Statement of Assets and Liabilities for last Five Years and Latest ...

Credit Rating Report 1Indian Railway Finance Corporation Li~ramme@·®f&t-al-short-term-bank-borrowings-and-borroyvingmd-ertl1e-rate-d-·shorE-term debt programme not toexceed Rs.35 billion at any point in time.()Rating Drivers:Strengthso Strategic importance to, and attendant support from, Government of India (Gol)because of its status as the financing arm of Indian Railways (IR)• Strong capitalisation and asset qualityo Adequate resource profileWeakness• Average earnings profileRating sensitivity factor• Ownership by, strategic importance to, and supporl received from, GolOutlook: StableCRISIL believes Umt Indian Railway Finance Cotporation Ltd (IRFC) will continue toderive business and finru1cial support from the Government of India (Gol) because of itsstrategic role in channelling. finance to IR. Support from Go I ensures that IRFC willmaintain its sh·ong credit risk profile. The outlook may be revised to 'Negative' if thereis any reduction in its strategic importance to, or if there is any significru1t decline in( _I suppol't from, Gol.RationaleIRFC was incorporated in 1986 as a public financial institution under the CompaniesAct, 1956, and was granted infrastructure financing non-banking financial company(NBFG·IFC) status in 2010-11 (refers to financial year, Apr:ill to March 31). It is whollyowned by Gol through the Minisb.·y of Railways (MoR). IRFC was set up with thespecific objective of borrowing funds from the capital market to provide rolling stock toIR. IRFC leases rolling stock to IR, which reimburses the company through lease rentals,paid on a half-yearly basis in advance.For 2011-12, IRFC's total income (net of intetest expense) was Rs.10.3 billion and netprofit was Rs.4.8 billion, against total income (net of interest expense) of Rs.9.0 billionand net profit of Rs.4.9 billion for 2010-11.