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INDIAN RAILWAY FINANCE CORPORATION - SECURED TAX FREE BONDS which offer an interest of 8.15% which looks very attractive.TRANSCRIPT
PUBLIC ISSUE OF SECURED TAX FREE BONDS BY INDIAN RAILWAY FINANCE
CORPORATION
JANUARY 27’2012 – FEBRUARY 10’2012
1 Level - 1, Trade Center, Bandra - Kurla
Complex, Bandra (E), Mumbai - 51
INDIAN RAILWAY FINANCE CORPORATION
COMPANY PROFILE • Financing arm of the Indian Railways • 100% shareholding held by Government of India • Notified as a Public Financial Institution under Section 4A of the Companies Act, 1956 • Registered as a NBFC-ND-IFC (Infrastructure Finance Company) with Reserve Bank of India • Consistently profit making Public Sector Undertaking • Rated „AAA‟ by CRISIL, ICRA and CARE • “Nil” Non-Performing Assets (as on 30.09.2011) • Funded rolling stock of book value of Rs. 69,843 Crores (5,567 locomotives, 33,856
passenger coaches and 14,90,300 freight wagons) for Indian Railways (as on 30.09.2011). • Outstanding leased assets to Ministry of Railways stood at Rs. 43,158.17 Crores • (as on 31.03.2011), representing 92.44% of its total assets besides investments in fixed
deposits of banks and long term loans to few other entities in railways sector such as Pipavav Railway, RailTel and RVNL.
• Net worth of Rs 4,487.50 Crores (as on 30.09.2011) • Net Profit after Tax of Rs. 485.20 Crores for year ended 31.03.2011 compared to Rs. 442.69
Crores for year ended 31.03.2010. 2
Level - 1, Trade Center, Bandra - Kurla Complex, Bandra (E), Mumbai - 51
INDIAN RAILWAY FINANCE CORPORATION
PARTICULARS DETAILS
Issue Opening Date Friday Jan 27, 2012
Issue Closing Date Friday February 10, 2012
Instrument Tax Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Issue Size Rs. 3,000 Crores with an option to retain oversubscription upto the Shelf Limit (i.e. upto Rs. 6,300 Crores)
Credit Rating CRISIL AAA, CARE AAA, ICRA AAA
ISSUE STRUCTURE
3 Level - 1, Trade Center, Bandra - Kurla
Complex, Bandra (E), Mumbai - 51
INDIAN RAILWAY FINANCE CORPORATION
PARTICULARS TRANCHE 1 SERIES I TRANCHE 2 SERIES II
Tenor 10 Years 15 Years
Face Value Rs. 1000 Rs. 1000
Minimum Application Rs. 10000 (10 Bonds) Rs. 10000 (10 Bonds)
In Multiples Of Rs. 5000 (5 Bonds) Rs. 5000 (5 Bonds)
Frequency Of Interest payment
Annually Annually
Interest Payment Date Oct 15, every Year Oct 15, every Year
Aggregate Coupon Rate 8.15% 8.30%
BOND PARTICULARS
4 Level - 1, Trade Center, Bandra - Kurla
Complex, Bandra (E), Mumbai - 51
INDIAN RAILWAY FINANCE CORPORATION
STRENGTHS • Assures Net Interest Margin • Zero Non Performing Assets • Consistent Financial Performance • Low Cost Of Borrowings
HIGHLIGHTS OF TAX BENEFITS
• Interest on these Bonds shall be exempt from income tax and shall not be included while computing the total income as per provisions under section 10 (15) (iv) (h) of Income Tax Act, 1961, as amended.
• Since the interest income on these Bonds is exempt from tax, there shall be no deduction of tax at source.
• Wealth Tax is not levied on investment in Bonds under section 2(ea) of the Wealth-tax Act, 1957.
5 Level - 1, Trade Center, Bandra - Kurla
Complex, Bandra (E), Mumbai - 51
CONTACT US – Level – 1, Trade Center, Bandra Kurla Complex, Bandra (E), Mumbai – 51 5, Prakash Kunj Building, Sion Trombay Road, Chembur (E), Mumbai – 71 www.craftwealth.com Ameet Kankariya - +91 9371822629 [email protected]
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7 Level - 1, Trade Center, Bandra - Kurla
Complex, Bandra (E), Mumbai - 51