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

More documents

Recommendations

Info

ICRA Credit PerspectiveIndian Railway Finance Corporation LimitedIRFC's cost of funds competitive, access to tax free bonds strengthenborrowing profile furtherIRFC's borrowing programme is fixed every year by MoR in the Railway Budget. MoR increased IRFCborrowing plan from Rs.9,120 crore in 2010-11 to Rs.20,594 crore In 2011-12 to meet increase In capital10.00%9.00%8.00%7.00%6.00%5.00%4.00%3.00%2.00%1.00%Chart 2: Competitive cost of funds for IRFC2003-04 2005-06 2000-07 2007 -oo 2008-09 2009-10 201 (} 11 2011-12-+-Average Cost of fu~s to IRFC-e- 10 yr Gsec (average)around Rs 14,000 crore in1 2011-12. As for 2012-13,IRFC's borrowing programme iskept at Rs 15,000 crore,l although tower than 2011-12but remain high compared withborrowing programmes of 2007·Iexpenditure requirement ofRailways however because oflower funds requirement byMoR, IRFC borrowed only08 to 2010-11. In line withIncrease In borrowingrequirement of IRFC, MoR hasbeen infusing capital in IRFC toenable IRFC to maintaingearing at moderate levels.IRFC has been borrowing fundsat competitive rates Vis·a-Vissimilarly rated players on theback of its sovereign ownership,Source: Company, Debtonnet, RBIaccess to diverse sources offunds including low costsubsidised funding avenues (tax-free bonds). IRFC mobilised Rs.14,341 crore in 2011"12 on weightedaverage cost of funds of 8.8% against mobilization of Rs.9,814 crore in 2010·11 on weighted average costof funds of 7.5%. The increase In cost of funds In 2011·12 was mainly led by increase in systemic Interestrates. While on-lending these funds to MoR, IRFC maintains a gross Interest spread of around 50-60 bps(spread ranged 50-60 bps during 2004-05 to 2011-12) which has resulted in stable net interest marginsover the years for the corporation. Going forward, Increasing fund requirement of MoRand IRFC's ability tomobilize the same at competitive rates are likely to ensure adequate business volumes for the companyover medium to long term.
Asset quality profile favourableGiven that mosj of its lending Is to the MoR, IRFC continues to maintain a tow credit risk profile, as evidentfrom its nil non-performing assets (NPAs) as on March 31, 2012. Besides the MaR, tRFC also lends toRVNL, an SPV of the MoR that undertakes construction of new railway lines, bridges, and rail links to port'>IRFC's loans to RVNL Increased from Rs. 968 crore as on March 31, 2007 to Rs. 1,854 crore as on March31, 2012, and accounted for around 34% of IRFC's net worth as on March 31, 2012. However, ICR/\expects IRFC's credit risk profile to remain low owing to majority of lending to MoR and the supportiveMemorandum of Understanding between RVNL and MoR for the re-payment of RVNL's borrowings whicllIs likely to ensure timely re-payment by RVNL to IRFC. Any material change from such repaymentarrangement may entail a review of the assigned ratings.Capital structure likely to remain at prudent level as MOR likely to continuoinfusing capitalIRFC's gearing has been around 10 times (9.3 times as on Mar-12 and 8.9 times as on Mar-11) over lastfew years. Increasing business volumes (increase In lease disbursements to MoR) and low internal capitalgeneration due to high tax rate and dividend payouts has resulted in pressure on capital structure of thecorporation. However, to maintain its gearing levels below 10 times, IRFC has been receiving frequentcapital infusion from MoR (Rs. Rs.1,852 crore 1 over last four years, 2008-09 to 2011-12). Further, given largeborrowing programme in 2012-13, IRFC wilt need further equity infusion from MoR to keep Its gearing atmoderate lever; capital support from MoR has been forthcoming over last few years.In addition. as per Ministry of Finance (MoF) guidelines for