Devaluation of Currency (Rupee) & Contingent Liabilities

 

Devaluation of Currency (Rupee)

Decreasing rupee value in foreign exchange market. In 1991 as a immediate measure to resolve the Balance of payment (BOP) crisis the rupee was devaluated against foreign currencies. This was to boost the exports and  this led to an increase in the inflow of foreign exchange. 

Contingent Liabilities 

Liabilities that may be incurred by an entity depending on the outcome of a uncertain future events such as court case, income tax disputes, sales tax disputes etc. These liabilities are not recorded in company accounts and shown in the balance sheet.