RESTRICTED

PCR:IND 17130

This Report has been prepared for

ASIAN DEVELOPMENT BANK I the exclusive use of the Bank.
I

I.

PROJECT COMPLETION REPORT

ON A LOAN

TO THE

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED

(Loan No. 778-IND)

IN

INDIA

December 1992
 CURRENCY EQUIVALENTS
(As of 31 December 1992)

Currency Unit - Rupee (Re)

Official Rate Market Rate

= $0.033
Re 1.00 = $0.04 Re 1.00
= Re 30.12
$1.00 = Re 25.89 $1.00

The value of the Rupee in terms of the US dollar, is determined by a multiple

rate system. Forty per cent of foreign exchange receipts are required to be
surrendered at the official rate while 60 per cent are converted at a market
determined rate.

ABBREVIATIONS

CRISIL The Credit Rating and Information Services of India Ltd.

DFI Development Finance Institution
IBRO International Bank for Reconstruction and Development
'dc' The Industrial Credit and Investment Corporation of India Ltd.
IDBI Industrial Development Bank of India
IFCI Industrial Finance Corporation of India
KfW Kreditanstalt fur Wiederaufbau
LOE Line of Equity
MS I Medium Sized Industry
OTCEI Over the Counter Exchange of India
SCICI The Shipping Credit and Investment Company of India Ltd.
TD IC I The Technology Development & Information Company of India Ltd.

NOTES

(i) The fiscal year (FY) of the Government of India and ICICI ends on
31 March. Prior to 1987, the fiscal year of the Government ended
on 31 December. The 1987/88 fiscal year had 15 months (1 January
1987 to 31 March 1988).

(ii) In this Report, "$" refers to US dollars.

(iii) Unless otherwise specified, "the Government" refers to the
Government of India.
 PCR:IND 194

PROJECT COMPLETION REPORT

ON A LOAN

TO THE

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED

(Loan No. 778-IND)

IN

Note: A Project Completion Review Mission comprising Mr. Akira Tai, Investment Officer (Mission Chief)
and Ms. C.O. Baylon (Senior Assistant, Private Sector) visited India from 5 to 13 November 1992 to
review the performance of ICICI and the administration and implementation of the subprojects. In
addition to ICICI, the Mission visited selected subprojects located near Bombay. This Report is based
on the Mission's findings in the field and discussions with management and staff of ICICI and of
subprojects financed under the loan.
 TABLE OF CONTENTS

Page

BASIC DATA (ii)

I. BACKGROUND

A. History of ICICI 1
B. Scope of Operations 1
C. Relationship with the Bank and Other Lenders 2
D. Rationale for the Bank Loan 2

II. IMPLEMENTATION

A. Lending Policies 3
B. Characteristics of Subloans 3
C. Implementation and Internal Operation of Subprojects 5
D. Operational Performance of ICICI 6
E. .ICICI's Portfolio 9
F. Financial Statements and Ratios 10
G. Covenants 12
H. The Bank's Performance 12

III. EVALUATION

A. Loan Appraisal 13
13
B. Implementation

IV. CONCLUSIONS AND RECOMMENDATIONS 14

APPEND IXES
 (ii)

BASIC DATA
A. Loan Identification

1. Country - India
2. Loan No. - 778—IND
3. Loan Title - The Industrial Credit & Investment Corporation of India, Ltd.
4. Borrower - The Industrial Credit & Investment Corporation of India, Ltd.
5. Name of DFI - The Industrial Credit & Investment Corporation of India. Ltd.
6. Amount of Loan - $100.000,000.00

B. Loan Data

1. Appraisal
- Date started - l3Januaryl986
- Date completed - 2eJanuary 1986

2. Loan Negotiations
- Date started - lOMarchl986
- Date completed - l2Marchl986

3. Date of Board Approval - 03 April 1986

4. Date of Loan Agreement - 02May1986

5. Date of Loan Effectiveness

- In Loan Agreement - 31 July 1986
- Actual - 31 July 1986
- Number of Extensions - None

6. Terminal Date for Commitments

- In Loan Agreement - 31 July 1988
- Actual - 31 January 1989
- Number of Extensions - One

7. Closing Date for Disbursements

- In Loan Agreement - 31 July 1990
- Revised - 31 July 1991
- Number of Extensions - Twice

8. Terms of the Loan

- Interest Rate - 9.65% p.a.
- Maturity - 15 years
- Grace Period - 3 years
- Free Limit of Subloans - $3,000,000.00
- Repayment Terms of Subloans - Maximum 15 years including grace period not exceeding
3 years
9. Interest Rate for Subloans
- Original - The relending rate to sub—borrowers is 2% above
the effective cost of the Bank loan to ICICI.
Foreign exchange risk is borne by the sub—borrowers.

- Revision 1 - The spread of 2% was reduced to 1.5%.

2 - 14% p. a. or such rate as may be made applicable
after regular interest rate reviews, which includes foreign
exchange risk coverage fee payable to the Government.
10. Disbursements
- Amount disbursed - $98,787,581.00
- Arnoint cancelled - $ 1,212419.99


(iii)

C. Implementation Data

1. Number of Subloans Made 86 (net of cancellations)

2. Sectoral Distribution of Subloans:

Actual Loan Utilization a!

($ million)
No.
Actual of
Type of Industry Amount Cases

a. Manufacturing:
Chemicals 38.77 39.24 21
Fabricated Metal Products, Machinery
and Equipment 13.87 14.04 14
Electronics 10.82 10.95 18
Basic Metal Products 9.37 9.48 6
Textiles 7.43 7.52 7
Cement 6.41 6.49 4
Miscellaneous Manufacturing
- paper and paper products 1.81 1.83 2
- food products 0.18 0.18 1
b. Non-manufacturing Industries:
Services 4.60 4.66 2
c. Miscellaneous 5.54 5.61 11

Total Loan Utilization 98.79 100.00 86

3. Size of Subloans

No. of Amount Per

Range ($) Subloans $'OOO Cent

a. Up to 200.000 18 3.47 3.51

b. 200,000 to 400,000 22 9.36 9.47
c. 400.000 to 800,000 20 16.80 17.01
d. 800,000 to 2,000,000 19 38.80 39.28
e. Over 2,000,000 7 30.36 30.73
Total 86 98.79 100.00

a/ No projected allocation made at time of appraisal

 (iv)

No. of Amount Per

Subloans ($'DOo) Cent
4. Other Breakdown of Subloans

By Geographical Distribution

a. Northern af 10 12.12 12.27

b. North—Eastern b/ 0 0.00 0.00
c. Eastern Cl 2 0.67 0.68
d. Central d/ 10 10.64 10.77
e. Western e/ 48 57.82 58.52
f. Southern t/ 16 17.54 17.76

Total 86 98.79 100.00

By Nature of Project

a. New 16 18.39 18.61

b. Expansion 29 34.97 35.40

c. Balancing, modernization and replacement 41 45.44 45.99

Total 86 98.79 100.00

5. Subloan Types

a. Above Free Limit

Number 12
Aggregate Amount $39,272,000.00

b. Below Free Limit

Number 74
Aggregate Amount $59,518,000.00

a! Comprises the states of Haryana. Mimachal Pradesh. Jammu and Kashmir, Punjab.
Rajasthan, Union Territories of Candigarh and Delhi.
b/ Comprises the states of Assam, Manipur, Maghalaya. Nagaland, Tripura, Aranchal,
Mizoram and Sikkim.
c/ Comprises the states of Bihar, Orissa. West Bengal and Union Territory of Andaman
and Micobar Islands.
d/ Comprises the states of Madhya Pradesh and Uttar Pradesh.
e/ Comprises the states of Gujarat, Maharashtra, Goa, Union Territory of Dadra and 1-lagar
Havell and Daman and Diu.
f/ Comprises the states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Union
Territories of Lakshadweep and Pondicherry.
 (v)

D. Data on Bank Missions

No. of No. of Specialization
Name of Each Mission
___________________ Persons Mandays of Members

1. Inception Mission 26 August - 1 8 Sr. Development Bank Specialist

2 September 1986
2. Review Mission

1 29 June-15 July 1987 1/ 1 17 Sr. Financial Analyst

2 2-9 December 1988 1 8 Sr. Development Bank Specialist

3 28 May-6 June 1990 2/ 3 27 Sr. Development Bank Specialist

Financial Analyst
Counsel

3. Appraisal Mission 3-18 September 1990 4 64 Sr. Development Bank Specialisi

(lClCl II) Financial Analyst
Sr. Counsel
Programs Officer

4. Country Projects Review

Mission 18-28 June 1990 3 33 Manager
Project Specialist
Control Officer

18 Investment Officer
5. PCR Mission 5-13 November 1992 2
Sr. Assistant (Private Sector)

E. Related Loans

Amount
Loan No. Date of AQreement ($ million)

To same DFI:

The Industrial Credit and Investment

Corporation of India 1072 l5Jan 1991 120.00

To other Indian DFIs:

Industrial Development
Bank of India 855 15 Dec 1987 100.00

Industrial Finance Corporation

of India 975 5Jan1990 150.00

1/ Done in conjunction with Exploratory Mission for a Une of Equity to ICICI. This was later upgraded to
an Appraisal Mission.
2/ Done in conjunction with Fact—Finding Mission for ICICI II.
 I. BACKGROUND

1. In April 1986 the Bank approved a $100 million line of credit to the
Industrial Credit and Investment Corporation of India Limited (ICICI) to augment
its foreign exchange resources for financing development projects of private
enterprises. The loan aimed mainly at assisting the modernization and expansion
of existing production facilities and partly at serving industrial projects
designed to introduce new technology in India. The loan became effective in July
1986 and was closed in July 1991.

A. History of ICICI

2. ICICI was established in 1955 as a private sector development finance

institution (DFI) under the Companies Act, 1913. As a result of nationalization
of major commercial banks and insurance companies (which were the shareholders
of ICICI) in 1969, over CO per cent of its issued share capital was held by
public sector corporations. In contrast, Industrial Development Bank of India
(IDBI) which is wholly owned by the Government, and Industrial Finance
Corporation of India (IFCI), which is wholly owned by Government agencies, were
established under their own Acts. Despite the majority public sector
shareholding, ICICI has maintained the dynamism of a private sector DFI and is
known to be the most innovative DFI in India. In 1991/92 ICICI made a rights-
cum-public share issue of Rs 1,128 million. As of 30 April 1992, 44 public
sector corporations had a 54.75 per cent shareholding (compared with an 80.1 per
cent shareholding by this sector in 1985); 378,969 individual shareholders held
31.26 per cent compared with less than 1.0 per cent in 1985; 1,286 private
companies held 7.67 per cent and 250 foreign shareholders held 6.32 per cent.
A list of major ICICI shareholders is presented in Appendix 1. ICICI's shares
are listed at major stock exchanges in India and were traded at Rs 1,340 on 11
November 1992. The par value is Re 100.

B. Scope of Operations

3. ICICI's operational activities consist mainly of extending medium and

long-term loans in local and foreign currencies to medium and large industrial
enterprises, predominantly in the private sector. ICICI has played a key role
in providing foreign exchange financing. ICICI also makes equity investments,
underwrites new shares and debenture issues, and guarantees loans from other
investment sources. As a part of its strategy to provide various forms of
assistance to industry, ICICI has diversified its activities to cover financial
services such as deferred credit, leasing, installment sale and asset credit.
ICICI also provides merchant banking services that include project counselling,
syndication of loans, capital issue management, and financial and corporate
advisory services. ICICI has contributed to the establishment of a number of
specialized financial institutions including the Credit Rating Information
Services of India Limited, which rates various financial instruments available
to the public, the Shipping Credit and Investment Company of India Limited,
which finances acquisition of ships for transport and fishing trawlers, the
Technology Development and Information Company of India Limited, a venture
capital company, and the Over the Counter Exchange of India, which promotes
listing of smaller companies. ICICI is planning establishment of an investment
 2

banking company and an Asset Management Company for mutual fund activities in
line with the changing economic environment in India.

C. Relationshi p with the Bank and Other Lenders

4. The Bank's relationship with ICICI started with a loan to ICICI in 1986
(Loan No. 778-IND). The Bank later approved the $5.0 million line of equity
(LOE) for investments in medium-sized industries (MSIB) on 29 October 1987
(Investment No. 7016-IND). The line of equity was committed for $3.1 million
(10 projects) of which $1.4 million (4 projects) was disbursed. The Bank's
second loan for $120.0 million to ICICI was approved on 18 December 1990 for
MSI projects primarily for modernization and expansion of existing facilities
and also for new projects that introduce new technology into India or promote
export production (Loan No.1072-IND). As of 19 November 1992, the loan was
committed for $101.2 million and disbursements totaled $52.5 million. The Bank's
second loan to ICICI is facing difficulties in further commitment because of the
introduction of partial convertibility of the Indian rupee and the abolition of
the Exchange Risk Administration Scheme that had provided foreign exchange cover
to sub-borrowers.

5. The International Bank for Reconstruction and Development (IBRD) has been
the main source of foreign funds of ICICI. ICICI has received 25 loans from
IBRD for a total of $1.6 billion, including loans for export development ($160
million in 1986), cement industry modernization ($82 million in 1986 and $149
million in 1990), export development ($175 million in 1989), electronic
industries ($101 million in 1989) and prevention of environmental degradation
($50 million in 1991). ICICI has also received 26 loans from Kreditanstalt fur
Wiederaufbau for DM 374 million including financing for the import of capital
goods from Germany (DM 100 million in 1991). In February 1992, a Tripartite
Agreement was signed to give effect to an allocation of SF 20 million, under a
protocol agreement between the Governments of India and Switzerland. ICICI began
commercial borrowing on international markets in 1981 and has a variety of such
borrowings amounting to $1.0 billion, which provided 38.4 per cent of its total
foreign currency resources as of 31 March 1992. Government-guaranteed 15-year
bonds were the main source of ICICI's rupee resources until a few years ago.
However, the Government-guaranteed bonds, which constituted 87 per cent of
ICICI's rupee resources in 1985, were reduced to no more than 30 per cent during
1991/92. Details of foreign and local currency borrowings are given in Appendix
2.

D. Rationale for the Bank Loan

6. The primary purpose of the loan was to augment ICICI's foreign exchange
resources and thereby enhance its financing of development projects by private
sector enterprises. While the loan aimed mainly at assisting the modernization,
expansion and improvement of existing production facilities, a part of the loan
could be utilized for the establishment of new enterprises that had outstanding
economic merit and were designed primarily to utilize or introduce new technology
in India. The target group under the loan was MSI projects, as financing for
small-scale industries was already adequately provided for by a number of state-
level DFI5 and commercial banks.
 3

7. In view of the size of the loans approved by ICICI at that time as well
as ICICI's proven project evaluation capability and the size of loan applications
in ICICI's pipeline, the free limit was fixed at $3 million. To ensure the
diversification of the Bank-financed subloaris, the maximum subloan size was set
at $5 million. ICICI was also encouraged to make subloans, wherever possible,
in conjunction with an equal loan to the sub-borrowers sourced from ICICI's
external commercial borrowings. The interest rate on subloans was set at a level
ensuring a minimum interest spread to ICICI of 2 per cent per annum../ This
level was considered adequate to cover ICICI's administrative expenses and the
provisions for possible bad and doubtful debts as well as a reasonable profit
margin. On 5 January 1989 the interest rate on subloans was revised to 14 per
cent per annum or such rate as may be made applicable after regular interest
rate reviews, which included the coverage fee for the foreign exchange risk,
payable to the Government. The principal of the loan is repaid based on a
mirror-type amortization schedule with a maximum term of 15 years including a
grace period of 3 years.

II. IMPLEMENTATION

A. Lending Policies

8. ICICI operates within the framework of its Memorandum and Articles of

Association, Government-issued guidelines applicable to DFIs, periodic
resolutions of its Board, and its Policy Statement. In order to cope with the
changing operational environment, the Policy Statement has been revised from time
to time. ICICI's development policies reflect the objectives and priorities
defined in India's industrialization strategy. Recent Policy Statement revisions
by ICICI seek to further internationally competitive export industries and
particularly focus on the electronics and telecommunication sectors. Projects
addressing environmental and pollution control needs are also key areas for
financial support.

9. ICICI's Policy Statement formalizes prudential exposure limits. Maximum

exposure to any company is limited to 25 per cent of ICICI's net worth, and
overall exposure to an industry is limited to no more than 15 per cent of ICICI's
total portfolio. ICICI has operated within the financial covenants established
under the Bank's loan: a maximum 12:1 debt/equity ratio and a minimum debt-
service coverage ratio of 1.1:1. The policy statement is presented in Appendix
3.

