By Himanshu V. Kishnadwala, Chartered Accountant
New Page 1RELIANCE PETROLEUM LTD.
— (31-3-2008)
From Accounting Policies :
Derivative Transactions :
In respect of Derivative Contracts, premium paid, provision
for losses on restatement and gains/losses on settlement are recognised along
with the underlying transactions and charged to Profit and Loss Account/Project
Development Expenditure Account.
From Notes to Accounts :
Financial and Derivative Instrument :
(a) Nominal amount of derivative contracts entered into by
the Company for hedging currency and interest rate related risks and
outstanding as on 31st March 2008 amounts to Rs.77330187080 (Previous year
Rs.47122063440). Category wise break-up is given below :
In Rupees
Particulars
|
As at
31-3-2008 |
As at
31-3-2007 |
1 Interest
rate swaps |
44132000000
|
10867500000 |
2 Currency
swaps |
14470737830
|
10500000000 |
3 Options
|
12053125000
|
24114330450 |
4 Forward
Contracts |
6674324250
|
1640232990 |
(b) All financial and derivative contracts entered into by
the Company are for hedging purposes only.
(c) In respect of outstanding derivative contracts which
are stated in para ‘a’ above, there is a net unrealised gain as on 31st March,
2008 which has not been recognised in the books, considering the principles of
prudence as enunciated in Accounting Standard 1 “Disclosure of Accounting
Policies” notified in the Companies (Accounting Standards) Rules 2006.
(d) Foreign currency exposures that are not hedged by
derivative or forward contracts as on 31st March 2008 amounts to
Rs.108075292858 (Previous year Rs.43470000000).
