2.12 Provisions, contingent liabilities and contingent assets

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation.
If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of

the time value of money and the risks specific to the liability.
When discounting is used, the increase in the provision due to
the passage of time is recognized as a finance costs.

The amount recognized as a provision is the best estimate of
the consideration required to settle the present obligation at
reporting date, taking into account the risks and uncertainties
surrounding the obligation.

When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party,
the receivable is recognized as an asset if it is virtually certain
that reimbursement will be received and the amount of the
receivable can be measured reliably. The expense relating to a
provision is presented in the statement of profit and loss net
of any reimbursement.

Contingent liabilities are possible obligations that arise from
past events and whose existence will only be confirmed by
the occurrence or non-occurrence of one or more future
events not wholly within the control of the Company. Where
it is not probable that an outflow of economic benefits will
be required, or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability, unless
the probability of outflow of economic benefits is remote.
Contingent liabilities are disclosed on the basis of judgment
of the management/independent experts. These are reviewed
at each balance sheet date and are adjusted to reflect the
current management estimate.

Contingent assets are possible assets that arise from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company.
Contingent assets are disclosed in the financial statements
when inflow of economic benefits is probable on the basis of
judgment of management. These are assessed continually to
ensure that developments are appropriately reflected in the
financial statements.

2.13 Impairment of non-financial assets

The carrying amounts of the Company's non-financial assets
are reviewed at each reporting date to determine whether there
is any indication of impairment considering the provisions of
Ind AS 36 'Impairment of Assets'. If any such indication exists,
then the asset's recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is
the higher of its fair value less costs to disposal and its value

in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset. For the
purpose of impairment testing, assets that cannot be tested
individually are grouped together into the smallest group of
assets that generates cash inflows from continuing use that
are largely independent of the cash inflows of other assets or
groups of assets (the “cash-generating unit”, or “CGU”).

An impairment loss is recognized if the carrying amount of an
asset or its CGU exceeds its estimated recoverable amount.
Impairment losses are recognized in profit or loss. Impairment
losses recognized in respect of CGUs are reduced from the
carrying amounts of the assets of the CGU.

Impairment losses recognized in prior periods are assessed
at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed
if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only
to the extent that the asset's carrying amount does not exceed
the carrying amount that would have been determined, net
of depreciation or amortization, if no impairment loss had
been recognized.

2.14 Leases

At inception of a contract, the Company assesses whether the
contract is, or contains a lease. A contract is, or contains a lease if
the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.

Company as a lessor

The Company classifies each of its leases as either an operating
lease or a finance lease.

Leases in which the Company does not transfer substantially
all the risks and rewards of ownership of an asset are classified
as operating leases. Rental income from operating lease is
recognised on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of the
leased asset and recognised over the lease term on the same
basis as rental income. The depreciation policy for depreciable
underlying assets subject to operating leases is consistent with
the Company's normal depreciation policy for similar assets.

Contingent rents are recognised as revenue in the period in
which they are earned.

Leases are classified as finance leases when substantially all of
the risks and rewards of ownership transfer from the Company
to the lessee. Amounts due from lessees under finance leases
are recorded as receivables at the Company's net investment
in the leases. Finance lease income is allocated to accounting
periods so as to reflect a constant periodic rate of return on
the net investment outstanding in respect of the lease.

Company as a lessee

At the contract commencement date, the Company recognizes
right - of - use asset and a lease liability. A right - of - use
asset is an asset that represents a lessee's right to use an
underlying asset for the lease term. The Company has elected
not to apply the aforesaid requirements to short term leases
(leases which at the commencement date has a lease term of
12 months or less) and leases for which the underlying asset is
of low value as described in paragraphs B3 - B9 of Ind AS 116.

A right of use asset is initially measured at cost and
subsequently applies the cost mode ie less any accumulated
depreciation and any accumulated impairment losses and
adjusted for any remeasurement of lease liability. Ind AS 16,
Property, Plant and Equipment is applied in depreciating the
right - of - use asset.

A lease liability is initially measured at the present value of
the lease payments that are not paid at that date. The lease
payments are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, the Company's
incremental borrowing rate is used. Subsequently, the carrying
amount of the lease liability is increased to reflect interest
on lease liability; reduced to reflect the lease payments; and
remeasured to reflect any reassessment or lease modifications
or to reflect revised in - substance fixed lease payments.

2.15 Securitisation of Finance Lease Receivable

Lease Receivables securitised out to Special Purpose Vehicle in
a securitisation transactions are de-recognised in the balance
sheet when they are transferred and consideration has been
received by the Company.

The resultant gain/loss arising on securitization is recognised
in the Statement of Profit & Loss in the year in which
transaction takes place.

Lease Receivables assigned through direct assignment
route are de-recognised in the balance sheet when they
are transferred and consideration has been received by the

Company. Profit or loss resulting from such assignment is
accounted for in the year of transaction.

2.16 Leasing of Railway Infrastructure Assets

In terms of Indian Accounting Standard116, the inception
of lease takes place at the earlier of the date of the lease
agreement and the date of a commitment by the parties to the
principal provisions of the lease.

The commencement of the lease term is the date from which
the lessee is entitled to exercise its right to use the leased
asset. It is the date of initial recognition of the lease.

As such, in respect of Railway Infrastructure Assets, which
are under construction and where the Memorandum of
Understanding / terms containing the principal provisions of
the lease are in effect with the Lessee, pending execution of
the lease agreement, the transactions relating to the lease are:

(a) presented as “Advance against Railway Infrastructure
Assets to be leased”; and thereafter

(b) transferred to “Project Infrastructure Assets under
Finance Lease Arrangement” on receipt of utilization
report from the lessee; and thereafter

(c) transferred to lease receivable as per Ind AS 116 on
execution of lease agreement.