B. Characteristics of Subloans

1. Size of Subloans

10. The $100 million loan was fully committed to 100 subloans and total
disbursements amounted to $98.8 million. Of these, 14 subloans totaling $61.8
million were approved above the free limit ($3 million), Of the 14 subloans,

1/ On 22 July 1986, the level was reduced to 1.5 per cent per annum upon
ICICI's request.
 4

2 were cancelled because they were converted to local currency loans and 12 were
disbursed, totaling $39.3 million. Eighty-six subloans totaling $78.1 million
were below free limit. Of the 86 subloans, 12 were cancelled at the request of
the applicants and the remaining 74 were disbursed, totaling $59.5 million.
The average subloart amount was $1.15 million, which compares favorably with the
average size of other DFI subloans. The subprojects are listed in Appendix 4.
Appendix 5 gives the details of subloans by sectoral distribution, geographic
distribution (see also Table 1), size of subloans, project cost and purpose.

2. Sectoral Distribution

11. Subloans to the chemical industry (including basic chemicals)

accounted for the largest sectoral allocation (30 per cent) of the loan followed
by electronics (11 per cent), textiles (7 per cent), and cement (6 per cent).
This sectoral distribution follows the general pattern of ICICI's total loan
approvals.

3. Geographic Distribution

12. Table 1 shows the geographic distribution of projects funded by the

loans.

Table 1: Geographic Distribution of Loan Recipients

Per cent of Per cent of

Reg ion Loans Value of Loans

Western 55.8 58.5

Northern 11.6 11.6
Central 11.6 11.6
Southern 20.0 17.7

Total 99.0 99.4

4. Pro-ject Cost

13. Thirty-three projects (38.4 per cent of the total number) cost from
Rs 100 million to Rs 500 million, which accounted for $42.9 million, 43.4 per
cent of the loan amount. Projects costing more than Re 1.0 billion accounted
for 26.5 per cent in value terms.

5. Purpose

14. Subloans for balancing, modernization and replacement accounted for

47.7 per cent in number and 46.0 per cent in value terms. Corporate expansion
was the purpose of 33.7 per cent of the loans (35.4 per cent of loan amount).
New companies received 18.6 per cent of the corporate loans. These figures were
in line with the main purpose of the loan.
 5

C. Implementation and Internal Operation of Subproects

1. Implementation Status

15. The total actual cost of the subprojects was Rs 50,702 million,
which was 40.4 per cent higher than the estimated Rs 36,002. Cost overruns arose
because of increases in the cost of machinery and equipment, increase in the cost
of civil works and devaluation of the Indian rupee. Of the Rs 14,700 million
cost overruns, Rs 9,400 million was for the Reliance petrochemical Project,
because of a change in project scope (see Appendix 6).

16. Of the 86 subprojects financed, 77 were completed, 8 were still

under implementation and 1 was cancelled. Of the 77 completed subprojects, 50
experienced delays in their completion ranging from 1 to 35 months. The causes
included delays in the completion of civil works, the installation of machinery
and equipment and disbursement of local currency.

2. procurement

17. Procurement for the subprojects was carried out in accordance with
the Bank's guidelines. International competitive bidding, international shopping
and reasonable competition procedures were adopted. Procurement by country is
given in Appendix 7.

3. Operational and Financial Performance of Subprojects

18. Of the 86 subprojects financed under the Bank loan, only 37 had
data available on capacity utilization. Of the 37, 19 operated at or above 70
per cent of full capacity. During the first year of operations, available data
from 44 subprojects show that 14 exceeded and 30 were below the sales estimates.
During the second year of operations, data availab],e on 39 subprojecte show that
18 exceeded and 21 were below the sales estimates. During the third year of
operations, available data on 28 subprojects show that half exceeded and half
were below the sales estimates (see Appendix 8).

19. In terms of profitability, all 38 companies with available data

turned a profit in the first year of operations. Total incremental profit of
the 38 subprojects during the first year of operations amounted to P.s 515 million
or 4 per cent higher than projections of Rs 495 million. During the second year,
actual profits of Rs 693 million for 36 subprojects were almost same as
projections of Rs 677 million. During the third year, actual profits of Rs 909
million for 29 subprojects were below projections of Rs 1,123 million by 23.5
per cent. The average ratio of net profit to net worth (with data of 22
subprojects available) in the third year operations was at 22.5 per cent. The
main reasons cited for performance problems in subprojecte were implementation
delays.

20. As of 31 March 1992 eight subloans were in arrears. Arrears totaled

Rs 15.6 million ($0.6 million). Of the eight subloans, six (totaling Re 15.0
million) were in serious arrears (more than six months). The arrears were caused
mainly by implementation and market problems. ICICI has taken appropriate
measures to help the subprojects overcome their difficulties, including loan
 6

rescheduling and infusion of additional funds. Once fully operational, ICICI

is confident that the eight subprojects will be able to service their debts (see
Appendix 9 and 10). The Mission requested ICICI to submit quarterly reports On
the eight oubprojects to the Bank.

21. Fifteen subprojects have exported their products. Exports totaled

$20.4 million in the first year of operations and increased to $30.1 million in
the second year. Incremental employment under the 43 subprojects with available
data totaled 11,662 persons, 29.2 per cent above the projected 9,025 jobs. The
incremental payroll of the 40 subprojects with available data was Rs 326.2
million against the projected figure of Rs 228.5 million. The incremental value
added of the 29 subprojects with available data was Rs 920.2 million (see
Appendix 11).

22. As of 30 September 1992, $31.6 million or 32.0 per cent of the

total disbursed amount of $98.8 million had been repaid promptly and $67.2
million or 68 per cent was not yet due for repayment.

D. Operational Performance of ICICI

1. Organization, Management and Staff ing

23. Growth in the volume and diversity of ICICI's business since

appraisal of the loan in 1986 has resulted in several organizational changes.
ICICI's current organization chart is presented in Appendix 12. A second Deputy
Managing Director was appointed and, after a reorganization in mid-1990, zonal
offices were established in Bombay, Delhi, Calcutta and Madras. The zonal
offices are now the focal points for ICICI's business activities and client
contact. In view of the expected emergence of greater competition from
commercial banks and improvements in the capital market, ICICI plans further
decentralization of its activities over the next three years. By 1995 the four
zonal offices are expected to operate as autonomous profit centers taking
responsibility for all operational decisions. In order to target new business
opportunities as well as to improve client servicing, two additional zonal
offices are being set up, one each in Bangalore and Baroda. ICICI's present
organization structure and plans for further decentralization are considered
fully satisfactory.

24. ICICI's Board of Directors currently comprises 17 members, 3 more

than at loan appraisal. Eight are from the private sector business community,
two from the Government, one represents foreign shareholders, and the others are
the Chairman (with executive power), the Managing Director, Joint Managing
Director, two Executive Directors of ICICI and the Chairman of IDBI. One of the
Government directors is appointed by the Ministry of Finance, while the other,
representing the Ministry of Industry, is elected by the Board. The Chairman
is elected by the Board following consultation with the Government. Despite the
majority shareholding of the public sector, most of ICICI's Board members are
from the private sector, thereby ensuring a satisfactory level of operational
autonomy.

25. Board meetings, held monthly, are well attended. The Board
determines operational and administrative policies, the annual budget, and major
 7

proposals for financial assistance. The Board has two subcommittees. The
Investment Committee oversees the management of ICICI's securities portfolio,
including the disposal of ita equity investments. The Loan Committee (comprising
the Chairman, Managing Director, Joint Managing Director and two Executive
Directors) has authority to sanction project finance to companies in which
ICICI's exposure will not exceed Rs 75 million.

26. ICICI had three full-time directors: the Chairman, Managing

Director and Joint Managing Director. At the Annual General Meeting of the
shareholders on 14 August 1992, the appointment of two Executive Directors was
approved, increasing the number of full-time directors to five. The full-time
directors are ably assisted in the day-to-day operations and in formulation of.
policy by the senior management of ICICI. The Chief Executive Officer of ICICI
is the Managing Director. The Managing Directors and middle managers are career
development bankers, qualified in relevant disciplines. The Mission is satisfied
with the qualifications and performance of ICICI's management.

27. As of 31 March 1992 ICICI's total staff was 1,054, and had increased
by 317 or 43 per cent from 737 in December 1986. The number of the professionals
had increased from 335 to 540. of the professionals, the largest groups
comprised engineers (136), chartered accountants (86), management graduates (72)
and lawyers (50). Even though ICICI recorded very significant levels of growth
in its operations during 1986-1992 (a growth rate of approximately 34 per cent
per annum), staff strength grew only by about 6.6 per cent per annum, mainly
because of expanded computerization of ICICI's operations. The Mission obtained
a favorable impression of the professional competence and work morale of staff
interviewed. This impression was confirmed through meetings with ICICI clients.

28. ICICI has a staff training department that offers a comprehensive

set of in-house and external courses and seminars. Staff training is integrated
with a system for rotation of staff for career development and for promotion on
a merit basis. In recent y6ars, computer training has been important for all
staff. Over the last few years, computer seminars have been the major thrust of
ICICI's training programs. The seminars have been designed to meet the needs
of various levels of management at ICICI.

2. Lending Operations

a. Op erational Performance

29. ICICI's projected operations for 1985-1989 and actual operations

for 1985-1991 are shown in Appendix 13 and summarized in Table 2.


Table 2: Summary of Projected and Actual Operations

(Rs million)

Ave.
1989/ 1990/ 1991/ Growth
1985 1986 1987/ 1988/
88 89 90 91 92 Rate (%)
Fiscal Year

Approvals

Foreign Currency
Loans
- Projected 1,970 2,364 2,837 3,404 4,085 - - 20.0
- Actual 1,700 2,983 2,061 4,918 6,770 10,405 8,364 43.5
Rupee Loans
- Projected 3,046 4,763 4,656 5,589 6,718 - - 23.6
- Actual 2,971 3,881 7,809 9,257 10,652 13,884 17,513 33.6
Investments
- Projected 427 542 651 780 937 - - 21.7
- Actual 409 682 818 1,071 2,828 2,559 3,003 47.6
Deferred Credit
- Projected 881 900 936 1,124 1,351 - - 11.6
- Actual 871 1,357 2,234 2,660 5,475 5,134 5,824 39.9
Others a!
- Projected 508 416 466 516 566 - - 3.6
- Actual 465 1,224 1,750 1,875 2,781 5,458 8,355 67.1
Total
- Projected 6,832 8,985 9,546 11,413 13,657 - - 19.3
- Actual 6,416 10,127 14,672 19,781 28,506 37,440 43,059 36.5

Commitments
-Projected 5,230 7,301 8,099 9,482 11,338 - - 21.8
-Actual 5,274 8,395 10,240 13,429 18,538 24,937 25,458 30.5

Disbursements
-Projected 4,318 5,172 6,717 7,945 9,240 - - 21.1
-Actual 4,387 6,032 9,803 10,856 13,571 19,675 23,513 31.3

a! Others include guarantee, leasing, installment sale, asset credit scheme

and venture capital.

30. icici recorded a significant growth in its operations for the last
seven years. ICIcI's total actual approvals during 1985-1989 amounted to Rs 79.5
billion ($3.1 billion) compared with projected approvals of Rs 50.4 billion ($1.9
billion), an increase of 57.7 per cent over projections. The average growth
during the period was 45.4 per cent per annum. ICICI classifies its loan
operations into local currency and foreign currency on the basis of the source
of fund. Foreign currency loan approvals exceeded projected approvals by 37.1
per cent, while local currency loan approvals exceeded projections by 41.2 per
 9

cent. Foreign currency loan approvals decreased in 1987/88 reflecting, in

particular, a concern of potential borrowers about the exchange risk. The
introduction of the Exchange Risk Administration Scheme in April 1989 overcame
this concern. The foreign currency loan approval in 1988/89 increased by 138.6
per cent compared with previous year, but in 1990/91 it decreased significantly
because of very tight foreign exchange control by the Government. Approvals of
investments in shares and debentures have increased substantially, at an annual
average rate of 45.4 per cent during 1985-1991. The average growth of total
commitments and total disbursements during the period was 31.2 per cent and 33.7
per cent per annum, respectively.

31. A feature of ICICI's recent operational performance has been the

growth of facilities provided by ICICI outside traditional project financing
activities such as term loans, investments and guarantees. Approvals for
nonproject financing (leasing, installment sale, asset credit and deferred
credit) have grown from 18.0 to 22.7 per cent of total approvals in the six years
ended 31 March 1992. This reflects ICICI's strategy of diversifying its
assistance to industry through introduction of nonproject finance that offers
ICICI potential for improved profitability.

32. Details of loan, equity and guarantee approvals by industrial

sector, purpose, size of project, size of financial assistance, sector and region
in the seven years to 31 March 1992 are shown in Appendix 14. Approvals have
been widely distributed through industry, with all sectors recording increases
over the period. Major sectors are currently textiles, (16.8 per cent of total
approvals in 1991/92), basic chemicals (14.4 per cent), other chemicals (11.4
per cent), metal products and basic metal industries (13.5 per cent) and cement
(8.2 per cent). Approvals for the fertilizer sector have declined and now
account for less than 2 per cent of project finance approvals.

33. In 1991/92, expansion, modernization, balancing equipment and

replacement projects accounted for 51.5 per cent of total approvals by amount,
followed by approvals to new companies (22.4 per cent). Diversification projects
have slightly decreased from 7.4 per cent of total approvals in 1985 to 6.4 per
cent in 1991/92. By size of projects, 88.4 per cent of loan approvals by number
and 52.7 per cent by amount were for projects with a capital outlay of less than
Ra 300 million. In terms of size of financial assistance, 92.6 per cent of loan
approvals by number and 53.6 per cent by amount were for less than Rs 100
million. The private sector accounted for 88.7 per cent of total approvals by
amount, followed by the joint sector (9.4 per cent), cooperatives (1.7 per cent)
and the public sector (0.2 per cent). By location, the Western Region accounted
for the largest share of approvals (41.9 per cent), followed by th6 Southern
Region (21.8 per cent), the Eastern Region (13.6 per cent), the Northern Region
(12.1 per cent), the Central Region (10.6 per cent) and the North-Eastern Region
(0.1 per cent).

E. ICICI's Portfolio

34. ICICI's loan portfolio increased from Rs 18,239 million as of 31

December 1985 to Rs 46,614 million as of 31 March 1990 and further to Rs 77,631
million as of 31 March 1992, which is a fourfold increase over six years. The
share of domestic currency loans against the total assets slightly decreased from
 10

50.8 per cent in December 1985 to 50.3 per cent in March 1992, while foreign
currency loans fell from 30.5 per cent in December 1985 to 21.4 per cent in March
1992. Investments remain at 5.3 per cent. ICICI's loan portfolio is reasonably
diversified.

35. The quality of the loan portfolio remains satisfactory with the
ratio of total arrears to total loans outstanding varying from 2.7 per cent in
December 1985 to 44 per cent in March 1992. The severe drought in India in 1987
had widespread impact throughout the economy and was reflected in the increase
of ICICI's arrears ratio from 2.7 per cent in December 1985 to 3.7 per cent in
March 1988. The ratio increased to 4.4 per cent in March 1992, mainly because
of the credit squeeze; the ratio is considered still manageable. The ratio of
arrears-affected loans to total loans has declined significantly from 11.5 per
cent to 7.1 per cent in 1988/89; however, it increased to 11.5 per cent in
1991/92. By industry subsector, the paper industry had the highest arrears
ratio (13.4 per cent), followed by cement (13.0 per cent), metal (6.0 per cent),
and machinery (2.2 per cent). The collection ratio decreased slightly from 82.7
per cent in 1985 to 80.0 per cent in 1992. The collection ratio in 1988
decreased to 78.1 per cent because of the consortium loans. Since 1988, ICICI
has promoted nonproject finance facilities such as leasing and credit lines.
ICICI writes off bad debts annually, up to the maximum extent permitted under
the income tax law, after further review of its portfolio in order to maximize
the tax benefit. Starting in FY 1992, provision for doubtful account has been
discontinued. Specific debts that are considered fully or partially
irrecoverable are written off. The Mission is generally satisfied with ICICI's
conservative loan accounting policy and practice (see Appendix 15 and 16).

36. ICICI's equity portfolio increased significantly from Rs 836 million

in December 1985 to Rs 3,504 million in March 1992. As part of its project
finance assistance, ICICI undertakes equity participation in industrial
enterprises by underwriting or directly subscribing to ordinary or preference
shares. ICICI does not purchase shares on the share market. ICICI has also made
equity investments to support the establishment of associate companies to
undertake specialized financial services (such as The Shipping Credit and
Investment Company of India Ltd., The Credit Rating and Information Services of
India Ltd. and The Technology Development and Information Company of India Ltd.).
Earnings from dividends and capital gains on equity portfolio have provided a
satisfactory return, ranging from 8.5 per cent to 27.5 per cent during the past
six years. Because of rapid growth in investments during the period, a high
proportion of the portfolio is yet to start providing significant earnings (see
Appendix 17).

