From annual 2013
Foreign currency risk arises mainly where receivables and payables exist due to transactions with foreign undertakings and balances held in foreign currency . However , the Company is materially exposed to foreign currency risk on assets. The Company enters into forward foreign exchange contract to manage the foreign currency exchange risk associated with the anticipated sales.
As at June30, 2013 financial assets includeRs. 801.185million(2012: Rs. 394.341million) which ares ubject to foreign currency
risk against US Dollars.
At June 30, 2013,if the Rupee had weakened/ strengthened by 5%againstthe US dollar with all other variablesh eld constant,
the Company's profit for the year would have increased / decreased by Rs. 40.059 million (2012: decreased / increased by
Rs. 19.717 million), mainly a s a result offoreign exchangegains/ losses on translation of US dollar-denominated trade debts