Two Way QuoteBuying (Bid price) and Selling (Ask price) $1 = ` 55.10 ` 56.25 Spread = Ask price - Bid price

Percent spread =

Cross Currency Rates Is the direct relationship between two non-home currencies in a foreign exchange market. Ex: US $1.59 = 1(in US)conversion to Indian Currency$ 1 = ` 55.10 1 = ` 55.10 x 1.59 = ` 87.60 OR ` 55.10x 1.59 = 1 ` 1 = 1 / 87.6= 0.01141

Settlements Business Day is a day on which both banks are open for business / settlement.Contract Date Date of agreed deal over telephone. Premium and Discount on a Currency. Cash Rate or Ready Rate Exchange of currencies on the date of the deal - Telegraphic transfer or cash or value-day deal. Tom Rate Exchange of currencies on next working day (also called Tomorrow Rate). Spot Rate(SR) Exchange of currencies on second working dayForward Rate(FR) Exchange of currencies after a certain period from the date of the deal (more than two days).

Calculation of Spread (as on 21-11-2012)

Cross Currency Spot1 month3 months6 -months ` / $55.10 / 2536 / 4992 / 56.0456.67 / 79

Calculation of Premium or Discount Premium or discount of a currency in the forward market on the spot rate (SR) is calculated as follows: Premium or Discount (Per Cent) = [FR SR) / SR] x (12/n)x 100*Where n is the number of months forwardIf FR > SR, it implies premium< SR, it signals discount

Arbitrage in Case of Forward Market (or Covered Interest Arbitrage)If the Interest rate differential is greater than the premium or discount, place the money in the currency that has higher rate of interest or vice-versa.

Illustrative ProblemSpot Rate : `. 55.10 = $ 16 month forward rate: Rs. `.56.67 = $ 1Annualised interest rate on 6 month rupee : 6%Annualised interest rate on 6 month dollar : 3%Calculate the arbitrage possibilities

Steps for Calculation of Arbitrage Possibility Calculate the annualised discount / premiumCalculate the interest rate differential Compare 1 and 2 Apply the following formula If the Interest rate differential is greater than the premium or discount, place the money in the currency that has higher rate of interest or vice-versa.Borrow Currency A (at interest) for a required period.Convert Currency A to Currency B at spot rate.Place Currency B in the money market for the required the period.Enter into a forward contract. Sell Currency B with interest for the specified period in the forward market.Convert the proceeds of B in to currency A. Repay the Debt taken at 5 above with interest. Calculate the gain.

American Depositary Receipts

Fluctuation in Exchange Rates

INTERNATIONAL CASH MANAGEMENTTeltrexs Interaffiliate Cash Receipts and Disbursements Matrix ($000)aNet denotes the difference between total receipts and total disbursements for each affiliateTeltrexs Interaffiliate Foreign Exchange Transactions without Netting ($000)

Bilateral Netting of Teltrexs Interaffiliate Foreign Exchange Transactions ($000)

Multilateral Netting of Teltrexs Interaffiliate Foreign Exchange Transactions ($000)

Flow of Teltrex's Net Cash Receipts from Transactions with External Parties with a Centralized Depository ($000)