F. Financial Statements and Ratios

37. ICICI's projected and actual balance sheets, income statements and
cash flow statements for 1985-1992 are presented in Appendixes 18 to 20. ICICI's
total assets increased from Rs 22,416 million at the end of 1985 to Rs 59,018
million ($2.3 billion) as of 31 March 1990, an increase of 163 per cent over a
four-year period against a projected increase of 84 per cent. The average annual
rate of growth, therefore, turned out to be about 27.5 per cent, compared with
the projected rate of 16.6 per cent. In the subsequent two years, 1990/91 and
1991/92, ICICI's total assets rose by another 83.4 per cent to Rs 108,210 million
 11

($4.2 billion). Since 1985 the composition of ICICI's domestic liabilities has
changed significantly, reflecting the shrinkage in availability of funds from
bond issues guaranteed by the Government. The Government-guaranteed bonds, which
constituted 87 per cent of ICICI's rupee resources in 1985, accounted for no more
than 30 per cent during 1991/92. ICICI, therefore, increasingly resorted to
tapping market sources of funds both for local and foreign currency; the market
sources typically have low to medium maturities and are available at market rates
of interest. icici has endeavored to create assets of matching maturities,
particularly in its nonproject assistance, and has priced the products to reflect
the marginal cost of funds. During 1991/92 the share of funds mobilized by
intercorporate deposits, certificates of deposit and loans a'id deposits from
other institutions increased from 13 per cent in 1985 to 49 per cent.

38. ICICI's total equity was Rs 1,750 million at the end of 1985. By
31 March 1992, it had increased to Rs 8,960 million. Growth in the equity base
of ICIC1 has resulted from retained earnings and from share capital increase
from conversion of convertible debentures. ICICI's paid-up capital increased
every year during the review period except 1988/89. ICICI has been able to
accumulate substantial reserves (retained earnings), of which rose from Rs 1,255
million at the end of 1985 to Rs 7,253 million as of 31 March 1992. ICICI's
dividend rate has increased from 17.0 per cent in 1985 to 24.0 per cent in 1992.
ICICI's long-term debt increased by 363.7 per cent from Rs 18,495 million ($714
million) to Rs 85,754 million ($3.3 billion). ICICI's long-term debt/equity
ratio slightly increased from 9.5:1 at the end of 1985 to 10.4:1 as of March
1992, but was well within the covenanted ceiling of 12:1 under the Bank loan.

39. ICICI has maintained satisfactory profitability during the period

under review. Along with the expansion of its loan portfolio, ICICI's interest
income increased substantially from RB 1,829 million in 1985 to RB 9,305 million
in 1991/92. The total income of ICICI has shown an average annual growth rate
of about 30 per cent during the review period. Fund-based activities are the
predominant source of ICICI's income. While the contribution from nonfund-
based activities such as merchant banking and trusteeship has been increasing,
the amounts are still not very significant and constituted less than 2 per cent
of the total income in 1991/92. Within the fund-based activities, the proportion
of income from nonproject finance has been increasing steadily in line with the
diversified business mix of ICICI, and comprised 12.9 per cent of total income
in 1991/92 compared with 5.7 per cent in 1985. Lease income also increased from
2.0 to 8.3 per cent of total income. For the last few years, income from
investment operations has shown a steady increase because of capital gains.
Interest cost is nearly 90 per cent of ICICI's total expenses. ICICI has
maintained a strict control on noninterest expenditure, particularly relating
to employee and establishment expenses. As a portion of total assets,
noninterest expenditure has declined marginally from 0.31 per cent in 1985 to
0.29 per cent in 1991/92.

40. ICICI's return on average equity was 26.0 per cent in 1985 and 26.5
per cent in 1991/92. ICICI's return on average assets was 2.1 per cent in 1985
and 2.3 per cent in 1991/92. ICICI was able to maintain the current ratio in
the range of 1.7:1 to 2.8:1 from 1985 to 1991/92. Though the debt-service
coverage ratio in 1987/88 and 1988/89 were distorted by the voluntary repayment
of an IBRD loan, ICICI has maintained the ratio above the 1.1:1 limit agreed to


12

under the loan. ICICI's financial position is considered strong and solvent.
Highlights of ICICI's financial performance from • l985 to 1991/92 are given in
Table 3.

Table 3: Highlights of IcICI's Financial Performance

1985-1991/92
(Rs milLion)

Ave. Growth
Fiscal. year 1985 1986 1987/88 1988/89 1989/90 990/91 1991/92 Rate (%)

Total. assets 22,416 28,133 38,087 47,350 59,017 77,218 108,210 28.9
Loan portfolio 18,239 23,387 30,004 37,885 46,613 61,304 77,631 26.4
Equity investments 836 829 1,315 2,058 2,302 2,849 3,504 26.9
Debenture 356 470 325 412 1,033 1,890 2,279 47.8
Arrears 501 757 1,126 1,196 1,329 1,986 3,406 38.1
Net income after taxes 400 611 771 787 971 1,348 2,013 31.2
Equity 1,750 2,474 3,209 3,8.46 4,771 6,205 8,960 30.6
Long-term debt 18,495 23,213 30,190 36,923 48,011 61,872 85,754 28.2

Ratios
Long-term debt/equity 9.5:1 10.7:1 10.6:1 10.4:1 9.9:1 10.0:1 10.4:1
Current Ratio 2.4:1 2.6:1 2.1:1 1.7:1 2.2:1 1.9:1 2.8:1
Debt service coverage (times) 1.6 1.7 0.9 0.9 1.6 1.5 1.5

Return on equity (%)
Interest spread (%)
Earning spread (%)
Aciiin. expenses/
average total. assets (%)
Collection ratio (%)
Total. arrears to
total. Loans outstanding
Dividend Rate (%)
26.0 29.0 21.7 22.3 22.5 24.6 26.5
2.9 2.8 2.7 1.7 1.4 1.9 3.6
3.0 3.6 3.2 2.5 2.2 2.9 4.9
0.35 0.38 0.32 0.31 0.32 0.32 0.29
82.7 80.0 80.9 78.1 83.0 83.4 80.0
2.7 3.2 3.7 3.2 2.8 3.2 4.4
17.0 18.0 22.5 19.0 20.0 22.0 24.0

G. Covenants

41. All covenants under the Loan have been complied with (see Appendix
21). A voluntary prepayment of a $140 million loan from IBRD in 1987/88 and
its replacement by more attractive commercial borrowings resulted in a technical
reduction of the debt-service coverage ratio to 0.9 in 1987/88 and 1988/89.

H. The Bank's Performance

42. The Bank loan became effective in July 1986, within 90 days of the
loan signing. The loan was fully committed for 100 subloans, with $98.8 million
disbursed. Because of the delays in implementing some subprojects, the Bank
granted a 12-month extension of the closing date for disbursements, from 31 July
1990 to 31 July 1991. The time spent by the Bank in processing a subloan
application averaged 14 days for subloans below the free limit of $3.0 million
and 17 days for subloans above the free limit. The delay in processing the
subloans was mainly because of shortcomings in information. Since the approval
of the loan in April 1986, in addition to routine contacts, three review missions
arid one country project review mission have been dispatched to ICICI. The
frequency and effectiveness of Bank missions are considered satisfactory.
 13

III. EVALUATION

A. Loan Appraisal

1. Distribution of Subloans

43. The purpose of the Bank loan was to provide foreign exchange
resources to support ICICI's lending program mainly for modernization and
expansion of existing production facilities of private medium-sized enterprises
and partly for new industrial projects designed to introduce new technology in
India. The distribution of ICICI's eubloans by purpose, industry sector, size,
and location has satisfactorily reflected the purpose of the loan.

2. Covenants

44. The covenants included under the loan were generally well-conceived
and appropriate in the circumstances prevailing at the time of appraisal. ICICI
has generally complied with the covenants except for debt-service coverage
ratios, which were slightly below the coverianted limit of 1.1 times because of
the voluntary repayment of an IERD loan.

3. quality of Appraisal

45. In appraising project proposals, icici evaluates their viability

on technical, financial and managerial criteria. To evaluate technical
feasibility, ICICI considers the viability of the plant size, provisions for
expansion, product-mix, choice of technology and need for phasing. ICICI
utilizes its previous experience with similar projects financed in evaluating
these aspects, and attempts to correct weaknesses found by making suitable
suggestions. ICICI has been giving considerable importance to energy efficiency
of the processes employed and the influence of the project on the environment.
In assessing the profitability of the project, an important aspect is projected
demand for the product to be manufactured. To estimate demand, ICICI carries
out its own analysis of the market for the proposed products. ICICI also assesses
the project's competitive position and pricing policy, and the influence of
Government regulatory measures such as price and distribution controls, licensing
imports and tariff protection. In addition, ICICI calculates the economic rate
of return. The Mission is generally satisfied with ICICI's procedures and the
quality of its project appraisals.

B. Implementation

46. During implementation, ICICI closely monitors the progress of

assisted projects through quarterly reports, regular visits to project sites and
factories, and the appointment of a nominee director in some cases. If the
project begins to falter, every attempt is made by ICICI to provide the support
needed. If the project needs close attention, it is transferred to senior
officers who are experts in rehabilitation activities. of the 86 subprojects
financed, however, 30 subprojects experienced delays of more than six months in
their completion and most had cost overruns. This indicates the need of ICICI'S
further efforts to minimize such delays and overruns.
 14

IV. CONCLUSIONS AND RECOMMENDATIONS

47. The Mission considers that the main objectives of the Bank loan have
been achieved and that ICICI has been an efficient financial institution through
which to channel Bank funds to development projects in the private sector in
India. ICICI has performed satisfactorily since appraisal, with significant
asset growth, sound financial position, and profitable operations. However, with
the implementation of the economic reforms such as financial sector reforms and
trade pol..cy reforms, there is likely to be more competition among financial
institutions in India. ICICI will face both an opportunity as well as a threat
on its operations. ICICI's ability to adjust to a new environment of competition
is likely to be crucial for future performance and growth.

48. Based on the review of the utilization of the first Bank loan and
of the performance of ICICI during the period 1985-1991/92, the following
recommendations are made:

For ICICI

(i) ICICI should continue to review its corporate strategy in the

light of changes that are taking place.

(ii) ICICI should continue to endeavor to raise its resources and

market its services.

(iii) ICICI should continue efforts to achieve its loan collection

targets and maintain its arrears at a manageable level.

(iv) ICICI should make more realistic estimates of implementation

schedules so as to avoid delays in implementation and cost
overruns.

(v) ICICI should continue to develop the computerization of its

operations.

For the Bank

(i) In future DFI loans, the Bank should include a covenant

requiring DFI to submit interim reports on any subproject that
is delayed more than six months.

(ii) The Bank should continue to monitor ICICI's progress of loan

collection and arrears.

(iii) The Bank should promote extending currency-specific loans at

competitive rates in order to cope with the changing financial
environment in India.
 15

APPENDIXES

PAGE
NO. TITLE

16
1 List of Shareholders
17
2 Details of Foreign and Local Currency Borrowings
19
3 Policy Statement
22
4 Subprojects, Commitment Dates, Disbursements and Outstanding
24
5 Characteristics of Subloans
25
6 Implementation Data on Subprojects
27
7 Details of Procurement by Country of Origin
28
8 Financial Performance of Subprojects
30
9 Operational, Financial and Technical Problems
34
10 Current Status of Subprojects
36
11 Economic Performance of Subprojects
38
12 Organization Chart of ICICI
39
13 Summary of Actual and Projected Operations
40
14 Analysis of Loan, Equity, and Guarantee Approvals
42
15 Loan Portfolio Arrears
43
16 Sectoral Distribution of Portfolio and Arrears
44
17 Equity Investment Operations
45
18 Actual and Projected Balance Sheets
46
19 Actual and Projected Income Statements
47
20 Actual and Projected Cash Flow Statements
48
21 Compliance with Loan Covenants


16
Appendix 1
LIST OF SHAREHOLDERS
(As of 30 April 1992)

No. of No. of Amount

Name of Shareholders Shareholders Shares (As Million) Per Cent

Indian Shareholders

Official Sector

Ufe Insurance Corporation of India 1 3.059.345 305.94

Unit Trust of India 4 2,519,792 251.98

New India Assurance Co. Ltd. 1 1.272,492 127.25

General Insurance Corp. of India 1 732.888 73.29

National Insurance Co. Ltd. 1 580,127 58.01

State Bank of India 1 246,625 24.66

Other Officials Sector 35 961.443 96.14

44 9.372,715 937.27

Private Sector

IBP Company Ltd. 1 89.019 8.90

Housing Development Finance Corp. Ltd. 2 169.307 16.93
Associated Cement Co. Ltd. 1 45.064 4.51
Corporate Shareholders 1.282 1,009,533 100.95
Individual Shareholders 378.969 5,350,046 535.01
380,255 6.662,969 666.30

Total Indian Shareholders 380,299 16.035,684 1,603.57

Foreign Shareholders

UK Banks 9 607.671 60.77 3.54

US Banks 9 242.466 24.25 1.42
German Bank 1 50,625 5.06 0.30
Japanese Banks 4 69.478 6.95 0.41
Other Foreign Banks & Cos. 13 106,914 10.69 0.63
Foreign Individuals 214 5,070 0.50 0.02
250 1,082,224 108.22 6.32

TOTAL 17.117.908 1.711.79 100.00

(Reference in text: page 1, para 2)



17

DEIALS Of FOREIGN AND LOCAL CURRDICY BORROWINGS
Appendix

31 March 1992 Page 1
ç mihon)

Nature of Borrowings Year of Finel Amount Amount yet
lIe!woval Maturity Gross Amount Outstandino to be Drawn Interest Rate (

FOREIGN CURRENCY BORROWINGS

A. With Government Guarante.

15110 (Loans I -XIv) 1955-1961 1969-1999 $ 765.0 $ 3.207 NIL 4.63%-10.6%
Fixed Rat.

IBRD 2630, 2661, 3059, 3094 1986-1989 1991-2009 5 471.0 $ 280.924 $ 179.112 VariableRat.

1<1W: Loans I-XXIV 1963-1985 1979-2035 DM 269.5 DM 170.18 NIL 3.0%-10.25%

1<1W: X) & XXV1 1986-1988 1996-2038 DM 105.0 DM 65.71 OM 39.29 6.75

ADS: Loans No. 778 & 1072 1986-1991 1988-2006 $ 220.0 $ 96.024 $ 100.29 Variable Rat.

Swiss Francs Bonds 1986 1996 SwF 75.0 Swf 75.0 NIL 5.75%

Swiss Francs Bonds 1988 1995 SwF 80.0 SwF 80.0 NIL 5.25%

Japanese Yen Loan 1987 1997 Y 12,000.0 Y 12,000.0 NIL 1/4% over LIB(

Japanese Yen Loan 1987 1997 Y 5,000.0 Y 5,000.0 NIL 5.50%

Japanese Yen Loan Bonds 1985 1995 Y 5,000.0 V 5,000.0 NIL 6.60%

FF Credit Banking Treasury 1984 1987-2017 F 10.0) F 13.42 NIL 8.09%

10.0) 2.50%

B. Without Government Guarantee

European Cornmunit (EC) Vi 1984 1992 $ 25.0 $ 2.8 ML 1/4% over LIBI

ECU 30.0 ECU 3.36 lIL

EC VII 1985 1995 $ 25.0 $ 13.45 NIL 1/8% over LIBI

ECU 20.0 ECU 10.76 NIL

EC ViP 1986 1096 $ 30.0 $ 23.07 NIL LIBOR less 1/'

IDBI Bonds 1986 1993 DM 25.0 DM 25.0 NIL 7.31%

Commonwealth 0ev. Corp. 1987 1999 L 10.0 L 9.10 NIL 8.50%

Japanese Yen Loan 1988 2000 Y 12,000.0 V 12,000.0 NIL 6.50%

Swedish Export-Kr.dit 1988 1992-1999 $ 15.0 S 12.398 2.602 Interest he.