2.17 Dividends

Dividends and interim dividends payable to the Company's
shareholders are recognized as changes in equity in the period
in which they are approved by the shareholders' meeting and
the Board of Directors respectively.

2.18 Material Prior Period Errors

Material prior period errors are corrected retrospectively
by restating the comparative amounts for the prior periods
presented in which the error occurred. If the error occurred
before the earliest period presented, the opening balances
of assets, liabilities and equity for the earliest period
presented, are restated.

2.19 Earnings per share

Basic earnings per equity share is computed by dividing the
net profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity shares
outstanding during the financial year.

Diluted earnings per equity share is computed by dividing
the net profit or loss attributable to equity shareholders of
the Company by the weighted average number of equity
shares considered for deriving basic earnings per equity
share and also the weighted average number of equity shares
that could have been issued upon conversion of all dilutive
potential equity shares.

2.20 Statement of Cash Flows

Statement of cash flows is prepared in accordance with the
indirect method prescribed in Ind AS 7 'Statement of cashflows'.

2.21 Operating Segments

The Managing Director (MD) of the Company has been
identified as the Chief Operating Decision Maker (CODM) as
defined by Ind AS 108, “Operating Segments”.

The Company has identified 'Leasing and Finance' as its sole
reporting segment.

2.22 Financial Instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.

2.22.1. Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at fair value
plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs
that are attributable to the acquisition or issue of the
financial asset.

Subsequent measurement
Debt instruments at amortized cost

A 'debt instrument' is measured at the amortized cost if
both the following conditions are met:

(a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

(b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal
amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the
Effective Interest Rate (EIR) method. Amortized cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included
in finance income in the profit or loss. The losses arising
from impairment are recognized in the profit or loss. This
category generally applies to trade and other receivables.

Debt instrument at Fair value through Other
Comprehensive Income (FVTOCI)

A 'debt instrument' is classified as at the FVTOCI if both
of the following criteria are met:

(a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

(b) The asset's contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in the
OCI. However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain
or loss in the profit and loss. On derecognition of the
asset, cumulative gain or loss previously recognized in
OCI is reclassified from the equity to profit and loss.

Debt instrument at Fair value through profit or loss
(FVTPL)

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.

In addition, the Company may elect to classify a debt
instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to
as 'accounting mismatch'). Debt instruments included
within the FVTPL category are measured at fair value
with all changes recognized in the profit and loss.

Equity investments

All equity investments in entities other than subsidiaries
and joint venture companies are measured at fair value.
Equity instruments which are held for trading are
classified as at FVTPL. For all other equity instruments,
the Company decides to classify the same either as at
FVTOCI or FVTPL. The Company makes such election
on an instrument by instrument basis. The classification
is made on initial recognition and is irrevocable. The
Company has decided to classify its investments
into equity shares of IRCON International Limited
through FVTOCI.

If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the
OCI. There is no recycling of the amounts from OCI to
statement of profit and loss, even on sale of investment.
However, the Company may transfer the cumulative gain
or loss within equity.

Equity instruments included within the FVTPL category
are measured at fair value with all changes recognized in
the profit and loss.

De-recognition

A financial asset (or, where applicable, a part of a
financial asset or part of a Company of similar financial
assets)is primarily derecognized (i.e. removed from the
Company's balance sheet) when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to
a third party under a 'pass-through’ arrangement; and
either (a) the Company has transferred substantially all
the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all

the risks and rewards of the asset, but has transferred
control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial
assets and credit risk exposure:

(a) Financial assets that are debt instruments, and
are measured at amortized cost e.g., loans, debt
securities, deposits and bank balance.

(b) Financial assets that are debt instruments and are
measured as at FVTOCI.

(c) Lease receivables under Ind AS 116.

(d) Loan commitments which are not measured
as at FVTPL.

(e) Financial guarantee contracts which are not
measured as at FVTPL.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a material increase in the
credit risk since initial recognition. If credit risk has not
increased materially, 12 month ECL is used to provide
for impairment loss. However, if credit risk has increased
materially, lifetime ECL is used. If, in a subsequent period,
credit quality of the instrument improves such that
there is no longer a material increase in credit risk since
initial recognition, then the entity reverts to recognizing
impairment loss allowance based on 12 month ECL.

2.22.2. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, borrowings, payables, or as derivatives designated
as hedging instruments in an effective hedge, as
appropriate. All financial liabilities are recognized initially
at fair value and, in the case of borrowings and payables,
net of directly attributable transaction costs. The

Company's financial liabilities include trade and other
payables, borrowings including bank overdrafts, financial
guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities at amortized cost

After initial measurement, such financial liabilities are
subsequently measured at amortized cost using the
EIR method. Gains and losses are recognized in profit
or loss when the liabilities are derecognized as well as
through the EIR amortization process Amortized cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included
in finance costs in the profit or loss. This category
generally applies to borrowings, trade payables and
other contractual liabilities.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered
into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified
as held for trading unless they are designated as effective
hedging instruments.

Gains or losses on liabilities held for trading are
recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated at the
initial date of recognition, and only if the criteria in Ind
AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/losses attributable to changes in own
credit risks are recognized in OCI. These gains/losses
are not subsequently transferred to profit and loss.
However, the Company may transfer the cumulative

gain or loss within equity. All other changes in fair value
of such liability are recognized in the statement of profit
and loss. The Company has not designated any financial
liability as at fair value through profit and loss.

De-recognition

A financial liability is derecognized when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
statement of profit and loss.

Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments,
such as forward currency contracts, cross currency
swaps and interest rate swaps to hedge its foreign
currency risks and interest rate risks of foreign currency
loans. Such derivative financial instruments are initially
recognized at fair value on the date on which a
derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative. Any
gains or losses arising from changes in the fair value
of derivatives are taken to statement of profit and
loss. Where the derivative is designated as a hedging
instrument, the accounting for subsequent changes in
fair value depends on the nature of item being hedged
and the type of hedge relationship designated. Where
the difference is a pass through the lessee, the amount
is received/ reimbursed to the lessee.

2.23 Standards issued but not yet effective:

Accounting Standards notified, either not yet effective or not
applicable to the Company::

Ministry of Corporate Affairs (“MCA”) notifies new standards or
amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year
ended March 31, 2025, MCA has notified the below amendments:

The following major amendments have been made;

1. Insertion of Ind AS 117 - Insurance Contracts by
notification dated 12^th August 2024

This is applicable from the date of publication in
the official gazette (i.e. 12^th August 2024). This is
related to Insurance Companies and is not applicable
to the Company.

2. Amendment of Ind AS 116- Lease by notification dated
9^th September 2024

This amendment has clarified the Lease Liability in a Sale
and Leaseback transactions This amendment is applicable
from the date of publication in the official gazette
(i.e. 9^th September 2024). However, the Company has no
sale and leaseback transactions during the period ended
31^st March,2025

3. Amendment of Ind AS 104- Insurance Contracts by
notification dated 28^th September 2024

This amendment is applicable from the date of
publication in the official gazette (i.e. 28^th September
2024). This is related to Insurance Companies and is not
applicable to the Company.

Note 33 : Leases

Receivables (Note No. 6) include lease receivables representing the present value of future Lease Rentals receivables on the finance lease
transactions entered into by the Company.

The lease agreement in respect of these assets is executed at the year-end based on the lease rentals and Implicit rate of return (IRR) with
reference to average cost of annual incremental borrowings plus margin decided at that time. Any variation in the lease rental rate or the
implicit rate of return for the year is accordingly adjusted at the year end.

IRFC commenced project funding to MoR (Ministry of Railways) for creation & development of railway infrastructure projects in October 2015
under finance lease model with commencement of lease rentals after a gestation period of 5 years as per memorandum of understanding
entered with MoR on 23^th May,2017. The amount advanced to MoR has been shown as 'Advance to MoR for Railway Infrastructure Projects'.
From the said account, the company on receipt of confirmation/utilization reports from ministry of railways, transfers amount actually
utilised to "project infrastructure asset under finance lease". Company has till date has executed the Lease Agreement(s) for EBR IF 2015-16,
EBR IF 2016-17, EBR IF 2017-18, EBR IF 2018-19 and lease agreements for National Projects 2018-19 & 2019-20 with MoR with respect
to aforesaid infrastructure assets. Also, the execution of Lease Agreement for EBR IF 2019-20 is under process and the lease recievables
have been recognised with effect from 24^th March 2025. The lease agreements for funding for EBR_IF from FY 2020-21 to FY 2022-23 shall
be executed on completion of moritorium period.

IRFC board has approved financing of 20 BOBR rakes under General Purpose Wagon Investment Scheme (GPWIS) of Indian Railways to
NTPC for up to H 700 crore on finance lease basis on 8^th October 2024. Under the above-board sanction, IRFC has signed a lease agreement
with NTPC Ltd for 8 BOBR rakes amounting to H 250.12 crore in the first phase

Reconciliation of the lease receivable amount on the gross value of leased assets worth H 4,40,657.35 crore (31 March 2024 :
H 3,95,606.17 crore) owned by the Company and leased to the Ministry of Railways(MoR) is as under:

Note 33.1

Company as a Lessee

The Company has lease contracts for office premises. The Company has recognised Right of Use Asset and Lease Liability for all the leases.
Refer to Note 2.14 material accounting policy on leases.

Lease term includes the renewal term wherever the lessee has the option to renew the lease as it is reasonably certain for the lessee to
exercise the option. However, the Company is not reasonably certain to exercise the termination option after the expiry of lock in period.
There are no restrictions imposed by lease arrangements.

b. Claims against the Company not acknowledged as debt - relating to service matters pending in Court - amount not ascertainable.

c. The procurement/acquisition of assets leased out by the Company to the Indian Railways is done by Ministry of Railways (MOR),
Government of India. As per the lease agreements entered into between the Company and MOR, the Sales Tax/ VAT liability, if
any, on procurement/acquisition and leasing is recoverable from MOR. Since, there is no sales tax/ VAT demand and the amount is
unascertainable, no provision is considered necessary.

d. The disputed demand of tax (including interest thereon) for the AY 2015-16 was H 0.95 crore. Against the said demand, the company
has filed a rectification application u/s 154. Based on the decisions of the Appellate Authority in similar matters and the interpretation
of relevant provisions, the Company is confident that the demand will be either deleted or substantially reduced, and accordingly, no
provision is considered necessary. However, the said demand of H0.95 crore has been adjusted by the department, out of the refund
to IRFC for the AY 2016-17.

e. An intimation u/s 143 (1) for AY 2022-23 was received from the CPC on 16.03.23. The company also received a notice u/s 142 (1)
on 20.10.23 for the submission of information. Order u/s 143(3) dt 19.03.24 was received, which disallowed certain expenditures
amounting to H0.76 crore, and raised the demand of H 0.21 crore. Against the order, the company has filed an appeal before the CIT
(Appeal) on 18.04.24, and management is of the view that no provision is required.

