PCR:IND 23333

ASIAN DEVELOPMENT BANK

PROJECT COMPLETION REPORT

ON THE

SECOND LOAN TO THE

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED(Loan No. 1072-IND)

INDIA

November 1996

BMREDFIERASFl IIBRDlClClIDBIIFCIKfWMSIRBI

CURRENCY EQUIVALENTS

Currency Unit - Rupee (Rs)

At Appraisal

At Project Completion(November 1990)

(July 1995)

Rsl.00 = $0.06

$0 .032$1 .00 = Rsl 8.08

Rs3 1.15

In this Report, the exchange rate of $1 .00 = Rs30 is used for calculations.

ABBREVIATIONS

Balancing, Modernization, Replacement, and ExpansionDevelopment Finance InstitutionExchange Risk Administration SchemeForeign Institutional InvestorInternational Bank for Reconstruction and DevelopmentIndustrial Credit and Investment Corporation of India Ltd.Industrial Development Bank of IndiaIndustrial Finance Corporation of IndiaKreditanstalt fur WiederaufbauMedium-sized IndustryReserve Bank of India

NOTES

(i) The fiscal year (FY) of the Government of India and ICICI ends on 31 March.(ii) In this Report, "$" refers to US dollars.

CONTENTS

Page

(ii)

1

1122

4

44567

10111212

13

1314

14

1415

BASIC DATA

BACKGROUND

A. HistoryB. Scope of OperationsC. Relationship with the Bank and Other LendersD. Rationale for the Bank Loan

IMPLEMENTATION

A. Lending PoliciesB. Loan UtilizationC. Characteristics of SubloansD. Implementation and Internal Operation of SubprojectsE. Operational Performance of ICICIF. Financial Performance of ICICIG. Financial Statements and RatiosH. CovenantsI. The Bank's Performance

Ill. EVALUATION

A. Loan AppraisalB. Implementation

IV. CONCLUSIONS AND RECOMMENDATIONS

A. ConclusionsB. Recommendations

APPEN DIXES 16

BASIC DATA

A. Loan Identification

Country2. Loan No.3. Loan Title4. Borrower5. Executing Agency6. Amount of Loan7. PCR Numbei

B. Loan Data

1. Appraisal- Date Started- Date Completed

2. Loan Negotiations- Date Started• Date Completed

3. Date of Board Approval

4. Date of Loan Agreement

5. Date of Loan Effectiveness- In Loan Agreement- Actual- Number of Extensions

6. Terminal Date for Commitments- In Loan Agreement- Actual- Number of Extensions

7. Closing Date- In Loan Agreement- Actual- Number of Extensions

8

Terms to the Borrower- Interest Rate- Maturity- Grace Period- Repayment Terms

9

Terms of Relending- Interest Rate- Maturity- Grace Period- Free Limit of Subloans- Repayment Terms

10

Interest Rate for Subloans

- India- 1072-IND- The Second Industrial Credit & Investment Corporation of India Ltd.- The industrial Credit & Investment Corporation of India Ltd.- The Industrial Credit & Investment Corporation of India Ltd.- $120,000,000.00- 394

• 3 September 1990- 18 September 1990

- 6 November 1990- 9 November 1990

- 18 December 1990

- l5Januaryl99l

- 15April1991- 21 February 1991- None

- 21 February 1993- 21 August 1993- One (for six months on 14 March 1993)

• 21 February 1995- 5 January 1995- None

- Variable interest rate (the Bank's pool-based various lending rate system)- 15 years- 3 years- 15 years including grace period of 3 years (fixed-type amortization)

- Variable- maximum 15 years- maximum 3 years- $6,000,000.00- Maximum 15 years including grace period not exceeding 3 years

Determined, at the subborrower's option, either in accordance with theExchange Risk Administration Scheme (at that time ranging between 17percent and 20 percent per annum inclusive of exchange risk premium)or by the Bank's prevailing Ordinary Capital Resources rate plus aminimum of 2 percent, with the subborrower bearing the foreignexchange risk.

11. Disbursements- Amount disbursed

$60,532,737.39

- Amount cancelled

$59,467,262.61

a) Dates

Initial Disbursement

Final Disbursement

Time Interval

25 July 1991

5 January 1995

42 months

Effective Date

Original Closing Date

Time Interval

21 February 1991

21 February 1995

48 months

C. Implementation Data

Number of Subloans 70 (net of cancellations)

2. Sectoral Distribution of Subloans:Actual Loan Lfrtilizationa

($ million)No. of

Type of Industry Amount % Cases

(i) Manufacturing:Chemicals 6.68 11.10 13Fabricated Metal Products, Machinery

and Equipment 5.25 8.70 14Electronics 3.05 5.10 1Basic Metal Products 7.59 12.54 7Textiles 21.40 35.35 16Cement - - -Miscellaneous Manufacturing- paper and paper products 0.84 1.39 3- food products 1.56 2.61 1

(ii) Nonmanufacturing industries:Services 4.20 6.94 7

(iii) Miscellaneous 9.91 16.37 8

Total Loan UiIization 6053 100.00 70

3. Size of Subloans

No. of AmountRange ($) Subloans $ million Percent

(i) Upto200,000 21 1.76 2.91(ii) From 200,000 to 400,000 11 3.11 5.14(iii) From 400,000 to 800,000 18 10.38 17.14(iv) From 800,000 to 2,000,000 12 15.60 25.77(v) From 2,000,000 to 3,000,000 2 5.01 6.27(vi) From 3,000,000 to 5,000,000 5 18.18 30.03(vii) Over 5,000,000 j. 1QZ

Total

No projected allocation made at time of appraisal.

(iv)

4. Other Breakdown of Subloans

No. of AmountSubloans $ million Percent

By Geographical Distribution

(i) Northerna 10 7.34 12.1(ii) NorthEastern b- - -(iii) Easternc 3 1.02 1.7(iv) Centrald 6 8.73 14.4(v) Western 31 28.05 46.3(vi) Southernt20 15.39 254

Total 70

By Nature of Project

(I) New 21

25.51

42.1(ii) Expansion 18

8.68

14.3(iii) Balancing, modernization, and replacement

31

26.34

43.5

Total 70

60.53

100.0

5. Subloan Types

Apreciate Number Amount ($)

(i) Above Free Limit i 6,498,660.75

(ii) Below Free Limit 69 54,034,076.64

aComprises the states of Haryana, Himachal Pradesh, Jammu and Kashmir, Punjab, Rajasthan, and the union territories ofChandigarh and Delhi.

bComprises the states of Assam, Manipur, Maghalaya, Nagaland, Tripura, Aranchai, Mizoram, and Sikkim.Comprises the states of Bihar, Orissa, and West Bengal; and the union territory of Andaman and the Micobar Islands.

dComprises the states of Madhya Pradesh and Uttar Pradesh.Comprises the states of Gujarat, Maharashtra, and Goa; the union territory of Dadra and Hagar Havell, and Daman and Diu.Comprises the states of Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu; and the union territories of Lakshadweep andPondicherry.

2

2

2

5-13 Nov 1992b

12-27 Apr 1 993C

1-3 Jun 1993

13-23 May 1 996w

2

4. Loan Portfolio Reviewand Disbursement

5. PCR Mission

E. Related Loans

2 18 Investment OfficerSr. Assistant (Private Sector)

32 Sr. Evaluation SpecialistSr. Assistant

6 Chief, CPSOSr. Programs Officer

22 Investment OfficerSr. Assistant (Project Administration)

(v)

0. Data on Bank Missions

No. of No. of SpecializationName o Mission Date Persons Person-days of Members

1. Fact-finding Mission 28 May-6 Jun 1990 3 27 Sr. Devt. Bank SpecialistFinancial AnalystCounsel

2. Appraisal Mission 3-18 Sep 1990 4 64 Sr. DevI. Bank SpecialistFinancial AnalystCounselPrograms Officer

3. Review Mission

Amount

Loan No. Date of Agreement ($ million)

To same DFI

The Industrial Credit and InvestmentCorporation of India 778 2 May 1986 100.00

To other Indian DFIs

Industrial Development Bank of India 855 15 Dec 1987 100.00lndustnal Finance Corporation of India 975 5 Jan '1990 150.00

Total 350.00

• Done in conjuction with Review Mission of ICICI I (Loan No. 778-IND: Industrial Credit and Investment Corporation of India,for $100 million, approved on 3 April 1986).Done in conjunction with PCR Mission of ICICI I (Loan 778).Done as Postevaluation Mission of lClCl I (Loan 778),A Project Completion Review Mission comprising M. Yokoyama, Investment Officer (Mission Leader), and E. P. Clave,Senior Assistant (Prc.,ect Administration).

I. BACKGROUND

1. In December 1990, the Bank approved a $120 million line of credit to the IndustrialCredit and Investment Corporation of India Limited (ICICI) to augment its foreign exchangeresources to finance development projects of private enterprises. The loan aimed primarily toassist the modernization and expansion of existing production facilities and also to serve newindustrial projects with outstanding economic merit designed to introduce new technology intoIndia. This was the Banks second loan to ICICI and broadly followed the pattern of the firstloan. The second loan became effective in February 1991 and was closed in January 1995.

A. History

2. ICICI was established in 1955 as a private sector development finance institution(DFI), under the Companies Act of 1913, to encourage and assist industrial development andinvestment in India. As a result of nationalization of major commercial banks and insurancecompanies (which were the shareholders of ICICI) in 1969, over 80 percent of its issued sharecapital was held by public sector corporations. Despite the majority public sector shareholdinguntil the 1990, ICICI maintained the dynamism of a private sector DFI. Because of the highgrowth in operations and with the development of the capital market, ICICI increased equity, aswell as domestic and international borrowing, and changed its shareholding pattern. In 1991/92ICICI made a right-cum-public share issue of Rsl .1 billion. This resulted in the decline of theshare of the public sector and the increase of individual holders. ICICI also successfully tappedits widened shareholder base through the fully converUble issue in May 1992, aggregating aboutRs.4.2 billion. In February 1994, pursuant to the liberalized guidelines of the Government allowingIndian companies to access the international capital markets, lClCl issued Euro-convertiblebonds aggregating $200 million. These bonds are convertible into shares of the company untilApril 2000. As of 31 December 1995, 69 public sector corporations had a 53.15 percentshareholding (compared with an 81.40 percent shareholding by this sector in 1990); 588,310individual shareholders held 28.01 percent compared with less than 2.83 percent in 1990; 3,831private companies held 8.92 percent, and 520 foreign shareholders held 9.92 percent. After the1992 Government guidelines allowing foreign institutional investors (FlIs) to invest in thedomestic stock market, shareholding of Flis in ICICI increased from nil in 1991/92 to 9.2 percent.A list of ICICI shareholders is presented in Appendix 1. ICICI's equity shares of face value ofRsl 00 were subdivided into 10 shares of face value of Rsl 0 in March 1995. Its shares are listedat major stock exchanges in India and were traded at Rsl 02.95 on 13 May 1996.

B. Scope of Operations

3. ICICI's operational activities consist mainly of extending medium- and long-termloans in local and foreign currencies to assist in the creation, expansion, and modernization ofmedium and large industrial enterprises, predominantly in the private sector. ICICI has playeda key role in providing foreign exchange financing. It also makes equity investments, underwritesnew shares and debenture issues, and guarantees loans from other investment sources. Sincethe early 1 980s, as a part of its strategy to provide various forms of assistance to industry, ICICIhas diversified its activities to cover financial services, such as leasing and deferred credit.

4. As the Indian economy began to be liberalized in the early 1 990s, lClCl neededto become a financial supermarket by offering a wide range of financial services to cope with

Loan No. 775-IND: Industrial Credit and Investment Corporation of India Ltd, approved on 3 April 1986 for $100million and closed on 31 July 1991.

growing opportunities and competition. Idol entered new areas of business, such as commercialbanking and asset management, and expanded its existing businesses, for example, merchantbanking services, which include capital issue management. For regulatory and strategic reasons,specialized subsidiaries were established for the following activities: investment banking,commercial banking, fund management, investor services, and broking. In addition, ICICI hasdiversified its own range of activities into several fee-based services, including custodial servicesto cater to the needs of foreign and domestic institutional investors. To facilitate the globalizationof Indian industry, ICICI has established new divisions to advise Indian corporations planning toestablish operations abroad and foreign companies looking for local partners. ICICI also providestechnology financing for development and commercialization of technology. ICICI is nowconsidering the financing of infrastructure projects in line with the Government's efforts todevelop infrastructure in the country. lClCl has already played a key role in the infrastructuresector by providing advisory services to the Central Government and state governments and togovernment agencies in the power and telecommunications sectors, and has sanctioned $486million for projects mainly in power and ports.

C. Relationship with the Bank and Other Lenders

5. The Bank's relationship with ICICI started with a loan of $100 million to ICICI inApril 1986. 10101's performance in the utilization of this first loan was fully satisfactory, and theloan was fully committed for 86 subloans with disbursement totaling $98.8 million by 31 July1991. The Bank also approved a $5.0 million line of equity for investments in medium-sizedindustries on 29 October 1987 (Investment No. 701 6-IND). The line of equity was committed for$3.3 million (ten projects), of which $1 .4 million (four projects) was disbursed. Based on itssatisfactory performance in the utilization of the first Bank loan, ICICI applied for a second loanfrom the Bank. This loan was approved in December 1990 and is the subject of this Report.

6. The International Bank for Reconstruction and Development (IBRD) has been themain source of foreign funds of ICICI: 25 loans for a total of $1 .6 billion. ICICI has also received29 loans from Kreditanstalt fr Wiederaufbau for DM374 million ($249 million). In addition, lClClhas 16 loans from governmental export credit agencies. Most of these are guaranteed by theGovernment. ICICI has also received nine loans from the Overseas Development Administrationof the United Kingdom through the Government, and a pollution control loan from the OverseasEconomic Cooperation Fund, Japan. lClCl began commercial borrowings with a bond issue in1973. Since then, and up to 31 March 1995, ICICI has concluded additional commercialborrowings consisting of 18 Euro-credits and other loans; six bond issues (three in Switzerland,two private placements in Japan, and an issue of floating rate notes); and a Euro-commercialpaper program supported by a seven-year Note Issuance Facility from a consortium ofinternational banks, In addition to the above, in February 1994, lClCl made an issue of Euro-convertible bonds in the Euro-markets. Government-guaranteed bonds were the main source ofjClCl's rupee resources until 1991 /92, but its share was only about 20 percent in March 1995.Details of foreign and local currency borrowings are given in Appendix 2.

D. Rationale for the Bank Loan

7. While financing for small- and medium-scale industry projects costing up to Rs50million had been adequately provided for by a number of state-level DFIs and financing for largeindustrial projects had been provided by an active capital market, industrial projects for medium-

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scale industry (MSI) had not been well supported. lClCl was a national level DFI that catered tothe needs of MSls. The first Bank loan to lClCl for this purpose was efficiently used. The secondBank loan is therefore designed to continue the Bank's assistance for MSIs.

8, Given the immense modernization requirements and the pressure on India'sbalance of payments despite rapidly increasing exports, there was a clear role for the Bank toprovide assistance for the importation of modern capital equipment and technology to modernizeIndian industry. lClCl needed to increase its borrowings from multilateral institutions rather thanfrom commercial sources, which had become more costly, particularly since the Gulf Crisis in1990. The resource gap in ICICI's foreign exchange requirements was estimated at $1 055 millionfor the following three years, FY 1990/91 - 1992/93. In view of the strong need to modernizeproduction facilities of existing MSls and the need to augment ICICIs foreign exchangeresources, the loan was designed, as occurred with the first loan, to augment ICICI's foreignexchange resources, and thereby enhance its financing of development projects by privatesector enterprises. While the loan aimed mainly at assisting MSI subprojects, primarily for thebalancing, modernization, replacement, and expansion (BMRE) of existing production facilities,a part of it could be utilized for new projects that have outstanding economic merit and aredesigned to utilize or introduce new technology into India or promote export production. BMREof existing facilities is more cost-effective and less risky than investment in new projects. Thetarget group under the loan was MSI projects.