Japanese Yen Loan Fuji Bank 1989 1994 Y 2,000.0 Y 2,000.0 NIL 1/4% over LIE
C

Fuji Bank Loan 1989 1994-1999 $ 35.0 $ 35.0 NIL 1/4%over LIE

Multi-currency OM 65.390 DM 65.390 NIL

($100 million) Y 4,174.5 Y 4174.5 NIL

Bank of Tokyo Loan 1990 1095-1997 $ 70.0 $ 70.0 NIL 1/4%over LIE
($70 millon)

lndusfral Bank of Japan Loan 1990 1994-1998 $ 50.0 $ 50.0 NIL 1/4%overLlt
(S 50 millon)

Euro Commercial Paper 1987 1087-1994 $ 160.0 $ 146.7 NIL 1/16%overL
Note Issuance Facility

State Bank of India, Nassau 1991 1999 $ 13.35 $ 13.35 NIL 7/32%overL
L 8.9 L 8.0
 18

Appendix 2
Page 2

Nature of Borrowings Year of Final Amount Amount yet
to be Drawr

RUPEE BORROWINGS (As Milton)

A. With Government Guarantee

Debentures and Bonds in the

nature of promissuy notes 1976-1991 1902-2011 As 29,024.25 Rs 29,024.25 6.25%-I 2.0%

8. Without Government Guarantee

Convertible Debentures 1989 1999 As 787.99 As 517.97 12.50%

DepositfromAzmyoupinsizance 1985-1992 1902-1997 As 600.00 As 600.00 12.30%-i 6.50%

Depositfrom Life Insurance Corp. 1985-1992 1992-1999 As 3,017.71 As 3,017.71 NIL 12.5%-17.5%

DepositfromUnitTruofIndia 1985-1992 1902-1996 As 7,550.00 As 7,112.50 13%-15.5%

Borrowrngs from Industrial

Development Bank of India 1977-1990 1992-1996 As 5,077.80 Rs 3,647.92 6.25%-13%

Wi Bridge Loan 1992 1992 As 500.00 Rs 500.00 17.50%

SCICI 1987-1991 1992-1903 As 1,350.0 Rs 670.25 I 2.50%-17%

NDDB 1988-1991 1995 Rs 510.00 As 510.00 13.25%-15.5%

Short-term intercorporate deposit 1991-1992 1992-1993 As 751.00 Rs 751.00 14.5%-16.5%

C. Borrowingsfrom Government

InterestDifferentialFundjKfW 1972-1987 1078-2002 As 54.54 As 20.47 NIL 5.75%-i 1%

Rupee Loan 1982 1996 As 200.00 As 100.00 NIL 8%

UK,llndia 1984 1989 As 725.43 As 53.67 NIL 9%

IBRD-2660 1986 1992-2007 Rs equiv.of As 640.32 As equiv.of 11%

Cement Modernization $ 81.75 M. $ 43.502

Swiss Mixed Credit 1986 1991-2001 As equiv. of Rs 227.76 As equiv. of 10%

swc 30 U SwF 12257

IBRD-2928 IFTA 1988 1994-2008 As equrv. of As 1,644.41 As equiv. of 10%
$ 105.OM $ 23.202

BAD -TSSP 1989 1997-2005 As .quIv. of As 129.20 12%
$ 20M

IBRD-3196 1990 1996-2010 As equiv.of As 195.09 As .quiv.of 12%

Cement Induy Aestructuring $ 149.0 M $ 144.662 M
 19
Appendix 3
Page 1

POLICY STATEMENT

I. Oblective and Main Business Activities

ICICI's principal function is to assist in the creation, expansion

and modernization of industrial enterprises in the private corporate sector by
encouraging and promoting the participation of new capital and the expansion of
investment markets. ICICI has taken a leading part in providing finance to non-
traditional, import-substituting and export-oriented industries. Recognizing
specific needs of industry at various points of time, ICICI has assisted
programmes of modernization and technology upgradation. It has also promoted
entrepreneurs and encouraged industries, always bearing in mind the broad
parameters of Government's economic/industrial policy. Broadly, the operations
of ICICI comprise the following activities:

Proiect Financing

ICICI's moat important activity is providing project financing to

industrial enterprises in the form of Rupee and Foreign Currency loans,
underwriting and direct subscription to shares and debentures and guaranteeing
payment to foreign suppliers of equipment. Such assistance is typically provided
to finance the cost of the establishment, modernization or expansion of
manufacturing and processing facilities, and, is usually of medium-term duration.

Financial Services

As a part of its strategy to provide assistance to industry in

various forms and to improve its profitability, ICICI began to diversify its
activities from the early 80's, which led to the introduction of leasing,
installment sale of equipment, asset credit and deferred credit. ICICI has
continuously endeavored to assist the industrial community in as many ways as
possible and in so doing, to diversify its sources of income. In this regard,
ICICI felt a need to set up a Merchant Banking Division (MBD) in the early 1970s
when the domestic capital market was beginning to make its presence felt. Since
then, the MED has grown rapidly and today, ICICI is one of the major merchant
bankers in the country.

In the emerging complex financial scenario, a need for specialized

financial services, singly or as a package, available through a single window,
is being felt by the corporate sector, international banks/institutions as well
as individual and corporate investors. In order to fulfill these needs as well
as for gaining operational and financial autonomy and flexibility, ICICI has set
up an Investment Banking Company as subsidiary.

The Merchant Banking Division shall now be a part of the new

Investment Banking Company (IBC). The IBC (interalia) would also perform the
following functions: (i) bridge financing, (ii) bill discounting/financing,
(iii) investment/market making. ICICI is also proposing the setting up of an
Asset Management Company and a Share Registry Company.

(Reference in text: p ace 3, para. 9)

 20

Appendix 3
Page 2
Development Activities

Technology Financing

ICICI has been funding new products/technologies through its project

finance department. In 1985, a separate department was set up to provide
specialized funding for R & D and commercialization of new technologies.
Assistance is available from ICICI for financing market-oriented technology
projects under five schemes:

(i) Programme for Advancement of Commercial Technology (PACT)

(ii) ICICI has promoted a specialized financial institution
Technology Development and Information Company of India Ltd.
(TDICI) for promoting venture capital support
(iii) Programme for Acceleration of Commercial Energy Research
(PACER)
(iv) Sponsored Research and Development (SPREAD)
(v) Agricultural Commercialization and Enterprises (ACE)

For each of the above programs, the focus, source of funds and the
nature of ICICI's involvement is unique. In all the above schemes the primary
goal is the provision of assistance to entrepreneurs interested in development
and commercialization of new technology. This involves identification of
potentially viable but relatively high risk projects. The returns to ICICI are
linked to the performance of the project and are by and large not predefined,
as they are in project finance.

Promotion of New Institutions

Credit Rating Information Services of India Limited (CRISIL)

In 1987, ICICI promoted CRISIL as an independent professional rating

agency in order to rate the various types of financial instruments offered to
the investing public. The rating agency was the first of its kind in the country
and has made a significant impact in improving capital markets efficiency as well
as creating investor awareness.

The SCICI Ltd.

ICICI, along with other FIs and banks promoted The Shipping Credit
and Investment Corporation of India Limited with the objective of creating a
separate institution to provide finance to the shipping sector. SCICI's
performance has been excellent and it has now diversified into other
industries/activities as well.

Technology Development and Information Company of India Limited (TDICI)

This institution was set up in 1988 as a specialized institution to

provide venture capital support to projects involving indigenous efforts in
development and commercialization of innovative technologies.
 21

Appendix 3
Page 3
Over the Counter Exchange of India (OTCEI)

ICICI, along with other institutions, have promoted this company,

which began its operations recently. the objective of setting up the exchange
is to list smaller companies which are not in a position to be listed on the
major stock exchanges of the country.

II. Sing le Investment Exposure

ICICI's operating policy is to have a well diversified portfolio to

avoid undue concentration in any one industry, client group or company. To that
end, prudent exposure limits have been laid down as follows:

(i) Exposure to an individual company shall not at any time exceed

25 per cent of ICICI's net worth.

(ii) The overall exposure to an industry (as defined by the

internationally accepted three digit classification) should
not exceed 15 per cent of the total asset portfolio.

Exposure here has been defined as amounts outstanding. The above

policy has been followed quite rigidly with the result that ICICI's exposure in
an individual company and group has been below 25 per cent and 50 per cent
respectively of ICICI's net worth. Further, ICICI's exposure in any industry
has not exceeded 10 per cent.

Source: ICICI
 22 Appendix 4
Page 1
SUBPROJECTS, COMMITMENT DATES. DISBURSEMENTS AND OUTSTANDING
As of 51 March 1902
(In $'OOO)

SIL Commitment Principal Principal
oaf Name of Sub Disburseme

Above Free Limit

002 Hndustan Motors Ltd. 18-Dec-86 2,329.00 1,822.00 507.00 2,320.00

019 Cosmo Films Ltd. 25-Aug-87 3,483.00 2,468.00 1,015.00 3,483.00
044 Indian Rayon & Industries Ltd. 29-Jan-88 2,467.00 2,170.00 297.00 2,467.00
057 Essar Gujarat Ltd. 05- May-88 4,485.00 4,216.00 269.00 4,485.00
060 GuWat Narmada Valley Fertilizers Co. Ltd. 27-May-88 4.42.00 358.00 84.00 442.00
063 Gurat Alkalies & Chemicals Ltd. 11-Jul-88 2,1 02.00 2,014.00 88.00 2,102.00
068 Deepak Fertilizers & Petrochem4cals Corp. Ltd. 11-Aug-88 5,000.00 5,000.00 5,000.00
072 Indian Acrylics Ltd. 26-Oct-88 3,713.00 3,713.00 3,713.00
073 Reliance Petrochemicals Ltd. 08-Nov-88 5,012.00 4,220.00 792.00 5,012.00
074 Bombay Offshore Supplies & Services Ltd. 08-Nov-88 1,568.00 711.00 857.00 1,568.00
075 Century Enka Ltd. 08-Nov-88 3,326.00 2,827.00 499.00 3.328.00
083 Raymond Woolen Mills Ltd. 17-Jan-90 5,345.00 1,068.00 5,345.00
Total Above Free Limit 9.27200 33,796.00 5.47600 9.27200

Below Free Limit

004 Orient Paper & Industries Ltd. 29-Dec-86 2,878.00 1,150.00 1,728.00 2,878.00
005 Crompton Grec"is Ud. 08-Apr-87 193.00 44.00 140.00 193.00
1006 Modern Woulens Ltd. 08-Apr-87 824.00 514.00 310.00 824.00
007 Television & Components Pvt. Ltd. 20-May-87 781.00 389.00 392.00 781.00
008 EL Limited 19-May-87 1,060.00 668.00 392.00 1,060.00
009 Lakshmi Machine Works Ltd. 05-Jun-87 2,285.00 1,373.00 912.00 2,285.00
010 Videocon International Ltd. 30-Jun-87 366.00 65.00 301.00 386.00
Tata Telecom Ltd. 01-Jul-87 626.00 320.00 306.00 626.00
012 Larsen & Toubro Ltd. 10-Jul-87 663.00 224.00 439.00 663.00
013 LML Limited 07-Aug-87 2,109.00 870.00 1,239.00 2,109.00
014 Cemindia Co., Ltd. 07-Aug-87 126.00 126.00 126.00
015 K. C. Gluco Biols Ltd. 17-Aug-87 182.00 114.00 68.00 182.00
016 Gu. rat Spinners Ltd. 17-Aug-87 308.00 94.00 214.00 308.00
017 Majestic Auto Ltd. 25-Aug-87 642.00 642.00 642.00
018 Spartek Ceranics (India) Ltd. 25-Aug-87 772.00 325.00 447.00 772.00
021 Rahkanial Synthetics Ltd. 08-Sep -87 258.00 104.00 154.00 258.00
023 Indian Plywood Manufacturing Co. 08-Sep-87 614.00 190.00 424.00 614.00
024 Standard Medical & Pharmaceuticals Ltd. 08-Sep-87 2,094.00 954.00 1,140.00 2,094.00
025 Gujerat Narmada Valley Fertilizers Co. Ltd. 30-Sep-87 365.00 365.00 365.00
027 Indian Rayon & Industries Ltd. 30-Sep-87 256.00 119.00 137.00 256.00
028 Crompton Greaves Ltd. 30-Sap- 87 267.00 99.00 168.00 267.00
029 Shriram Fibres Ltd. 30-Sep-87 379.00 269.00 110.00 379.00
031 Hi-Ral Components (India) Pvt. Ltd. 07-Dec-87 578.00 355.00 223.00 578.00
032 KDB Industries Ltd. 21-Dec-87 580.00 489.00 91.00 580.00
033 Century Enka Ltd. 08-Jan-87 1,938.00 1,2 10.00 728.00 1,038.00
035 Hindustan Pipe Udyog Ltd. 08-Jan-87 403.00 201.00 202.00 403.00
036 Jam Irrigation Systems LTd. 08-Jan-87 83.00 59.00 24.00 83.00
037 Keltron Components Complex Ltd. 13-Jan-87 983.00 983.00 983.00
038 Electronics Researcri Pvt. Ltd. 13-Jan-87 832.00 418.00 414.00 832.00
039 Tainwala Chemicals & Plastics Ltd. 13-Jan-87 319.00 169.00 150.00 319.00
040 Bajej Auto Ltd. 20-Jan-87 1,551.00 1,083.00 1,551.00
Subtotal 25315.00 12436.00 5.3 15.00
I

(Reference in text: page 4, para. 10)


23
Appendix /.

Page 2

SIL Commitment Principal Principal

No.a/ Name of Date Not Yet Due

Below Free Limit (continuation}

042 Keventer Agro Private Ltd. 25-Jan-88 320.00 140.00 180.00

043 Nihon Nirmaan Ltd. 25-Jan-88 809.00 686.00 123.00

045 Indian Rayon & Industries Ltd. 29-Jan-88 242.00 79.00 163.00
046 XLO Machine Tools Ltd. 02- Feb-88 321.00 306.00 15.00
047 Maharashtra Safety Glass Ltd. 02- Feb-88 522.00 264.00 258.00
048 Raigad Castings Ltd. bi 08-Feb-SB 61.00 32.00 29.00

049 Invel Transmissions Ltd. 08-Feb-88 723.00 453.00 270.00
050 Straw Products Ltd. 17-Feb-88 1,587.00 8.35.00 752.00

051 Indian Steel & Vire Products Ltd. 04- Mar-88 34800 176.00 172.00
052 Remington Rand of India Ltd. 04- Mar-88 417.00 259.00 158.00
053 Lakhanpal National Ltd. 08- Mar-88 856.00 435.00 421.00
054 Nuchem Plastics Ltd. 08- Mar-88 1,223.00 1,124.00 99.00

055 Nippon Denro l.pat Ltd. 08-Mar-88 683.00 683.00

056 Morris Electronics Ltd. 25-Apr-88 530.00 450.00 80.00
058 Pasupab Acrylon Ltd. 25-Apr-88 1,480.00 1,215.00 265.00

059 Chokkani International Ltd. 25-May-88 2,506.00 2,506.00

062 SPIC ELectronics Systems Inc. 04-Jul-88 983.00 391.00 592.00

064 Indian Aluminum Co. 29-Jul-88 985.00 391.00 594.00
056 Camlin LTd. 05-Aug-88 480.00 310.00 170.00
067 Cable Corporation of India 05-Aug-88 700.00 385.00 315.00
069 Universal Cables Ltd. 16-Aug-88 431.00 218.00 213.00
070 Parasrarnuria S,nthetics Ltd. 17-Aug-88 1,156.00 1,000.00 156.00
07G Crompton Greavec Ltd. 10-Nov-88 289.00 172.00 117.00
077 Haryana Petrochemicals Ltd. 11-Nov-88 445.00 371.00 74.00

078 Hinditron Techtrcnis nsj'Jte Ltd. 11-Nov-88 203.00 164.00 39.00
079 J. K. Synthetics Ltd. 11-Nov-88 2,790.00 2,055.00 735.00
080 SKF Bearings Ltd. 11-Nov-88 1,072.00 716.00 356.00
081 Polychem Ltd. 30-Jan-89 288.00 201.00 87.00
084 BPL Electo nice Ltd. 22-Feb-90 573.00 375.00 198.00
085 Bharat Forge Ltd. 26- Mar-90 2,753.00 2,753.00

087 Antifriction Bearings Corp. Ltd. 10-Dec-90 536.00 481.00 55.00

088 Supreme Industries Ltd. 10-Dec-90 326.00 326.00

059 Arunoday Mills. Ltd. 10-Dec-90 285.00 285.00
090 Trinity Engineers LTd. 10- Dec -90 814.00 614.00

091 Finolex Pipes Ltd. 03-Jun-91 1,646.00 1,646.00

092 Nilkamol Plastics Ltd. 07- Jun-91 366.00 366.00
093 Trinity Engineers Ltd. 07-Jun-91 225.00 225.00
094 Wipro Systems Ltd. 07-Jun-91 151.00 142.00 9.00

095 Invel Transmission Ltd. 07-Jun-91 54.00 54.00

096 Peico Electronics & Electricals Ltd. 07-Jun-01 246.00 246.00

097 Gurat Alkalies & Chemicals Ltd. 07-Jun-01 1,198.00 1,153.00 45.00

099 lntersil India Ltd. 07-Jun-91 286.00 286.00

100 Parasrampuria Industries Ltd. 21-Jun-91 2,294.00 2,294.00
Subtotal 27,463.00 6,740.00
Total Below Free Limit 59,518.00 40.34200 19.1 76.00

TOTAL

a,' Subloans listed are those approved and disbursed; subloan numbers not listed were approved
and/or authorized by the Bank but were subsequently cancelled/withdrawn.
b! This was disbursed but subsequently cancelled by company. Amount was refunded to ADB.

