Statement of Assets and Liabilities for last Five Years and Latest ...

amortisation in future, of the amount lying in Foreign Currency Monetary ItemTranslation Difference Account, is as follows:YearAmount (Rs. In Lacs)2009 – 10 3021.372010 – 11 388.115. Increase in liability due to exchange rate variation on foreign currency loans forpurchase of leased assets, amounting to Rs.31819 Lacs (P.Y. decrease in liabilityRs.10800 Lacs) has not been transferred to Foreign Currency Translation DifferenceAccount as the same is recoverable from the Ministry of Railways (lessee) separatelyas per lease agreements. The exchange rate variation on foreign currency loansrepaid during the year amounting to Rs.164 Lacs (P.Y. Rs.169 Lacs) has beenrecovered from the Lessee, leaving a balance of Rs.21951 Lacs receivable from MORas on 31-03-2009 (P.Y. Rs.9704 Lacs payable to MOR).6. Derivative InstrumentsThe Company judiciously contracts financial derivative instruments in order to hedgecurrency and / or interest rate risk. All derivative transactions contracted by thecompany are in the nature of hedging instruments with a defined underlying liability.The company does not deploy any financial derivative for speculative or tradingpurposes.(a) In respect of certain foreign currency borrowings, the company has executedcurrency swaps to hedge the exchange rate variation risk on the principaloutstanding. The outstanding position of such currency swaps as at 31 st March 2009is as follows:As on 31-03-2009 As on 31-03-2008No. ofContractsBorrowingoutstandingin foreigncurrencyNotionalINREquivalentNo. ofContractsBorrowingoutstandingin foreigncurrencyNotionalINREquivalentRemarks2 USD 105.10Million45964.45Lacs3 USD 187.14Million81858.23Lacs--1 JPY 13.00Billion53728.49Lacs1 JPY 13.00Billion53728.49LacsSwap costrecoverablefrom MOR.In respect of some of its External Commercial Borrowings, the Company hasexecuted cross currency swaps to hedge the principal outstanding and converted itsunderlying liability from one foreign currency to another. The outstanding position ofsuch cross currency swaps as at 31 st March 2009 is as follows: