FEMA

can an indian co. bill to an indian co. in dollars in india itself ?
And the payment is made by the purchasing Co. in RS. to the selling companies bank but in accounts it is converted into dollars at tht days exchange rate.

And can we have foreign exchange revaluations on such dollars at the year end ?

Can a transaction be routed this way.
Pls tell me with reference to relevant sections of any law/act