(b)During the year 1999 - 2000, the company entered into 6 lease agreements, with the financial institutions / banks as lessors, for aprimary period of 10 years for an aggregate amount of R102085 Lacs and sub-leased the same to MOR for a period of 15 years. Thecompany has paid upfront the future financial liability on all these leases.Though, there is a mismatch in the tenor of the lease and sub-lease, there is no overall mismatch in the present value of entire leaserentals payable and receivable. During the year, the company received lease rentals of R14088 Lacs (P.Y. R14088 Lacs) and amortised(expensed) lease rentals of R 6456.04 Lacs (P.Y. R15092.40 Lacs) on these transactions.12. The balances under some items of Loans & Advances and current liabilities are subject to confirmation and reconciliation and consequentialadjustments, wherever applicable. However, in the opinion of the Management, the realisable value of the current assets, loans andadvances in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.13. (a) The company discharges its obligation towards payment of interest and redemption of bonds, for which warrants are issued, bydepositing the amount in the designated bank accounts. Reconciliation of such accounts is an ongoing process and has been completedupto 31-12-2009. The company does not foresee any additional liability on this account. The total balance held in such specified bankaccounts as on 31-03-2010 is R 736.57 Lacs (Previous Year 1153.68 Lacs).(b)The Company is required to transfer any amount remaining unclaimed and unpaid in such interest and redemption accounts after thecompletion of 7 years to Investor Education Protection Fund (IEPF) administered by the Ministry of Corporate Affairs, Government ofIndia. Accordingly, during the year, the Company deposited a sum of R 31.15 Lacs (P.Y. R 412.76 Lacs) in IEPF.14. During the year, the Company executed an Asset Securitisation Transaction by securitising an identified portion of future lease rentals ofR 78715.44 Lacs originating on its assets leased to Ministry of <strong>Railway</strong>s during the year 1998 - 99. As part of the securitisation transaction,future lease rental amount as mentioned above was transferred to a bankruptcy remote Special Purpose Vehicle (SPV) which, in turn,issued Pass Through Certificates (PTCs) to the prospective investors and realised a sum of R 50011.03 Lacs. The lease receivables havebeen derecognised in the books of account of the company. The book value of these future lease receivables was R 48180.81 Lacs,resulting in a profit of R1830.22 Lacs for the Company which as per RBI guidelines, is to be amortised over the life of the Pass TroughCertificates (PTCs) issued by the SPV. Out of the profit of R1830.22 Lacs, a sum of R 202.34 Lacs pertaining to the current year has beenrecognised in the Profit and Loss Account, leaving a balance of R 1627.88 Lacs as on 31.3.2010 to be recognised over the remaining life ofthe PTCs.Out of the unrecognised gain of R 6431.02 Lacs in respect of the Securitisation transactions executed during the previous year, a sum ofRs.3696.38 Lacs has been recognised during the current year, leaving a balance of R 2734.64 Lacs as on 31.3.2010 to be recognised overthe remaining life of the PTCs.15. Major components of net deferred tax liability are as under:(R in Lacs)As atAs at31-03-2010 31-03-2009Liability on account of difference between WDV as per Income Tax Act and Companies Act. 494754 463774Less : Deferred Tax Asset on account of Unabsorbed Depreciation 248048 238105Less : Deferred Tax Asset on Misc. Expenditure to be written off 4 5Less : Deferred Tax Asset on account of Employee benefits 0 9Net Deferred Tax Liability 246702 22565516. Long Term Loans & Advances (Schedule 5) include Lease Receivables representing the present value of future Lease Rentals receivableon the finance lease transactions entered into by the company since inception as per the Accounting Standard (AS) - 19 issued by theInstitute of Chartered Accountants of India.The reconciliation of the Lease Receivable amount on the Gross value of Rolling Stock assets worth R 5522266 Lacs (P.Y. R 4793863 Lacs)owned by the company and leased to the Ministry of <strong>Railway</strong>s is as under:54
Particulars As at As at31-03-10 31-03-09A. Gross Value of Assets acquired & Leased upto the end of previous Financial Year 4620488 4094788B. Less value of assets securitised/assigned during the year 53036 173375C. (A - B) 4567452 3921413D. Less: Capital Recovery provided upto last Year 1665644 1587259E. Less Capital Recovery provided upto last year on assets assigned during the year 2941 70814F. Capital Recovery upto last year (D - E) 1662703 1516445G. Capital Recovery Outstanding on leased assets as at the end of last year (C - F) 2904749 2404968H. Add: Gross Value of Assets acquired and Leased during the year 901778 699075I. G+H 3806527 3104043J. Capital Recovery for the year 190173 162919K. Less: Capital Recovery for the year on assets securitised/assigned during the year 1914 13720L. J - K 188259 149199Net investment in Lease Receivables 3618268 2954844(R in Lacs)The value of contractual maturity of such leases as per AS-19 is as under:-(R in Lacs)Particulars As at As at31-03-10 31-03-09Gross Investment in Lease 5627590 4666575Unearned <strong>Finance</strong> Income 2009322 1711731Present Value of Minimum Lease Payment (MLP) 3618268 2954844Gross Investment in Lease and Present value of Minimum Lease Payments (MLP) for each of the periods are as under:Particulars As at 31-03-10 As at 31-03-09Gross Present Gross PresentInvestment Value of Investment Value ofIn Lease MLP in Lease MLPLess than one year 514084 221982 419891 174886One to five years 2017690 989648 1662584 774285Greater than five Years 3095816 2406638 2584100 2005673Total 5627590 3618268 4666575 2954844(R in Lacs)The unearned finance income as on 31-03-2010 is R 2009322 Lacs (Previous Year R 1711731 Lacs).The company has leased rolling stock assets to the Ministry of <strong>Railway</strong>s (MOR). A separate lease agreement for each year of lease hasbeen executed and as per the terms of the lease agreements, lease rentals are received half yearly in advance. The leases are noncancellable and shall remain in force until all amounts due under the lease agreements are received.55