Loan to Overseas Subsidiary

loan given to subsidy 

subsidy ac    dr    123

   to bank a/c              123

it will reflect in ur balance sheet as loan or advance to subsidy

and for the subsidy it will be a liability

in case of forex matter u have take the closing rate of 31 march 2011

if any increase or decrease reflect it to p&l account

An Indian company can give loan to foreign company .

Loan can be extended to an overseas entity only if there is already existing equity participation by way of direct investment, within the overall ceiling of 400% of the Indian party's net worth as on the date of the last audited balance sheet.

You have to report by way of ODI form through online to RBI . The physical copy has to be given to your authorised dealer and he will file it the same through online.