QUESTIION 6 Illustration 6 ABC Limited has taken a loan of USD 20,000 on April 1, 2017 for constructing a plant at an interest rate of 5% per annum payable on annual basis. On April 1, 2017, the exchange rate between the currencies i.e. USD v/s INR was $ 45 per USD. The exchange rate on the reporting date i.e. March 31, 2018 is $ 48 per USD. The corresponding amount could have been borrowed by ABC Limited from State bank of India in local currency at an interest rate of 11% per annum as on April 1, 2017. Compute the borrowing cost to be capitalized for the construction of plant by ABC Limited