IRFC Assistant (Finance) case studies
IRFC Assistant (Finance) · Put your knowledge to work in context.
The IRFC Assistant (Finance) exam is the recruitment test used by Indian Railway Finance Corporation, the dedicated financing arm of Indian Railways, to shortlist candidates for assistant-level finance roles. It suits commerce and finance graduates who want a public-sector finance career in a lending and infrastructure-funding environment rather than a general banking branch role. The IRFC Assistant (Finance) case studies are 5 cases and about 4,553 words.
1Sale-and-Leaseback of Freight Wagons: Lessor Classification, ECL Staging and a Lease Modification
IRFC's asset-financing desk is closing a ₹640 crore sale-and-leaseback of 22 freight-wagon rakes with a central PSU logistics company. The terms are a 12-year non-cancellable lease (the rakes have a 25-year economic life), level monthly rentals, an implicit rate of 9.5%, and a residual value guarantee of ₹40 crore given by the lessee's parent, a Navratna PSU.
945 words, about 5 min2Hedging USD 500 Million of Reg S Notes: Forward Strip, Cross-Currency Swap or Option
IRFC has on its books USD 500 million of 4.50% five-year Reg S notes issued at par, with principal repayable as a bullet in March 2030 and coupons semi-annual. The borrowing is unhedged.
691 words, about 3 min3Three Tax Positions in One Board Note: GST on Leasing, TDS Characterisation and the 115BAA Election
IRFC's tax team is finalising the FY 2025-26 position. The company has leased rolling stock to Indian Railways on a finance-lease basis; the annual lease rental is ₹1,020 crore plus GST at 18%.
962 words, about 5 min4Treasury Internal Audit: Off-List Counterparty, ISIN Mismatch and a Breached Limit
IRFC's internal audit has reviewed treasury front office for Q3. Findings: (i) a ₹150 crore purchase of an 8.40% 2031 bond of an AAA-rated NBFC was executed with a counterparty absent from the board-approved counterparty list; (ii) the deal ticket was raised on trade date, but the confirmation memo was prepared on T+3, after the dealer had seen the custodian statement; (iii) the custodian reports a holding with ISIN ending 4471, while the counterparty's confirmation cites ISIN ending 4417; (iv) intra-day exposure to that counterparty touched ₹340 crore against a sanctioned limit of ₹200 crore, and the limit report is produced weekly by the same dealer who executes trades; (v) the bond is valued using the dealer's own mark.
950 words, about 5 min5Rate-Rise Exposure on a ₹500 Crore Portfolio and a Planned ₹3,000 Crore Issuance
IRFC must repay a large maturing obligation in FY 2027-28 and plans to raise ₹3,000 crore through 10-year bonds in about three months. Meanwhile treasury holds ₹500 crore of investments: ₹300 crore in the 7.40% 2033 G-Sec (modified duration 6.2) and ₹200 crore in AA-rated 5-year NBFC paper (modified duration 4.4, trading at a spread of 145 bps over G-Sec).
1,005 words, about 5 min