in a Dynamic Environment - Domain-b

Annual Report 2008-0918) Commitmentsi) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)Rs. 664.59 crores (March 31, 2008: Rs. 515.88 crores).ii)iii)Pearl Group Services Limited ("Pearl") has an equity holding of 24 percent in Diligenta Limited. Under the shareholdersagreement dated March 23, 2006, the Company has a call option to purchase all the shares held by Pearl at fixed priceof Rs. 219.62 crores (GBP 30.24 million) at the end of fourth year and Pearl has a put option to sell the shares to theCompany at the same price at the end of the fifth year.The share purchase agreement for acquisition of Comicrom S.A. provides for additional consideration, contingentupon certain conditions being met, including achieving specified earning levels in the acquired business in futureyears. The additional contingent consideration payable to the seller is subject to maximum amount of Rs. 273.47crores (USD 53.90 million). A sum of Rs. 77.66 crores (USD 19.57 million) has been paid or accrued to the previousowners of Comicron S.A. upto March 31, 2009 and has been capitalized to goodwill. The balance contingentconsideration would be recorded as and when the contingency is resolved and the consideration is paid or becomespayable.19) Derivative Financial InstrumentsThe Company, in accordance with its risk management policies and procedures, enters into foreign currency forwardcontracts and currency option contracts to manage its exposure in foreign exchange rates. The counter party is generallya bank. These contracts are for a period between one day and eight years.The Company has following outstanding derivative instruments as on March 31, 2009:i) The following are outstanding foreign exchange forward contracts, which have been designated as Cash FlowHedges, as on:March 31, 2009 March 31, 2008Foreign No. of Notional Fair Value No. of Notional Fair ValueCurrency Contracts amount of (Rs. in Contracts amount of (Rs. inforward crores) forward crores)contractscontracts(million)(million)Gain/(Loss)Gain/(Loss)U.S.Dollar 14 153.50 (92.00) 14 290.00 (25.21)Sterling Pound - - - 3 15.00 (3.91)Euro - - - 3 19.00 (11.78)ii)The following are outstanding Currency Option contracts, which have been designated as Cash Flow Hedges, as on:March 31, 2009 March 31, 2008Foreign No. of Notional Fair Value No. of Notional Fair ValueCurrency Contracts amount of (Rs. in Contracts amount of (Rs. inCurrency crores) Currency crores)OptionOptioncontractscontracts(million)(million)Gain/(Loss)Gain/(Loss)U.S.Dollar 56 1081.70 (595.12) 67 3871.50 (88.70)Sterling Pound 1 4.00 (0.85) 7 55.65 (2.23)Euro 1 5.00 (5.59) 12 99.25 (38.75)186