Our client provides ITES services to US and books its bills in Dollar. It hedges the recepits using the product forward foreign exchange contracts,as allowed by the RBI in its circular. We have to give a certificate that,the amount hedged by our client does not exceed its actual recepits,using average of last three years recepits-i.e.Past Performance Facility.
How should I go about it? What all documents need to be checked?
For that Ankita,
You should contact to that bank or dealer with whom your client has contracted for the same.
Ask them to give you any receipt or document of calculation and if not possible then get confirmation from the management of your client.
still if not possible then you can contact to BANK who provides this service and get it calculated with $ which are hedged.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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