FOREIGN EXCHANGE TRANSACTIONS

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FOREIGN EXCHANGE TRANSACTIONS


I Transactions other than FCNR EEFC RFC accounts


i) Foreign currency balances both under assets and liabilities and outstanding forward exchange contracts and swaps are evaluated at the year end rates as quoted by foreign exchange Dealers Association of India. The resultant profit/ loss is shown as income / loss.


ii) Income and expenditure items have been translated at the exchange rates ruling on the dates of the transactions.


iii) Contingent liabilities on account of acceptances, endorsements and other obligations including guarantees and letters of credit issued in foreign currencies, shown in the balance sheet as valued at the exchange rates prevailing at the year end.


II Transactions relating to FCNR EEFC RFC accounts : Foreign currency deposits in FCNR/EEFC/RFC accounts including interest accrued and also the corresponding assets are recorded at market related notional rates, which are periodically reviewed. Assets and liabilities at the year end are revalued at rates quoted by foreign exchange dealer’s association of India.
 
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