f. An intimation u/s 143 (3) for AY 2023-24 was received from the CPC on 11.03.2025. During the year, the company has provided all the
information. The order u/s 143(3) dt 25.03.2025 was received, disallowing certain expenditures amounting to H0.25 crore. Against the
order, IRFC is in the process of filing an appeal before the appropriate forum. Management is of the view that no provision is required.

g. Asst. Commissioner, (ST), Chennai issued a demand order of H353.18 crore along with interest and penalty in respect of ITC available
in GSTR-2A but not claimed (lapsed), ITC availed on RCM invoices, etc for the FY 2020-21. The company filed a writ and stay petition
before the Hon'ble High Court of Madras in June-23 against the said demand order. The Honourable High Court of Madras, through
its order dt 04.07.23 granted a Stay on the demand order and the proceedings are still ongoing. Management is of the view that no
provision is required.

h. Asst. Commissioner (ST), Chennai, issued a demand order of H230.55 crore along with penalty for non-remittance of RCM and excess
availment of ITC for FY 2020-21. Against the order, the Company filed a writ and stay petition before the Hon'ble High Court of

Madras in March-25. After hearing the parties, the Hon'ble Court set aside the demand order, and the matter was remanded to the
respondent for fresh consideration and the impugned order shall be treated as SCN, and the company to submit its reply/objection
along with the supporting documents/materials. Management is of the view that no provision is required.

i. The Asst. Commissioner of (ST), Chennai, issued a demand order of H237.04 crore along with interest and penalty for the disallowance
of partial ITC for the year 2021-22. The Company filed an appeal before the Dy. Commissioner, (ST), Appeal, Chennai on 22.02.24. As
the hearing was conducted during the year, the company explained that the ITC was claimed in accordance with the GST law, and an
adequate amount of ITC is also available in the electronic credit ledger. Management is of the view that no provision is required.

j. The Assistant Commissioner, (ST), Chennai issued show cause notices for FY 21-22 to FY 23-24 for H 216.27 crore along with interest
and penalty on the grounds of excess/wrong ITC availment, short payment of tax etc. along with interest and penalty thereon. The
company filed replies against the said notices, stating that ITC has been claimed as per GST law, and no interest and penalty shall be
applicable. The Company also explained the same during the hearings held in the above matter. Management is of the view that no
provision is required.

k. IRFC received a demand order from the GST audit department, Karnataka, for FY 2020-21, H3.77 crore, regarding availment of ineligible
ITC etc. Against the demand order, IRFC is in the process of filing an appeal. Management is of the view that no provision is required.

l. IRFC received a demand order from the GST Department, Delhi, for FY 2020-21, H3.88 crore, regarding availment of ineligible ITC etc.
Against the demand order, IRFC is in the process of filing an appeal. Management is of the view that no provision is required.

Note 36: Segment reporting

The Company has identified "Leasing and Finance"as its sole reporting segment. Thus, there is no inter-segment revenue and the entire
revenue is presented in the statement of profit and loss is derived from external customers all of whom are domiciled in India, the Company's
country of domicile.

All non-current assets other than financial instruments are also located in India.

38.2.2: Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most
advantageous) market at the measurement date under current market conditions, regardless of whether that price is directly observable or
estimated using a valuation technique.

In order to show how fair value have been derived, financial instruments are classified based on hierarchy of valuation techniques as
explained below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices in
markets that are not active) or indirectly (i.e. quoted prices for similar assets or liabilities);

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Set below is a comparison, by class, of the carrying amounts and fair value of the financial instruments. This table does not include the fair
value of non-financial assets and non-financial liabilities.

Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required).

The directors consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate
their fair values.

38.3 Financial risk management

The Company's activities expose it to a variety of financial risks which includes market risk (including currency risk, interest rate risk and
other price risk), credit risk and liquidity risk.

The Company's focus is to ensure liquidity which is sufficient to meet the Company's operational requirements. The Company monitors and
manages key financial risks so as to minimise potential adverse effects on its financial Performance. The Company has a risk management policy
which covers the risks associated with the financial assets and liabilities. The details for managing each of these risks are summarised ahead.

38.4: Market risk

Market risk is the risk that the expected cash flows or fair value of a financial instrument could change owing to changes in market prices.
The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

Company use derivative instruments to manage market risk against the volatility in foreign exchange rates and interest rates in order to
minimize their impact on its results and financial position. Company policy is not to utilize any derivative financial instruments for trading
or speculative purposes.

In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end
of the reporting period does not reflect the exposure during the year. Further the gain/(loss) on account of exchange rate variations on all
foreign currency loans and foreign currency monetary items along with hedging cost is recoverable from MoR as per the lease agreements
executed with them.

38.6: Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the
Company by maintaining an appropriate mix between fixed and floating rate borrowings. Company use financial instruments to manage its
exposure to changing interest rates and to adjust its mix of fixed and floating interest rate debt on long-term debt.

The Company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management
section of this note.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents
management's assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/ lower and all other variables were held constant, the Company's:

i) Profit for the year ended 31 March 2025 would decrease/increase by H 1184.81 crore (31 March 2024: decrease/increase H 1,102.97
crore). This is mainly attributable to the Company's exposure to interest rates on its rate debt securities;

ii) Profit for the year ended 31 March 2025 would decrease/increase by H 875.59 crore (31 March 2024: decrease/increase H 974.43
crore). This is mainly attributable to the Company's exposure to interest rates on its rate borrowings.