9. Because of the increased size of the loans approved by ICICI at that time, as wellas ICICI's proven project evaluation capability in the course of its utilization of the first loan andthe size of loan applications in ICICI's pipeline, the free limit was fixed at $6 million and themaximum subloan size at $10 million. Compare this with $3 million and $5 million, respectively,in the first loan. To ensure utilization of the loan by MSls, the maximum size of subprojects waslimited to $45 million. To ensure the diversification of the Bank-financed subloans and to spreadthe benefit of the Bank loan to a large number of subborrowers, at least half of the loan ($60million) was required to be allocated for subloans, each with an amount less than $6 million. Theinterest rate on subloans was determined, at the subborrower's option, either in accordance withthe Exchange Risk Administration Scheme (ERAS) 1 or by the Bank's prevailing Ordinary CapitalResources rate plus minimum interest spread of 2 percent, with the subborrower bearing theforeign exchange risk. The prevailing ERAS rate of 18.5 percent was higher than the normal DFIlocal currency term loan interest rate of 15 percent, but considering the scarcity of foreigncurrency funds and the exemption of the convertibifity clause (loan to equity at DFI's option) onforeign currency subloans, the initial ERAS rate was considered acceptable to potentialsubborrowers. It was considered that ERAS was a desirable exchange risk protection schemewith a minimum involvement of the Government.

ERAS is a Government-underwriften foreign exchange risk coverage scheme whereby subborrowers under variousDFI facilities could opt for foreign exchange coverage by paying a risk premium fee. Since April 1989, ICICI,Industrial Deveiopment Bank of India (IDBI), and Industrial Finance Corporation of India (IFCI) had operated a jointERAS and established a special ERAS fund for which the Government had agreed to extend necessary supportshould the fund move into a deficit. The initial ERAS rate was set at 15 percent, to be reviewed every three monthsand adjusted as necessary. At the time of appraisal, it was ranging between 17 and 20 percent per annum inclusiveof exchange risk premium.

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II. IMPLEMENTATION

A. Lending Policies

10. ICICI operates within the framework of its Memorandum and Articles ofAssociation, Government-issued guidelines applicable to DFIs, and periodic resolutions of itsBoard. ICICI's development policies reflect the objectives and priorities defined in India'sindustrialization strategy. ICICI gives importance to the energy efficiency of the processemployed, environmental input of the project, and procedures, such as international competitivebidding ICICI for large projects.

11. lClCl has clearly defined policies governing its lending activities. Maximumexposure to any company is limited to 25 percent of ICICI's net worth, and overall exposure toan industry is limited to no more than 15 percent of ICICI's portfolio. lClCl has operated withinthe financial covenants established under the Bank's loan: a maximum 12:1 debt/equity ratio anda minimum debt-service coverage ratio of 1.1:1.

B. Loan Utilization

12. The loan initially experienced rapid subloan commitment during a period of foreignexchange shortage for both ICICI and the country. In the 12 months following loan effectiveness,commitments of $106.5 million were recorded although utilization thereafter abruptly ceased. Thisreversal resulted from the devaluation of the rupee, and the Government's decision in early 1992not to continue the ERAS. 1 The abolition of ERAS has limited the appeal of foreign currencyborrowing to only those subborrowers with export income and thereby able to hedge theirforeign currency exposure. The Bank loan had no provision for a swap option. ICICI stoppedapproving new subloans under the second loan when ERAS was suspended 2. In addition, theimpact of the subsequent Government's liberalized import policy in mid-i 992 allowing paymentsin rupees to be used to pay for imports of capita! goods (partial currency convertibility) createda demand for rupee funds and limited the demand for foreign currency loans, especially forloans denominated in currencies stronger than the dollar. The Bank's multicurrency loan wasfixed toward stronger currencies, such as the yen, and there was no mechanism to opt for adollar facility. These measures contributed to a lack of interest by subborrowers in the credit line.Other foreign exchange facilities available through the DFls were similarly affected.

13. On 19 March 1993, the closing date for subloan submission was extended by sixmonths to identify an effective foreign exchange protection mechanism for subborrowers and,thereby, enable ongoing loan utilization or alternatively close the loan with cancellation of acertain amount. However, the effective mechanism had not been found, and in September 1993,lClCl formally requested cancellation of the uncommitted amount and undisbursed amount underthe committed subloans. A total amount of $57.1 million was cancelled effective 28 September1993 comprising the uncommitted amount of $1 8.7 million and undisbursed amount of $38.4

It ceased to provide new coverage after large devaluations of the rupee in 1991 and 1 992.

ICICI also stopped making new commitment under IBRD's Second Development Loan. In March 1993. two loansfrom IBRD were cancelled - one for export industries ($86 million cancelled out of a total loan amount of $175million) and the other electronic industries ($36 million cancelled out of $101 million).

5

million. At that moment, total commitments stood at $62.9 million with an undisbursed balanceof $3.8 million. Later, another amount of $2.4 million was cancelled and the loan account wasclosed in January 1995.

C. Characteristics of Subloans

1. Size of Subloans

14. While a total amount of $106.5 million was once committed to 115 subloans, thecancellation of 45 subloans meant that total disbursements amounted to only $60.5 million to70 subloans. Of these 70 subloans, only one subloan, amounting to $6.5 million, was approvedabove the free limit ($6 million). Sixty-nine subloans totaling $54 million (89 percent of the totalloan amount) were allocated for subloans below the free limit. The subprojects are listed inAppendix 3. Appendix 4 gives the details of subloans by sectoral distribution, geographicdistribution (see also Table 1), size of subloans, project cost, purpose, and maturity.

2. Sectoral Distribution

15. Subloans to the textile industry accounted for the largest sectoral allocation (35percent) of the loan, followed by basic metal products (12.5 percent), other chemical products(9.4 percent), electronics (5.1 percent), and electrical products equipment (4.4 percent). Thissectoral distribution follows the general pattern of ICICI total loan approvals.

3. Geographical Distribution

16. Table 1 shows the geographic distribution of subprojects funded by the loans.

Table 1: Geographic Distribution of Subloan Recipients

Region Percent of Loans Percent of Value of Loans

Western 44.3 46.3Northern 14.3 12.1CentraJ 8.6 14.4Southern 28.6 25.4Eastern 4.2 1.7

4. Project Cost

17. Twenty-five projects cost from Rsl 00 million to Rs500 million, accounting for 48.7percent of the loan amount. Projects costing more than Rs500 million account for 30.4 percentin value terms. Two subprojects whose estimated total project cost was more than $45 millionwere included (see paras 43 and 44), and two more subprojects resulted in exceeding $45million because of cost overrun.

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5. Purpose

18. Subloans for balancing, modernization and replacement accounted for 44.3percent in number and 43.5 percent in value terms. Corporate expansion was the purpose of25.7 percent of the subloans (14.3 percent of the loan amount). New projects represented 30percent in number and 42.1 percent in value. All new projects were to utilize new technology orbe export oriented. However, considering that the loan aimed mainly at assisting subprojects forBMRE, because they are more cost effective and less risky than investment in new projects, theshare of new projects is considered high. If 45 cancelled subloans are included in thiscalculation, the percentage in number would be still 26 percent. In the face of the foreignexchange crisis in 1991 and 1992, ICICI tried to maximize the use of a foreign exchange creditline and the Bank supported that measure. As a result, a considerable amount of the Loan wasutilized to fund new projects.

D. Implementation and Internal Operation of Subprojects

19, The detailed data on current implementation status, operational and financialperformance, and socioeconomic impact of subprojects information management are presentedin appendices 5 to 9. However, the information provided by IClCl is not complete, especially onthe financial and socioeconomic impact. lClCl had difficulties providing accurate and timelysubproject data because (i) such subproject data are now administered by lClCl's zonal officesafter the decentralization of decision making; and (ii) most subborrowers are multiproduct!multilocation companies and, therefore, unable to provide specific subproject- related data. Alsoin the case of subloans given for the purchase of equipment, it was difficult to ascertain theprecise financial and socioeconomic impact. ICICI needs to strengthen its informationmanagement and benefit monitoring.

20. The total actual cost of the subprojects was Rs24,372 million, which was 23.6percent higher than the estimated Rsl 9,725 million. Of the 70 subprojects, 32 had cost overruns.Cost overruns arose because of the devaluation of the Indian rupee, increases in the cost of rawmaterials, and lease rental fee and duties (see Appendix 5).

21. Of the 70 subprojects financed, 68 were completed, arid two were still underimplementation as of August 1996. Thirty-nine subprojects experienced delays in theircompletion; this ranged from one to 45 months. The causes included delays in the installationof plant, machinery, equipment, statutory clearance, obtaining of import license, and technicaland labor problems, and new government guidelines that delayed public issues.

22. As of 31 March 1995, 13 subloans were in arrears. Arrears totaled $1 .8 million. Ofthe 13 subloans, one (totaling $0.07 million) was in serious arrears of more than six months. Thearrears were caused mainly by implementation and market problems. ICICI has takenappropriate measures to help the subprojects overcome their difficulties, including loanrescheduling and infusion of additional funds (see appendixes 7 and 8). The Mission requestedICICI to submit quarterly reports on the 13 subprojects to the Bank.

23. Table 2 shows the frequency of problems in BMRE projects and new projects. Asstated in the appraisal report, BMRE projects were less risky.

Table 2: Frequency of Problems in BMRE and New Projects

Type Total Prolects Cost Overruns Delay Arrears

New 21(100%) 16 (76%) 17 (81%) 8 (38%)BMRE 49 (100%) 16 (33%) 22 (45%) 5 (10%)

Tota' 70 (100%) 32 (46%) 39 (56%) 13 (19%)

24. At appraisal, the loan was expected to induce an incremental capital investmentof Rs26 billion, generate value added of Rs7.2 billion per annum and create 16,900 new jobs.The total volume of investment induced is estimated at about Rs20.7 billion. However,information on other areas is not necessarily available and therefore cannot be evaluated.Incremental employment under the 24 subprojects with available data totaled 5,049 persons, only30 percent of the projections (see Appendix 9).

25. Procurement for the subprojects was carried out in accordance with the Bank'sguidelines. International competitive bidding, international shopping, and reasonable competitionprocedures were adopted. Procurement by country is given in Appendix 10.

26. As of 31 March 1996, $1 1 .6 million or 19.2 percent of the total disbursed amountof $60.5 million had been repaid promptly, and $48.9 million or 80.8 percent was not yet due forrepayment.

E. Operational Performance of ICICI

1. Organization, Management, and Staffing

27. Growth in the volume and diversity of ICICI's business since appraisal of the loanin 1990 has resulted in several organizational changes. In the light of increasing competition toICICI and its group companies, it became imperative to set up divisions to strengthen themarketing efforts f the group. During 1993/94, in the process of diversifying activities intononfund-based services, ICICI started providing advisory services through the Advisory ServicesDivision to assist in the creation of better projects and improve the business environment. Therange of services included advice to the corporate sector in the preinvestment stages onGovernment policies and procedures feasibility studies, etc. In 1994/95, ICICI set up theBusiness Consultancy Division to provide consultancy services to the corporations with a focuson restructuring and transformation through operational strategies, manufacturing systemsarchitecture, and financial re-engineering. In May 1996, the organization was restructured witha view to providing better focus and set clear lines of authority and responsibility by creatingprofit centers and a strategic business division for individual businesses to tone up operatingefficiency. IClCl also introduced two units - one in risk management and the other in strategicplanning and development - which directly report to the Managing Director. ICICI now has fourzonal offices in the West (Bombay), South (Madras), East (Calcutta), and North (Delhi), and fivearea branch offices. The zonal offices function as profit centers and are entrusted with all loanprocessing procedures except sanctions for projects over Rs500 million. For infrastructure andoil-gas-petrochemical projects, however, ICICI has created specialized groups to provide anindustry focus rather than a geographic focus to the industries where ICICI's investment and

8

exposure levels are expected to be high. ICICI's current organization chart is presented inAppendix 11.

28. To reposition itself to provide the entire range of financial services, ICICI hasestablished specialized subsidiaries that can concentrate on their specific areas of business.Today, the ICICI group of companies consists of six companies other than ICICI. These are theTechnology Development and Information Company of India Limited, lClCl Securities andFinance Company Limited, lClCl Banking Corporation Limited, lClCl Asset ManagementCompany Limited, SCICI Limited, and ICICI Investor Services Limited. Although consolidatedfinancial statements are not required in India, ICICI is proceeding with their preparation and theymay be available from 1998.

29. lClCl is managed by its Board of Directors, chaired by N. Vaghul and comprisingleading personalities drawn from diverse fields, such as finance, banking. industry, andgovernment service. Presently, the Board of lClCl comprises (i) the Chairman of ICICI and threefull-time ICICI directors, (ii) two representatives from the Government, (iii) two representativesfrom ICICI's subsidiaries, and (iv) eight representatives of Indian industry. Since ICICI is an all-India financial institution, its directors are drawn from different regions of the country. Despite themajority shareholding of the public sector, most of ICICI's Board members are from the privatesector, thereby ensuring a satisfactory level of operational autonomy. There is no longer anyrepresentative from IDBI in line with the Government policy to eliminate cross- directorshipsamong DFIs to promote competition within the sector.

30. Effective 1 May 1996, ICICI's new Managing Director and Chief Executive Officerhas overall responsibility for the business of ICICI and is responsible for formulating policy,business planning, and strategy, and managing the day-to-day business and operation of dcl.ICICI's Deputy Managing Director and Executive Director assist in the day-to-day managementand operation.

31. As of 30 September 1995, ICICI's total staff numbered 1,223, an increase of 202or 20 percent from 1,021 in March 1991. The number of the professionals had increased from484 to 585. These professionals work in business management, accountancy, engineering, law,computer science, or economics. Even though lClCl recorded very significant levels of growthin its operations during 1990/91-1994/95 (a growth rate of approximately 40 percent per annum),staff strength grew only by about 3.5 percent per annum, mainly because of expandedcomputerization of ICICI's operations. The Mission obtained a favorable impression of theprofessional competence and work morale of the staff interviewed. This impression wasconfirmed through meetings with ICICI clients.

32. In terms of personnel administration, ICICI established, in 1994/95, an incentivebased bonus scheme under which permanent employees may significantly increase their basepay. ICICI has a staff training department that offers a comprehensive set of in-house andexternal courses and seminars. In addition, to cope with growing needs for training, anindependent training institute has been set up at Pune, with the objective of conductingresidential in-house training on an ongoing basis. The Institute began its activities in October1994 and training programs, such as management development, advanced managementdevelopment, and orientation are conducted.

9

2. Lending Operations

33. ICICI's projected operations and actual operations for 1990/91-1994/95 are shownin Appendix 12 and summarized in Table 3.

Table 3: Summary of Projected and Actual Operations (Rs million)

FIscal Year AvQraqe GrowthItem 1990/91 1991/92 1992/93 199394 1994/95 Ham (%)Project Finance Approvals

Foreign Currency Loans- Projected 7,450 9.040 10,840 13010 15,610 18.2- Actual 10,405 7,754 5,167 6,288 21,086 19.3

Rupee Loans- Projected 12,600 15,120 18,140 21,770 26,130 19.7• Actual 13,884 17,097 26,555 39,284 58,953 43.5

Investments- Projected 3,600 4.850 6,560 8,890 12,080 33.7- Actual 2,559 3,116 10.445 15,154 32,308 88.5

Guarantees- Projected 250 310 390 500 605 20.8- Loans 309 3,204 3,861 7,721 18,694 178.9

Subtotal- Projected 23.900 29,320 35,930 44,170 54,425 21.6- Actual 27,157 31,172 46,027 68,447 131,040 48.2

Non-Project Finance ApprovalLeasing

- Projected 1,500 1780 2,040 2,350 2,700 21.2- Actual 1.729 1,407 3,409 6,340 3,884 22.4

Deterred Credit• Projected 6,500 8.780 11,850 15,990 21,590 31.6- Actual 5,134 5,824 4.592 6,743 6,810 7.3

Installment Sales/Asset Credit- Projected 3,500 4,410 5,510 6,890 8.615 27.6- Actual 3,421 2,547 3,691 3,384 3,487 0.5

Subtotal- Projected 11,500 14,970 19,400 25,320 32,950 29.5- Actual 10,284 9,777 11,691 16,467 14,181 8.4

Total Approval- Projected 35,400 44,290 55,330 69,400 87,330 24.2- Actual 37,440 40,949 57,718 84,914 145,221 40.3

34. Overall, ICICI recorded significant growth in its operations for the last five years.lClCl's total actual approvals during 1990/91-1994/95 amounted to Rs366.2 billion ($12.2 billion)compared with projected approvals of Rs291 .8 billion ($9.7 billion). The average growth duringthe period was 40.3 percent per annum. Approvals in rupee loans, investments, and guaranteessubstantially exceeded projected approvals. This is still so after taking into account thedevaluation of the rupee during that period. However, approvals in foreign currency decreasedand were much lower than projected levels during the 1991/92 to 1993/94 period since thesevere balance of payment and foreign exchange crisis led to the deferment of approvals offinancial assistance for subprojects requiring foreign exchange. In the case of nonprojectfinancing (leasing, installment sale, asset credit, and deferred credit), approvals have increasedbut at a lower pace than projected because of resource constraints resulting from the hugedemand for project finance. Details of loan, equity, and guarantee approvals by industrial sector,purpose, size of project, size of financial assistance, sector, and region in 1990/91 to 1 994/95are shown in Appendix 13.

