 17. Disclosures with respect to Ret
Page 60 and 61: Amount to be recognised in the Bala
Page 62 and 63: The reconciliation of weighted numb
Page 64 and 65: CASH FLOW STATEMENT FOR THE YEAR EN
Page 66 and 67: ANNEXURE REFERRED TO IN PARAGRAPH 3
Page 68 and 69: Comments of the C & A of IndiaCOMME
Page 70 and 71: Outdoor Activities
Page 72: INDIAN RAILWAY FINANCE CORPORATION

IRFC COVER-final - Indian Railway Finance Corporation Ltd.

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