Interest Rate Benchmark Reform:

Exposure directly affected by the interest rate benchmark reform as required by Ind-AS 107, para 24-I and 24-J

The total amount of exposure that is directly affected by Interest Rate Benchmark Reform (IBOR) i.e. after June 2023 is USD 3,300 million
(Amount in H 28,556.94 crore) as on 31.03.2025. Out of this, the amount of the derivative exposure linked with such liabilities and accounted
for under hedge accounting is USD 225 million (Amount in H 328.17crore)

Managing the process of transition to alternative benchmark rates.

The Standard ISDA IBOR Fallback Protocol has been followed by the Company for transition from USD LIBOR to alternate reference rate/
benchmark. For certain facilities, the Company has executed bilateral agreements with the lender to transition from USD LIBOR. For these
bilaterally negotiated agreements, the Company has negotiated slight alterations in certain standard terms mentioned in the ISDA IBOR
Fallback Protocol for operational purposes.

Significant assumptions for exposure affected by the interest rate benchmark reform

The alternative reference rate/benchmarks for the LIBOR linked loans and their derivatives have been agreed with the lenders and the
derivative bankers. As a result of such reform there has been no change in the relationship of the hedged items, hedged instruments and its
corresponding hedge effectiveness.

The hedge accounting relationships that are affected by the adoption of the temporary exceptions are presented in the balance sheet in
note 5, 'Derivatives Financial Instruments'.

38.7: Other price risks

The Company has a small amount of investment in equity instruments, price risk of which is not considered material.

38.8: Credit risk management

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the company.
To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current
economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company consider the probability of default upon initial recognition of assets and whether there has been a significant increase in credit
risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable
and supportive forward looking information such as:

(i) Actual or expected significant adverse change in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counterparty.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

RBI vide its circular dated 13 March 2020 “Implementation of Indian Accounting Standards by Non-Banking Financial Companies and assets
Reconstruction Companies”, required the Board of Directors to approve sound methodologies for computation of Expected Credit Losses
(ECL). .As such company has formed a ECL policy to manage its credit risk.

The Company's major exposure is from lease receivables from the Ministry of Railways, Government of India; lease receivables from NTPC
Limited; and loans to Rail Vikas Nigam Limited, IRCON International Limited which are under the control of Ministry of Railways, and NTPC
Renewable Energy Limited. There is no credit risk on lease receivables being due from sovereign. With respect to the lease receivables from
NTPC Limited and loans given to Rail Vikas Nigam Limited, IRCON International Limited, and NTPC Renewable Energy Limited, the Company
considers the Reserve Bank of India Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation)
Directions, 2023 [DOR.FIN.REC.NO.45/03.10.119/2023-24 dated 19/10/2023] to be adequate compliance with the impairment norms as
per Ind AS 109, Financial Instruments, as these entities are either under the Ministry of Railways or are public sector undertakings backed
by the Government of India. The Company does not expect any concern regarding the repayment of the aforesaid loans.

38.9: Liquidity risk management

Liquidity risk is defined as the potential risk that the Company cannot meet the cash obligations as they become due.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity
risk management framework for the management of the company's short, medium, and long-term funding and liquidity management
requirements. The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Besides, there is a provision in the
lease agreements with the Ministry of Railways (MOR) whereby MOR undertakes to provide lease rentals in advance (to be adjusted from
future payments) in case the Company doesn't have adequate liquidity to meet its debt service obligations.

38.10: Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures. The objective of hedges is to minimize the volatility of INR cash flows of highly probable
forecast transaction.

However, the gain/(loss) on account of exchange rate variations on all foreign currency loans and foreign currency monetary items along
with hedging cost is recoverable from MoR as per the lease agreements executed with them.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments
to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument
is expected to offset changes in cash flows of hedged items.

Note 41: Other Disclosures

(a) Lease rental is charged on the assets leased from the first day of the month in which the Rolling Stock assets have been identified and
placed on line as per the Standard Lease Agreements executed between the Company and MOR from year to year.

(b) Ministry of Railways (MOR) charges interest on the value of the assets identified prior to the payments made by the Company, from
the first day of the month in which the assets have been identified and placed on line to the first day of the month in which the money
is paid to the MOR. However, no interest is charged from the MOR on the amount paid by the company prior to identification of
Rolling stock by them.

(c) (i) Interest rate variation on the floating rate linked rupee borrowings and interest rate and exchange rate variations on interest

payments in the case of foreign currency borrowings are adjusted against the lease income/ pre-commencement lease income
in terms of the variation clauses in the lease agreements for Rolling Stock/ memorandum of understanding (MoU) for funding of
Infrastructure assets executed with the Ministry of Railways. During the year ended 31 March 2025, such differential has resulted
in an amount of H 3617.34 crore refundable to the Company ( 31 March 2024: H 3,658.20 crore, refundable to the Company)
which has been accounted for in the lease income/pre-commencement lease income.

(ii) In respect of foreign currency borrowings, which have not been hedged, variation clause have been incorporated in the lease
agreements specifying notional hedging cost adopted for working out the cost of funds on the leases executed with MOR.
Hedging cost in respect of these foreign currency borrowings is compared with the amount recovered by the company on such
account on notional cost basis and accordingly, the same is adjusted against the lease income. During the year ended 31 March
2025 in respect of these foreign currency borrowings, the Company has recovered a sum of H1,536.32 crore (31 March 2024:
H 1,583.54 crore) on this account from MOR against a sum of H Nil crore (31 March 2024: H Nil crore) incurred towards hedging
cost and the balance amount of H1,536.32 crore (31 March 2024: H 1,583.54 crore ) is refundable to MOR.

(d) For computing the Lease Rental, in respect of the rolling stock assets acquired and leased to the Ministry of Railways amounting to
H Nil crore during the period ended 31^st Mar 2025 (31^st Mar 2024: H Nil crore), the Lease Rental Rate and the Internal Rate of Return
have been worked out with reference to the average cost of incremental borrowings made during the year plus the margin.

