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

Finance has exempted the Lease Agreements entered between the Company andMinistry of Railways from levy of Service Tax thereon.4. In terms of the Companies (Accounting Standards) Amendment Rules, 2009 issuedby the Government of India, Ministry of Corporate Affairs vide NotificationNo.F.No.17/33/2008/CL-V dated 31 st March 2009, the Company had an unamortizednet notional exchange rate variation loss of Rs.118.27 Lacs at the beginning of theFinancial Year in ‘Foreign Currency Monetary Item Translation Difference Account’.During the financial year 2010–11, the Company has transferred a sum of Rs. 26.35Lacs on account of notional exchange variation gain on revaluation of long termforeign currency monetary items to ‘Foreign Currency Monetary Item TranslationDifference Account’, thus leaving a balance to Rs. 91.92 Lacs in the account.Out of this, the company, in accordance with the aforesaid notification, hasamortised a net sum of Rs.181.04 Lacs (P.Y. Rs.34455.15 Lacs) to Profit & LossAccount and has credited a sum of Rs. 89.12 Lacs to General Reserve. The balancelying in ‘Foreign Currency Monetary Item Translation Difference Account’ as at theend of the year is Nil (P.Y. Rs.118.27 Lacs).5. Decrease in liability due to exchange rate variation on foreign currency loans forpurchase of leased assets, amounting to Rs.5698 Lacs (P.Y. Rs. 35484 Lacs) has notbeen transferred to Foreign Currency Translation Difference Account as the same isrecoverable from the Ministry of Railways (lessee) separately as per leaseagreements. The exchange rate variation on foreign currency loans repaid during theyear amounting to Rs.271 Lacs (P.Y. Rs. 50 Lacs) has been recovered from theLessee, leaving a balance of Rs. 19552 Lacs payable to MOR as on 31-03-2011 (P.Y.Rs.13583 Lacs).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 2011is as follows:As on 31-03-2011 As on 31-03-2010No. ofContractsBorrowingoutstanding inforeigncurrencyNotionalINREquivalentNo. ofContractsBorrowingoutstanding inforeigncurrencyNotionalINREquivalentRemarks1 USD 1.02Million478.89Lacs1 USD 3.06Million1436.67Lacs--