93 / 140
91
Notes
to financial statements
NOTE 27.9 DERIVATIVES
The use of Derivative instruments is governed by the policies of the Company approved by the Board of Directors,
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of the Company.
(a) Derivatives outstanding as at Balance Sheet date
*Fc in cr
Sr
No
Particulars
Purpose
As at March
31, 2013
As at March
31, 2012
1 Forward Contracts to Sell US$ +HGJH RI ÀUP FRPPLWPHQW DQG KLJKO\
probable foreign currency sales
0.12
0.07
2 Forward Contracts to Buy US$ Hedge of foreign currency loans
0.17
0.11
3 Currency Options contracts
-Range options to Sell US$
+HGJH RI ÀUP FRPPLWPHQW DQG KLJKO\
probable foreign currency sales
0.23
1.62
4 Currency Options contracts
-Vanilla option to Sell US$
+HGJH RI ÀUP FRPPLWPHQW DQG KLJKO\
probable foreign currency sales
0.22
0.55
5 Interest Rate Swaps US$ Hedge against exposure to variable
LQWHUHVW RXWÁRZ RQ IRUHLJQ FXUUHQF\
ORDQV 6ZDS WR SD\ À[HG LQWHUHVW DQG
receive a variable interest based on LIBOR
on the notional amount
0.61
0.75
6 Currency swaps US$
+HGJH DJDLQVW ÁXFWXDWLRQV LQ FKDQJHV LQ
exchange rate and interest rate
1.00
-
(b) The year end foreign currency exposures that have not been hedged by a derivative instrument or
otherwise are given below.
*Fc in cr
Particulars
As at March 31, 2013
As at March 31, 2012
US$
€
Other FCs
US$
€
Other FCs
Debtors
3.11
0.27
0.92
1.21
0.39
-
Creditors
0.56
0.03
0.36
0.57
0.01
-
Loans Taken
1.61
-
-
2.78
-
-
(c)
Financial Derivatives Hedging Transactions:
Pursuant to the announcement issued by The Institute of Chartered Accountants of India dated March
29, 2008 in respect of derivatives, the Company has applied the Hedge Accounting Principles set out
in the Accounting Standard-30 ‘Financial Instruments : Recognition and Measurement’. Accordingly,
Derivatives are Mark-to-Market and the gain aggregating
`
0.74 cr (Previous year loss
`
0.78 cr) arising
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recognized directly in the Hedging Reserve Account. Actual gain or loss on exercise of these Derivatives or
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LI WKH KHGJLQJ LQVWUXPHQW LV VROG WHUPLQDWHG RU QR ORQJHU TXDOLÀHV IRU KHGJH DFFRXQWLQJ
*Fc = Foreign currency