(e) The Leases executed for Rolling Stock in the year 1994-95, 1993-94, 1992-93,1991-92, 1990-91, 1989-90 and 1988-89 for
H 1050.10 crore, H 900.38 crore, H 961.82 crore, H 1,500.49 crore, H 1,170.04 crore, H 1,072.56 crore & H 860.73 crore have expired
on 31 March 2025, 31 March 2024, 31 March 2023, 31 March 2022, 31 March 2021, 31 March 2020 & 31 March 2019 respectively.
During the primary and secondary lease periods full value of assets (including interest) has been recovered from the lessee ( MOR).
These assets have outlived their useful economic life.

Note 42:

(a) (i) The Reserve Bank of India has issued Master Direction - Non- Banking Financial Company- Scale Based Regulation) Directions,

2023 vide notification DoR.FIN.REC.No.45/03.10.119/2023-24 dated 19^th October 2023 (updated as on November 10, 2023).
The Reserve Bank of India has granted exemption to the Company in respect of classification of asset, provisioning norms and
credit concentration norms to the extent of direct exposure to sovereign.

(a) (ii) Till the financial year 2017-18, the Company, being a government NBFC, was exempt from creation and maintenance of Reserve
Fund as specified u/s 45-IC of Reserve Bank of India Act, 1934. However, the said exemption has been withdrawn by the
erstwhile Reserve Bank of India (RBI) vide Notification No. DNBR (PD) CC.NO.092/0310.001/2017-18 dated 31^st May 2018.
Accordingly, the Company is now creating the Reserve Fund as required u/s 45IC of RBI Act, 1934, wherein at least 20% of net
profit every year will be transferred before the declaration of dividend. No appropriation is allowed to be made from the reserve
fund except for the purpose as may be specified by the Bank from time to time and further, any such appropriation is also required
to be reported to the Bank within 21 days from the date of such withdrawal.

The Company has a reserve of H1300.4 crore for the year ended 31^st March 2025 (H 1,282.42 crore in 31 March 2024) u/s 45IC.

(a) (i) The Finance Act, 2001 provides for the levy of service tax on the finance and interest charges recovered through lease rental

instalments on the Financial Leases entered on or after 16-07-2001. The Central Government vide Order No.1/1/2003-ST
dated 30 April 2003 and subsequent clarification dated 15-12-2006 issued by the Ministry of Finance has exempted the Lease
Agreements entered into between the Company and the Ministry of Railways from the levy of Service Tax thereon u/s 93(2) of
the Finance Act, 1994.

(ii) The GST Council in their meeting held on 19 May, 2017 has exempted the services of leasing of assets (rolling stock assets
including wagons, coaches, locos) by Indian Railways Finance Corporation to Indian Railways from the levy of Goods & Service Tax
(GST), Notification No. 12/2017 (Heading 9973) which has been made applicable with effect from 1 July, 2017. Vide notification
no. 07/2021 dated 30.09.2021 issued by the Ministry of Finance, the said GST exemption on leasing of rolling stock by Indian
Railways Finance Corporation to Indian Railways is withdrawn w.e.f. 01.10.2021

(b) (i) The Company had deposited a sum of H1,466.45 crore towards GST under the reverse charge mechanism for funds transferred

to MoR for making payments on behalf of the Company to contractors for the construction of projects for the period November
2017 to June 2018. As opined by the tax consultant, the above transaction did not involve any supply from MoR to the company,
and accordingly, no GST under RCM was payable by the Company, and hence, refund applications were filed with the GST
department for the refund of said deposit of H 1,466.45 crore. However, vide orders dated 22-09-2020 and 30-09-2020, the
said refund applications have been rejected by the additional commissioner (Department of Trade and Taxes), GNCT of Delhi. The
Company has filed 6 appeals before the first appellate authority through its attorney, New Delhi, against the rejection of refund
orders on 24 December 2020 and 29 December 2020. Hearing of the case is going on, and the last hearing was scheduled for
21^st January 2025 but the same was adjourned and the next date of hearing is yet to be received by the Company.

(ii) In the ultimate event of non-admissibility of refund claims by the GST department, the amount would be adjusted by the Company
against the GST liability on lease rentals from infrastructure assets to be leased to MoR or other GST liability in future.

Note 44:

Increase/(Decrease) in liability due to exchange rate variation on foreign currency loans for purchase of leased assets/creation of
Infrastructure assets amounting to H 1913.60 crore (31 March 2024: H 957.38 crore (payable)) has not been charged to the Statement of
Profit and Loss as the same is recoverable from the Ministry of Railways (lessee) separately as per lease agreements in respect of rolling
stock assets/memorandum of understanding (MoU) for funding of Infrastructure assets to be leased. The notional hedging cost on external
commercial borrowings inbuilt into the Lease Rentals amounting to H 232.33 crore (31 March 2024: H 232.33 crore) is refundable to
Ministry of Railways for the year ended 31 March 2025 (Ref of Note 41 C (ii)). Further, a sum of H 700.57 (31 March 2024: HNil crore) has
been recovered towards crystallised exchange rate variation on foreign currency loans repaid during the year ended 31^st March 2025. The
amount recoverable from MoR on account of exchange rate variation net of notional hedging cost and crystallised exchange rate variation
is H 6730.61 crore (31 March 2024: H 5794.75 crore).

