Please Help: Forward hedge accounting issue

A co. takes foreign loan for capex of $ 1k million @ libor 2% on 1.1.13, repayable on 31.12.18. It enters into forward agreement to cover only principal amount @ rs 55 ($1k mio *55=5.5 crs, the liability of co is fixed in Rs)by paying premium of 6% pa semi annually. Int is unhedged. How to a/c the same. Whether AS11 or AS31 would apply. Also whether we can capitalise to borrowing cost as per AS16, the hedging premium had interest being also hedged.