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UTI's SUS-99 sees 60-pc asset erosion

Our Bureau

MUMBAI, Dec. 15

UNIT Trust of India (UTI) and the Government of India (GoI) seem to be struggling against the vagaries or volatility of the equity markets. The Special Unit Scheme-1999 (SUS-99) has recorded a notional loss of over Rs 1,999 crore, or 60 per cent of the t otal assets under management of SUS-99 scheme, exclusively designed by the Government to bail out UTI during June 1999.

The bias against the stocks of the public sector undertakings (PSUs) continued to haunt UTI and the Government as the markets continued to favour technology, media and MNC stocks.

SUS-99 has joined the league of Unit Scheme-1964 (US-64) where UTI is not bound to disclose the net asset value (NAV) of the scheme. The NAV of SUS-99 is estimated at around Rs 4 per unit of face value of Rs 10. UTI, in its annual report for the year end ed June 2000, has disclosed NAVs of almost all its schemes except US-64 and US-99.

As per the UTI annual report, SUS-99 had made investments, at cost, aggregating Rs 3,334 crore. After providing for depreciation in value of investments of over Rs 2,000 crore, the scheme had negative reserves of Rs 1,932 crore. UTI made provisions of Rs 228 crore during the year ended June 2000, it had made provisions for diminution in value of investments of Rs 1,772 crore last year.

SUS-99 earned dividend income of Rs 77.77 crore during the year on shares held in various PSUs. After booking loss on sale of investments of Rs 24.53 crore, total income was Rs 54.33 crore which was transferred to general reserves.

SUS-99 was created during June 1999 especially by transfer of PSU stocks valued at that time for about Rs 3,300 crore and the Government was issued units of the face value of Rs 3,300 crore.