10

F. Financial Performance of ICICI

35. ICICI's loan porttolioincreasedfrom Rs61,304million in March 1991 to Rs133.570million in March 1995, which is about a 21.5 percent annual increase over five years. The shareof domestic currency loans against the total assets slighfly decreased from 58.6 percent in March1991 to 53.0 percent in March 1995, while foreign currency loans fell from 20.8 percent in March1991 to 15.2 percent in March 1995. These decreases have been offset by an increase of otherassets such as investment. ICICI's loan portfolio is reasonably diversified.

36. The quality of the loan portfolio remains satisfactory with the ratio of total arrearsto total loans outstanding varying from 5.1 percent in March 1993 to 1 .4 percent in March 1994.The ratio increased slightly from 1990/91 to 1992/93 mainly because of the credit squeeze andthe severe balance of payment and foreign exchange crisis. However, it dropped to below 2percent in March 1994 and 1995 and is considered manageable. The ratio of arrears-affectedloans to total loans has increased to 14.3 percent and 15.3 percent in March 1994 and 1995,respectively, because a few companies with large outstanding loan had arrears. By industrysubsector, the nonmetallic mineral industry had the highest arrears ratio (9.3 percent), followedby rubber (7.5 percent), fabricated metal (3.5 percent), and food (2.8 percent) in 1994/95. Thecollection ratio decreased to 77.1 percent in 1991/92 and 78.2 percent in 1992/93, but increasedto 83.2 and 94.3 percent in 1993/94 and 1994/95, respectively. Prior to March 1994, there wereno formal guidelines on income recognition and provisioning norms for financial institutions inIndia, but ICICI had followed a conservative and prudent accounting policy with regard toidentification of doubtful debt and creation of sufficient provisions. On 28 March 1994, ReserveBangkok India (RBI) issued guidelines on asset classification and provisioning to financialinstitutions. ICICI has followed the guidelines since 31 March 1994 and made the necessaryprovisions. The Mission is generally satisfied with 10101's conservative loan accounting policy andpractice (see appendixes 14 to 16).

37. The share of investments in total assets consisting of equity and debentureinvestment increased from 6.1 to 12.6 percent during the five-year period. lCICl's equityinvestment increased significantly from Rs2,849 million in March 1991 to Rsl 4,692 million inMarch 1995. lClCl acquires its debt and equity investment in securities in the following ways:direct subscription to public issues, taking up rights entitlement, exercise of conversion optionsin loan agreements, private placements, and underwriting activities. 10101 does not acquiresecurities in the secondary market for trading purposes. Earnings from dividends and capitalgains on an equity portfolio have provided a return ranging from 24.8 percent in 1991/921 to 5.3percent in 1994/95. Investments are shown at cost and ICICI had large unrealized capital gains,which can act as a cushion for unexpected losses. The unrealized capital gains also grewsignificantly from RsO.8 billion in 1990/91 to Rs7.89 billion in 1994/95. Because of rapid growthin investments during the period, a high proportion of the portfolio is yet to start providingsignificant earnings (see Appendix 17).

Boom period in the share market.

11

C. Financial Statements and Ratios

38. ICICI's projected and actual balance sheets, income statements, and cash flowstatements for 1990/91 -1 994/95 are presented in appendixes 18 to 20.1 lClCl's total assetsincreased from Rs77,235 million in 1991/92 to Rs196,051 million ($6.5 billion) in 1994/95, anaverage annual rate of growth of 26.2 percent. Until 1991, a major part of ICICI's rupee resourceswas raised through government-guaranteed bonds with maturities of over 10 years, whilematurities of a major part of rupee assets were between 5 and 7 years. ICICI has increased anddiversified its funding resources with a shorter maturity instrument to respond to the increase ofrupee loan approvals, as well as to reduce the asset/liability mismatch. Rupee resourcemobilization efforts have been increasing as rupee loan approval escalated from Rsl 3.9 billionto Rs59,0 billion. In contrast, loan approvals of projects from foreign exchange declined from1991/92 to 1993/94. The depreciation of the rupee vis-a-vis the dollar is the principal reason forthe slow mobilization of foreign exchange funds by ICICI. In addition, the impact of theGovernment's liberalized import policy, which allows rupee payments to liquidate the importationof capital goods, created a natural demand for rupee funds. Due to the shift of the loan portfolioto rupee loans, lClCl limited its foreign currency resources in favor of local currency funding. Thisshift caused a slowdown of utilization of the Bank loan and resulted in cancellation of half theloan amount of $59.5 million. This scenario could not have been forecasted.

39. The share capital has increased from Rsl ,1 46 million in 1990/91 to Rs3,01 3 millionin 1994/95 because of the public-cum-rights issue of equity shares in 1991/92 and a furtherrights issue of fully convertible debenture aggregating to Rs4,21 2 million in 1992/93, which wasfully converted by 31 March 1995. The reserves have also increased from Rs5,059 million in1990/91 to Rsl 8,085 million, in 1994/95. Consequently, total equity has increased consistentlyfrom Rs6,205 million to Rs21 098 million, representing a compound annual growth rate of 35.8percent. ICICI's dividend rate has increased from 22.0 percent in 1990/91 to 35.0 percent in1994/95. lClCl's long-term debt/equity ratio decreased from 10.3:1 in March 1991 to 6.0:1 inMarch 1995, and was well within the covenanted ceiling of 12:1 under the Bank loan. Capitaladequacy was 11 .9 and 10.9 percent in March 1994 and 1995, respectively, and higher thanRBI's requirement.

40, lClCl has maintained satisfactory profitability during the period under review. Alongwith the expansion of its loan portfolio, ICICI's interest income increased substantially fromRs6,045 million in 1990/91 to Rsl 6,406 million in 1994/95. The total income of lClCl has shownan average annual growth rate of about 29 percent during the review period. Fund-basedactivities are the predominant source of ICICI's income. While the contribution from nonfund-based activities, such as commissions and fees, has been increasing, the amounts are still notvery significant and constituted less than two percent of the total income in 1994/95. Interest costis almost 90 percent of ICICI's total expenses. Although the cost of borrowing has increased,interest spread has been increasing. ICICI has maintained tight control on noninterestexpenditure, particularly administrative expenses. As a portion of total assets, administrativeexpenses have increased marginally from 0.34 percent in 1990/91 to 0.35 percent in 1994/95.Total income after tax increased at an average annual rate of about 30 percent.

The formats are based on those used in the Appraisal Report for calculation of covenanted financial ratios andcomparison between projections and actual. Some figures are different from those of audited reports becauseof regrouping and reclassification of items arid gross/net presentation.

12

41. ICICI's return on average equity ranged from 20.4 to 26.5 percent. ICICI hasmaintained the debt-service coverage ratio above the 1.1:1 limit agreed to under the loan. ICICI'sfinancial position is considered strong and solvent. Highlights of ICICI's financial performancefrom 1990/91 to 1994/95 are given in Table 4.

Table 4: Highlights of ICICI's Financial Performance (1990/91 - 1994/95)

Item

Total assetsLoan portfolioEquity investmentsDebentureArrearsNet income after taxesEquityLong-term debt

RatiosLong-term debt/equityCurrent ratioDebt service coverage (times)

Return on equity (%)Interest spread (%)Earning spread (%)Admin. expenses/average

total assets (%)Collection ratio (%)Total arrears to total

loans outstanding (%)Dividend rate (%)Capital adequacy (%)

1990/91 1991/92

77.235 108,353

61.304 77.631

2,849 3,504

1,890 2,279

2,096 3,530

1,348 2,013

6,205 8,960

64,040 85,647

FIscal Year

1992193 1993/94

130,775 160,262

95,686 110,269

4,942 8,469

2,567 4.925

4,986 1.671

2,141 3.096

12,064 14.808

97.730 105.025

Average

1994/95 Growth Rate(%)

196,051 26.2

133,570 21.5

14,692 50.7

10,045 51.8

2,687 6.4

3,904 30.5

21.095 35.8

127,462 18.6

10.3

9.6

8.1

7.1

6.0

2.4

2.8

2.0

1.4

1.5

1.5

1.8

1.4

1.7

1.4

24.6

26.5

20.4

23.0

21.7

2.7

3.6

4.4

4.6

5.5

3.4

4.8

5.2

5.0

4.9

0.34

0.30

0.34

0.38

0.35

81.0

77.1

78.2

83.2

94.3

3.3

4.4

5.1

1.5

1.9

22.0

24.0

26.0

30.0

35.011.9

10.9

H. Covenants

42. The loan covenants were generally complied with except for some late ornonsubmission of reports. Because of the geographic spread and the multidivision/multilocationnature of its subborrowers, ICICI faced some delays in submitting periodic reports and compilingrelevant socioeconomic and financial information for each completed subproject financed underthe loan. No subproject completion report was submitted after the completion of eachsubproject. The overall project completion report was still being prepared as of August 1996. Thedetails on compliance with covenants are in Appendix 21.

The Bank's Performance

43. The Bank took some measures when ICICI and the loan faced problems causedby the Government policy and economic situations. To maximize the utilization of the first loanunder the critical foreign exchange situation, the Bank accommodated IClCl's request to transfersome slow disbursing subloans of the first loan to the second loan. At the end of March 1991,when lClCl faced serious problems of not being able to fund projects it had already committedto because its foreign currency deposits with RBI were frozen due to the critical balance ofpayment situation in India, the Bank exceptionally accommodated lClCl's request for specialconsideration of subprojects that were outside the normal eligibility criteria of the Loan. These

13

subprojects were 14 service sector projects and two industrial projects costing over $45 millioncommitted by ICICI well before the end of March 1991. At the request of ICICI to cancel part ofthe loan amount, the Bank clarified, before taking a decision, that ICICI would fully avail of otherfinancing facilities for those subborrowers who had already been committed from ICICI but hadnot been fully disbursed, and that ICICI had enough resources from others. 1 The Bankauthorized ICICI's request to maintain the amortization schedule of the first five years even aftercancellation without paying a prepayment penalty. This was with the understanding that thesituation was caused by the abolishment of ERAS and the introduction of partial currencyconvertibility. These measures and the flexibility of the Bank to judge and respond to therequests are considered appropriate and were acknowledged by ICICI.

44. After the loan was approved in 1990, no formal project administration or reviewmissions were fielded but the Indian Resident Mission periodically visited ICICI to superviseprivate sector projects and as part of the Project Completion Review Mission in 1992 andPostevaluation Mission in 1994 for the first loan, both considering the difficulties of ICICI in furthercommitting to the second loan. In 1993, the Loan Portfolio Review and Disbursement Missionvisited ICICI to discuss the cancellation of the loan amount. In 1995, two Bank missions visitedlClCl, both were in connection with the processing of the Infrastructure Financing Facility forwhich ICICI was being considered as one of the participating financial institutions. The time spentby the Bank in processing a subloan application averaged 14.2 days. The Bank did not explicitlydiscuss the proper distribution of subloans and did not appropriately instruct ICICI as to whatkind of information should be included in periodic reports nor requirement of submission ofPCRs for each subproject due within six months of its completion. When the transfer of someprojects from the first to the second loan was approved, the Bank did not explicitly discuss theeligibility of one of the subprojects whose total project cost exceeded $45 million.

Ill. EVALUATION

A. Loan Appraisal

1. Distribution of Subloans

45. The purpose of the Bank loan was to provide foreign exchange resources tosupport lClCl's lending program mainly for modernization and expansion of existing productionfacilities of private medium-sized enterprises and partly for new industrial projects designed tointroduce new technology in India. The distribution of ICICI's subloans by industry sector, size,and location has satisfactorily reflected these purposes. However, distribution by purpose didnot necessarily reflect the original design of the loan.

2. Covenants

46. The covenants included under the loan were generally appropriate in thecircumstances prevailing at the time of appraisal. lClCl has generally complied with thecovenants except for the timely submission of required reports.

ICICI had at that time entered into an umbrella credit line agreement with Germany, Switzerland, United States ofAmerica, Belgium, France, and Netherlands.

14

3. Quality of Appraisal

47. Loan appraisal was generally sound and thorough including a comprehensivereview of the industrial sector, financial sector, ICICI's institutional capabilities, and policyframework closely related to DFI operations. Although a careful economic analysis could havementioned possibilities of currency devaluation, it was difficult to forecast, at the time ofappraisal, all the scenarios that led to the cancellation of half of the loan amount. Whenappraising project proposals, ICICI evaluates their viability on technical, financial, and managerialcriteria. In evaluating technical feasibility, the viability of the plant size, provisions for expansion,product-mix, choice of technology, and need for phasing are considered, utilizing previousexperience with similar projects. When assessing the profitability of the project, importance is laidon projected demand for the product to be manufactured. From a managerial perspective, ICICIexamines the overall management set-up and effectiveness of various controls and systems ofthe company. While ICICI reviews all the above aspects, the project is considered in its totalitywith the strong points viewed against the weak. The Mission is generally satisfied with ICICI'sprocedures and the quality of its project appraisals.

B. Implementation

48. Because of the slowdown in usage of foreign currency loans, the Bank receiveda request from ICICI to cancel $57.1 million of the uncommitted or undisbursed balance of theloan. The loan was underutilized because of changes in market conditions, the depreciation ofthe rupee vis-a-vis the dollar, the appreciation of other currencies against the dollar, abolishmentof ERAS, and liberalized import policy in the form of the introduction of partial currencyconvertibility. Finally, the total cancelled amount was $59.5 million, 49.6 percent of the loanamount.

49. During implementation, lClCl monitors the progress of assisted projects throughquarterly reports, regular visits to project sites and factories, and the appointment of a nomineedirector in some cases. If the project begins to falter, every attempt is made by ICICI to providethe support needed. Of the 70 subprojects financed, however, 24 subprojects experienceddelays of more than six months in their completion and most had cost overruns. This indicatesthe need for further efforts by ICICI to minimize such delays and overruns.

50. lClCl should continue to strengthen the management information system forproject benefit analysis and monitoring information on subprojects. ICICI had difficulty to getaccurate and timely information from its zonal offices.

IV. CONCLUSIONS AND RECOMMENDATIONS

A. Conclusions

51. The project is considered partially successful. Although subprojects under the loancontributed to modernization of Indian industry, the Bank's credit line has achieved to a limitedextent its objective to augment lClCl's foreign exchange resources and enhance the financingof development projects by private enterprises. This was a result of half of the loan amount beingcancelled because of unexpected changes in Government policy. The contribution of the loan

15

to economic development cannot be assessed because of the lack of information provided tothe Mission. ICICI has performed satisfactorily since appraisal, with significant asset growth,sound financial position, and profitable operations. It has basically been an efficient financialinstitution through which to channel Bank funds to development projects in the private sector inIndia. With liberalization of the financial sector, including interest rate deregulation, ICICI will bemore exposed to competition in respect of both assets and liabilities. Active asset/liabilitymanagement will be increasingly required. With its new management, organizational change, aprogram of training, and other measures, ICICI appears to be adjusting to the new competitivemarket for better performance and growth.

B. Recommendations

52. Based on the review, the following recommendations are made:

lClCl should

(i) review its information management under the process of decentralization of operationand continue to develop the computerization and networking of its operations;

(ii) make a stronger effort to comply with covenants that were agreed at the time ofappraisal;

(iii) provide more realistic estimates of implementation schedules to avoid delays inimplementation and cost overruns; and closely examine how outside factors such asimport duties, possible devaluation of currency, and price increases may cause costoverrun in some of the projects;

(iv) continue efforts to achieve loan collection targets and maintain arrears at amanageable level;

(v) continue efforts to prepare consolidated financial statements as early as possible;

(vi) continue to review its corporate strategy in the light of changes that are taking place;and

(vii) continue to adhere to RBI guidelines in such areas as asset classification,provisioning, and capital adequacy.

The Bank should

(i) be more consistent in its loan administration reviews - even if review missions arenot mounted, the Bank should periodically monitor whether the profiles of subloansreflect the purposes of the loan and whether loan covenants are being complied with;

(ii) continue to monitor ICICI's progress of loan collection and arrears; and

(iii) monitor the performance of the ICICI group as a whole and not just ICIC) itself.

