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Please explain this Exhibit

The Euro-Rupee Carry Trade

Start The funds borrowed at 1.00% per annum bill need to be repaid in 180 days, principal and interest of EUR20,100,000. End Investor borrows EUR 20,000,000 at 1.00% interest 10 1.00% per annum or 1.005 for 180 days EUR 20,100,000 EUR20,071,324 (EUR28,676) Converts euros to Indian rupiah at INR67.40 = EUR1.00 180-day period Convert INR back to EUR at spot rate of INR68.00 = EUR1.00 INR1,348,000,000 2.50% per annum or 1.0125 for 180 days INR1,364,850,000 The Indian rupees are invested at 2.50% per annum, 1.25% for 180 days. The result , principal and interest of INR1,364,850,000, is converted back to euros at the spot rate in the market in 180 days of INR68.00 = EUR1.00. Unfortunately, the small movement in the spot rate has eliminated the interest arbitrage profits