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Indian Railway Finance Corporation Limited Offers Tax Free Bonds

Ministry of Railways
Indian Railway Finance Corporation Limited Offers
Tax Free Bonds Tranche-I to Raise upto Rs. 6,300 Crore
Public Issue to Open Tomorrow
Indian Railway Finance Corporation Limited (IRFC), the
financing arm of Indian Railways, is proposing to issue Tax
Free, Secured, Redeemable, Non-Convertible Bonds of face
value of Rs. 1, 000 each in the nature of Debentures, having
benefits under Section 10(15 )(iv) (h ) of the Income Tax Act,
1961, as amended (‘Bonds’) aggregating to Rs.3 ,000 crore
with an option to retain oversubscription of upto the shelf
limit of` Rs. 6, 300 crore (‘Issue’).
The application for subscription of Bonds should be for a
minimum of 10 Bonds and in multiples of 5 Bonds
thereafter. The Issue will open for subscription on January
27, 2012, and close on February 10, 2012, or earlier
(subject to the Issue being open for a minimum period of 3
days), or extension by such period, upto a period of 30 days
from the date of opening of the Issue, as may be decided by
the Board of Directors or by a duly constituted committee of
the Company. The Bonds shall carry a coupon rate of 8. 00%
p.a for 10 years (Series I) and 8. 10% p. a for 15 years
(Series II). An additional coupon rate of 0. 15% p. a. and
0.20 % p. a. on series 1 and series 2 respectively shall be
available to Resident Indian individuals, Hindu Undivided
Families through the Karta and Non Resident Indians on
repatriation as well as non- repatriation basis, applying for
an amount aggregating upto and including Rs.5 lakhs across
all Series in the tranche (available only to the original
allottees). The Bonds are proposed to be listed on NSE and
The Bonds have been rated ‘CRISIL AAA/Stable’ by
indicating highest degree of safety for timely servicing of
financial obligations.
Investors will have an option to hold the bonds either
in physical or in demat form. The Bonds will be secured by
way of a pari passu charge on the movable assets of the
Company comprising of rolling stock such as wagons,
locomotives and coaches.
SBI Capital Markets Limited, A. K. Capital Services
Limited and ICICI Securities Limited are the Lead Managers
to the Issue. Indian Bank shall be the Trustee to the Issue.
The Company intends to utilize the Issue proceeds for
financing the acquisition of rolling stock and financing the
capacity enhancement works in the Indian Railways.
All investors proposing to participate in the Issue should
invest only on the basis of the information contained in the
Shelf Prospectus and the Prospectus Tranche-1 , both dated
January 19, 2012.
The Shelf Prospectus and the Prospectus Tranche 1 are
available on the website of the NSE and BSE at
www.nseindia .com and www.bseindia .com , the website of
SEBI at www.sebi, the website of the Company at
www.irfc. and the respective websites of the Lead
Managers at www.sbicaps. com, www.akcapindia .com and
www.icicisecurities. com.
IRFC is the financing arm of the Indian Railways.
100% shareholding in IRFC is held by the President of India
acting through Ministry of Railways. The Company has been
notified as a Public Financial Institution under Section 4A of
the Companies Act, 1956 and registered as a Non-Banking
Finance Company without accepting public deposits
(Infrastructure Finance Company) with the Reserve Bank of
India. The Company’s principal business is borrowing funds
from the commercial markets to finance the acquisition of
new rolling stock which is then leased to the Indian
Railways. IRFC is a consistently profit making Public Sector
Undertaking that has funded rolling stock of book value of
Rs.69, 843 crore (5, 567 locomotives, 33,856 passenger
coaches, 14,90 ,300 freight wagons and 85 cranes and track
machines) for Indian Railways (as on 30.09 .2011) . Net
worth of IRFC as on 30. 09.2011 stood at approximately
Rs.4, 487.50 crores with Nil Non-Performing Assets. The
Company recorded a net profit after tax of Rs.485. 20 crore
for year ended 31.03 .2011 compared to Rs. 442.69 crore
for year ended 31. 03.2010 .

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PME Due Date

Master Circular No. 25

Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974

Subject: Implementation of the Recommendations of the Visual Sub-Committee.

6. Periodical re-examination of serving Railway Employees:

6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:

6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.

Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.

(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.

(b) Absence from duty for a period in excess of 90 days.

(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.

If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.

Ammendment: It was ammended in 1993 as below

Age Group PME Due

Age 00-45 every 4yrs

Age 45-55 every 2yrs

Age 55-60 every year
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

NRMU 4 you

6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.