24 Appendix 5
CHARACTERISTiCS OF SUBLOANS

No. of Amount
million
Item Subloans

A. By Sectoral Distribution
1. Sugar
Food products 1 3.00 0.18
2.
Textiles 7 124.30 7.43
3.
Paper and paper products 2 30.20 1.81
4.
5. Rubber products
Basic industrial chemicals 5 152.70 9.12
6.
7. Fertilizers and pesticides
Other chemicals 16 496.20 29.64
8.
4 107.30 6.41
9. Cement
6 156.80 9.37
10. Basic metal industries
11. Metal products
4 70.50 4.21
12. Machinery (except electricals)
4 37.70 2.25
13. Electrical equipment
18 161.10 10.82
14. Electronics
6 124.00 7.41
15. Transport equipment
16. Electricity generation
and distribution
2 77.00 4.60
17. Services
18. Miscellaneous 11 92.80
Total 66 1.653.60
B. By Geoqraphical Distribution
10 202.80 12.12
1. Northerna/
2. North-Eastern bf
Eastern c/ 2 11.20 0.67
3.
Central d/ 10 178.20 10.64
4.
Western e/ 48 967.80 57.82
5.
Southern ft 16 293.60 17.54
6.
Total 1.653.60
C. By Size of Subloans
1. UptoRs5million 18 58.00 3.47
2. As 5- 10 million 22 156.60 9.36
3. As 10 - 20 miiion 20 281.20 16.80
4. As 20 - 50 million 19 649.50 36.80
5. Over R 50 million 7 508.30 30.36
Total 86 1.65360 96.79
D. BvProjectCost
1. Less than As 10 million 10 42.40 2.53
2. As 10 - 30 million 8 67.50 4.03
3. As 30 - 50 million 8 59.70 3.57
4. As 50 - 100 million 14 167.70 10.02
5. As 100 - 500 million 33 717.50 42.87
6. As 0.5 - 1.0 billion 5 161.40 9.64
7. Over As 1.0 billion 8 437.40 26.13
Total 86 1653.60 98.79
E. By Purpose
1, New 16 307.80 18.39
2. Expansion 29 585.30 3497
3. Balancing, Modernization &
Replacement 41 760.50 45.44
Total 1.65360

a/ Comprises the states of Maryana, Mimachal Pradesh, Jammu and l'(ashmir, Punjab, Rajasthan, union territories cf
Chandigarh and Delhi.
bt Comprises the states of Assam, Manipur, Maghalaya. Nagaland, Tripura, knachal. Mizoram and Sikkim.
c/ Comprises the states of Bihar. Orissa. West Bengal and union territory of Andaman and Micobar islands.
d/ Comprises the states of Madhya Pradesh and Uttar Pradesh.
e/ Comprises the states of Gujarat, Maharashtra, Goa, union territory of Dadra and Nagar Kaveli and Daman and Diu.
f/ Comprises the States of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and union territories of Lakshadweep and
Pondicherry

(Reference in text: page 4, para. 10)

 25
Lf Và Appendix 6
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Appendix 6
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 27
Appendix 7

DETAILS OF PROCUREMENT BY COUNTRY OF ORIGIN

($ million)

(Reference in text: page 5, para. 17)

 28
a
Appendix 8
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 29

Appendix 8
I I Page 2

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I
 OPERA11ONAL, FINANCLL All) ThCHNICAL PROBLEMS

Actual
Actt*l Capacity

Sitloan Completion Utilization

Noe/ Nam Taken

002 Hindustan Motoss Ltd. Automobiles m. 01-Mar-91 NA. b/ Liquidity prthlemsaswellas mai$ceting Review made by ICICI showed that the
problems. company should lay greater emphasis
on exports of components and bucks
developing countries such U
Bangladesh and Nepal. Frnanclel
overrun, It I advised, could be solv.d
by tying i by way of equity issue
and sanction of additional term loan.

019 CosmoFllmsLtd. Filmsm. 31-Mar-88 35 Interestbirdenls high. Company lsraising Noactionr.quiedfromlClCl.

044 Inchan Rayon & Industries Ltd. Portland cement m*J.
057 Essar Gujarat Ltd. Steel mig.
060 Gujarat Narmada Valley Fertilizers Co. Ltd. Chemical products inig.
063 Gujarat Alkalies & Chemicals Ltd. Caustic soda n1.
088 De.pak Fertilizers & Petrochemicals Corp. Ltd. Chemical products mlg.
.3
072 Indian Acrylics Ltd. Textile m.
073 Reliance Petrochemicals Ltd. Petrochemical products
074 Bombay Offshore Supplies & Services Ltd. Oil expiocation & devel3prnent
.3
075 C.ntiry Enka Ltd. Textiles m.
083 Raymond Woolen Mills Ltd. Textiles/iioolen tab ice mfg.
money from rnarkel
01-Dec-00 94 Complation was delayed du, to change In scope. No action requied.
01-Aug-00 90 Fist phase complated. -
01-Mar-02 NA Cl None. -
01-Oct-89 NA Cf None. -
31-Aug-02 NA. d/ Somooperationalproblem. -
CD
30-Sep-02 Cl NA d/ Some locationallsecniity problems. 9% No action requied. Rescheduling
completed. Expected to start 1st half of 1993. consIdered by lFCl (leaf agency).
01-Jan-02 c/ NA d/ None. -
01-Jan-89 NA b/ Facing legal problems. Recaled the loan and Initiated
legal action to recover dues.
01-Mar-80 NA b/ None. -
01-Jan-90 NA b/ None. -

004 Orient Paper & Industries Ltd. Portland cement m. 01-Mar-00 77 None.
005 Cwmpton Greaves Ltd. Elect, machinery (telephone) rnfg. 01-Feb-88 NA b/ None.
006 Modem Woolena Ltd. Tsxtilesftworsted yam mlg. 01-Sep-88 85 None.
007 TelevIsion & Components Pvt Ltd. Electrical machinery apparatus 01-Mar-88 90 Ctxrent operations are satisfactory. Some No action requied from ICICI.
liquidity problems, for which equity Issue
being propciaed.

008 ta Limited Chemicals/polyester staple lb. 01-Mar-80 NA. bl None.

009 Lekshml Machine Works Ltd. Fabricated metal products 01-Dec-88 17 None.

010 V'ideocon International Ltd. Electrical equipment & supplies 31-Oct-87 100 None. '
Qrti

H'
x
 Actual
Subloan
of of Action Taken by ICICI
BelowFnseLI!fl!Lcontinuatj2n
011 Tata Telecom Ltd. Electronic PABX mfg. 01-Jul-87 96 None -
012 Larson & Totkiro Ltd. CMI construction 30-Jun-87 NA ./ None -
013 LML Limited Machinery m. 01 -Oct-88 49 lncxring cash losses because of stiff market ICICI discussing with company on
competition and poor management ways to Improve cash position.
014 Cemindia Co., Ltd. Construction services 01-Aug-87 NA b/ None -
015 K. G. Gluco Biols Ltd. Food processing 01 -Sep-90 20 Facing financial problem due to cost overrun. The sponsor Identifying buyer for the
company. ICICI assisting it.
016 Gujarat Spinners Ltd. TextIles/acrylic yarn rnfg. 01 -Mer-88 NA b/ Delay In Implementation because of strike, but Is No action requIred.
n solved.
017 MaeatioAutoLtd. Transport .quçment m. 01-Oct-88 40 None. -
018 Spartek Ceramics (india) Ltd. Ceramic tiles m. 01-Dec-87 100 None -
021 Rahkamel Synthetics Ltd. Toxtiles/ccitton fabrics m. 30-Sep-88 50 Commercial production started in October. lClCl to reschedule payments and
Markating and management problems, interest; may take up equity position.
023 lndmn Plywood Manufacttring Co. Plywood mfg. 30-Jun-88 48 Cost increase because of shortage of local RationazatIon recon'vnended by lClCl.
raw materiel.
024 Standard Medical & Ptwmac.uticals Ltd. Medical services 28-Oct-88 - None -
025 Cujarat Narrnada Valley Fertilizers Co. Ltd. Fertilizers mfg. 31-Mer-92 NA Cf None -
027 Indian Rayon & Industries Ltd. Textiles mlg. 01-Apr-88 108 None -
028 Crompton Gream. Ltd. Electrical machinery 31 -Mer-88 NA b/ Non. -
029 SIwramFbr.sLtd. Textiles m. 30-Sep-88 NA bf None -
031 HI-Rd Components (India) Pvt Ltd. Ele,bical supplies mfg. 01-Mw-90 50 Lkuklity prcbIems because of low capacity -
utilization.
032 KDB Industries Ltd. Paper products m. OO - Sep - Ql NA cf None. Chang.Inpromctersandnewgroup -
has taken over.
033 C.nttry Enka Ltd. Textiles mfg. 01-Jul-89 97 None -
035 Hindustan Pipe Udyog Ltd. Steel pe m. )l-May-88 22 None -
030 Jam Irrigation Systems LTd. Tthes m. 01-M-88 36 None
037 Keltron Components Complea Ltd. Electrical apparatus & supplies m. 01-Dec-00 47 None -
038 Electronics Research Pvt. Ltd. Electrical apparatus 8 eqpmtn-g. 01-Apr-88 60 None -
039 Tairavala Chemicals & Plastics Ltd. Plastic products m. Ol-Mer-QO NA b/ None -
040 Bajaj Auto Ltd. Transport equipment mfg. 01-Mer-88 80 None -

(D(D
N.) c1

x
 Actual
Capacity
Subioan Utilization
No,aJ - NomeofSt ICICI

Below Free Limit (continuation)

042 Keventer Agro Private Ltd. Food processing 30-Sep-88 NA b/ Facing marketing problems. No action requk.d from ICICI.

043 Nihon Nkmean Ltd.
045 Indian Rayon & Industries Ltd.
046 )&O Machin. bole Ltd.
047 Maharashtre Safety Glass Ltd.
048 Raigad Castings Ltd.
049 lnvel Tranémissions Ltd.
050 Straw Products Ltd.
051 Indian Steel & We Products Ltd.
052 Remington Rand of India Ltd.
053 Lakhanpal National Ltd.
054 Nuchem Plastics Ltd.
055 Npon Derwo Ispat Ltd.
056 MorrIs Electronics Ltd.
058 Pastatl Acrylon Ltd.
059 Chokkanl International Ltd.
082 SPIC a.ctronlc. & Systems Inc.
064 Indien Aluminum Co.
006 Camlin Lid.
067 Csie Corpcsation of India
09 Universal Cables Ltd.
070 Parasranpixia Synthetics Ltd.
076 CroMptcsi Greaves Ltd.
Non-metallic mineral products 31 -Oct-91 35 Because of competitive market for white cement, ICICI has taken a detailed study of the
Electrical equ,ment m. 01-Jun-89
Machine tools rnlg. 01-Dec-91
Glass mfg. 31 -Mw-89
Steel nifg.
Constact velocity joints & shafts m. 01 -Jul-89
Audio-magnetic tapes m. 31 -Mer-89
W're & we products m. 01 -M-90
Electonic push button telephone rntg. 101 -Pvier-90
Dry cola nit. 01-Oct-90
Fer board m. 01-Apr-92
GaIianczed sheets m. 31-Oct-91
Electronic products mfg. 31 -Mer-89
Acrylic fbres mfg.
Sh repa 01-Apr-92
Electronic products m$g. 01-Apr-92
Electronic products m. 01-Jun-89
M. of wTiting Instruments 01 -Fth-90
Electrical cables mig. 01-Jun-89
Electrical cables m. 01-Dec-89
Polyester filament yarn rn. 31-Dec-89
Computers & logic controlers m. 31-May-88
the company le presently Incliring cash loss. company's operions, after which
a package of relief actions is prcpos.d
to be #naliz.d.
54 None -
NA b/ Financial problem resulting from delay of No action requied from ICICI.
completion. Will be resolved.
90 None -
Project cancelled after disbLzsemert lClCl made refund to ADB.
85 None -
20 None -
37 Probleme in raw materials (steel billets) No action requed. Satisfactory
availaliiity. operations of the company will
largely depend on the company's
ability to procie adequate quantity
of billets.
12 Unsatisfactory per*xmancs of company because Propose change In management.
of low capacity utilization, IncreasIng irç,ut
costs and market competition.
NA b/ None -
NA This is a new product and marketing problems No action requred from tClCl.
are encountered. Will take time to stabilize.
NA None -
60 None -
100 None -
80 None -
NA c/ None -
77 None -
13 None -
NA b' None -
NA b/ None -
rQ '
94 None -
NA b/ None ) CL

'0
 Actual
Actual

Financial and Technical Problem; TakenbvlClCI

077 Hwyana Petrochemicals Ltd. Textiles rnlg. 31-Mer-92 N c/ None.

078 Hindifron Techtronix Institute Ltd. Electronic m.aasing equmentm. 01-Dec-89 N b/ None.
079 J. K. Synthetics Ltd. Synthetic filament yarn rnfg. 02-Feb-90 N6 b/ Liquidity and management problems. Negotietions ongoing on injection of
cdditlonal equity by promoters. ICICI
will reschedule payments.

080 SKF Bearings Ltd. Fabricated metal products mtg. 31-Dec-89 M aJ None -

081 Polychem Ltd. Polyvinyl alcohol mfg. 01-Apr-90 81 None . -

084 BPL Electonics Ltd. Motdng tools & eqpmt. mlg. 01-Apr-91 NA, b/ None -
085 Bharat Forge Ltd. Close die forgings mfg. )1-Sep- 70 bI None -
087 Antifriction Bearings Corp. Ltd. Mfg. of machinery except electrical 01-Apr-91 85 None -
088 Siçreme Industries Ltd. Plastic products m. 01-Aug-91 NA, c/ None -
089 Arunoday Mills, Ltd. Textiles m. 01-Jan-91 93 None -

090 Trinity Engineers LTd. Forgings m. 31-Mer-93c1 Nk d/ None -

091 FinolexPip., Ltd. Plastic pings m. 01-Jun-93 c/ N d/ Liquidity problem. Delay in equ,m.nt resulting Taking t of rights Issue agreeable
ki cost and time overrun, to ICICI.

092 Nilkamol Plastics Ltd. Plastic products mlg. 01-Jul-91 70 None -

093 Trinity Engineers Ltd. Forgings rnfg. 31-M-93c/ - None -
094 Wro Systems Ltd. Computer softwar, development 01-Oct-89 NA, b/ None -
095 Invel Transmission Ltd. Velocity joints m. 01-Jul-91 NA, c/ None -
096 P.,co Electronics & Electricals Ltd. Electronic prockicts mfg. 31-Aug-91 M c/ None -

097 Gi4arat Alkalies & Chemicals Ltd. Chemical products mfg. 28-Feb-88 85 None -

099 Intersit India Ltd. Electronics, semi-conductor 01 -M-92 NA, c/ Short-term liquidity problems r.sufting from low Coliection of dues by November 1992.
capacity utilation.

100 Parasarrxia Industries Ltd. Filament yarn rn. 01-Apr-92 NA, cf None -

b/Project completed, but data not yet aveilthle.

c/Project recently completed. Data not yet avalteble.
d/ Project not yet cornplefed. Data rot appkable.
./ Utilization difficult to Identify because of derse operations.

