The NAV of the scheme as on June 30, 1998 was approximately Rs 9.50 per unit capital when the BSE 200 was 325.84 leading to a short fall of Rs 6,605 crore when compared to the repurchase price of Rs 13.70 for July 1998.

According to the report, the health of the portfolio of US-64 has further depreciated by Rs 2,115 from June 1998 to November 1998 as there is further depreciation in the markets.

The appreciaiton in the portfolio as on November 30, 1998 is only Rs 439 crore and is not likely to be adequate to pay a reasonale dividend, let alone mainiting a dividend at last years prices. Commenting on the quality of the debt portfolio of US-64 the report states that US-64 has investments in the debt of approximately 550 comapneis.

The top ten companeis account for an outstanding amount of Rs 1,652.69 crore constituting 39.38 per cent of the aggregate corporate debtportfolio. The gross NPAs at Rs 875 crore constitute 20.85 per cent of the aggregate corporate debt portfolio, with 41 companeis accounting for 66 per cent of the total NPAs. The scheme has till date made provisions of Rs 462 crore resulting in net NPAs of Rs 413 crore ie 9.84 per cent of the portfolio of US-64

An analysis of the equity portfolio says that the book value of the equity portfolio has gone up from Rs 7942.58 crore in June 1994 ot Rs 13,626.53 crore crore in June 1998 while the market value has actually declined form Rs 18,377.86 crore in 1994 to Rs 10,028.85 crore in 1998 (a decline of Rs 8,349.01 crore).

In the portfolio unlisted and unquoted equity portfolio worth Rs 232 crore has gone down by Rs 79.02 crore as on June 30, 1998.

The scheme has continued to incraese exposure in equity. The aggregate book value of equity portfolio has gone up from Rs 13,626.53 crore to Rs 15,164.07 crore. Since the investible funds has remained largely unchanged the incarese in equity has been achieved byfurther selling the debt portfolio which has declined to Rs 5,548.46 crore resulting in the debt to equity ratio has further tilted to 27.73 in favour of equity.