Public Sector Entities (PSEs). IRFC is requiredto pay dividend equal to 20% of paid up capital or 20% of net profits, whichever is higher. Whlle during2011·12 IRFC paid dividend of Rs.100 crore (around 20% of PAT or 5% of IRFC's paid up capital) lowerthan the guidelines given IRFC's capital requirement for growth plans and as MaR' has infused capital overlast four years at par value (without any share premium). Going forward, though IRFC does not intend toIncrease dividend payment significantly from the current levels, but if it declares dividend in line with theMoF guidelines, its abfltty to generate capital from internal sources may be significantly impacted. But withthe regular capital Infusion from MoR, JRFC's gearing is not expected to increase from the current levels inthe medium term.Well-diversified borrowing mix a credit positiveHistorically IRFC has been able to raise funds at competitlve cost from domestic and international markets,Its borrowing profile improved further In recent years with access to tax free bonds- around half of freshborrowing of 2011-12 was raised through tax free bonds (interest rate lower by 100-200 bps than taxablebonds). IRFC was given approval to raise tax free bonds of Rs 10,000 crore in 2011·12 of which it raisedRs 7,000 crore in 2011·12. In 2012·13 Budget also IRFC got tax free bonds allocation of Rs. 10,000 croreand Its borrowing programme is Rs 15,000 crore hence sizeable part of current year's borrowings areexpected to met through tax free bonds which will help corporation to keep lower cost of funds.Additionally, IRFC has been raising funds through longer tenure instruments (up to 25 years, weightedaverage maturity of fresh borrowings raised in 2011-12 was around 11 years) which enable it to maintain acomfortable liquidity profile. Overall, IRFC's well-diversified borrowing profile is a credit positive and hashelped the corporation bring down Its cost of funds while keeping its asset-liability mismatches wl1hinmanageable limits.Liquidity profile of IRFC is determined by the tenure of Lease agreement (primary lease period of 15 yearsand weighted average repayment tenure around 9-10 years) against which IRFC borrows for similar tenureliabilities (on an average 8-12 years) which Is likely to result comfortable liquidity profile of IRFC. Further,as regard marginal tenure mismatch in Its assets and liabilities, JRFC has managed to maintain comfortableliquidity profile through principal recoveries from the earlier leases, internal accruals and raising short term:;:,:;(·; .. funds. ICRA expects the corporation to maintain comfortable liquidity profile going forward as well, on the· .'./); :: . ,, strength of its financial flexibility and its focus on increasing the tenure of its borrowings to match its asset·;;::·.;. ,i,>:·' : profile. Further, favorable lease agreement, as per which MOR can make advance lease rental payments'hould lRFC fall short of funds to service Its debt, is an additional liquidity support available to JRFC,. · \:t•;,;f\\;~ugh so far It has never resorted to the same.~~.3.\iot'.:il•".....______~ lnoiVd!Mg 1h01Herm loanslnal.~J[t~ ..•. hart application money of Rs 250 crore as on Mar-12 for which shares were allotted in 2012·13. 'l,-::.·.. ---····. ··~'\)i,
Page 1 and 2:
Statement of Assets and Liabilities
Page 3 and 4:
CASH FLOW STATEMENTAnnexure - III(
Page 5 and 6:
2. Reserves and Surplus( in Lakhs)P
Page 7 and 8:
3.1.1 Maturity profile and Rate of
Page 9 and 10:
65th "J" Taxable Non‐Cum. Bonds 8
Page 11 and 12:
starting from 27‐07‐201416th "O
Page 13 and 14:
HDFC Bank Ltd. 8.44%, Fixed 1‐Apr
Page 15 and 16:
Syndicated Foreign Currency Loan‐
Page 17 and 18:
As at30‐09‐2012As at31‐03‐2
Page 19 and 20:
Total FixedAssets 1,721.57 1,707.80
Page 21 and 22:
Balance in Franking Machine 0.34 0.