Fri
0)
 eUtllLN I ..,IAI U U jUUIt1t.jJLL, N,

Amount Outstanding Arrears LAD 13)

içici Financing 3t March 1992
&iloan ADB jOther Swces ADB Other Sotices Less than 3-6 I Over6
Name of ($000) I (RS'OOO) (S'OOOt (Rs'000 3 Months

Above Free Limit

002 Hirdustan Motors LtCL 2,329 436,000 1,822 471.000 0 0 0 0
019 Cosmo Films Ltd. 34,833 130,000 2,468 130,000 0 0 0 0
044 Indian Rayon& Industries Ltd. 2,467 100,000 2,170 61,240 0 0 0 0
m 057 Essar Gujarat Ltd. 4,485 0 4,216 0 0 0 0 0
060 Gujarat Narm&la Valley Fertilizers Co. Ltd. 442 68,640 358 68,640 0 0 0 0
CD
063 Gujarat Alkalies & Chemicals Ltd. 2,102 93 2,014 90 0 0 0 0
CD 068 Deak Fertilizers & Petrochemicals Corp. Ltd 5,000 380,000 5,000 380,000 0 0 0 0
072 Indian Acrylics Ltd. 3,713 179,000 3,713 179,000 0 0 0 0
C)
073 Reliance Petrochemicals Ltd. 5,012 846,000 4,220 0 0 0 0 0
074 Bombay Offshore Splies & Services Ltd. 1,568 0 711 0 0 0 0 0
075 Centuy Era Ltd. 3,326 0 2,827 0 0 0 0 0
083 Raymond Woolen Mills Ltd. 0 4,277 0 0 0
rt Total Above Free Umit
rt iow Free Umit
004 Orient Paper & Industries Ltd. 2,878 41,900 1,150 103,000 0 .0 0
005 Crompton Greas Ltd. 193 300 44 0 0 0 0
006 Modern Woolens Ltd. 824 210 514 187 0 0 0
Ct
007 Television & Corrponents FM. Ltd. 781 57,000 389 2,000 0 0 0
008 IEL Umited 1,060 185,000 668 202,800 0 0 0
009 Lakshmi Machine Works Ltd. 2,285 250,000 1,373 31,100 0 0 0
010 Vkleoconlnternationel Ltd. 366 0 65 0 0 0 0
011 Tatalelecom Ltd. 626 0 320 0 0 0 0
'1
012 Larsen&TothroLtd. 663 0 224 0 0 0 0
013 LML Limited 2,109 27,500 870 0 0 304 304
N)

0
014 CemindiaCo., Ltd. 126 0 0 0 0 0 0
015 K. G. Gluco Biols Ltd. 182 296,700 114 296,700 0 28 28
016 Gujarat Spinners Ltd. 308 1,000 94 400 0 0 0
017 MajestIc Auto Ltd. 642 20,500 642 17,000 0 0 0
018 Spartek Ceramics (India) Ltd. 772 3,000 325 1,700 0 0 0
021 Rahkamal Synthetics Ltd. 258 1,144 104 0 0 0 0
023 Indian Plywood Manufactiting Co. 614 0 190 0 4 0 4
024 Standanl Medical& Pharmaceuticals Ltd. 2,094 0 954 0 0 0 0
025 Gujarat Narm&la Valley Fertilizers Co. Ltd. 365 133,200 0 24,500 0 0 0
027 Indian Rayon& Industries Ltd. 256 2,685 119 5,121 0 U 0 0
028 Crotrpton Greas Ltd. 267 0 99 0 0 0 0 0
029 SI-wiram Fibres Ltd. 379 21,400 269 0 0 0 0 0
031 Hi-ReP Components (India) FM. Ltd. 578 9,000 355 8,800 0 0 0 0
032 KDB Industries Ltd. 580 90 489 80 0 0 0 0
033 Centiy Er<a Ltd. 1,938 40,000 1,210 300 0 0 0 0
035 Hindustan Pipe Udyog Ltd. 403 35,000 201 15,600 0 0 0 0
036 Jam Irrigation Systems LTd. 83 16.900 59 14,000 0 0 0 0
037 Keltron Components Complex Ltd. 983 9,000 983 5,000 0 0 0 0 (D(D
038 ElectronIcs Research FM. Ltd. 832 4,080 418 2,000 0 0 0 0
039 Tainwaia Chemicals & Plastics Ltd. 319 8,100 169 6,392 0 0 0 0
040 Bajaj Auto Ltd. 0 468 0 0 0 0
StAtotal 0
0
 Amount Outstanding
lClCl 31 March1992
Over 6
Sthloen ADB Other Soixces
No. a! 3 Months I Months Total

Below

042 Keventer Agro Private Ltd. 320 11,000 140 9,600 8 0 8

043 Nihon Nirmaan Ltd. 809 949,750 686 949,750 0 53 53
045 Irdian Rayon& Industries Ltd. 242 5,200 79 0 0 0 0
046 XLO Machine Tools Ltd. 321 7,400 306 7,400 0 39 39
047 Maharashtra Safety Glass Ltd. 522 0 264 0 0 0 0
048 Raigerl Castings Ltd. bI 61 0 32 29 0 0 0
049 Invel Transmissions Ltd. 723 20,600 453 0 0 0 0
050 Straw Products Ltd. 1,587 0 835 0 0 0 0
051 Indian Steel & Wire Products Ltd. 348 156,800 176 24,000 0 IS 27
052 Remington Rand of India Ltd. 417 25,600 259 25,600 0 139 139
053 Lakhanpal National Ltd. 856 28,000 435 22,200 0 0 0
054 Nuchem Plastics Ltd. 1,223 51,000 1,124 0 0 0 0
055 Nippon Dervo Ispat Ltd. 683 7,500 683 6,165 0 0 0
056 Morris Electronics Ltd. 530 600 450 0 0 0 0
058 Pas.pati Acrylon Ltd. 1,480 88,600 1,215 88,600 0 0 0
059 Chokkanl International Ltd. 2,506 51,900 2,506 5,190 0 0 0
062 SPIC ELectronics & Systems Inc. 983 4,800 391 4,560 0 0 0
064 Indian Aluminum Co. 985 7,300 391 8,200 0 0 0
066 Camlln LTd. 480 7,000 310 4,200 0 0 0
067 CthIe Corporation of India 700 0 385 0 0 0 0
069 Universal Cthles Ltd. 431 19,000 218 7,400 0 0 0
070 ParasrampLila Synthetics Ltd. 1,156 0 1,000 0 0 0 0 U'
076 Cronpton Greaves Ltd. 289 500 172 0 0 0 0
077 Haryane Petrochemicals Ltd. 445 59,500 371 59,500 0 0 0
078 Hirditron Techironix Institute Ltd. 203 13,000 164 1,000 0 0 0
079 J. K. Synthetics Ltd. 2,790 0 2,055 0 0 0 0
080 SKF Bearings Ltd. 1,072 25,300 716 23,200 0 0 0
081 Polychem Ltd. 288 77,800 201 12,095 0 0 0
084 BPL Electonics Ltd. 573 0 375 0 0 0 0
085 Bharat Forge Ltd. 2,753 42,900 2,753 42,900 0 0 0
087 Antifriction Bearings Corp. Ltd. 536 15,500 481 15,500 0 0 0
088 S,rema Industries Ltd. 326 14,900 326 14,900 0 0 0
089 Arunoday Mills, Ltd. 285 2,600 285 0 0 0 0
090 Trinity Engineers LTd. 814 0 814 0 0 0 0
091 Finolex Pipes Ltd. 1,646 259,000 1,646 50,000 0 0 0
092 Nilkamol Plastics Ltd. 366 22,200 366 22,200 0 0 0
093 Trinity Engineers Ltd. 225 0 225 0 0 0 0
094 Wipro Systems Ltd. 151 0 142 0 0 0 0
095 lnvel Transmission Ltd. 54 498 54 498 0 0 0
096 Pelco Electronics & Electricals Ltd. 246 1,000 246 1,000 0 0 0
097 Gujarat Alkalies & Chemicals Ltd. 1,198 113 1,153 83 0 0 0
099 Intersil India Ltd. 286 2,100 286 0 0 0 0
100 Parasrampuis Industries Ltd. 52.500 0
SuBtotal
Total Below Free Umit

TOTAL 120 ip. I'.) 0-
x
a! Sloens listed are those numbers not listed were approved and/or were ssequently cancelled/witFdrawn.


ECONOMIC PERFORMANCE OF SUBPROJECTS

Incremental Incremental
Sub— Incremental Incremental (Rs) Value Added
loan Name of Subborrower 1 St Year Actual oIovment No. Cper Job
st. TAct. Est.

Above Free Limit

002
NA- 1-lindustan Motors Ltd. 3558 - 5648 NA NA 1098 - 19800000 18943 -
019 Cosmo Films Ltd. 27 200 187 I 3 301 275 10000000 26578 36363 105100 64800
044 Indian Rayon & Industries Ltd. NIL - NIL NA NA 250 325 10044000 4348 - 5245
057 Essar Guarat Ltd. NIL - NIL NA NA 437 NA 1 NA 6980 NA - NA
060 Gujarat Narmada Valley Fertilizers Co. Ltd. NIL - NIL NA NA - NA NA NA - NA
063 Gujarat Alkalies & Chemicals Ltd. NIL - NIL NA NA NA NA NA NA NA NA NA NA
068 Deepak Fertilizers & Petrochemicals Corp. Ltd. NIL - NIL NA NA - NA NA NA - NA
072 Indian Acrylics Ltd. NIL - NIL NA NA 427 427 l22 NA 7562 NA 50 NA
073 Reliance PetrochemIcals Ltd. NIL - NIL A NA - NA NA - NA
074 Bombay Offshore Supplies & Services Ltd. NIL - NIL NA NA - NA NA NA - -
075 Century Enka Ltd. NIL - NIL NA NA NA NA NA NA NA NA NA NA
083 Raymond Woolen Mills Ltd. 8550 - 9913 5 0 NA NA NA
Total Above Free LImit 12135 200 15748

Below Free Limit

004 Orient Paper & Industries Ltd. - 257 - NA NA NA 1100000 NA NA 98700000 NA

005 Crompton Greaves Ltd. - NIL. - NIL NA NA 201 4700000 20101 31641 - NA
006 Modern Woolens Ltd. 150 250 - NIL 3 NA 150 1900000 250' 18667 23500000 31300000
007 Television & Components Pvt. Ltd. — NIL - NA NA 11600000 15000000 a.'
NIL 85 3000000 450' 10 600000
008 IEL Limited - NIL - NIL NA NA NA - NA NA 104000000 NA
009 Lakshmi Machne Works Ltd. - NIL - NIL NA NA 384 8200000 930' 24 32 34
010 Videocon International Ltd. — NIL - NIL NA NA 700 20600000 45001 18000000 13000000 154500000 79200000
011 Tate Telecom Ltd. — NIL - NIL NA NA 360 9500000 1430' 580000 320000 72500000 91200000
012 Larsen & Toubro Ltd. — NIL - NIL NA NA NA NA NA NA NA NA NA NA
013 LMLLImited — NIL - NIL NA NA 910 13500000 1440' 15976 NA 217760000 NA
014 CemindiaCo., Ltd. — NIL - NIL NA NA NA NA NA NA NA NA NA NA
015 K. G. Gluco Biols Ltd. — NIL - NIL NA NA 195 6000000 670' 1632105 1746153 102400000 28200000
016 Gujarat Spinners Ltd. — NIL - NIL NA NA NA NA NA NA NA NA NA NA
017 MajestIc Auto Ltd. - NIL - NIL NA NA NA NA 4600000 1570' 7828 4684 273000000 46100000
018 Spartek Ceramics (India) Ltd. - NIL - NIL NA NA 46 417600 39 1267000 159780 5300000 7100000
021 Rahkamal Synthetics Ltd. - NIL - NIL NA NA 310 8700000 980' 30000 32000 20400000 17200000
023 Indian Plywood Manttactuulng Co. — NIL - NIL NA NA NA NA NA NA NA NA NA NA
024 Standard Medical & Pharmaceuticals Ltd. - NIL - NIL NA NA NA - NA NA - NA
025 Gujarat Narmacla Valley Fertilizers Co. Ltd. - NIL - NIL NA NA NA 3068000 NA 1 768000 NA 48684000 NA
027 Indian Rayon & Industries Ltd. — 10 - 1 2 385 - 1236 32119 - 24914000
028 Crompton Greaves Ltd. - NIL NA NA NA NA NA NA NA NA NA NA NA NA
029 Shriram Fibres Ltd. - NIL - NIL NA NA NA - NA NA - NA
031 lii— Rel Components (India) Pvt. Ltd. - NIL - NIL NA NA 25 200000 60 20000 - NA
032 KDB Industries Ltd. - NIL - NIL NA NA 350 16800000 NA NA 23400000 NA
033 Century Enka Ltd. — NIL - NIL NA NA 200 3700000 370' 18500 18500 135400000 135400000
035 1-lindustan Pipe Udyog Ltd. - NIL - NIL NA NA 40 1800000 200' 1750000 1500000 1420000 8000000

030 Jam Irrigation Systems LTd. — NIL - NIL NA 11 200 2200000 230i 11000 11500 41600000 14000000
037 Keltron Components Complex Ltd. - 19 - 1 8 125 3800000 280' 17000 22400 32800000 23100000 Q a
038 Electronics Research Pvt. Ltd. - 104 - 250 1500000 78 8000 31200 21196000 29509000
039 Tainwal& Chemicals & Plastics Ltd. - NIL - NA 4 55 2200000 901 40000 163363 2570000 NA
040 Bajal Auto Ltd. - 3745 - 4 3 NA NA NA NA NA NA NA
x
Subtotal 150 4375 0 451 4971 117285600 175161 61339148 17910231 1390730032 552223034


Incremental
Sub — _______
Incremental Incremental (As) Value Added
loan Name of Subborrower 1st 2nd Year I Actual pIoymentNi Payroll (Rs) Cost oer Jo
Et. Act. Est. Act.

Below Free Limit (continuion)

042 Keventer Agro Private Ltd. - NIL - NIL NA NA
043 Nihon Nirmaan Ltd. - lot - NIL NA NA
045 Indian Rayon & Industries Ltd. 1000 79( 640 1470 29
046 XLO Machine Tools Ltd. - NIL - NIL NA NA
047 Maharashtra Safety Glass Ltd. - NIL - NIL NA NA
049 Invel Transmissions Ltd. - NIL - NIL NA NA
050 Straw Products Ltd. - I 36 - 3348 NA 5
051 Indian Steel & Wire Products Ltd. - NIL - NIL NA NA
052 Remington Rand of India Ltd. - NIL - NIL NA NA
053 Lakhanpal National Ltd. - NIL - NIL NA NA
054 Nuchem Plastics Ltd. - NIL - NIL NA NA
055 Nippon Danro Ispat Ltd. - NIL - NIL NA NA
056 Morris Electronics Ltd. - NIL - NIL NA NA
058 Pasupati Acrylon Ltd. - NIL - NIL NA NA
059 Chokkanl International Ltd. NIL NIL NIL NIL NA NA
062 SPIC ELectronics & Systems Inc. - NIL - NIL NA NA
064 Indian Aluminum Co. - NIL - NIL NA NA
066 Camlin LTd. - NIL - NIL NA NA
067 Cable Corporation of India - NIL - NIL NA NA
069 UnIversal Cables Ltd. - NIL - NIL NA NA
070 Parasrampuria Synthetics Ltd. - NIL - NIL NA NA
076 Crompton Greaves Ltd. - NIL - NIL NA NA
077 Haryana Petrochemicals Ltd. - NIL - NIL NA NA
078 1-linditron Techtronlx Institute Ltd. - NIL - NIL NA NA
079 J. K. Synthetics Ltd. - NIL - NIL NA NA
080 SKF Bearings Ltd. - 25 - 15 NA NA
081 Polychem Ltd. - NIL - NIL NA NA
084 BPL Electonics Ltd. - NIL - NIL NA NA
085 Bharat Forge Ltd. - NIL - NIL NA NA
087 Antriction Bearings Corp. Ltd. - NIL - NIL NA NA
088 Supreme Industries Ltd. - NIL - NIL NA NA
089 Arunoday Mdis, Ltd. - 1497 - 3797
32
090 Trinity Engineers LTd. - NIL - NIL NA NA
091 Finolex Pipes Ltd. - NIL - NIL NA NA
092 Nilkamol Plastics Ltd. NIL NIL NA NA
- - 50
093 Trinity Engineers Ltd. - NIL - NIL NA NA
094 Wipro Systems Ltd. 100 IOC 150 NIL NA NA
095 lnvel Trrnsmission Ltd. - NIL - NIL NA NA
096 Pelco Electronics & Electricais Ltd. - NIL - NIL NA NA
097 Gujarat Alkalies & Chemicals Ltd. - NIL - NIL NA NA
099 Intersil India Ltd. 4400 NIL 9800 NIL NA NA
100 Parasr&npuria Intlustties Ltd. 7167 NIL 8917 NIL NA NA
Subtotal 12667 387 19507 8630
Total Below Free Limit 12817 8251
TOTAL 12864 2038(
110 110 4100000 3700000 513000 25800000 22700000
200 - - -
600 558 11500000 11451000 19200 205200 80300000 67076000
NA NA NA NA NA NA NA NA
57 57 1200000 2200000 21052 38596 1300000 3700000
270 275 8800000 8400000 1500 1560 926 1020
138 138 2400000 2400000 17390 17390 22000 NA
NA NA 11700000 9800000 500000 400000 86200000 116300000
161 52 4700000 990000 29000 19000 9540000 4625000
300 300 7500000 10500000 770000 935000 - NA
220 NA 3300000 NA 15000 NA 4000 NA
- NA - NA NA - NA
490000
498 706 40160 45467 44 56
300 2333 1666 2333 183500 -
214 194 8411 11469 - -
120 161 53000 2357 6658
- NA
22 22 1 NA NA
NA NA NA NA NA NA NA NA
NA NA NA NA NA NA NA NA
210 220 4600000 21985 23182 25 30
129 106 5600000 43411 71698 - NA
100 112 1600000 NA 1800 NA 350 NA
18 2500000 21200000 41300000
20 2000000
3000000 2780000
NA NA NA NA NA NA NA NA
100 115 835000 7000 7300 48700000 52100000
88 NA NA 28409 NA 34230 NA
NA NA NA NA NA NA NA NA
- NA NA NA - NA
NA NA NA NA NA NA NA NA
190 NA 540 NA 28421 NA 88900000 NA
30 50000 50000 10 12
50 150 2500000
- NA NA NA - NA
280 NA NA NA 17600000 NA
50 1300000 36000 6100000 8300000
1800000
- NA NA NA - NA
5 5 400000 400000 l40 800000 - NA
NA - NA NA - NA -
NA NA NA NA NA NA NA NA
NA NA NA NA NA NA NA NA
- NA NA NA 5400000 NA
400 NA 140000 NA 2450000 NA
4875 5684 143090001 276201 6260195 481437442 380508776
24170426 1872167474 932731810
24211137 1872272624 932801855

a! Subloans listed are those approved and disbursed; subloan numbers not were approve by the Bank but were subsequently cancelled/withdrawn.
PJA KI.,t A,niIht.