Number

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

16

APPENDIXES

Page

32

33

34

36

37

38

39

40

41

42

43

19

20

21

23

25

28

29

31

17

18

Title

List of Shareholders

Details of Foreign and Local Currency Borrowings

Subprojects, Commitment Dates, Disbursements,and Outstanding Amounts

Characteristics of Subloans

Implementation Data on Subprojects

Financial Performance of Subprojects

Operational, Financial, and Technical Problems

Current Status of Subprojects

Economic Performance of Subprojects

Details of Procurement by Country of Origin

Organization Structure of Industrial Credit andInvestsment Corporation of India

Summary of Actual and Projected Operations

Analysis of Loan, Equity, and Guarantee Approvals

Loan Portfolio Arrears

Collection Performance

Sectoral Distribution of Portfolio and Arrears

Equity Investment Operations

Actual and Projected Income Statements

Actual and Projected Balance Sheets

Actual and Projected Cash Flow Statements

Compliance with Loan Covenants

Cited On(page, para.)

1,2

2,6

5,14

5,14

6,19

6,19

6,19

6,19

6,19

7,25

7,27

9,33

9,34

10,36

10,36

10,36

10,37

10,38

10,38

10,38

12,42

Appendix I

17

LIST OF SHAREHOLDERS(As of 31 December 1995)

No.of No.ofShareholders Shares

AmountJRs mUlion) Percent

Indian Shareholders

Official Sector

Life Insurance Corp. of IndiaUnit Trust of IndiaNew India Assurance Co. Ltd.General Insurance Corp. of IndiaNational Insurance Co. Ltd.State Bank of IndiaOther Official Sector

Private Sector

1 50,424,633 504.25

1 51,364,278 513.64

1 20,598,320 205.98

1 11,818,596 118.19

1 9,425,096 94.251 3,717,449 37.17

63 12,827,518 128.28

69 160,175,890 1,601.76

16.7317.046.843.923.131.234.26

53.15

IBP Company Ltd.Housing Development Finance Corp. LtdAssociated Cement Co. Ltd.Corporate ShareholdersIndividual Shareholders

Total Indian Shareholders

Foreign Shareholders

U.K. BanksUSA BanksGerman BanksJapanese BanksOther Foreign Banks & Cos.Foreign Individuals

TOTAL

1 1,436,566 14.37 0.481 1,933,100 19.33 0.641 750,640 7.51 0.25

3,828 22,757,239 227.57 7.55

588,310 84,418,096 844.18 28.01

592,141 111,295,641 1,112.96 36.93

592,210 271,471,531 2,714.72 90.08

4

460,496 4.60

0.15

3

893,193 8.93

0.300.00

4

694,780 6.95

0.23

172

27,672,678 276.73

9.18

337

160,615 1.60

0.05

520

29,881,762 298.81

9.92

30 301293 3,013.53 10

00

1,551 1000000

47.4200

1950.63448.56673.06327.01

00

1,484.01

Fioai,ng8 00FloatingFloatingFloatingFloatingFloatingFloatingFloating2.50FloatingFloe un9FloatIng0FloatingFloatingFloatingFloating

0

12.50

13 - tO0 7 - 130

14 5 - '6.00

14,5 - 1800

14.5- 1000

14.5- 16.00

14.5- 1600

135- 17.50

13 - 160

15.5- 17.50

135- 16.50

11.50 '4

0

t3 50

12.5 - 1450

IC - t20

14-s0

1300

II - 12.700

8910111112137.5-Il12

Kreditantrell

Appendix 2

18

DETAILS OF FOREIGN ANO LOCAL CURRENCY SORRO WINGSa. ot 31 March 1895

(in As milIron)

Year of F,nal Gross Amount Amount slit.,,, _______________ ApprovalMaturityAmountOutstandinglobsDrawnInteresthale

FORE ION CUR 9N cv B ORRQ WINGS

A With Government Gua,antso

A0B Loans 778f1072

,98s.- logo 2003- 2006

6.098 00

3,322 92 0 FloatIngFrench C,edIl Bankirrg Faclllty/Treaury 1898 1999- 1017 12794

6988 0 250-809

IBRO 1643, 2930. 2991. 3059. 3094 1990- 1989 1999-2009

18.15780

9.691 58 0 Floating901/lB.) Loan I987 1997 9.089 00

3.68740 0 525-550

1(1W Loans IX - XXVI 1970- 1958 2000- 2038 8.684 88

885137 0 525--8751(1W Loan, XXVII - XXVIII 1902- 1093 2032-2043

1,791 73

1 11394 677 76' FloalingSmut Francs Bond. 1988- 1988 1995- 1Q99 4.209 18

4.200,18 0 525- 5 75

B Without Gov.mn,.nt Guarenlo.

AN? Short Term LosnComrsorrw.aIIth Dcvi CorpDEG LoanDresdner $30 mn LoanEuropean Community (EC)) VIINIIIMulticurrancy Loan )S)Mutticurr.ncy Loan 1DM)Mutticurrency Loan (JY)B.lgran Credll LoanFF Ciedit Banking $200 Mn. LoanJapanese Yen B II 901 Loan1(1W Export LoansSBC Credit SF $20 Mn I nanSw.dl,h Eeportk,.dII I/IlUBS Cr.dlt SF 20 Mn LoanlB.) $50 Mn LoanBOO (UK) $70 Mn. LoanExum Bank Loan

RUPEE BORROWINGS

A With Gov.mrn.nt Guaranlas

DebenturesICtCt Bonds

B. Without Government Guarantee

Convertible DebentuiesPrivate Placed Bond,1091 Pvl Placed BondsGICNICEllAOICUlltICUlI Term LoanUTI Special 0.posllAGISCIANZ Grindlay. BankDCM Osewoo Motors Ltd8 1091PunJ Lloyd LtdCorporation BankGallFiled DepositCerlifiesIe. 01 Oeposil,Shorl-t.rm Oepo.It from SBIBonds to S1OBI

'99419871988I 994t985- 1988l95019991989199219941988199119971Q88- 19941092¶99019901992

19791993-19951990- 19901993-19951993-19951993- 19951993- 19951993- 19951991-19951993- 19951991-19921991-199419941995189519941Q93- 1994190$1995

199410951994

19951999200320001996-1996'9991999199920002000200020001998t999- 200719991998'9971890

19991997- 200021995-1096200120012001200120011998-20012000-20021995- 19961995- 199919951095189519951995-199819951905

1995-199619951998

517 9757.735 23

3.525 30187. 5011250187.501125015000

7.500009.300007.270771.20000

500 005000010000

5.000 001962

250.002.00000

27.9712,379.501.750 001,000.00

1.0740026807

321 572954 004166091266

1208.8831225 466

697290300

4.29600252 .937

06 19335 789146. 577

1240.21780894.108

5179710.70023

900.33191 25108 75161 25108.7514500

7,425.008,850007.270771.20000

500 00500 0010000

5,000001960

250002.000 00

27 9712.37950

1,750.001.00000

1 07400506 Cl47267954 00

2.005 341,113 001,471 801.494 47

183056,360 004.296002.250 80

843.121.175,41

543 121,590002,226.001,590.00

1978 1998 429.00 429.001979-1991 1999-2011 28.21025 28.210 25

0 0.50 12.0

C !_qov.!!iO1eOt

Rupee Loan (V) ¶962 1996 20000 4000 0UKlindiaGrsnt 1984 1999 25308 3355 0S-u,. Mixed C,.dll 1986 2001 81468 191.00 0lB 2660 (C.m.nl Loan) 1956 2007 2 59965 1.58463 730 153tB2O26 IN (IFIA) 1Q87 2006 3.33900 1.80278 1421.50lB 3196 in Cemenl Reenir 1Q90 2012 4,73820 3.05853 167867tB 3334 in Polluiton Control 1991 2012 1.59000 86764 722 363IDFIKIW 1981-1000 1986-2002 2960 877 0IBRO 3119 1990 2005 63800 62376 12243

ADB - Asian Development Bank: BAD - International Bank to, Reconstruction & Development: ISJ Indusinel Bank of Japan: Kl'fur Welderaulbau: AN? - AustralIan and New Zland: DEG Ge,msn Development Company: F = F,ench Franc: Mn - million

19 Appendtx 3

SUBPROJECTS, COMMITMENT DATES, DISBURSEMENTS. AND OUTSTANDING AMOUNTS

Commitment Disbursement Principal Principal TotalNo, Name ot Subproject Date Not Yet Due Overdue

14/5/9127/519130/5/9131/5/9131/5/9131/5/9130/5/9130/5/9130/5/9125/5/9 125/6/9128/5/9125/7/9125/7/9130/7/910 1/8/9115/8/9115/8/9115/8/9115/8/9115/8/9115/8/9120/8/9122/8/9122/8/9123/8/9130/8/9130/8/9111/9/9111/9/91I 2/9/9l12/9/9117/9/9117/9/9117/9/9118/9/9116/9/9118/9/91

07/1 0/9107/1 0/919/10/919/10/9118/9/9118/10/9107/1 0/910 7/1 0/9110/9/91

09/10/9122/10/9122/10/9116/10/9124/1 0/9 124/10/9128/1 0/9130/1 0/9108/11/9115/11/9122/11/9102/12/9109/1219111/1219116/12/9120/1 2/9113/01/9213/01/9213/01/9206/02/9206/02/9227/02/9223/03/92

Parasrampuria Synthetics Ltd.2 Modem Woollens Ltd.

4

Bharat Forge Ltd.5 CT Cotton Yarn Ltd.6 Thapar Waterbase Ltd

7

Morgan Industries

11

Indian Rayon & lnds. Ltd

16

Gurat Narrnada Valley Fertilizers

18

Indian Acrylics Ltd.20 Crompton Greaves Ltd

21

Flawless Diamond Ltd

23

Kesar Petroproducts Ltd

24

Standard Batteries Ltd

27

Escort Tractors Ltd.

26

Hytaisun Magnetics

30

ABS Plastics

31

Poona Medical Foundation

32

Dr. Balabhai Nanavati Hospital

35

Malar Hospitals Ltd.36 Chinnamal ENT Medical Foundation

37

Y.R.Gaitoncle Medical Foundation38 Trichur Heart Hospital Ltd.

41

Advanced Medical Care Ltd.

43

Hindustan Devt. Corp. of India

45

Triveni Pool lntairdril Ltd.

47

Multi Arc India Private Ltd

48

Krishna Glass Ltd

51

SWIL Ltd.

53

IFGL Refractories Ltd.

54

Herdillia Unimers Ltd

55

Shri Krishna Strips Ltd.56 Regency Ceramics Ltd.

57

Mafatlal Industries Ltd

59

Shirke Paper Mills Ltd.

60

Usha Telehoist Limited

61

Hindustan Pipe Udyog Ltd.62 DCW Ltd.64 VXL India Limited65 WS Industries India Ltd.

86

Modem Suitings Ltd.

66

Asian Paints Ltd

69

ECE Industries Ltd.

70

Hoechst India Ltd

71

SRF Ltd.72 Tata Ceramics Kerala Ltd

73

Palani Andavar Ltd.

74

Motor Industries Co. Ltd.

75

Mafatlal Industries Ltd

76

Escorts Ltd.

77

Sona Steering Systems Ltd.

78

Zenith Fibres Ltd

80

Nippon Denro Ispat Ltd.

81

Coastal Papers Ltd.

82

Irplast Adhesive India Ltd.

83

Porrits & Spencer Ltd.

84

Escorts Tractors Ltd.89 Crompton Greaves Ltd

91

Bombay Dyeing & Mfg.Co.Ltd93 Supreme Industries Ltd94 REPL Engineering Ltd

98

SKF Bearings (India) Ltd.

100

India Valve Ltd.

103

Matatlal Fine Spg & Mfg.Co.Ltd

105

Ballarpur Industries Ltd.

1 06

Arvind Mills Ltd.

107

Kelvinator of India Ltd.

1 09 ,J.F.Laboratories Ltd

110

India Foils Ltd.

111

Indian Rayon & Ind. Ltd

114

Morgan Industries Ltd.Total

Subloan repaid.

1,880 823 0 823

509 167 3 170

2,457 618 0 618

2,549 1.298 118 1,416

1.584 850 75 925

573 217 117 334

79 4 0 4

106 106 0 106.

828 276 184 460

601 229 0 229

205 120 0 120

22 6 6 12

294 115 0 115

576 180 0 180

3,080 1,034 689 1,723

162 65 0 65

22 6 0 6

1,025 308 0 308

634 430 0 430

40 2 0 2

1.040 58 0 58

1,313 516 345 861

133 71 0 71

4,231 1.797 106 1,904

603 67 0 67

261 70 0 70

222 32 0 32

69 9 0 9

471 235 20 255

198 0 0 0

84 20 4 24

592 108 0 108

849 255 0 255

324 0 0 0

709 543 0 543

215 10 0 10

726 484 0 484

1,601 972 0 972

243 91 0 91

630 260 90 350

132 0 0 . 0

382 145 0 145

25 9 0 9

98 39 0 39

3.793 2,525 0 2,525

90 27 0 27

461 68 0 68

6,499 4,224 0 4,224

159 23 0 23

1,369 741 0 741

737 369 0 369

57 31 0 31

14 14 0 14

503 250 0 250

329 115 0 115

664 29 0 29

340 130 0 130

1,155 750 0 750

1,157 643 0 643

297 164 0 164

487 116 0 116

60 15 0 15

3.757 2,348 0 2.348

3,316 1.824 0 1,824

58 32 0 32

425 238 0 236

1,804 908 0 908

478 264 0 264

80 4 0 4

75 39 25 66

60,533 28,534 1,783 30,316

Appenthx 4

20

CHARACTERISTICS OF SUBLOANS

Item Subloans (As mn) (S mn) Percent -

A. By Sectorel Distribution1. Food products2. Textiles3. Paper and paper products4. Basic industrial chemicals5. Other chemicals6. Metal products7. Machinery (except electricals)8. Electrical equipment9. Transport equipment10. Services11. Electronics12. Non-metallic Mineral Products13. Miscellaneous

Total

B. By Geographical Distribution1. Northern2. North- Easternb

3. Easternr

4. Central'15. Western6. SoutherW

Total

C. By Size of Subloans1. Upto P.s 5 million2. As5-lOmilliori3. RslO-20 million4. Rs20-50 million5. Rs50-100 million6. RslOO-200 million

Total

D. ByProjectCost1. Less than RslO million2. RslO-30 million3. Rs30-50 million4. Rs50-100 million5. RslOO-500 million6. RsO.5- 1.0 billion7. Over Rsl .0 billion

TotalE. By Purpose

1. New2. Expansion3. Balancing, modernization, &

replacementTotal

F. By Maturity1. Upto2-4years2. 4-5 years3. 5-loyears4. Above 10 years

Total

1 49.53 1.58 2.616 613.02 21.40 35.33 24.78 0.84 1.44 26.94 1.02 1.79 154.80 5.66 9.47 219.09 7.59 12.52 21.97 0.75 1.28 77.24 2.64 4.44 51.16 1.86 3.17 119.67 4.20 6.91 57.75 3.08 5.17 279.45 9.31 15.41 17.17 0.60 1.0

70 1,712.57 50.53 100.0

10 208.43 7.34 12.1

3 28.18 1.02 1.76 245.44 8.74 14.4

31 771.40 28.05 46.320 459.12 15.39 25.470 1712.57 60.53 100.0

20 43.59 1.49 2.510 72.12 2.59 4.319 287.43 10.46 17.312 412.25 14.51 24.04 238.60 9.89 16.35 658.58 21.60 35.7

70 1,712.57 60.53 100.0

7 11.79 0.42 0.714 159.56 5.80 9.6

5 51.01 1.81 3.08 127.97 4.61 7.6

25 819.57 29.49 48.76 241.35 8.38 13.85 301.32 10.03 16.6

70 1,712.57 60.53 100.0

21 724.90 25.51 42.118 237.70 8.68 14.331 749.97 26.34 43.5

70 1,712.57 60.53 100.0

1 27.41 1.04 1.74 22 0.79 1.3

65 1,663.16 58.70 97.0

70 1,712.57 60.53 100.0

Comprises the states of Maryana, Himachal Pradesh, Jammu and Kashmir, Punjab, Rajasthan, the unionterritories of Chandigarh and Delhi.Comprises the states of Assam, Manipur, Maghalaya, Nagalarxt, Tripura, Arnachal. Mizoram, and Sikkim.Comprises the states of Bihar, Orissa, West Bengal, and the union territories of Andennan and Micobar Islands.Comprises the states of Madhya Pradesh and Utter Pradesh.Comprises the states of Gujarat, Maharashtra, Goa, and the union territories of Dadra and Hagar Haveli, andDernan and Diu.Comprises the states of Andhra Pradesh, Karniataka, Kerala. Tamil Nedu. and the union territories ofLakshadweep and Pondicherry.

