If one were to take into account the termination of the GIC Rise '91 on March 31,2000 (the scheme was due for redemption on March 31,2001 according to the offer document), it was the actual net assets on April 1, 2000 that had reduced further to Rs 324.98 crore. As a result, loss of assets during 1999-2000 amounted to Rs 231 crore.

The unit capital of the mutual fund also moved down from Rs 751.42 crore on March 31,1999 to Rs 511.21 crore on March 31,2000 and Rs 358.77 crore on April 1,2000 as a result of the premature redemption of GIC Rise'91.

Analysts point to the changed policy of the AMC from last year of showing profit on marking investments to market in revenue accounts which has served no specific purpose except reduce scheme-specific net deficit or inflate the surplus.

For example, the auditor's report to GIC Rise'91 has pointed out that income distribution including distribution tax for the year (Rs 25.01 crore) is "effected in terms of target returns as per the offer document of the scheme despite the absence of distributable surplus at the end of the year."

Restructuring of the AMC operations is now dependent on the report to be submitted shortly by KPMG.

The CEO of the AMC, AN Prabhu, who was due to retire from early June this year was given a six-month extension at the last meeting of the board of trustees of the mutual fund.

As on March 31,2000 the MF had Rs 85.4 crore in GIC Balanced Fund, Rs 30.14 crore in Growth Plus, Rs 44.82 crore in Growth Plus II, Rs 7.12 crore in Tax Savers' Growth Plan, Rs 112.12 crore in Fortune'94, Rs 4.05 crore in Taxsaver'95, Rs 21.96 crore in Suraksha'96 and Rs 19.35 crore in D'mat 2000.