ORGAN I ZAl' ION CHART (W I C IC I

Shri N. Voghul
Cheirman

N. J. Jhavrl
B. V. Shargava
JMD
CD
MD

ID
p-i
CD

C)
CD

F-'. 0. J. Btlaji Ro Shri M. V. Shah

ED ED
rt
CD
rt

Mnhr N 0. Shah F. N. K .A. • J. Adveni
CD I ZonelGMOp.

GM
Gen. Op.
1. 0. Gupie
GM
Girish Mahia
Company
Pardiwafla
GM
Chaukar
GM
GM
Tech,
Secreisry
Dep. Ace ojnis Develop.

'-1

flnVnsnn] I H. Bhoan S. Vacth

NJ
N. J. Haikar P. Vonka. V. P. Shah j 0GM
0GM 0GM
0GM 0GM fraghavan DGM Coiporete Economic
Rombay
!onel OffIce
Dull HrID 0GM nve.iments I Legal Research
Advisory
Services

=i
Pcfry
ra ACE

As,,$ I floie.i
Cd.cbon I IIr6Et.nde
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[JCUADftAS x
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39
Appendix 12

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9

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AMLYSIS OF LQøN, EQUITY AM) GUARANTEE APPRCWALS

s million)

______- Fiscal year ed 1985 1986 1987/88

1980/90 1988/89
1990191 1991/92
%of %of %of
Item No. Amount Total No. Amount Total No. Amount Total No. Amount Total No. Amount Total No. Amount Total No. Amount Total

A. jsfrlalSt

Sugar ii 78.3 1.5 15 147.5 1.9 23 197.7 1.8 28 505.3 3.3 27 381.7 2.0 24 577.2 2.1 25 877.5 2.8
Food Products 4 64.0 1.2 13 200.8 2.7 25 337.5 3.1 13 300.7 2.4 18 241.3 1.2 21 454.0 1.7 22 554.0 1.7
Textiles 67 555.7 10.8 64 754.8 0.7 112 1,145.7 10.5 07 1,053.4 6.9 82 1,188.5 6.1 151 2,350.8 8.7 80 5,581.0 16.8
Paper&PaperProducts 16 221.3 4.2 12 1281 1.6 20 4230 ao 15 155.5 1.0 24 450.0 2.3 23 622.4 2.3 13 512.0 1.5
RubberProducts 8 37.7 0.7 8 88.7 1.1 2 37.7 0.3 11 499.1 3.3 II 290.7 1.5 12 888.7 2.5 6 283.3 0.0
Basic ChemIcals 24 217.5 4.1 24 693.3 8.0 32 797.8 7.3 39 1,355.7 8.8 43 2,093.8 10.8 48 1,547.0 5.7 35 4,803.3 14.4
Fertilizers 16 432.6 8.2 0 408.1 5.2 9 686.2 6.3 8 1,655.8 10.8 5 1,484.1 7.6 II 509.2 1.9 5 596.6 1.8
Other Chemicals 40 757.0 14.4 40 747.2 9.6 48 1,573.6 14.4 60 2,078.8 13.6 63 2,969.8 15.2 U 3,924.8 14,5 75 3,779.9 11.4
Cement 24 838.7 12.1 13 016.0 11.8 13 960.3 8.8 20 050.0 6.3 10 1,102.8 5.7 13 2,300.4 8.5 16 2,715.8 8.2
Basic Metal Industries 38 545.7 10.4 25 580.7 7.5 38 1,248.6 11.4 58 1,410.0 0.2 55 2,532.2 13.0 61 3,513.2 12.9 53 4,147.1 12.5
Metal Products 6 54.5 1.0 9 245.7 3.2 2 180.2 1.6 16 209.9 1.4 12 726.0 3.7 11 336.3 1.2 15 335.3 I
Machrremy 35 308.7 5.9 30 390.0 5.0 27 382.2 3.5 29 811.1 4.0 44 973.4 5.0 55 1,835.6 6.8 42 997.5 3
Electrical Equipment 18 222.2 4.2 6 119.9 1.5 18 328.6 3.0 22 363.3 2.4 19 415.4 2.1 23 836.2 2.1 25 376.0 1.1
Eecbc*,ics 17 135.9 2.6 29 600.3 7.7 50 880.3 8.1 38 765.8 5 41 853.8 4.4 63 2,203.1 8.1 55 1,571.1 4.7
Transport Equsient 21 279.9 5.3 17 421.1 5.4 26 445.8 4.1 17 632.8 4.1 17 866.8 4,4 34 1,172.8 4.3 17 398.0 1.2
Electricity-Gen.&Dlstn. 2 108.8 2.0 4 295.0 3.8 - - 0.0 5 244.5 1.6 4 451.8 2.3 3 972.5 3.6 4 2,600.1 7.6
Services 7 115.8 2.2 9 166.5 2.1 25 559.5 5.1 20 478.8 31 27 577.3 3.0 36 964.4 3.6 22 641.1 1.9
Miscellaneous 41490.8 9.3 44 802.9 11.1 47 749.1 6.9 53 1,982.6 12.9 541,877.9 9.6 112 2,339.5 8.9 62 2,513.0 7.6
Total 393 5264.0 100.0 369 7,775.4 100.0 517 10,933.8 100.0 553 15,321.9 100.0 556 19,477.1 100.0 785 27,158.9 , 100.0 581 33,281.5 100.0

B. BY.?"!P!

NewCompanles 108 2,018.0 38.3 118 3,08 171 4,181.0 38.2 159 8,649.2 43.4 154 6,509.2 33.7 147 5,015.0 1.5 114 7451.1 22.4
Diversification 25 391.6 7.4 9 207.3 37 924.9 8.5 45 1,295.8 5.5 59 2,721.8 14.0 42 2,162.5 8.0 22 2,125.5 6.4
E.pansion 87 944.5 17.9 88 1,178.2 1 1,578.4 14.4 lOS '9.6 19.2 98 4,024.9 20.7 188 7,709.5 28.7 155 11,867.4 35.4
Modernisation 127 1,054.2 20.0 118 2,164.4 1,925.5 17.0 '0.9 10.2 174 3,121.0 16.0 168 4,764.1 17.5 82 3,017.3 9.1
EquctnentF'mance 29 263.7 5.0 30 324.5 4.2 32 283.4 2.6 41 7110.8 52 30 702.2 3.6 159 2,217.8 8.2 138 2,243.3 07
7 85.1. 1.6 9 6t5 0.8 14 f3.4 1.8 22 192.7 1.3 29 1,113.9 5.7 82 2,517.2 9.3 49 2,311.5 6.9
Others 10 533.9 0 17 732.9 9.4 1 25 • ie. 24 972.9 It 6.3 2,680.4
1,224.3 9.9 21
6.3 4,265.4
19 12.8
_______ Total ______________ 393 5, 2O4OiOO.' t Q 7,775.4 , 100.0 517 10,933.4 00.0 55315,321.9100.0 55619,477.1100.0 78527,156.5100.0 58133,281.5100.0 :TQ d
(tC(t

H'
x
-J


FIscal year *1
%of %ot
_________________ Item No. Amount Total No. Amount Total No, Amount Total No. Amount Total Total No. Amount Total No.

C. By Size cit Protect Cost (lcens)

Upto 50
26.7 246 1,777.0 38.0 190 1,859.4 205
27.1 229 2,805.1 28.4 258 3,778.9 3,326.7 20.2 381 6,154.5 25.3 291 8,919.8 26.7
50 to 100 61 689.2 14.8 86 1,169.3 17.0 131 1,835.4 18.6 112 1,729.5 12.2 142 2,257.2 13.7 140 2,838.3 11.7 01 2,432.5 9.4
100 to 200 41 812.0 17.4 35 830.8 12.1 74 1,536.2 15.6 76 1,708.2 12.1 85 1,930.0 11.7 89 2,322.2 9.6 67 2,472.0 9.6
200 to 300 13 324.3 6.9 10 330.4 4.8 30 1,121.0 11.4 38 1,215.8 8.8 28 1,140.7 6.9 38 1,460.8 6.0 31 1,800.5 7.0
Above 300 21 1,068.8 22.9 23 2,673.9 39.0 30 2.571,7 26.1 45 5.742.7 40.5 48 7833.5 47.5 82 11,512.7 47.4 63 12,252.7
Total 100.0 730 24,288.5

0. By Size of Assistanc
Upto 5
119 629.7 13.5 68 485,1 7.1 101 850.0 8.8 110 665.2 4.7 71 509.4 3.1 164 765.6 3.2 92 823.0 2.4
5 to 10 139 1,108.9 23.7 124 1,076.0 15.7 144 1,439.9 14.6 118 1,128.0 8.0 109 1,144.8 0.9 122 1,331.5 5.5 82 1,050.0 4.1
10 to 20 86 1,221.2 26.1 86 1,300.7 19.0 156 2,603.4 26.4 160 2,480.8 17.5 183 2,880.3 17.5 201 3,380.5 13.9 121 2,331.9 9.0
20 to 30 20 494.8 10.6 33 856.2 12.5 48 1,4.51.2 14.7 71 1,872.8 13.2 61 1,729.8 10.5 82 2,328.5 9.6 88 2,490.5 9.6
30 to 50 10 541.8 11.8 10 438.8 6.4 27 1,208.4 12.2 41 1,880.4 13.3 40 1,834.8 11.1 76 3,385.7 13.9 74 3,437.1 13.3
50 to 100 6 422.9 9.1 11 858.7 12.5 12 1,112.1 11.3 15 1,314.5 9.3 20 1,627.4 9.9 49 3,816.2 15.7 48 3,934.9 15.2
Above 100 2 252.0 54 12 1,848.3 26.9 6 1,204.4 12.2 14 4,833.4 41.0 36 9280.5 38.2 40 12,001.1 48.4
Total 00.0 344 6,863.8 100.0 494 9,869.4 100.0 529 14,175.1 00.0 543 25,877.5 100.0

E. By Sector

Prrvate 328 4,278.4 81.3 306 5,818.9 74.8 445 9,227.8 84.4 485 12,618.6 82.4 488 16,632.0 85.4 726 25,252.0 93.0 534 29,520.6 88.7
Joiot 32 507.8 9.8 41 1,440.9 18.5 30 1,153.5 10.5 40 2,135.9 13.9 45 2,237.8 11.5 25 1,027.0 3.8 28 3,132.8 9.4
Public 9 231.5 4.4 6 112.6 1.4 8 161.5 1.5 7 190.1 1.2 2 50.9 0.3 11 423.5 1.0 4 73.8 0.2
Cooperatrv. 24 248.5 4.7 16 403.0 5.2 34 391.0 3.0 21 377.3 2.5 23 556.3 1.7 17 554.3 1.7
Total

F. By Region

Northern b/ 60 689.9 13.1 49 912.4 11.7 69 1,231.4 11.3 76 1,731.4 11.3 74 2,959.8 15.2 95 3,291.3 12.1 79 4,033.0 12.1
North -Eastern Cf 2 7.9 0.2 4 46.3 0.6 9 86.1 0.8 5 61.9 0.4 8 450.7 2.3 3 50.5 0.2 1 20.8 0.1
Eastern d/ 24 349.0 6.6 22 419.1 5.4 30 632.2 5.8 35 1,227.0 8.0 29 2,044.0 10.5 54 2,212.1 8.1 34 4,522.9 13.6
60 1206.0 22.9 52 1.976,9 25.4 70 1,767.3 16.2 58 3,138.3 20.5 74 1,982.4 10.2 80 3,493.6 12.9 64 3,5l1.2 10.6
Western 1/ 145 1,744.3 33.1 158 2,827.3 36.4 197 3,707.3 33.9 196 5,809.3 37.9 224 8,998.2 46.2 272 10,953.4 40.3 240 13,936.2 41.9
Southern g/ 102 1,266.8 24.1 84 1,593.4 20.5 142 3,500.5 32.1 185 3,354.0 21.9 147 3,042.0 15.6 280 7,105.7 25.2 163 7,240.9 21.8
Others h/ - - 0.0 - - - 0.0- - 0.0- - 0.0 1 50.00,2-16.5 00
---
Total 00.0 517 10,933.8 100.0 553 15,321.9 100.0 556 19,477.1 1000 785 27,156.6 100.0 581 33,281.5 100.0

aJ Years .ndi'g 31 December to 1986 end 31 March therealter. 15 month dataki 1987-88.
bf Comprises states of Haiyar,e, Hmachal Pradesh, Jemmu end Kashnir, Punleb, Rajasthan, union territories of Chandigeifi and Dehi.
C/ Comprises states of Assem, Man!,ur, Meghalsye. Nagatend, Trpura. Arunachal, Mizoram and Sikkrn.
d/ Comprises states of Bhw, Orissa, West Bengal and union territory cit Andaman and Mcobar lsbnds.
e/ Comprises the states of Madhya Pradesh and Utter Pradesh.
V Comprises states cit Gujarat, Maherashtra, Goe. union territory of Dadra and Nagar l'lavell and Daman end Dkj.
gf Comprises the states of MdhrnPradesh. Ksrnataka, Kerala, Tamul Nadu and union territories of takshactweep and Pondicharly. (0(3
hi ICICI-#nanced prcts outskte lndi&
N)L
p-i.


LOAN PORTFOLIO ARREARS

(Rs mIllIon)

31 Dec. 31 Dec. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar.

1985 1986 1988 1989 1990 1991 1992
Item

1. Portfolio Details

15,238.8 23,386.6 30,003.5 37,884.9 46,613.5 61,304.2 77,631.1

a. Total loans outstanding
9069.9 12,993.8 15,039.0 20,636.7 28,937.5 36,004.9 44,519.9
b. Total loans In repayment stage
2,106.4 2,423.6 2,985.6 2,860.5 3,313.2 4,781 .7 8,998.1
c. Total loans affected by arrears
264.5 390.9 623.3 654.1 669.2 902.7 1,602.8
ci. Total arrears - PrIncipal
236.5 366.5 502.8 541.5 659.4 1,083.6 1,803.5
- lnrast
- Total 501.0 757.4 1,126.1 1,195.6 1,328.6 1,986.3 3,406.3

2. Arrears Ageing .p..

7.0
Less than 3 months 27.5 7.8 1,3 2.2 0.4 2.1
8.2
3 - 6 months 31.7 17.7 27.8 2.5 2.3 2.6
49.4 127.5
6- l2months 84.3 123.7 114.8 17.6 9.6
3,263.6
12 months and longer 357.5 608.2 982.2 1,173.3 1,316.3 1,932.2
1,986.3 3,406.3
501.0 757.4 1,126.1 1,195.6 1,328.6

3. Ratios (%)

4.4
Total arrears to total loans outstanding 2.7 3.2 3.7 3,2 2.8 3.2
7.6
Total arrears to total loans In repayment stage 5.5 5.8 7.5 5.8 4.5 5.5
7.8 11.5
Total arrears affected loans to total loans 11.5 10.4 9.9 7.5 7.1

tj

43
Appendix 16

SECTORAL DISTRIBUTION OF PORTFOLIO AND ARREARS

As of 31 March 1992
(As million)

..oanPortfolio Arrears Ratio

Sector No. Amount No. Principal Interest Total I (%) C/A DIB

76 4,240.6
Cement 23 277.3 272.5 549.8 16.1 30.3 13.

Food 109 1,720.6 19 38.1 53.0 91.1 2.7 17.4 5.:

Texthe 444 7,293.8 43 195.0 196.5 391.5 11.5 9.7 5.

Paper 102 1846.3 24 95.8 151.6 247.6 7.3 23.5 13.