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Action taken by lClCl

The company was able to finance additional costswith assistance from lCICl.

The company is planning to restructure itsterm liabilities.

IInstitutions have vented relief and concessionsto the company.

No action required as there is no direct impact on therepayment schedule to dcl.

Negotiating OTS.

Undisbursed assistance cancelled and revised projectappraisal and funded.

Reschedulement of term loans in March 1995, ICICIproposes to recall the loans as the client is a willfuldefaulter,

lClCI had postponed the RL instalment

U..)01

>'0

0.

-.4

(0

OPERATIONAL FINANCIAL AND TECHNICAL PROBLEMS

MCLUI

Completion Capacity Operational, Financial, and Technical ProblemsName of Subproject Date Utilization (%) _________________

1 Parasrampue Synthetics Ltd. Mar 1992 100 None.

2 Modern Woollens Ltd. Mar 1991 67 The company faced problems on accountof foreign exchange fluctuations.

4 Bharat Forge Ltd. Mar 1991 NA None.

5 CT Cotton Yarn Ltd. Oct 1992 88 The company is facing financial problems due toadverse foreign exchange fluctuations.

6 Thapar Waterbase Ltd. Jul 1993 NA None.

7 Morgan IndlEtries Ltd. Feb 1993 16.1 Quality problem in product. which led to 1cmacceptability.

11 India Rayon and Industries Ltd. Jun1991 NA None.16 Gujarat Narmada Valley Ferlilizers Mar 1991 111.97 None.

18 Indian Acrylics Ltd. Dec 1994 76.5 The company Is facing financial problems due tovery large debt.

20 ()omptoneaves 1991 NA None.

21 flawless Diamond Ltd Apr 1992 60 Delay of II months on account of obtainingapproval for making a public Issue,

23 Kesar Petroproducts Ltd Sep 1992 82 High consumption of raw materials and utilities,and a quality problem.

24 Standard Battteries Ltd 1995 NA Labor unrest during 1992/93 leading to 10months lockout in this parlod and subsequentreduction of project scope.

27 Escort Tractors Ltd.. Dec 1991 85 None.

28 Hytaisun Magnetics Jan 1993 NA Initial teething problems and Is currently In arrears

30 ABS Plastics Mar 1993 94.25 No major problems encountered, However thecompany requested the postponement of theinstalment of the rupee loan,

completion Capacity Operational, Financial, and Technical Problems Action taken by ICICIDate UtilizatIon (%)Name of

31 Poona Medical Foundation32 Dr.Balabhai Nanavatl Hospital35 Mater Hospitals Ltd.36 Chlnnarnmal ENT Medical37 Y.R.Galtonde Medical38 Trlchur Heart Hospital

41 Advanced Medical Care

43 Hindustan Devt, Corp. of India

45 Triveni Pool Intairdnl Ltd.

47 Multi Arc India Private Ltd48 Krishna Glass Ltd.51 SWIL Ltd.

53 $FGL Refractorles Ltd.

54 Herdillia Unimers Ltd

55 Shri Krishna Strips Ltd

56 Regency Ceramics Ltd

57 Mafatlal Industries Ltd59 Shirke Paper Mills Ltd.

60 Usha Tetehoist Limited

61 Hindustan Pipe Udyog Ltd.62 DCW Ltd.64 VXL India Limited65 WS Industries India Ltd.

66 Modern Suitings Ltd.

Oct 1991 NAJul1991 NAApr1992 NAOct1990 NAMar1992 NAJan1993 NA

Oct 1992 15

Apr1994 NA

Jul1991 89

Jan 1992 tOOMar 1991 NA

NA

Feb 1993 NA

Aug 1993 12

Jun 1992 NA

Sep1995 90

Dec 1991 NAMar1992 NA

Sep 1992 30

Mar1992 NAMar 1993 NADec 1995 NAMar 1992 NA

Jun 1992 62

None.None.None.None.None.None.

Occupancy loan. Consequent entries are low andcompany is not able to service interest dues.

None.

The operations of the rigs depend upon thecontracts from ONGC and others.

None.None.Project deferred due to labor unrest,

None.

Delay in statutory clearances resulting in increasein land lease rentals, exchange fluctuations and dutyincrease, inadequate basic engineering details, andinflation

None.

Project was delayed by more than four years becauseof delays in obtaining import license establishing lettersof credit. Hence the cost escalation by more then 100%.

None.None.

Cost overrun due to devaluation of rupee against thedollar, international demand recession in granite industry,hIgh cost of raw slabs, labor problems

None.None.None.None.

Cost overrun and delay was on account of exchangefluctuation.

Relief package being worked out.

No action taken as company is regular in meeting itsrepayment obligations.

Rehabilitation package worked out that envisagesconversion of loan to equity, reschedulement of termloans, deferment of interest, and waiver of liquidateddamages.

Provided relief by way of funding of interest andreschedulament of term loans.

Ctose monitoring.

The company has implemented the project.

C)

0.

00)(aCDr\)

Name of Subpject

68 Asian Paints Ltd.69 ECE Industries Ltd.70 Hoechst India Ltd71 SRF Ltd.72 Tate Ceramics Ltd.73 Palani Andavar Ltd.74 Motor Industries Company Limited75 Mafatlal Industries Ltd.76 Escorts Ltd.77 Sona Steering Systems Ltd.

78 Zenith Fibres Ltd

80 Nippon Denro Ispat Ltd.81 Coastal Papers Ltd.

82 lrpiast Adhesive India Ltd.

83 Porrits & Spencer Ltd.84 Escorts Tractors Ltd.

89 Crompton Greaves Ltd91 Bombay Dyeing & Mfg. Co. Ltd.93 Supreme Industries Ltd94 REPL Engineering Ltd98 SKF Bearings (India) Ltd.

100 India V&ve Ltd.103 Mafatlal Fine Spg. & MVg. Co. Ltd.105 Ballarpur Industries Ltd.106 Arvind Mills Ltd.

107 Kelvinator of India Ltd.109 J.F. Laboratories Ltd

110 India Foils Ltd.Ill Indian Rayon & Industries Ltd.114 Morgan Industries Ltd.

Completion Capacity Operational, Financial, and Technical Problems Action taken by ICICIDate Utlliza!

Aug1992 NAMar1992 50Mar 1992 92Mar1989 66.2Apr1995 NAJun 1992 NADec 1991 NAMar1994 NAMay1992 NANov1992 71

Nov 1992 83.6

Jul 1992

NADec 1991

NA

Oct1992

14

Apr 1993Jun 1992

80

Oct 1992

0.44Mar 1993

NAAug 1992

81Mar 1993

65Mar 1992

NAJan 1992

NAJul 1992

NAMay 1993

NA.Jun 1992

NA

Jun 1992

NANA

Aug 1993 73Jun 1991 NAFeb 1993 NA

NoneNoneNoneNoneNoneNoneNoneNoneNoneNone

Delay in German Commissioning Engineers. New SEBIguidelines resulted in delays in public issue. Powerconnections delayed.

None.None.

Cost overrun on account of currency fluctuations,competitive market, and inadequate working capital.

None.

Inadequate demand

None.None.None.None.None.None.Cost overrun due to higher cost of imports because ofrupee devaluation.None.Adverse exchange fluctuations and delay in installationof plant and machinery. Company has been unable tostabilize operations due to technical problems and hasnot commenced commercial production. It has beenunable to separate amino acids to the required levelof purity.

None.None.Low produot quality, which led to lower capacityutilization and initial losses.

No action taken as company is regular in meeting itsrepayment Obligations.

One-time settlement has been approved.

Nil. Overall company performance satisfactory.

No action needed from ICICI because the company ismeeting its repayment obligations.

The company has requested the lead institution IDBI toreschedule the principal instalments and fund defaultedinterest payments.

Cost overrun was appraised and finenced by institutions.

NA =Not applicable/not available: ICICI = Industrial Credit and Investment Corporation of India: ONGC = Oil and Natural Gas Corp Limited SEB? Securities and Exchange Board of India:IDBI = Industrial Devt. Bank of India.

Project deferred due to labour unrest.The company has not commenced commercial production, it is still in the implementation stage.

I'.)

>D

x-'I

CQ

CD

0)

Appendix 8

28

CURRENT STATUS OF SUBPROJECTS

Amourt Outstanding as on Pree.nt Arrears (ADB) in S '000ICIG Financing as on 31 March 1995

No. Name of the Subborrower ADS Other Sources ADB Other Sources Lesathan Between Over(S '000) (Rs '000) (5 '000) (Rs '000) 3 months 3-6 months 6 months Total

1.880

66,500

823

0

0

0

0

0

509

88,200

170

0

3

0

0

3

2.457

98,000

618

0

0

0

0

0

2,549

258.800

1.416

1,100

118

0

0

118

1,584

181.000

925

120

0

75

0

75

573

87.3.00

334

11,300

24

24

69

117

79

5,920

4

N .A. 0

0

0

0

108

4,859,970

106

0

0

0

0

0

828

1.742,600

460

0

92

92

0

184

601

10,300

229

0

0

0

0

0

205

18,000

120

0

0

0

0

0

22

362,000

12

0

6

0

0

6

294

30,000

115

0

0

0

0

0

576

0

180

0

0

0

0

0

3,080

193,500

1 .723

38

345

345

0

689

162

112,000

65

0

0

0

0

0

22

0

6

0

0

0

0

0

1,025

4,000

308

0

0

0

0

0

534

149,000

430

C

0

0

0

0

40

0

2

0

0

0

0

0

1 .040

0

58

0

0

0

0

0

1,313

52.600

861

0

345

0

0

345

133

115,000

71

0

0

0

0

0

4,231

393,640

1.904

0

6

100

0

106

603

221,700

67

13,409

0

0

0

0

261

29,410

70

0

0

0

0

0

222

87,000

32

0

0

0

0

0

69

1.000

9

0

0

0

0

0

471

148,000

255

18,288

20

0

0

20

198

562,500

0

0

0

0

0

0

84

49,320

24

0

4

0

0

4

592

105,400

108

9

0

0

0

0

849

0

255

0

0

0

0

0

324

21900

0

0

0

0

0

0

709

139,660

543

0

0

0

0

0

215

26,700

10

0

0

0

0

0

726

295,000

484

0

0

0

0

0

1,601

290,000

972

0

0

0

0

0

243

0

91

0

0

0

0

0

630

262.500

350

0

70

20

0

90

132

0

0

0

0

0

0

0

382

8,400

145

0

0

0

0

0

25

9,700

9

0

0

0

0

0

98

196,400

39

0

0

0

0

0

3.793

224,000

2,525

0

0

0

0

0

90

0

27

0

0

0

0

0

461

0

68

0

0

0

0

0

6,499

87,000

4.224

0

0

0

0

0

159

0

23

0

0

0

0

0

1,369

36,000

741

0

0

0

0

0

737

30,300

369

0

0

0

0

0

57

0

31

0

0

0

0

0

14

0

14

0

0

0

0

0

503

25,500

250

0

0

0

0

0

329

0

115

0

0

0

0

0

664

0

29

0

0

0

0

0

340

0

130

0

0

0

0

0

1,155

115.000

750

C

0

0

0

0

1,157

33,400

643

0

0

0

0

0

297

44.200

184

0

0

0

0

0

487

10,500

116

0

0

0

0

0

60

0

15

0

0

0

0

0

3.757

0

2,348

0

0

0

0

0

3,316

1.185,000

1.824

0

0

0

0

0

58

428,000

32

0

0

0

0

0

425

0

236

0

0

0

0

0

1,804

312,300

908

0

0

0

0

0

476

75,000

264

0

0

0

0

0

80

5.920

4

0

0

0

0

0

87.300

66

0

13

26

60,533 13,980,340 30,316 44,263 1.045 668 59 1,783

Pazasrampuria Synthetics Ltd.2 Modern Woollens Ltd.4 Bharat Forge Ltd.5 CT Cotton Yarn Ltd.6 Thapar Waterbase Ltd.7 Morgan Industries Ltd.

11

Indian Rayon & Inds. Ltd.16 Gujarat Narmada Valley Fertikzers18

Indian Acryls Ltd.20 Crompton Greaves Ltd.21 Fiawless Diamond Ltd.23 Kesar Petroproducts Ltd.24 Standard Batteries Ltd.27 Escort Tractors Ltd.28 Hytaisun Magnatics30 ABS Plastics31 Poona Medical Foundation32 Dr. Balabhai Nanavati Hospital35 Malar Hospital Ltd.36 Chirmammal ENT Medical37 Y.R.Gaitonde Medical38 Trichur Heart Hospital41 Advanced Medical Care43 Hindustan Devt. Corp. of India45 Triver Pool lntaickiI Ltd.47 Multi Arc India Ltd.48 Krishna Glass Ltd.51

SW1L Ltd.53 IFGL Refractories Ltd.54 Herdil Unimers Ltd.55 Shri Krishna Strips Ltd.56 Regency C.ramcs Ltd.57 Malatlal Industries59 Shirke Paper Mills Ltd.60 Usha Telehoist Limited61 Hindustan Pipe Udyog Ltd.62 DCW Ltd.64 VXL India Limited65 WS Indusbies India Ltd.66 Modern Suitings Ltd.68 Asian Paints Ltd.69 ECE lndatries Ltd.70 Hoechst India Ltd.71

SRF Ltd.72 Tata Cerams Ltd.73 Palani Andavar Ltd.74 Motor lnd*,atries Ltd.75 Mafatial Industries Ltd.76 Escorts Ltd.77 Sona Steering Systems Ltd.78 Zenith Fibres Ltd.80 Nippon Denro Ispat Ltd.81 Coastal Papers Ltd.82 Irplast Adhesive India Ltd.83 Porrits & Spencer Ltd.84 Escorts Tractors Ltd.89 Crompton Grieves Ltd.91 Bombay Dyemg & Mfg. Co. Ltd.93 Supreme Industries Ltd.94 REPI. Engri.ering Ltd.98 SKF Bearings (India) Ltd.

100 India Valve Ltd.103 Mafatt& Fine Spg. & Mtg. Co. Ltd.105 Ballarpur Industrias Ltd.106 Arvind Mills Ltd.107 Kelvnator of India Ltd.109 J.F. Laboratories Ltd.110 India Foiia Ltd.111 Indian Rayon & Inds. Ltd.114 Morgan Industries Ltd.

Total

Subloan repaid

ECONOMIC PERFORMANCE OF SUBPROJECTS

Name c Subbroject

Paresran,ufla Synthetics Ltd.2 Modem Woollens Ltd.4 Bharat Forge Ltd.5 CT Cotton Yam Ltd.6 Thapar Watethase Ltd.7 Morgan Industries Ltd.

11

Indian Rayon and Industries Ltd.16 Gujarat Narmada Valley FertilizersI0

Indian Acrylics Ltd.20 Crompton Greaves Ud21 Flawless Diamond Ltd23 Kesar Petroproducts Ltd24 Standard Batteries Ltd27 Escort Tractors Ltd.28 Hytaun Magnetics30 ABS Plastics31 Poona Medical Foundation32 Dr.Balthhai Nanavati Hospital35 Malar Hospital Ltd.36 Chinnamal ENT Medical Foundation37 Y.R.GaInde Medical Foundation38

Trichur Heart Hospital Ltd.41 Advanced Medical Care Ltd.43 Hindustan Devt. Corp. of India45 Triveni Pool Intalidril Ltd.47

Multi Arc India Pvt. Ltd48 Krahna Glass Ltd.51

SWIL Ltd.53 IFGI Retractorles Ltd.54 Herdillia Unimers Ltd55 Shri Krishna Strips Ltd.56 Regency Ceramics Ltd.57 Mafatlet Industries Ltd.59 Shirke Paper Mills Ltd.80 Usha Teleho'at Limited61 Hindustan Pipe Udyog Ltd.62 DCW Ltd.64 VXL India Limited85 WS Industries India Ltd.66 Modem Suitings Ltd.

Subtotal

E,q,orts ($000) Bports/Sales (%)incremental Incremental Payroll Incremental Cost per Job Incremental Value Added1st_yew je& Actual Employment (No.) (Rs) () (Rs)

Eat. Act. Eat. Act. lstvew 2ndveer Eat. Act. Eat. Act. Eat. Act. Eat. Act.

