in a Dynamic Environment - Domain-b

Annual Report 2008-09Net loss on derivative instruments of Rs. 462.63 crores recognised in Hedging Reserve as of March 31, 2009, isexpected to be reclassified to the profit and loss account by March 31, 2010.The movement in Hedging Reserve during the year ended March 31, 2009, for derivatives designated as CashFlow Hedges is as follows:Year endedYear endedMarch 31, 2009 March 31, 2008(Rs. in crores)(Rs. in crores)Balance at the beginning of the year (15.15) 73.71Gains / (losses) transferred to income statement onoccurrence of forecasted hedge transaction 21.83 (64.91)Changes in the fair value of effective portion ofoutstanding cash flow derivatives (630.73) (174.78)Net derivative (losses) / gain related to discontinuedcash flow hedges (97.81) 150.83Balance at the end of the year (721.86) (15.15)In addition to the above cash flow hedges, the Company has outstanding foreign exchange forward contractsand currency option contracts aggregating Rs. 4058.50 crores (March 31, 2008: Rs. 2141.23 crores) whose fairvalue showed a gain of Rs. 7.26 crores as on March 31, 2009 (March 31, 2008: loss of Rs. 4.46 crores). Althoughthese contracts are effective as hedges from an economic perspective, they do not qualify for hedge accountingand accordingly these are accounted as derivatives instruments at fair value with changes in fair value recordedin the profit and loss account. Exchange loss of Rs. 400.49 crores (March 31, 2008: exchange gain Rs. 283.76crores) on foreign exchange forward contracts and currency option contracts have been recognised in the yearended March 31, 2009.As of balance sheet date, the Company has net foreign currency exposures that are not hedged by a derivativeinstrument or otherwise amounting to Rs.1209.54 crores. (March 31, 2008: Rs. 1717.17 crores).28) Disclosure required by Clause 32 of the Listing AgreementAmount of loans and advances in nature of loans outstanding from subsidiaries for the year ended March 31, 2009.Subsidiary Company Outstanding as at Maximum AmountMarch 31, 2009 outstanding during the year(Rs. in crores)(Rs. in crores)MP Online Limited 1.70 1.701.70 1.70Tata Consultancy Services Asia Pacific Pte Ltd. * - 45.7537.10 40.21TCS FNS Pty Limited ** 187.97 216.99185.16 189.76TCS Iberoamerica SA *** 300.05 301.25186.89 186.89CMC Limited **** 34.49 34.4928.93 28.93Tata Consultancy Services Morocco SARL AU 12.05 12.104.15 4.15152