Rubber 36 1,015.2 1 0.0 0.1 0.1 0.0 2.8 0.'

Chemicals 473 19,855.6 65 328.4 363.2 691.6 20.3 13.7 3,:

Non-metallic mineral products 127 2,964.1 19 53.1 75.6 128.7 3.8 15.0 4.

252Basic metal
7,833.7 40 162.4 192.5 354.9 10,4 15.9 4.:

87 Fabricated
2,192.8 metal products 15 60.5 71.5 132.0 3.9 17.2 6.

Machinery 303 6,376.0 11 63.8 76.6 140.4 4.1 3.6 2.

Electrical equipment 343 8,518.9 44 140.1 149.8 289.9 8.5 12.8 3.

Transport equipment 117 3,752.8 17 59.7 55.1 114.8 3.4 14.5 3.

Others 548 9,908,1 39 128.6 145.3 273.9 8.0 7.1 2.

Total 3,0171 77,518.91 3601 1,602.8j 1803.51 3,406.31 100.01 11.9

(Reference in text: page 10, para. 35)

 44
Appendix 17

EQUITY INVESTMENT OPERATiONS

(Rs million)

1989/90 1991/92
Fiscal Year 1985 1986 I 1987/88 I 1988/89 I 1990/91

Jsbursements I

Underwriting 38.0 48.0 210.3 86.5 56.6 23.5 14.3

Direct Subscription 16.1 25.0 55.9 137.0 152.4 174.4 162.1

Total 54.1 73.0 266.2 223.5 209.0 197.9 176.4

Jutstandin Investments

Ordinary Shares 467.0 482.2 718.0 848.1 996.7 1,202.5 1,444.0

Preferred Shares 80.1 64.0 61.5 78.3 82.8 107.0 133.5

7otal Project Finance

Investments 547.1 546.2 779.5 926.4 1,079.5 1,309.5 1,577.5

Other Investments a/ 289.0 282.4 535.3 1,131.4 1,223.5 1,539.5 1,926.5

Total 836.1 828.6 1,314.8 2,057.8 2,303.0 2,849.0 3,504.0

Revenue from Eguity

Dividend 30.9 42.3 67.9 66.0 86.3 109.9 152.9

Capital Gains (Net of Loss) 40.4 170.1 125.0 134.7 295.1

132.8 ___________
______ 717.4
________

Total71.3 212.4 192.9 200.7 219.1

______ 405.0
__________ 870.3
________

eturn on Average Outstanding

Investments (%) 8.5 25.6 14.4 11.9 10.1 16.8 27.5

Includes investments in associate companies such as CRISIL, SCICI. and TDICI.

(Reference in text: page 10, para. 36)

 Appendix 18
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iiji I J1
 CllJAI. AM) I' (3JI11I,t) IhCOMt SIAII Mt.NU;
(Its million)

Fiscal Year a/ Projecisd ?ctil Varenne Projecisd Acttl VarIance PlojecIad ftctr.nI Variance Pro)ecisd Fch.eI Variance

REVEMJE bJ

Inre,tfromLo.nsof 1,650.7 1,829.0 (21.1) 2,342.7 2,304.0 (38.7) 2,813.7 3,548.0 734.3 3,352.8 3,501.0 236.2 3,066.0 4,630.0 853.0 6,062.0 9,305.0
rasllrorncisbootures 43.3 45.0 1.1 50.5 58.0 5.5 55.1 77.0 21.9 63.3 41.0 (22.3) 14.8 83.0 8.2 2I.0 306.0
rh'icorre 253,1 243.0 (10.1) 263.4 440.0 179.6 318.3 719.0 403.7 363.7 975.0 811,3 420.4 1,437.0 1,0166 1,687.0 2,262.0
CepMgakis - 40.0 - 170.0 - 125.0 - 135.0 - 133.0 296.0 717.0
DMdgndhoonw - 31.0 - 42.0 86.0 - 86.0 - 86.0 110.0 153.0
Lease ,onme - 44.0 - 64.0 - 230.0 - 353.0 - 494.0 101.0 966.0
Mercl'nI benlkrg rcom, - 17.0 - 23.0 - 33.0 - 35.0 - 59.0 56.0 76.0
Otl'ers - 111.0 - 121.0 _______ - 263.0 _______ - 366.0 _______ - 865.0 102 348.0
ToisI 2,147.1 2,117.0 2,653.6 2,.0 146.4 3,187.1 4,344.0 1,156.9 3,779.8 4,637.0 821.2 4,452.0 6,129.0 1,677.0 8,120.0 11,802.0
j)

OPERATING EWENSES
Inisrsstlromborrowhigs 1,459.3 1,444.0 (15.3) 1,834.0 1,635.0 1.0 2,206.0 3,067.0 861.0 2,572.9 3.3C0.0 738.1 3,065.0 4,418.0 1.3530 S.&X).0 7,612.0
Alratbnexpensei 73.2 42.0 (31.2) 67.0 50.0 (31.0) 103.0 69.0 (34.0) 122.5 60.0 (56.5) 145.0 66.0 (50.0) 99.0 110.0
Depreciation 336 34.0 0.4 55.5 110.0 54.5 14.9 177.0 l(.l 94.6 187.0 92.4 113.6 274.0 163.4 368.0 496.0
OtI-ore,qense 8.8 41.0224 - 75.0 75.0 - 64.0 84.0 - 107.0 107.0 - 180.0169.0 216.0 1,113.0
Toisi 1,574.1 l581.0.,,J!,) 1,976.5 2,070.0 03.5 2,363.9 3,417.0 1,033.1 2,793.0 3,660.0 879.0 3,224.0 4,047.01.623.0 8,482.0 0,530.0

ICOME (BEFORE TAX) 572.4 557.0 (15.4) 677.1 729.0 51.9 603.2 026.0 122.8 960.8 937.0 (52.8) 1,128.0 1,181.0 53.0 1,648.0 2,353.0
Provision br lax 140.0 157.0 18.1 205.6 116.0 (17'7.6j 356.0 155.0 448.0 150.0 (298.0) 480.0 210.0 (250.0) 300.0 340.0
__,)
tETWCOME 431.5 403.0 381.5 611.0 .5 448.3 171.0 324.7 541.8 767.0 245,2 856.6 971.0 312.4 1,346.0 2,013.0

RATIOS
Reumoneverageequlty(%) 27.6 26.0 (1.8) 10.7 20.0 9.3 19.7 21.7 2.0 20.2 22.3 2.1 20.4 22.5 2.1 24.51 26.55
Petumon average

bt&assets(%) 2.2 2.1 (B.1) 1.6 2.5 0.8 1.6 1.0 0.3 1.6 1.9 0.2 1,7 1.9 0.1 2.06 2.3
1raI. end gener&
enses/average total
assets (%) 0.40 0.35 (006) 0.30 0.38 0,06 0.30 0.22 0.CQ 0.40 0.31 (0.) 0.40 0,32 (0.08) 0.32 0.20
reslsprsadd/ 2.8 2.9 0.1 3.2 2.8 (04) 3.1 2.7 (0.4) 3.1 1.7 (1.4) 2.9 1.4 (1.5) 1.9 3.6

Ean*rgsipreade/ 2.1 3.0 0.3 3.1 3.6 0.6 3.0 3.2 0.3 3.0 2.5 (0.8) 2.8 2.2 (0.9) 2.0 4.0

a/ Yeers ending 31 December to 1066 and 31 Marth thereafter. 15-month results br 1987-66 wIth ratios .nnLaflead.
b/ lnmrne Is net of tON& prov and wrIts-otis.
cJ hiterest on bans exckids frrterest on bans h arrears over one year.
Inonme from bans Interest ejq,enaes
cfr I..., Interest spread ---------------------------
Average ban portlotto Average iong-lerm lIabIlItIes

Inonme from toIeI portbtb Interest expenses + dsnd,

e/ I.e., EarnIngs spread ----------------------------------------
Average ban & Investment portfolio Average bng-lerm abIlItIes & equIty

'bte: Projections were macbe at appraisal before 8. chengs In Fiscal Year from 31 Deoember to 31 March.

(B

0-

I-


ACTUAL AND PROJECTED CASH FLOW STATEMENTS

(P. mIlton)

toes 1000 1907/90 100880 ISO/So 109001
Prolected Actuel Verleoc. Prolect,d Actual Varlanc. Prolectad Actual VarIance Prolected Actull Varlenc. Actsal

SOURCES

Pratt b.lorelnl.reel * lv., 572.0 20010 0.0 077.0 2,505.0 l,t0S.0 803.0 4014.0 3211.0 030.0 4.218,0 3,254.0 1,128.0 5,000.0 4,412.0 7,4400 10,141.0
Add bach: Non-c..lr ch,rg.. 34.0 122.0 88.0 50.0 254.0 188.0 70.0 447.0 371.0 08.0 434.0 338.0 115.0 700.0 001.0 1,030.0 1,364.0
Ca.t, garreraton Iron, operetlon, 806.0 2,123.0 1,517.0 733.0 2,510.0 2,006.0 670.0 4.4010 3,502,0 1,080.0 4,080.0 3,504.0 1.243,0 6,300.0 5,153.0 8,487.0 11,505.0
Loan coli.cllons:
Rupe.loans 0200 0330 4.0 1,286.0 1,195.0 (61.0) 1,410.0 1,600.0 300.0 1,053.0 1,801.0 (152.0) 2,437.0 2,005.0 199.0 3.0 10,0 5.5600
Farn currency loans 443 0 043 0 00 640.0 683.0 37.0 004.0 1,483.0 488.0 1,170.0 1,409.0 233.0 1,355.0 1.042,0 567.0 1,505.0 2,000.0
Sales barn parlfoto: 50.0 50.0 3.0 46.0 206.0 160.0 103.0 355.0 252.0 01.0 110.0 40.0 101.0 178.0 27.0 360.0 440.0
lnl.r.,t& conmn,I6nent
charge payable 1.400,0 - (1,150.0) 1,834.0 - (1,834.0) 2,200.0 - (2.200.0) 2,373.0 - (2,573.0) 3,065.0 - (3.005.0) - -
Soure,, available tar debt asrce (A) 3,603.0 3,758.0 65.0 4745.0 5,103.0 356.0 9,582.0 6,008.0 2,516.0 0,870.0 8,031.0 1,152.0 8,251.0 11,120.0 2,600.0 14,322.0 10,002.0

Incrass. In Share Capital:

Rght la0eS - 00.0 00.0 - 175,0 173,0 - 130.0 130.0 - 0.0 - 115,0 ItO 0 230.0 1,128.0
ConvarSon 00.0 (00.0) (100.0) - (49.0) (45.0) - 0.0 - 0.0 45.0 740.0 703.0
Drewdown on loans: 0.0
Rupee 3.2150 3,335.0 20.0 2,392.0 2,517.0 125.0 2,054.0 5,110.0 2,465.0 3,067,0 5.604,0 2,507.0 3.634,0 0,508.0 2,8740 11,522.0 13,4100
FerSgn currency borrowings 1,336.0 1,356.0 20.0 1,007.0 2.126,0 129.0 3,000.0 8,312.0 0,300.0 2.211,0 0,318.0 4.107,0 2.673,0 4.803,0 2,130.0 2,001.0 5,150.0
Total 8.331,0 8,345.0 14.0 0,134.0 0.070,0 742.0 10242.0 21,050.0 11,417,0 12,157.0 20,072.0 7,015,0 14.003,0 23,291.0 0,691.0 20,063.0 30,307.0

APPQCAONS
Pepsyrn.ol.:
lnl.r.nt$ co.n,nllmenl
)
2 ,206.0charge pepebla 1.4090 1.4440 (IS 0) 1,831.0 l,t35.0 1.0 5,007.0 001.0 2,573.0 3.300 0 7300 3,005.0 4,410.0 , 1,353.0 5,800.0 7,780.0
Rupeeloane 010 2180 137.0 101.0 102,0 01.0 151.0 010,0 350.0 173.0 1,455.0 1,282.0 100.0 570,0 382.0 1,008.0 3,4020
(Convedbl. d.b.nturea) 000 (00.0) - 00 45.0 (45.0)
Foralgn currency loan, 704 0 0000 (24.0) 788.0 012.0 124.0 805.0 0,154.0 4,230.0 ¶020.0 3,753.0 .2,724.0 1,100.0 1.050,0 053.0 2,537,0 1,705.0
Padernptlon at Rspea debenture. 1350 ________ (135.0) 00.0 ________ (00.0) - ________ 0.0
Reqtic.dlo. d.bl-eeMce (8) 2,460.0 2.342,0 (127.0) 2,013.0 2,030.0 120.0 3,252.0 8,731,0 3,470.0 3,773,0 0,510.0 4.743,0 4,4 r2.0 0,955.0 2,543.0 0,355.0 12,955.0
DlebUraen.nl of Loans:
Pup.. ben, 2,767.0 2,030 0 03 0 3,382.0 3,000.0 000.0 4,482.0 6.140,0 1,6870 5,220.0 0,260.0 5,0380 6.011,0 0,0330 3.0220 14,504.0 15.5880
Forign currency lo.ne 1,280.0 1,3500 70.0 2,003.0 1,702.0 (300,0) 1,913.0 2.9 10.0 587.0 2,300.0 1,387.0 (0420) 2,771.0 1,070.0 (001.0) 2.8250 6,334.0
loveatnenla:
Shares 51.0 06 0 ¶50 30 0 70.0 31.0 115.0 286.0 151.0 i.so 3330 1080 106.0 209.0 13.0 913.0 800,0
D.banluras 01.0 01 0 00 35 0 134.0 99.0 77.0 83.0 0.0 03.0 110.0 200 1120 003.0 5710 070.0 077.0
Ceydel Eop.ndlture 302.0 120,0 (176.0) 278,0 270,0 (2.0) 203.0 024.0 4210 222.0 593.0 371,0 222.0 820,0 604.0 1.142,0 734.0
Payment altec 1410 1570 10.0 206.0 118.0 (170.0) 357.0 155.0 (2020) 448.0 1500 (290.0) 400.0 210.0 (259.0) 300,0 340.0
Payment of dlcldend 720 77,0 5.0 70.0 00.0 11.0 70.0 107.0 89.0 700 103,0 75.0 800 161.0 750 202,0 3950
Chang.sin worlong capllel 1,181.0 1,341.0 150.0 120.0 470.0 350.0 (210.0) 2,014.0 3, 100,0 (102.0) 575,0 737.0 324.0 2,447.0 2,123.0 1,427.0
Told 0,334,0 8,310.0 14.0 9.134,0 0,076.0 743.0 10,242.0 21.059,0 11,417.0 12,157.0 20,072.0 1.015,0 14,603.0 23,594.0 0061.0 20,005,0 30,307.0

PATIO

DebI-aurole, cooereg. mel, (*16) 1.5 1.0 0,1 1.7 1.7 0.0 1.7 0.0 (0.0) 1.8 0.0 (0.0) 1,0 1.0 (0.2) 1.5 1.5

5/Vasre anding 31December10 1086 end 31 March tharasller. IS month dale to, 1007F09
Hole: Projac005s were made at liar. of appralall befor, the change In A,c.t Ye.r hoot SI December loSt March,

(D

N.)
0
 48
- Appendix 21

COMPLIANCE WITH LOAN COVENANTS

Reference to
Covenants Loan Agreement Remarks

1. Submit all subloans exceeding $3.0 million Section 3.03 Complied with.
equivalent for approval to the Bank before
requesting withdrawal.

2. No substancial amendment of Memorandum and Section 5.01 Complied with.

Articles or the Development Strategy (c)
without the Bank's consent.

3. Furnish all information as the Bank Section 5.05 Complied with.

may reasonably request including quarterly
reports covering the execution of the
Project.

4. Submit annual accounts audited by Section 5.06 Complied with.

independent private auditors acceptable (a)
to the Bank not later than four months
after the close cf the fiscal year.

5. Maintain a debt/equity ratio not exceeding Section 5.09 Complied with.

12:1. (a)-(i).

6. Maintain a debt service coverage ratio Section 5.09 Generally

above the 1.1:1. (a)-(ii) complied with
(see para.40)

7. Procurement procedures to adhere to Bank Schedule 3 Complied with.

gidelines.

8. Maximum amount to be extended for any Schedule 4, Complied with.

subloan shall not exceed $5.0 million Para. 3

9. Maintain a minimum interest spread Schedule 4, Complied with.

of 2 per cent per annum a/ Para. 4

10. The proceeds of commercial borrowings Schedule 4, Complied with.

blended with the Bank loan will not Para. 5
exceed the amount of the Bank loan

11. The Borrower shall consult with the Bank Schedule 4, Complied with.
prior to establishing, acquiring or Para. 9
disposing of any subsidiary.

a/ On 22 July 1986, reduced to 1.5 per cent upon the ICICI's request.

(Reference in text: page 12, para. 41)