50 3 350 602 0 4 30 36 0 0 0 0 0 0

1 .730 1 .1 50 I .800 1,800 23 30 340 355 5,800,000 0.500,000 17058 18309 70000000 95000000

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA 219 N/A 6,819 91 87 391 250 12,500,000 8.760,000 31969 35040 0 4600000

10 4 12 8 81 49 250 280 8,000,000 10,400.000 24000 37143 1317 583

NA 219 NA 1,840 0 2 152 160 3,300.000 3,700,000 711,000 925,000 41,900,000 (1.100,000J

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

0 0 0 0 NA NA 380 435 14,400,000 19,600,000 0 0 0 0

- 4,817 - 7,095 8 11 NA NA NA NA NA NA NA NA

176.400 6,815 2,058 52,699 100 100 NA 306 62 50 187,213 258,360 NA NA

- 463 - 005 30 40 170 225 61 66 35,882 29,333 NA

- 79 - 139 1 1 NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

- NA -. - - - 4 4 NA NA NA NA NA NA N.)

NA NA NA NA NA NA 410 325 8,800,000 12,300,000 21,463 37,046 NA NA

(D

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA 408 169 5,187,000 NA 31,000 NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA 5.796 NA 14 NA 700 NA 40,000.000 NA 88,100 NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

- - .-. - - - 27 30 636,000 769,773 23,555 25,659 NA 1/

NA NA NA NA NA NA (80) NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA 2 0.03 NA NA NA NA NA NA NA NA

- - - 178 - 8 312 292 207 193 66,346 65,955 NA NA

NA 33 NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA 30 NA NA 100 - 5 NA NA NA NA

NA NA NA NA NA NA 180 NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

3,684 NA 4,825 NA 100 100 329 93 4,200,000 NA 464.436 216.539 71.46 60

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA 130 145 4,000,000 4,200,000 30,789 28,966 NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

3,150 2,400 3,375 3,250 61 76 NA NA NA NA NA NA NA NA

>185,024 15,983 12,420 81,829 506 522 3,433 3.905 64,823,330 106,230,087 1,644,691 1,766,250 111,901,388 98500,643

a.x(0

(0(3

-- - Eportsj$'0o0) Eports/Sales (%) Incremental Incremental PeyroH Incremental Cost per Job Incremontnt Value AddedName c4 Subbroject _1syear 2nd year Actual Empl'mentj___JRs) ffi)_ - -- (RsJ______________ - Eat Act Eat Act. lstyear 2nyew Eat. Act Est Act. Eat - Act. Eat. Act.

68 Asian Paints69 ECE Industries Ltd.70 Hoechst India Ltd.71

SRF Ltd.72 Tata Ceramics Kerala Ltd.73 PalanI Andavar Ltd."74 Motor Industries Ltd.75 Mafatlal Industries Ltd76 Escorta Ltd.77 Sona Stee.iing Systems Ltd.78 Zenith Fibres Ltd80 Nippon Denro61

Coastal Papers Ltd.82 lrplast Adhesive India Ltd.83 Porrits & Spencer Ltd.84 Escorts Tractors Ltd.89 Crompton l3reaves Ltd91 Bombay Dyeing & Mfg. Co. Ltd.93 Supreme Industries Ltd.94 REPL Engineering Ltd98 SKF Bearings (India) Ltd.

100

India Valve Ltd.103 MafatIaJ Fine Spg. & 1Mg. Co. Ltd.105

Ballarpur Industries Ltd.106 Arvind Mills Ltd.107

Kelv,,ator of India Ltd.log J.F. Laboratorias Ltd110

India Foi Ltd.Ill

Indian Rayon & Industries Ltd.114 Morgan Industries Ltd.

SubtotalTotal

NA NA

NA" NA"

NA NA

0 0

NA NA

NA NA

- 809

NA NA

NA NA

0 0

NA 0

NA NA

NA' NA'

NA NA

0 13

NA NA

NIL NIL

NA NA

NA NA

- 118

NA NA

NA NA

NA NA

NAdNA"

NA NA

NA' WA'

NA' NA'

6.811 5.103

NA NANA - NA

6,811

191,835 21.826

NA NA NA NA NA NA NA NA

NA" NAb NA" NAbNAb NA" NA" NA"

NA NA NA NA NA NA NA NA

0 0 0 0 205 227 30,000,000 29,200,000

NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA

- 618 12 11 - NA - NA

NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA

0 0 0 0 110 95 45 46

NA 15 NA 0.02 NA 200 5,600.000 NA

NA NA NA NA NA NA NA NA

NA' NA' NA' NA' NA' NA' NA' NA'

NA NA NA NA 380 435 14,400,000 19,600,000

o 9 4 2 NA NA 0 0

NA NA NA NA NA NA NA NA

NA NA NA NA 209 23 4,500,000 1.450,000

NA NA NA NA NA NA NA NA

NA NA NA NA 150 160 2,200,000 2.400,000

- 163 25 19 50 NA NA NA

NA NA NA NA NA NA NA NA

NA NA NA NA 5 4 500.000 600.000

NA NA NA NA NA NA NA NA

NA" NA" NA" NA" NA" NA" NA" NA"

NA NA NA NA NA NA NA NA

NA' NA' NA' NA' NA' NA' NA NA'

NA' NA' NA' NA' NA' NA' NA' NA'

9,150 5,159 12 11 40 NA 2.600,000 NA

NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA

- 9,150 5,964 52 43 1,149 1.144 59.800,045 53,250,046

21,570 87,792 556 565 4,582 5,049 124,623,375 159,480,133

NANA"NA

146,000NANA

NANA

I .890,00055,363

NANA'

00

NA21,531

NA14 .667

NANA

100.000NA

NA"NA

NA'NA'

125,000NANA

2,352.56 1

3,997.252

NA NA NA

NA" NA" NA"

NA NA NA

130,000 1.200,000 1,150,000

NA NA NA

NA NA NA

N/A NA NA

NA NA NA

NA NA NA

2,186,316 NA NA

NA NA WA

NA NA NA

NA' NA' NA'

0 0 0

0 0 0

NA NA NA

63,043 NA NA

NA NA NA

15,000 43.700,000 45,500,000

NA NA NA

NA NA NA

150,000 NA NA

NA NA NA

NA" NA" NA"

NA NA NA

NA' NA' NA'

NA' NA' NA'

NA 67600000 61800000

NA NA NA

NA NA NA

2,544,359 112.500,000 108.450,0004,310.609 - 224,401,388 206,950.643 --

Note: NA - Not avajable or Not ApplicthleData required is not escertainal,Ie.Since th is a mutti—productjmuhl—Iocation corpany, hence break—up for data required is not availal,Ie.Data required is not applical,Ie since the loan was utilized for Import o equipment.Unitwise information is not availthle.Data not possible to determine as this is an equpment loan.Data not avaitalle as the company is yet to stabilize its operatior.

a

r0

(0ID

r\)

Appendix 10

31

DETAILS OF PROCUREMENT BY COUNTRY OF ORIGIN($ million)

Country

AustriaBelgiumCanadaDenmarkFinlandFranceGermanyHong KongItalyJapanNetherlandsChina, People's Republic ofKorea, Republic ofSpainSwedenSwitzerlandTaiwanUnited KingdomUnited States of America

Amount

0.2095.0650.1720.0690.0152.858

11.5152.6492.6486.5691.3460.9600.6640.5881.2163.5321.3185.827

13.313

Percentage

0.358.370.280.110.024.72

19.024.384.37

10.852.221.591.100.972.015.842.189.63

21.99

Total 60.533 100.00

[Sr. VP Corporate Non-Banking[ommunication [nance_Compa

-- IGM Plannir1

G ResourcesCredit Treasury

StrategicBusiness

ZonalOtt ices

GMBusiness

Consultancy

Deputy GMnd Group I

Infrasirticture

Deputy GMmd. Group II

Oil, Gas, HeavyChencaI

Sr VPAdvisoryService

Deputy GMTechnologyand Service

GMWestern

Pune 1

GMNorthern

GMEastern

GMSouthern

Bange}

Cmbor

ORGANIZATION STRUCTURE OFINDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA

Managing Director& CEO

Deputy Managing

ExecutiveDirector

Director

Advisor to ASDand Infra Group

GM Economic GMand Market Inter-GroupResearch Coordination

GM I I ExecutiveRisk I Assistant to

ManagemeJ [ MD & CEO

[ L 'H[*1 [i

GM 1 1Account, Tax GM Dep GM I GM

Foreign Legal Secretarial I HADExchange

I!AUdit CO & Sr VP GM I.J HAD &

AccHot1

Facdihes

Sr. VP II Salary Adrnin,

Banking Div 11 & Emniovee

Rupee Debt Benets

Ii PrincinatSr VP II ICIdI

Taxation 1 Training

_________Ljnsttute

Sr.vPForeign

Exchange

GM StrategicPlanning andDevelopment

StratI rDeP. GM1Plannrng& I Into -Po!y [ Tech dination

-oCDJa.-S

-. 5,673.2 - 9,673.5 - 6,116.0 - 5,111.4 - 13,043.5- 11,766.2 - 10,151.3 - 20,273.2 - 20,895.4

34,705.2

- 31.7 - 229.5 - 339.6 - 1,140.8 - 146.6- 539.6 - 528.2 - 639.9 - 1,374.7 - 5,421.6- 18,010.7 - 20,582.5 - 27,568.7 - 28,522.3 - 53,316.9

- 3.5.3 - 1,378.6 - 1,971.4 - 2,272.9 - 2,838.3- 1,179.3 - 1009.0 - 2,789,3 - 5,304.0 - 599.3

- 2,214.5 - 2,488.0 - 3,029.6 - 2,509.0 - 2,524.9- 6,996.1 - 4,875.6 - 7,790.3 - 10,085.9 - 5,9.5- 24,936.8 - 25,458.1 - 35,359.0 - 38,608.2 - 59279.4

- 3,558.1 - 7,2l1.2 - 7,271.1 -. 4,703.5 - 10,357.4- 9,340.1 - 10,661.2 - 18,625.6 - 25,368.3 - 38,591,5- 31.7 - 1.9 - 6.0 - 230.3- 1,134.4 - 797.4 - 1,423.2 - 5,610.3 - 12,986.1- 14,064.3 - 18,671.7 - 27,319.9 - 35,688.1 - 62,165,3

- 2,651.4 - 1,843.9 - 1,560.5 - 2,211.8 - 2,598.5- 1,106,1 - 780.4

1,749.5 - 4,009.2 - 1,743.1

- 46.3 - 13.0- 1,807,2 - 2,203.7 - 2,521.9 - 2,223.4 - 2,285.8- 5,611.0 - 4,641.0 - 5,831.9 - 8,444.4 - 6,527.4- 19,675.3 - 23,512.7 - 33,151.8 - 44,132.5 - 68,792.7

SUMMARY OF AC11JAL AND PROSECTED OPERA11ONS(In Rs million)

1990/91

1991/92 1992/93 ________ 1993/94 1994/95I. Act Var

i. Act Var. Prol. Act Var. Ct Act Var.Fiscal Year

APPROVALS

Foreign Currency LoansRupee LoansGuaranteesInvestments

Deferred CreditLeasingInstalment Sale/Asset Credit

Total

COMMITMENTS

Foreign Currency LoansRupee LoansGuaranteesInvestments

Deferred CreditLeasingInstalment SaleAsset Credit Scheme

Total

DISBURSEMENTS

Foreign Currency LoansRupee LoansGuaranteesInvestments

Deferred CreditLeasingInstalment Sak'Asset Credit S,heme

Total

7,450 10,404.7 2,954.7 9.040 7,754,3 (1,285.7) 10,840 5,166.6 (5,673.4) 13,010 6287.7 (8,722.3) 15,610 21,086.2 5,476.212.600 13,683.8 1,283.8 15,120 17,097.9 1,977.9 18,140 26,554.8 8,414.8 21,770 39284.0 17,514.0 26,130 58,952.6 32,822.6

250 308.8 58.8 310 3203.7 2,893.7 390 3,860.5 3,470.5 500 7,720.9 7,220.9 605 18,693.5 16,088.53,600 2,5593 (1 .040.7J 450__3.1l5.lj) 6,560 10,444.7 3,884.7 8,890 15,154.2 6264.2 12,080 3230&i 20,228.1

23,900 27,156.6 3,256.6 29,320 31,171.6 1,851.6 35,930 46,026.6 10,096.6 44,170 68,448.8 24,276.8 54,425 131,040.4 76,615.4

6,500 5,134.0 (1,366.0) 8,780 5,823.5 (2,956.5) 11,850 4,599.0 (7.258.0) 15,990 6,742.5 (9,247.5) 21,590 6809.5 (14,780.5)1,500 1,728.9 228.9 1,780 1,407.0 (373.0) 2,040 3,408.6 1,368.6 2,350 6,340.3 3,990.3 2,700 3,884.3 1,18433,500 3420.8 (79,2) 4,410 2,546.5 (1,863.5) - 3,690.8 3,690.8 6,890 3,384.2J505.6) 8,615 3,486.8 (5,128.2)

11,500 10,283.7 (1 .216.3) 14,970 9,777,0 (5,193.0) 13,890 11,691.4 (2.198.6) 25,230 16,467.0 (8,763 0J 32,905 14,186(18,724A)35400 37,440.3 2)40 44,290 40,948.6 (3,341.4) 482O57i0789L0 6400 84,913.8 15,5l35 87,330 145221.0 5791.0

>(

N)

1.51.3

11.22.51.08.82.7

16.71.89.20.92.62.52.35.77.087

15.6100.0

4742

1 8629

77211

1572980134830422815

lot105

1.042

153 5,015.0 18.5 126 6,813.1 21.9 113 7,281.4 15.8 90 11,143.1 16.3 Ill 31,2123 23.8

47 2,165.6 8.0 22 2,080.0 6.7 41 3,771.5 8.2 62 5,562.8 8.1 50 4,780.9 3.6

180 7,799,5 28.7 164 11469.9 36.8 146 8,123.5 17.6 185 17,994.8 26.3 254 36,766.1 28.1

241 4,906.5 16,1 192 2,974.2 9.5 145 4,306.9 9.4 66 1,781 8 2.6 70 4,149 3 3.2

164 2.217,8 8.2 140 2,196.0 7.0 52 2.825,3 61 42 1,840.5 2.7 36 1,708 2 1.3

87 2,51 7.2 9.3 57 2,227.3 7.1 207 12,907.5 28.0 113 9,007.4 132 81 15,4283 11.8

257 2,536.0 9.3 295 3.411,1 10.9 307 6,810.5 14.8 427 21,116.4 30.9 440 36,995.3 28.2

1,129 27,I59.6 100.0 996 31,171.6 100.0 1013 46,026.6 100.0 985 68,446.8 100.0 1,042 l3l,040.4 100.0

607 4,301.0 17.7 553 4,056.0 16.3 399 3,870.5 12.2 351 5,321.7 11 7 324 5,406.7 6.8

175 3,595,0 14.8 126 3,273.9 13.2 132 5,492.5 17.3 137 5,995.6 13.2 168 8,307.4 10.4

103 3,169.0 13.0 87 3,362.5 13.5 101 5,839.5 18.4 119 8,9053 19.5 141 11,921 3 149

43 1,710.8 7.0 36 2,367.4 9.5 44 4,669.0 14.7 44 5,449.9 12.0 50 7,160.0 8.9

43 2,615.3 10.8 31 2,618.1 10.5 38 2,641.2 8.3 27 1,877.4 4.1 70 9,528.1 11.9

45 8,897.4 36.8 40 9,174.3 36.9 48 9,208.7 29.0 63 18,021.8 39.5 62 37,715.3 47.1

1,022 24,288.5 100.0 873 24,852.2 100.0 762 31,721.4 100.0 741 45,571.7 100.0 815 80,038.8 100.0

ANALYSIS OF LOAN, EQUITY, AND GUARANTEE APPROVALS(Rs million)

1990/91 ________ 1991/92 1992/93 1993/94 1994/95%of %of %of %of %of

No. Amour Total No. Amourt Total No. Amourt Total No. Amourt Total No, Amourl Total

Fiscal year

A. By Industrial Sector

SugarFood ProductsTextilesPaper & Paper ProductsRubber ProductsBasic ChemicalsFertilizersOther ChemicalsCementBasic Metal IndustriesMetal ProductsMachineryElectrical Equipme.1ElectronicsTransport EquipmeulElectricity - Gen. Distn.ServicesMiscellaneous

Total

B. By Purpose

New CompaniesDiversificationExpansionModemisationEquipme,1 FinanceWorking Capital MarginOthers

Total

C. By Size of Project Cost (Loans)

Up to Rs. 50 millionSOto 100 million100 to 200 million200 to 300 million300 tO 500 millionAbove 500 million

