Almaz Impex Ltd. an Indian Company took a foreign currency loan of US $ 5,00,000 @ 10% p.a. on 1-1-2009. Interest is payable half - yearly with an instalment for principal of US $ 50000. The company closes books of accounts as on 31st March every year. Exchange Rates are:
01/01/2009 - 42.25
31/03/2009 - 42.50
30/06/2009 - 42.90
31/12/2009 - 43.90
31/03/2010 - 43.50
what will the exchange fluctuation loss/gain for the F. Y. ended on 31/03/09 & 31/03/10 respectively.
ANS : Loss Rs. 1,25,000 (31/03/2009) & Loss Rs. 4,95,000 (31/03/2010)
How this solution is arrived, please please help me in this fast i have my exam in coming nov.
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