HDFC bucks trend, reports MTM gains

Company

Loss

Gain

HDFC Bank

-

293.59

Bharti Airtel

204.50

-

KPIT Cummins

89.27

-

Axis Bank

71.97

-

Maruti Suzuki India

50.48

-

Infosys

28.00

-

Wockhardt

27.90

-

*differential loss on exchange rate
(Figures in Rs crore)
Around 30 companies have declared currency-linked MTM losses so far

 This is why the housing finance company has not recognised the MTM gain in its profit and loss account.  Last month, Morgan Stanley had said that HDFC has significant yen-based liabilities, of which one yen-denominated loan of $100 million was due to mature. The lender had frozen an MTM loss of Rs 16 crore on this liability and took this loss in the period ending December 2007, taking away any impact on fourth quarter earnings.  "There is so much confusion in the market that HDFC decided to disclose this number. But all this gain or loss is notional. Currency values have changed significantly in the last month and many companies would have seen improved portfolios," said a source familar with the developments.

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 ED runs Fema check on derivative deals  The enforcement directorate (ED) has issued notices to companies seeking details of derivatives transactions entered into by them.  Sources said based on the information received from some companies, the ED, which has the mandate to administer the Foreign Exchange Management Act, will decide if the provisions of the law have been violated or not. Banking sources, however, said that they have not received any such notices so far.