Accounting treatment on forieng currency loan

Hi

Please clarify me on the following issue.

X Ltd. issued Interest Free Loan to its wholly owend Subsidiary Co. Y Ltd (Foregin Co.), $ 10 Lac. on entering this loan into books, X Ltd recorded as loan to subsidiary at the exchage rate on the date of issuing loan (say Rs.45/- per $). On closing books of accounts for 30-Sep-2011 i.e. Q2 of the year, the exchange rate would be Rs.47/- per $.

Shall X Ltd. considers the forex fluctutions (Rs.2 * $ 10L = Rs. 20Lacks) as per AS 11, while preparing the books of Q2 FY 2011-12.  There is no further agreement, between X Ltd. and Y Ltd. on repayment of this loan and the relevant exchange rate.