Effective portion of (loss)/gain on account of decrease/increase in the fair value of the derivative assets (hedging instruments) amounting to
H 41.24 crore (31 March 2024:H 92.30 crore) classified as cash flow hedges has not been recognised in the other comprehensive income as the
same is recoverable/refundable to the MOR (Lessee) since the derivatives have been contracted to hedge the financial risk of MOR (Lessee).

Note 45:

The Ministry of Railways (MOR) vide letter dated 23 July 2015 had authorized the Company to draw funds from Life Insurance Corporation
of India (LIC) in consultation with MOR for funding of Railway Projects in line with finance leasing methodology adopted by Company for
funding Railway Projects in past. In addition to funds raised from LIC, the Company has also funded MoR from other borrowings and internal
accruals. Pending execution of the Lease Documents, the Company had entered into a Memorandum of Understanding with the Ministry
of Railways on 23 May 2017 containing principal terms of the lease transactions. The Company has now entered a fresh Memorandum of
Understanding with Ministry of Railways on 2 March 2021 superseding all earlier MoU/arrangement.

During FY 2021-22, the Lease Agreement(s) for Project assets funded under EBR IF 2015-16 and National Projects 2018-19 between MOR and
the Company with respect to aforesaid infrastructure assets was executed on 28^th March 2022. Similarly, during financial year 2022-23, the Lease
Agreement(s) for EBR IF 2016-17 and National Projects 2019-20 and in Financial Year 2023-24 and Financial Year 2024-25, the Lease Agreements
for EBR IF 2017-18 and EBR IF 2018-19, between MOR and the Company with respect to infrastructure assets have been executed, respectively.
Also,the execution of the Lease Agreement for EBR IF 2019-20 is under process and accordingly, the lease recievables have been recognised with
effect from 24^th March 2025. The accounting as per Ind AS 116 has been carried out for the same during the current financial year

During the year ended 31 March 2025 a sum of H 8557.46 crore (31 March 2024 H 9,490.02 crore) incurred by the Company on account
of interest cost on the funds borrowed for the purpose of making aforesaid advances has been capitalised and added to the 'Project
Infrastructure Asset under Finance Lease Arrangements-EBR-IF' , 'Project Infrastructure Asset under Finance Lease Arrangements-EBR
Special' and 'Advance funding against National Project'. The same would be recovered through lease rentals in future over the life of the
leases as per lease agreement(s) to be entered. Details are as under:

i Ministry of Railways, Government of India is the Parent of the Company. The Company leases various assets including rolling stock,
locomotives, project infrastructure assets such as railway tracks, signaling system, railways stations, bridges etc to Ministry of Railways
under finance lease model as per IndAS 116. The computation of lease income requires estimation of a number of financial metrics
such as source of borrowings, weighted average cost of capital, approved margins, exchange and interest rate variations etc which is
determined on a continuous basis in consultation with Ministry of Railways.The weighted average cost of capital and margin have been
finalised for the disburment made till FY 2022-23. No disbursement made to the MoR for the FY 2023-24 and FY 2024-25.

ii The reconciliation with the Ministry of Railways uptill FY 2023-2024 has been completed. The reconcilation of balances with MoR as
on 31^st March 2025 will be carried out in due cousre based on audited accounts of FY 2024-25. The disbursement to MOR for project
infrasturure assets for which Lease Agreements are yet to be executed stand at H1,32,876.98 crore as on 31^st March 2025 against
which utilisation statement has been received from MoR.

Note 47:

(a) The Company discharges its obligation towards payment of interest, redemption of bonds and payment of dividend, by depositing the
respective amounts in the designated bank accounts. Reconciliation of such accounts is an ongoing process and has been completed
upto 31 March 2025. The Company does not foresee any additional liability on this account. The total balance held in such specified
bank accounts as on 31 March 2025 is H 32.65 crore (31 March 2024 is H 31.99 crore)

(b) The Company is required to transfer any amount remaining unclaimed and unpaid in such interest and redemption accounts after
completion of 7 years to Investor Education Protection Fund (IEPF) administered by the Ministry of Corporate Affairs, Government of
India. During the year ended 31 March 2025, a sum of H 0.47 crore (31 March 2024:H2.81 crore) was deposited in IEPF.

Note 48: Corporate Social Responsibility

As required under section Section 135 of the Companies Act 2013, the Company has formed a Corporate Social Responsibility Committee.
The Company has undertaken Corporate Social Responsibility activities during the year, which have been approved by the CSR Committee
and are specified in Schedule VII of the Companies Act 2013.

In the year 2020-21, the Ministry of Corporate Affairs (MCA) issued the Companies (Corporate Social Responsibility Policy) Amendment
Rules, 2021 (the ""Amendment""), and the effective date of the amendments to Section 135 of the Companies Act, as made by the Companies
Amendment Act, 2019 and Companies Amendment Act, 2020, was notified as 22.01.2021.

In accordance with the amendment under the said notifications, any unspent CSR amount, other than for any ongoing project, shall be
transferred to a Fund specified in Schedule VII, within a period of six months of the expiry of the financial year. Any unspent amount pursuant
to any ongoing project must be transferred to unspent CSR Account in any scheduled bank within a period of thirty days from the end of the
financial year, to be utilised within a period of three financial years, failing which it shall transfer the same to a Fund specified in Schedule
VII, within a period of thirty days from the date of completion of the third financial year. Further, if the company spends an amount in excess
of the requirement under statute, the excess amount may be set off for three succeeding financial years against the amount to be spent.

As the notification became effective during the FY 2020-21, the Company is complying with the amended provisions of Section 135 of the
Companies Act, 2013 from the financial year 2021-22 onwards. Consequently, the Company has set aside provisions for an unspent amount
related to ongoing projects totaling H124.47 crore for the FY 2024-25 (H 80.94 crore in FY 2023-24).