Total

27 577.2 2.1 42.0 857.5 2.8

31 454.0 1.7 35.0 528.6 1.7

207 2,448,5 9.0 164.0 4,856.6 15.6

43 622.4 2.3 21.0 474.6 1.5

15 688.7 2.5 11.0 283.3 0.9

78 1,547.0 5.7 75.0 4,475.5 14.4

16 509.2 1.9 6.0 596.6 1.9

119 3,924.8 14.5 115.0 3,650.5 11.7

22 2,300.4 6.5 24.0 2,749.8 8.8

100 3,513.2 12.9 1040 3,375.6 10.8

20 336.3 1.2 26.0 335.2 1.1

79 1,835.6 6.8 66.0 984.0 3.2

33 836.2 3.1 29.0 315.2 1.0

86 2,203.7 8.1 78.0 1,525.5 4.9

44 1,172.7 4.3 21.0 370.2 1.2

3 972.5 3.6 8.0 2.6001 6.3

67 1,065.2 3.9 62.0 865.5 2.8

139 2,149.0 7.9 111.0 2,327.3 7.5

1,129 27,156.6 100.0 996.0 3j71.6 100.0

26

1,042.5 2.3 25.0 1,022.936

976.2 2.1 37.0 872.9162

6,928.8 15.1 171.0 7,643.731

1,421.6 3.1 34.0 1,733.53

134.6 0.3 13.0 697.866

2,386.9 5.2 65.0 4,679.88

968.1 2.1 10.0 1,827.5131

7,701.7 16.7 127.0 11,458.624

1,415.4 3.1 14.0 1.255,9127

9,357.4 20.3 97.0 6,265.223

262.5 0.6 23.0 586.070

1,667.3 3.6 52.0 1,773.436

941.4 2.0 35.0 1,678.564

1,988.4 4.3 52.0 1.564,133

1,366.9 3.0 40.0 3,921.97

981.3 2.1 II 0 4,811.863

3,257.1 7.1 85.0 5,969.2103

3,228.5 7 0 940 10684.1

1,013 - 46,026.6 100.0 985.0 68,446.8

2,420.4 1.8

1,893.8 1.4

12,546.5 9.6

1,094.7 08

841 3 0.58,619.5 5.1

3,330.7 2.5

21,8344 16.7

4,312.9 3.3

14,553.6 11 1

843.4 0.6

2,701.2 2.1

4,458.7 3 42.087,1 1.6

2.2785 17

10,122.9 7.7

13,504.9 10.3

25,795 9 19.7131,040.4 100.0

(,)

>'0

a.

C.)

CD

Fiscal year

0. By Size of Assistance (Loans)

Upto As 5 million

5 to 10 million

lOto 20 million

20 to 30 million

30 to 50 illion5Oto 100 million

Above 100 millionTotal

E. By Sector

Private

Joint

Public

CooperativeTotal

F. By Region

North ernNorth - Eaernb

EasternC

Centrar'WesternC

Southern'

Total

i99QIgi

199 _______ 1992/93 1993/94 1994195% of

%of %of %of %ofNo. Amourl Total

No. Amourt

Total No. Amourt Total No. Amou,1 Total No. Amourt Total

337 715.6 2.9 301 527.3 2.1 201 183.1 0.6 98 78.3 02 69 55.8 0.1

165 1,191.5 4.9 119 811.5 3.3 54 382.5 1.2 30 205.7 0.5 28 201.8 0.3

236 3,310.5 13.6 169 2,285.1 9.2 98 1,279.7 4.0 101 1,350.8 3.0 90 1,172.8 1.5

99 2,348.5 9.7 93 2,243.3 9.0 95 2,149.0 6.8 118 2,665.3 5.8 109 2,399.7 3.0

84 3,175.7 13.1 77 2,889.3 11.8 109 3,988.9 12.6 130 4,655.8 10.2 139 5,158.9 64

55 3,568.2 14,7 65 3,940.5 15.9 116 7,016.0 22.1 134 8304.4 18.2 179 11,008.7 13.8

46 9980.5 41.1 49 12,155.2 48.9 91 16,722.2 52.7 130 28,311.6 82.1 201 60,041.1 75.0

1,022 24,288.5 100.0 873 24,652.2 100.0 762 31,721.4 100.0 741 45,571.7 100.0 815 80,038.8 100.0

1.027 25,252.0 93.0 903 27,253.3 87.4 954 43,287.3 94.0 937 60,888.9 89.0 982 119,590.2 91.3

66 1,027.0 3.8 64 3,128.7 10.0 47 1,598.4 3.5 24 850.5 1.2 32 5,150.1 3.9

11 423.5 1.6 7 239.9 0.8 7 992.7 2.2 21 6,632.4 9.7 tO 4,440.1 3.4

25 454.1 1.7 22 549.8 1.8 5 146.2 0.3 3 75.0 0.1 18 1,880.0 1.4

1,129 27,156.6 100.0 996 31,171.7 100.0 1,013 46,026.6 100.0 985 68,446.6 100.0 1,042 131,040.4 100.0

145 3,297.3 12.1 137 4,001 2 12.8 118 4,425.3 9.6 133 6,300.1 9.2 131 14,038.8 tO.7

3 50.5 0.2 2 10.7 0.0 11 545.5 1.2 4 240.0 0.4 4 551.5 0.4

71 2,212.1 8.1 57 4,522.9 14.5 86 2,878.3 8.2 88 3,730.9 5.5 68 7,928.9 6.1

119 3,492.6 12.9 100 3,133.0 10.1 128 6,379.7 13.9 127 6,789.0 12.8 85 13,085.4 10.0

388 10,998.4 40.5 379 12,218.7 39.2 437 23,752.4 51.6 397 36,098.8 52.7 397 85,432.9 49.9

403 7,105.7 26.2 321 7,285.1 23.4 251 8,047.4 17.5 258 13,288.0 19.4 359 30,002.9 22.9

1.129 27,156.6 100.0 996 31,171.8 100.0 1.013 46,026.6 100.0 985 66,446.8 100.0 1,042 131,040.4 100.0

(a)('I

Comprises states of Haryana, Himachal Pradesh, Jemmu and Kashmir, Punb, Rasthan. and the union territories of Chandlgarh and Delhi.

Comprises states of Assam, Manipur, Meghalaya, Nagaland, Tripura, Arunachal, Mizoram, and Slkklm.

Comprises states of Bihar, Orissa, West Bengal, and the union territories of Andaman and Nicobar Islands.Comprises the states of Madhya Pradesh and Utter Pradesh.

Comprises states of Gujarat, Mahareshtra, Goa, and the union terrtories of Dadra and Nagar Haveli, and Daman and Diu.

Comprises the states of AndhraPradesh, Karnataka, Karate, Tamil Nadu, and the union territories of Lakshadweep and Pondicherry

'0

a,x

(,)

N)

Item

1. Portfolio Arrears

a. Total loans outstandingb. Total loans in repayment stagec. Total loans affected by arrearsd. Total arrears - Principal

- Interest- Total

2. Arrears Ageing

Less than 3 months3-6 months6-12 months12-24 months24 months and longer

Appendix 14

36

LOAN PORTFOLIO ARREARS(Rs million)

1990/91 1991/92 1992/93 1993/94 1994/95

63,261.1 79,989.5 98,516.9 115,306.7 143,744.4

4,098.5 9,121.3 9,232.1 16,505.2 21,921.7

962.2 1,668.3 2,573.7 1,224.6 1,768.0

1,133.4 1,862.0 2,412.5 446.5 918.9

2,095.6 3,530.3 4,986.2 1,671.1 2,686.9

2.1 7.0 3.6 188.1 562.6

2.6 8.2 9.7 275.7 243.9

49.4 125.9 32.7 495.3 627.8

118.7 435.4 247.3 636.6 601.8

1,922.8 2,953.8 4,692.9 75.2 650.8

2,095.6 3,530.3 4,986.2 1,671.1 2,686.9

3. Ratios (%)

Total arrears to total loans outstanding 3.31 4.41 5.06 1.45 1.87Total arrears to total loans in repayment stage - - - - -Total loans affected by arrears to total loansoutstanding 6.48 11.40 9.37 14.31 15.25

COLLECTION PERFORMANCE(As million)

- FYI990/01 FYI99l,2 FYl992m3 Fv1903194 ____ FYIQQ4/95 -

PrncaI InterestTotalPrncaIInterest Total PrInc,alInterestTotal Pra1 InterestTcl Pmcipallntetast Total

1. Arrearsatthebegmnmgottheyew 721.2 695.6 1,416.8 962.2 1,133.4 2,095.6 1,668.3 1,862.0 3,530.3 2,573.7 2,412.5 4,966.2 1,224.6 446.5 1,671.1

2. Amountfallanduadurngtheyeer 4,9984 5961 10,594.5 7,089.5 7,483.1 14,572.6 10,5075 10,637.0 21,244.5 17,752.5 16,139.1 33,891.6 31,798.1 10,025.9 50,824.0

3. Total: kern 1 + Item 2 5,719.5 6,291.7 12,011.3 8,051.7 8,616.5 16,668.2 12,275.8 12,499.0 24,774.8 20,326.2 18,551.6 38,877.8 33,022.7 19,472.4__52,495.1

4 Amountrestheduled 491.9 475,3 967.2 579,3 642.2 1,221.5 1,013.5 919.1 1,032.6 1,608.8 1,246.9 2,855.7 1,582.5 6365 2,319.0

5 Arnountdueforcollecticn (Item 3-Item 4) 5,227.7 5,816.4 11044.1 7,472.4 7,974.3 15,446.7 11,262.3 11,579.9 22,842.2 18,717.4 17,304.7 36,022.1 31340.2 18,835.9 50,176.1

6. Amounts collected

a Againsterreers 57.9 53.5 111.4 48.1 98.1 148.2 114.4 226.8 341.2 75.6 149.9 225.5 6707 325.1 995.8

b. Agaristcunentdues 4,207.5 4,029.6 8,837.1 5,756.1 6,014.1 11,770.2 8,574.1 8,940.6 17,514.7 15,249.1 14,487.9 29,737,0 28,745.6 17,551,1 48,296.7

7. Totalcoltections 4,265.4 4,683.1 8,948.5 5,804.2 8,112,2 11,916.4 8,888.5 9,187.4 17,855.9 15,324.7 14,637.8 29,962.5 29,416.3 17,8762 47,292.5

8 Aneorsat.ndotthayenr 962.2 1,133.4 2,095.6 1,668.3 1,862.0 3,530.3 2,573.7 2,412.5 4,986.2 1,224.6 446.5 1,671.1 1,768.0 918.9 2,886.9

9. Agig Analysts

Upto3months 2.1 7.0 3.6 188.1 562.8

3-8 months 2.6 8.2 9.7 275.7 243.9

6-12 months 49.4 125.9 32.7 495.3 827.8

12-24months 118.7 435,4 247.3 636.8 601.8

24monthsandabove 1,922.8 2,953,8 4,992.9 752 650.8

tO. Collection ratio

- Overall ((Item (7)/Item (5)JxlOO(%) 81.6 80.5 81.0 77.7 78.6 77.1 77.1 79.2 78.2 81.9 84.8 83.2 03.9 94.9 94.3

- Current Dues ((Item 6(b)J/tltern 2 93.4 90.4 91.8 88.4 87.9 88.2 89.4 92.0 90.7 94,5 97.3 95.8 95.5 95.4 95.4

- kern (4)J x 100(%)

>

a,>c

(51

Sector

Cement

Food

Textile

Paper

Rubber

Chemicals

Non-metallic mineral products

Basic metal

Fabricated metal products

Machinery

Electrical equipment

Transport equipment

Others

Total

D

a

C,

SECTORALDISTRIBU liON OF PORTFOLIO AND ARREARSAs of 31 March 1995

(Rs million)

LoanPortfolio ___ Arrears Ratios

No. Amount No. Total

(A) (B) (C) Principal Interest (D) (%) C/A D/B

78 10,577.1 12 167.5 13.0 180.5 6.7 15.4 1,7

278 8,229.3 55 163.6 68.5 232.1 8.6 19.8 2.8

484 18,362.9 63 136.9 51.9 188.8 7.0 13.0 1.0

101 3,921.3 6 10.8 3.3 14.1 0.5 5,9 0.4

39 1,388.2 9 87.2 16.9 104.1 3.9 23.1 7.5

536 34,721.2 82 379.9 359.5 739.4 27.5 15.3 2.1

25 663.7 4 57.9 3.9 61.8 2.3 16.0 9.3

99 11,901.1 21 155.7 67.8 223.5 8.3 21.2 1.9

224 8,136.7 28 140.6 145.1 285.7 10.6 12.5 3.5

278 6229.5 13 30.4 14.5 44.9 1.7 4.7 0,7

362 11,366.0 49 229.2 49.4 278.6 10 4 13 5 2 5

113 3,934.0 11 47.3 28.1 75.4 2.8 9.7 I 9

498 24,313.4 54 161.0 97.0 258.0 9.6 10.8 1.1

3,115 143,744.4 407 1,768.0 918.9 2,686.9 100.0 13.1 1.9

(A)

Note Company having exposure in more than one industry is accounted for in the industry having the largest outstanding amounts.

Appendix 17

39

Fiscal Year

Disbursements

UnderwritingDirect Subscription

Total

Outstanding Investments

Ordinary SharesPreferred SharesTotal Project Finance

InvestmentsOther lnvestmentsa

Total

Revenue from Equity

DividendCapital Gains (Net of Loss)

Total

Return on Average OutstandingInvestments (%)

EQUrr' INVESTMENT OPERA11ONS(As million)

1990/91 1991/92 1992/93 1993/94 1994/95

23.5 14.3 26.6 545.00 76.5

174.4 162.1 704.1 2,334.0 4,583.0

197.9 176.4 730.7 2,882.0 4,659.5

1,202,5 1,444.0 2,248.2 4,342.4 7,791.9

107.0 133.5 138.6 194.9 843.3

1,309.5 1,577.5 2,386.8 4,537.3 8,635.2

1,539.5 1,926.5 2,555.2 3,931 .7 6,056.8

2,649.0 3,504.0 4,942.0 8,469.0 14,692.0

109.9 152.9 238.5 272.7 327.1

295.1 717.4 505 591.9 448.9

405.0 870.3 743.5 864.6 776.0

14.2 24.8 15.0 10.2 5.25

a Includes investments in associate companies such as Credit Rating Information Service of India Ltd. (CRISIL),Shipping Credit and Investment Corporation of India Ltd. (SCICI), and TDICI.

Appendix 18

Fiscal Year

REVENUE a/

Interest from Loans b/Interest from debenturesOther Income

Capital gainsDividend incomeLease incomeMerchant banking incomeOthers

Total

OPERATING EXPENSES

Interest on borrowingsProvision for interest taxSalaries and PersonnelDepreciationIssue EspensesOther Expenses

Total

INCOME (BEFORE TAX)Provision for tax

NET INCOME

RATIOSReturn on average equity (%)Return on average total assets (%)Administrative and general

expenses/average total assets (%)Interest spread (%) Cl

Earnings spread(%) d/

ACTUAL AND PROJECTED INCOME STATEMENTS(Rs million)

1990/91 1991/92 1992/93 1993/94Proj. Act Var Act. Var Prj_ Act Yar Pr Act Var

5,635 5,8001 165.1 7,469 7,7886 319.6 9,648 10,437.8 789.8 12,885 12,5904 (2946)

1504 3900 5000

100 985 (1.5) 124 1187 (53) 157 1475 (95) 196 2162 202

376 3676 (84) 507 4958 (11 2) 819 610,4 (2086) 740 8857 1457

40 - (40.0) 40 - (400) 56 - (560) 69 - (690)

128 2156 876 110 2133 1033 128 3159 1879 150 5517 4017

6,279 6,481 8 202.8 8,250 8,7668 5168 10,808 11,901.6 093 6 14,040 14,7440 7040

1,411 1,6482 237.2 1,736 2,3527 6167 2,024 2,8385 8145 2,340 3,7956 1.4556

256 3000 440 342 3400 (2.0) 428 697 5 2695 501 7000 1990

1,155 1,3482 193.2 1,394 2,0127 618.7 1,596 2,141 0 5450 1.839 3,0956 1,2566

215 216 31

208 265 57

189 204 15

176 230 5417 20 03

17 22 05

15 18 03

14 21 07

031 034 00

028 030 00

027 034 01

026 038 0116 27 11

14 36 22

12 4.4 32

10 46 3621 34 1.3

19 48 2.9

1.8 52 34

16 50 34

1994/95ProjAct Var

16,753 15,444 7 (1,308 3)585 0

248 2371 (109)

931 1,401 6 470.6

84 - (840)

175 4824 3074

18,191 18,1508 1402)

0

2,596 4,5467 1,9507

562 6425 805

2,03'l 3,9042 1,8702

161 217 56

12 22 10

076 035 01

08 55 47

11 49 35

5,981 60453 64.3 7781 8004.7 2237 10109 10,9351 826.1 12921 135924 671.4 16407 164057 (1 3)190 201 5 11.5 376 3055 (70.5) 668 3522 (3158) 1,112 531 8 (5802) 1,668 9420 (7260)

95 2957 2007 120 7174 5974 120 5050 3850 120 5919 4719 120 4489 3289120 1099 (101) 122 1529 30.9 125 2385 1135 133 2727 1397 141 3271 1861710 700.5 (9.5) 920 985.5 655 1,100 1,2106 1106 1,330 1.665 1 335.1 1,620 2,4082 7882

53 583 53 66 77,8 118 82 1217 397 103 136 (894) 128 - (1280)634 7188 848 601 875.7 2747 628137707490 61 1,8721 1,211 1 703 2,1656 1,4626

7783130 0 347.0 9,986 11119.5 1,133,5 12,832 14,740 1 19081 16,380 18539.6 2,1596 20,787 22,6975 1,9105

at Income is net of provisions and wrrte-offsb/ Interest on loans excludes Interest on loans in arrears over one year.