Page 23 and 24:
18. Other IncomeTotal 268780.41 464
Page 25 and 26:
Office Maintenance Expenses 20.25 3
Page 27 and 28:
Significant Accounting policies and
Page 29 and 30:
y the Reserve Bank of India vide th
Page 31 and 32:
(f) (i) Interest rate variation on
Page 33 and 34:
1 JPY 3 Billion 37.04 Million 1 JPY
Page 35 and 36:
11.a. The Company has not taken on
Page 37 and 38:
Gross Investment in Lease and Prese
Page 39 and 40:
the year plan assetsTotal Gain / (L
Page 41 and 42:
*The above provisions are liabiliti
Page 43 and 44:
A. Significant Accounting PoliciesF
Page 45 and 46:
Further, in terms of Draft Guidelin
Page 47 and 48:
(P.Y. Rs. 4590 Lakhs). After adjust
Page 49 and 50:
No. ofContractsAs at 31-03-2012 As
Page 51 and 52:
10. Expenditure in Foreign Currency
Page 53 and 54:
E. Less Capital Recovery provided u
Page 55 and 56:
Changes in the Fair Value of Plan A
Page 57 and 58:
Actuarial Assumptions:AssumptionsGr
Page 59 and 60:
amortised over the balance tenor of
Page 61 and 62:
) Recognition at the end of Account
Page 63 and 64:
Deferred tax expense or benefit is
Page 65 and 66:
Finance has exempted the Lease Agre
Page 67 and 68:
The foreign currency borrowings out
Page 69 and 70:
10. Expenditure in Foreign Currency
Page 71 and 72:
15. Major components of net deferre
Page 73 and 74:
Current Service Cost 3.05 1.63 1.02
Page 75 and 76:
Actuarial Assumptions:As on 31-03-2
Page 77 and 78:
portion of the future savings in th
Page 79 and 80:
) Recognition at the end of Account
Page 81 and 82:
10) Employee BenefitsEmployee Benef
Page 83 and 84:
5. Decrease in liability due to exc
Page 85 and 86:
7. Office Building including parkin
Page 87 and 88:
12. The balances under some items o
Page 89 and 90:
Unearned Finance Income 2009322 171
Page 91 and 92: the yearActualReturn onplan assets1
Page 93 and 94: Statementof Profit &LossActuarial A
Page 95 and 96: amortised over the balance tenor of
Page 97 and 98: ) Recognition at the end of Account
Page 99 and 100: 10) Employee BenefitsEmployee Benef
Page 101 and 102: amortisation in future, of the amou
Page 103 and 104: As part of hedging strategy, the Co
Page 105 and 106: Since the entire future lease renta
Page 107 and 108: assets assigned during the yearF. C
Page 109 and 110: Benefits Paid - -Fair Value of Plan
Page 111 and 112: value Rs. 1,000/- eachc) Earning Pe
Page 113 and 114: Financial Year 2007-08A. Significan
Page 115 and 116: and are capable of reversal in one
Page 117 and 118: ForeignCurrency1 JPY 2.65 Billion U
Page 119 and 120: Govt. may from time to time specify
Page 121 and 122: previous Financial YearB. Less valu
Page 123 and 124: 22. Payment to auditors include Rs.
Page 125 and 126: Annexure - VIIStatement of Dividend
Page 127 and 128: Annexure - IXRelated Party Transact
Page 129 and 130: Annexure - XICapitalisation Stateme
Page 131 and 132: ------ ----~---------~-- ---~------
Page 133 and 134: '-. ,,, I__ , __ , _____ ~-~---..
Page 135 and 136: Credit Rating Report 1Indian Railwa
Page 137 and 138: Given IRFC's modest accruals to net
Page 139 and 140: Credit Strengths.. Strong ownership
Page 141: CREDIT PERSPECTIVEDependence on MOR
Page 145 and 146: ANNEXURE 1: RATING DETAILSInstrumen
Page 147 and 148: ICRA Credit PerspectiveIndian Railw
Page 149 and 150: ·PROFIT: & .LOSS ACCOUNT_t'lo of O
Page 151 and 152: This is a system generated report a
Page 155 and 156: Sub : Trade statistics of IRFC N1 f
Page 161 and 162: Sub : Trade statistics of IRFC N2 f
Page 163 and 164: SCRIP CODE TRADE DATE ABBREVIATEDNA
Page 171 and 172: Ref. No. :NSE/LIST/2012Date :Decemb
Page 173 and 174: Sub : Trade Statistics Report from
Page 193 and 194:
Sub : Trade Statistics Report from
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
ANNXEUREIVCONSENT OF DEBENTURE TRUS
Page 227:
:,::O.F:.:iINi):nlA··' :.,: ." ":
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?