(i) For the financial year ended 31.03.2025, the Company paid a gross amount of H 28.28 crore (H 27.18 crore relates to prior years), while
for the year ended 31.03.2024, the Company paid a gross amount of H 54.96 crore (H 23.63 crore relates to prior years) towards CSR
projects. The gross amount required to be spent for the year ended 31.03.2025 was H 125.58 crore, for which the Board approved
an amount of H 125.58 crore towards the CSR projects. For the year ended 31.03.2024, the gross amount required to be spent was
H 112.27 crore, for which the Board approved an amount of H112.27 crore, which includes H80.94 towards the CSR projects, H 22.33
crore towards PM CARES, H 4.5 crore each towards Swach Bharat Kosh and Clean Ganga Fund.

52.2 Transaction with Government related entities

i. The Company is a Government related entity as 86.36% of equity shareholding of the Company is held by the President of India
through Ministry of Railways, Government of India. The Company is also related to Rail Vikas Nigam Limited ,IRCON International
Limited, NTPC Limited and NTPC Renewable Energy Limited which are also government related entities and with whom the Company
has transactions. The Company has exempted from disclosure in para 25 of Ind AS 24, 'Related Party Transactions' being a government
related entity.

Note: RBI vide its erstwhile liquidity framework dated 04^th November, 2019 has stipulated the implementation of liquidity
coverage ratio (LCR) for non-deposit taking NBFCs with asset size of more than H 10,000 crore w.e.f. 01 December, 2020.
LCR aims to ensure that company has an adequate stock of unencumbered High-Quality Liquid Assets (HQLA) that can
be converted into cash easily and immediately to meet its liquidity needs for a 30 calendar day liquidity stress scenario.
However with reference to the RBI's letter no. S62/21.07.007/2021/22 dated April 26, 2021, IRFC is exempted from applicability of
Liquidity Coverage Ratio (LCR) Norms.

(xv) No scheme of Arrangements has been approved by competent authority in terms of sections 230 to 237 of the Companies Act,2013
in respect of the Company.

(xvi) The company has not provided nor taken any loan or advance to/from any other person or entity with the understanding that benefit
of the transaction will go to a third party, the ultimate beneficiary.

(xvii) The Company records all the transaction in the books of accounts properly and has no undisclosed income during the year or in
previous years in the tax assessments under the Income Tax Act, 1961.

(xviii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

c) Risk Exposure in Derivatives (currency and interest rate derivatives)

Qualitative disclosure

The Company enters into derivatives for the purpose of hedging and not for trading/speculation purposes.

The Company has framed a risk management policy duly approved by the board in respect of its External Commercial Borrowings
(ECBs). A risk management committee comprising the Managing Director and Director Finance has been formed to monitor,
analyse and control the currency and interest rate risk in respect of ECBs.

The Company avails various derivative products like currency forwards, Cross Currency swap, Interest rate swap etc. for hedging
the risks associated with its ECBs.

Note 60: Applicability of approvals/acknowledgements previously given by the Reserve Bank of India

The Reserve Bank of India has issued Master Directions - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation)
Directions, 2023, DOR.FIN.REC.NO.45/03.10.119/2023-24, Dated 19/10/2023 (referred to as 'the new Directions'). With the issue of 'the
new Directions', the instructions/ guidelines contained in various circulars/ Directions issued earlier by Reserve Bank of India stand repealed
(list as provided in section XI of 'the new Directions').

However, all approvals/acknowledgements given under Circulars/Directions mentioned in the repealed list as provided in section XI
of 'the new Directions' shall be deemed as given under 'the new Directions'. Notwithstanding such repeal, any action taken/purported
to have been taken or initiated under the instructions/guidelines having repealed shall continue to be guided by the provisions of said
instructions/guidelines.

Note 61: Disclosure as per Ind AS 8 - ‘Accounting Policies, Changes in Accounting Estimates and Errors’

Recent accounting pronouncements

Accounting Standards notified, either not yet effective or not applicable to the Company:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified the below amendments:

The following major amendments have been made;

1. Insertion of Ind AS 117 - Insurance Contracts by notification dated 12^th August 2024

This is applicable from the date of publication in the official gazette (i.e. 12^th August 2024). This is related to Insurance Companies and
is not applicable to the Company.

2. Amendment of Ind AS 116- Lease by notification dated 9^th September 2024

This amendment has clarified the Lease Liability in a Sale and Leaseback transactions. This amendment is applicable from the date of
publication in the official gazette (i.e. 9^th September 2024). However, the Company has no sale and leaseback transactions during the
period ended 31^st March,2025

3. Amendment of Ind AS 104- Insurance Contracts by notification dated 28^th September 2024

This amendment is applicable from the date of publication in the official gazette (i.e. 28^th September 2024). This is related to Insurance
Companies and is not applicable to the Company.

Note 62:

a) Previous year figures have been regrouped/ rearranged, whenever necessary, in order to make them comparable with those of
the current year.

b) Current financial statements have been presented in H crore and accordingly previous year figures have also been converted to H crore.

For M/s. OP TOTLA & Co. For and on behalf of the Board of Directors

Chartered Accountants Indian Railway Finance Corporation Limited

(FRN 000734C)

(CA Naveen Kumar Somani) (Manoj Kumar Dubey) (Shelly Verma)

(Partner) Chairman and Managing Director & CEO Director (Finance)

M.No. 429100 DIN: 07518387 DIN: 07935630

(Vijay Babulal Shirode) (Sunil Kumar Goel)

Company Secretary CFO

Place: New Delhi & JGM (Law)

Date: 28^th April 2025 FCS: 6876