Mohanraj J 05 April 2020
We borrowed ECB loan USD 10 Million from our parent company in the FY year 18-19. That time INR value was Rs 68 per USD. Now, we need to revaluation the same loan amount with 31st Mar, INR value Rs 75.3859 Per USD? and book the differences value under FX Gain/ Lossess?.
Monika Sarswat (study/Intern Trainee) 05 April 2020
There is total loss of Rs. 73.859 million Fx loss due to fall in home currency value or we can say that , rise in foreign currency from 68$ to 75.3859 $. which is shown below -
(75.3859-68)*10 million $ =Rs. 73.859 million
Mohanraj J 13 April 2020
Dear Vimal Ji, we are Receiving Dr Note from our Parent Company of USD 1000. We need to account this Dr Note in our books. So, we have to convert USD to INR. For this conversion which USD rate can we consider? RBI reference rate or Group Companies are fixing one exchange rate for USD. Ex. RBI reference rate as at 31-3-20 is INR 75.3859 = 1 USD. Our Group companies Fixed Rate INR 74.7543 = 1 USD.