Income from loan Interest expensesc/ Interest spread ----------------------------------------------------------------------------------------

Average loan portfolio Average long-term liabilities

Income from total portfolio Interest expenses + dMdendsd/ Earningsspreadr

Average loan & investment portfolio Average long-term liabilities & equity

-U

(DJa

-L03

Appendix 19

ACTUAL AND PROJECTED BALANCE SHEETS(Rs million)

_______ 1990/91 1991192 1992/93 1993/94 1994/95____ ProI'.Act. Va _Pr. Act Var._ .Acl. Var Proj Act Var Pr Act. Var.

CURRENT ASSETSCash and bank balances 3,820 973.1 (2,846.9) 3,820 2,284 (15359) 3,820 2,579.0 (1,241.0) 3,820 6,944.0 3,124.0 3,820 6,757.5 2,937,5Currentportionottoans 7,930 8,348.2 418.2 10,750 16.497 5747.2 12,710 18,568.9 5,858.9 17,850 27,917.5 10,067.5 23,205 41,610.1 18,405.1Other assets and advances 3,549 7,614.0__4,065.00 4,290 19,778.4 15,488.40 5,270 20,960.5 15,690.50 6,505 23,018.3 16,513.30 7,952 23,047.8 15,095.80Total 15,299 16,935.3 1,636.30 18,860 38,559.7_19,699.70 21,800 42,108.4 20,308.40 28,175 57,879.8 29,704.80 34,977 71,415.4 36,438.40

INVESTMENTSEquity sharesDebenturesOther investments

Total

LOANSRupee loansForeign currency loansLess current portion

Total loans

LEASED ASSETSFIXED ASSETSOTHER ASSETSTOTAL ASSETS

LIABILITIES AND EQUITYCURRENT LIABILITIES

PayablesCurrent portion of tong-term debi

TotalLONG-TERM LIABILITIES

Local currencyConvertible debenturesForeign currency debtless current portion

Total long-term liabilities

2,377 2,848.8 471.8 2,562 3,504.3 942.3 2,931 4,942.0 2,011.0 3,278 8,468.7 5,190.7 3,794 14,691.6 10,897,6

2,113 1,889.6 (223.4) 3.678 2,278.6 (1,399.4) 5,869 2,567.0 (3,302.0) 8,952 4,924.7 (4,027.3) 13,286 10,044.5 (3,241.5)

4,490 4i38A 248A0 6240 !j945fl9 8,800 7,509.0(1,291.00) 12,23013,393.41,163.40 17,080 24,736 656,10

43,380 45,274.0 1,894.0 57,080 5-4,423.3 (2,656.7) 73,020.0 69,330.1 (3,689.9) 93,460 84.7096 (8.750.4) 117.180 103,825.9 (13,354.1)

15,510 16,030.0 520.0 17,770 23,207.8 5,437.8 21,160.0 26,355.8 5.195,8 25,960 25,559.7 (400.3) 32.130 29,744.1 (2,385.9)

__4L8?LJ1!.? J),750 (16,497.2) (5,747. W, (27,917.,

5096052,955.8 1,995.80 64,100__61,133.9Jj 81,470.0 77,117.0 (4,35300) 101 570 82,351.8 (t9,218 20) - 126,105 91,959 (34,145 10)

2,137 2,375.6 238.6 2,577 2,488.7 (88.3) 2,977 3,546.1 569.1 3,527 6,106.5 2,579.5 4.237 6,8636 2,626.6 ,

306 229.6 (76.4) 319 387.7 68.7 330 494.4 164.4 340 530.5 190.5 ' 349 1,075.8 726.8 -

73192 772347 404270 92096 1083529 1625690 11537713077491539790 145842 1602620 1442000 182748 1960508 1330280

3,209 3,961.3 752.3 4,049 4,835.6 786.6 5,152 7,624.8 2,472.8 5.469 9,277.5 3,808.5 8,089 12,665.1 4,576.1

3,280 3,028.0 () 8,270 8,909.7 639.70 7,640 13,355.3 5,715.30 13,490 31,151.6 11,661.60 11,400 34,826.1 23,426.10

6,489 6,989.3 500.30 12,319 13,745.3 1,426.30 12,792 20,980.1 8,188.10 18,959 40,429.1 21,470.10 19,489 47,491.2 28,002.20

34,432 40,882.0 6,450.0 49,241 50,8458 1,604.8 63,140 62,070.3 (1,069.7) 85,110 81,040.5 (4,069.5) 114,710 113,358.9 (1,351.1)

518 518.0 0.0 89 524.2 435.2 3,100 3,318.7 2187 2,450 3,3182 868.2 1,800 518.0 (1,282.0)

29,060 25,668.4 (3,391.6) 31,150 43,186.9 12,036.9 34,620 45,696.7 11,076.7 40,310 51,8176 11,507.6 44,400 48,410.7 4,010.7

80) 3028.)__5Q - (7,640) (j33 (5.7i) 113,190) (31,151.6) (17.861.60) _1j38?6)) 6pj

60,730 64,040.4 3,310.40 72,210 85,647.2 13,437.20 93,220 97,730.4 4,510.40 114,680 105,024.7 (9,65530) 149,510 127,461.5 (22,04850)

EQUITYShare capital

1,146 1,145.8 (0.2) 1,432 1,707.4 275.4 1.758 2,410.8 652.8 2,191 2.471 1 280.1 2,624 3,0129 388.9Reserves

4,827 5,059.2 232.20 6,135 7,253.0 1,118.00 7,608 9,653.6 2,045.60 9,312 12,337.1 3,02510 11.124 18,085.2 6,961.20Total equity

5,973 6,205.0 232.00 7.567 8,960.4 1,393.40 9,366 12,064.4 2,698.40 11,503 14,808.2 3,305.20 13,748 21,098.1 7,350.10

TOTAL LIABILITtES AND EQUITY

73,192 77 .1j42.70 92096 108,352.9 16,256.90 115,378 130,774.9_15,96,90 145142 160262.0 15120.00 182,747 196050.8 13,303.80 (D

a.RATIOS

xCurrenl ratio (a) 2.4 2.4 0.1 1.5 2.8 1.3 1.7 2.0 03 1.5 1 4 (01) 1 8 1 5 (03) -LDebt/equity ratio (x) 102 10,3 (0.2) 9.5 9.6 (0.0) 10.0 8 1 1,9 100 7.t 29 10.9 6.0 4.8

(0

Total figures are different from those of audited financial reporis where current liabilities are netted from current assets The original formal in appraisal report is used for comparison.

RATIODebt-service coverage ratio (A/B) a/ 16 16 (01) 17 18 00 13 1.4 01 15 17 03 13 14 01

CD

a

>(

0

Appendix 70

ACTUAL AND PROJECTED CASH FLOW STATEMENTS(In Rs million)

1990/91 ________ 1991192 _______ 1992/93 _______ _________ 1993/94 1994/95Act Prc Act. Var. Proj Act

SOURCES

Profit before interest & taxesAdd back: Noncash charges

DepreciationProvisions and others

Cash generation from operationsLoan collections

Rupee loansForeign currency loans

Sales from portfolioInterest & commitment charge payableSources available for debt service (A)

Increase in share capitalRight issuesShare premium accountIssue/(Conversion) of con debentures

Drawdown on loansRupeeForeign currency borrowingsless rollover adjustments

Total

APPLICATIONSRepayments:

Interest & commitment charge payableRupee loansForeign currency loansless rollover adjustments

Redemption of Rupee debenturesRr'quired for debt-service (B)Disbursement of Loans

Rupee loansForeign currency loans

InvestmentsSharesDebentures

Capital ExpenditurePayment of taxPayment of dividendChanges in working capital

Total

70460 7,448.3 4023 9,205.0 10,141.3 936.3 11,872.0 132763 1,4043 15,225.0 16,386.0 1,1610 193490 19991.4 6424

3760 3676 (84) 5070 4958 (112) 6190 6104 (8.6) 7400 8857 1457 9310 1.4016 4706

4700 671 0 201.0 5660 868.0 3020 6690 7126436 7980 186661,0686 9380 1,3502 4122

7,8920 8,486.9 5949 10,278 0 11,505.1 1,227.1 13,160.0 14,599.3 1,439.3 16,763 0 19,138 3 2,375.3 21,218 0 22,7432 1,525 2

4,2400 3,910.0 (3300) 5,720.0 5,568.4 (151 6) 8,5600 8,8079 247,9 10,5500 16,0391 5,4891 15,3200 25,1056 9,7856

1.7400 1,5652 (1748) 2,210.0 2,0890 (121.0) 2,1900 2,4482 2582 2,1600 3,2595 1,0995 2,530.0 6,1838 3,6538

3800 3600 (20.0) 3000 4403 1403 210,0 2970 87,0 3000 582.0 2820 2500 1,9075 1.657 5

- - 00 - - 0.0 - - 0.0 ______ - - 00 - - 00

14,2520 14,3221 70,1 18,508.0 19,6028 1,0948 24,120.0 252 4 2,032.4 29,7730 39,018.9 9,2459 39,3180 55,940.1 16,622.1

2300 2302 02 2860 561 6 2756 3260 7034 3774 4330 603 (3727) 4330 541 8 1088

00 00 00 1430 5666 4236 1630 6999 5369 2170 2401 231 2170 00 (2170)

(2300) 00 230,0 (429.0) 0.0 4290 3,011.0 (1,399.9) (4,4109) (6500) (3002) 3498 (6500) (541 7) 1083

6,3000 11,521 6 5,221 6 17,0200 13,4191 (3,6009) 20,5300 22,3248 1,7948 28,6900 35,979 1 7,2891 38,520.0 58,9022 20,382.2 '9,4800 2,8909 (6,5891) 3,1500 5,158.1 2,008 1 5,110.0 3,8382 (1,271 8) 6,6100 8,2529 1,6429 8,3600 2,9684 (5,391 6)

- Ji,820.J) -- -- (1,ULJ,),70.7) )9,4502)(9,4502) (16,0417) p6,041,7,)3032028,9648(,),067) 387837,488.2J,)8j 53,260.050,611 J) _Q73.JP0972 86198 0 .1 01,769 .1 1LJ

5,635.0 5,8002 1652 7,4690 7,7885 3195 9,8480 10,4379 5899

12,8850 12,5903 (2947)

16,7530 15,4447 (1,3083)8700 6400 (2300) 2,221 0 3,3247 1,1037 6,641 0 6,3737 (2673)

6,7200 16,541 2 9,821 2

8,920 0 29,383 9 20,463 9

2,2000 2,5273 3273 1,0600 1,704.7 6447 1,6300 3,3588 1,728.8

9200 2,4098 1,4898

4,2700 10,351 2 6,081 2

- (1,8200) (1,8200) (1,707 3) (1,7073)

(9,450 2) (9,4502)

(16 , 041 7) (16,041 7)

1375 1375 - 1375 1375 - 1650 1650 -. - - 2199 2199 - - 00

8,7050 9,105.0 4000 10,7500 111354 3854 18,1190 18,6281 5091

20,5250 22,3110 ' 1,7800

29,9430 39,1381 9,1951

14,3400 14,5640 2240 19,020.0 15,587.9 (3,432.1) 23,8000 24,7676 9676

30,0900 31,9475 1,8575 37,8300 45,031 7 7,201 7

3,4600 7,8246 (6354) 4,3300 6,334.0 2,0040 5,4100 5,389.0 (21 0)

6,7600 2,5595 (4,2005) 8,4500 8,6226 1726

2600 813 4 5534 3300 896 1 566 1 4100 1,3040 8940 5100 3,5352 3,0252 6300 6,4244 5,79441,1400 978 1 (161 9) 1,6000 6274 (9726) 2,2300 7550 (1,4750) 3,1300 2,9592 (1708) 4,3800 6,8448 7,46481,0060 1,1423 1363 9600 7336 (2264) 1,0300 1,7205 6905 1,3000 3,3182 2,0182 1,6500 2,4624 8124

2560 3000 440 3420 3400 (20) 4280 6975 2695 5010 7000 1990 5620 6425 8051830 2024 194 2290 3951 166 1 2860 445 1 159 I 3520 7401 388 1 4380 8784 44046820 (9650) (1,6470) 1,117.0 1,4387 321 7 1,547.0 (3,0953) (4,6423) 1,9050 5.7302 3,8252 2,3150 (8.2758) (10,5908)

30,0320 28,9648 (10672) 3678O 37,4882(1,1898)53,260050,611 5 , (2,6485) 65,0730 73,8009 8,7279 86,1980 101,769 1 15,571 1

a! Available for debt-service/required for debt service (AiD)

Complied with.

Partially complied.with. (see para.42)

Not complied with.(see para. 42)

Complied with.

Complied with.

Complied with.

Complied with.

Complied with.

Complied with.

Complied with.

Partially compliedwith. (see para.42)

Section 3.03

Section 5.05 (b)

Section 5.05 (C),(d)

Section 5.06 (a)

Schedule 3

Schedule 4para. 1(b)

Schedule 4para. 2(a)

Schedule 4para. 3

Schedule 4para. 4

Schedule 4para. 5

Schedule 4para. 5

43

Appendix 21

COMPLIANCE WITH LOAN COVENANTS

Reference toCovenants

Loan Agreement Remarks

1. Submit all subloans exceeding $6.0 millionequivalent for approval to the Bank beforerequesting withdrawal.

2. Furnish all information as the Bank mayreasonably request including quarterly reportscovering the execution of the Project.

3. Subproject completion report on each subprojectand overall project completion report within sixmonths of loan closing.

4. Submit annual accounts audited by independentprivate auditors acceptable to the Bank not laterthan four months after the close of the fiscal year.

5. Procurement procedures to adhere to Bankguidelines.

6. The Borrower shall require qualified enterprises totake steps to ensure that qualified projectscomply with the requirements of environmentalrules and regulations in force in India.

7. Maintain a minimum interest spread of 2 percentper annum.

8. Maximum amount to be extended for any subloanshall not exceed $10.0 million.

9. Maximum aggregate amount of subloans thatindividually exceed $6.0 million shall not exceed$60 million.

10. Total cost of each qualified project shall notexceed $45 million.

11. The Borrower shall monitor the socioeconomicimpact of Qualified Projects and collect financialdata. The Borrower shall furnish to the Bankselected performance data on Qualified Projects.

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Appendix 21, page 2

Covenants

12. The Borrower shall maintain in foreign currency aRevolving Fund(s) into which shall be depositedthe foreign currency equivalent to all rupee fundsreceived in repayment of principal of subloans.

13. The Borrower shall consult with the Bank inrespect of any substantial amendment ofMemorandum and Articles or the DevelopmentStrategy.

14. The Borrower shall consult with the Bank prior toestablishing, acquiring or disposing of anysubsidiary.

15. Maintain a debt/equity ratio not exceeding 12:1.

16. Maintain a debt service coverage ratio above the1:1:1.

Reference toLoan Agreement

Schedule 4para. 9

Schedule 4paras. 11 and 12

Schedule 4para. 14

Schedule 4para. 15

Schedule 4para. 16

Remarks

Complied with.

Complied with.

Complied with.

Complied with.

Complied with