Funds Update

IL&FS Group related exposures

18th January 2019

Cash generating SPVs of IL&FS Group gets engulfed

In a recent development, two SPV’s of IL&FS Group - Jharkhand Road Projects Implementation Company
Limited and West Gujarat Expressway Limited has asked their trustees to refund of debt payments made
to bond holders after 15 October 2018 and expressing an intention to stop further repayments. The SEBI
regulations directs credit rating agencies to recognise defaults on the ‘one day one rupee’ principle. As a
result, India Ratings and Crisil have both indicated at sharp downgrades to ‘D’, (default), for the
outstanding debt at the SPVs, if repayments are stopped at those operating units.

The next debt servicing for Jharkhand Road Projects Implementation Company Limited and West Gujarat
Expressway Limited is scheduled on 21 January 2019 and 31 January 2019, respectively. As per Rating
agencies, since the above two SPVs ate self-sustaining, if they were to stop making payments towards
their lenders it will “not only destabilise all their ratings but also raise questions on the effectiveness of their
ring-fenced structure.”

India Ratings released a note stating that “it rates infrastructure SPV debt of over Rs 1.6 lakh crore with a
well-defined payment waterfall mechanism. Efficacy of such structures will come into question when a
legal loan agreement is overridden. Furthermore, the lenders and investors in these assets may no more
depend on or appraise project cash flows alone, but will have to appraise projects of the weakest entity in
the group and price it accordingly.”

Open ended funds having exposure to IL&FS Group entities

Jharkand
Fund AP Gujarat Hazariba Jorabat Pune
Road
Road & Solapur Annuity ILFS %
Corpu Express gh Ranchi Shillong Projects Exposure
Scheme way
Infrastr
Expressw Expressway
Express
Implemen
Projects Subsidi Total
s in ucture way Pvt in Rs. Cr.
Ltd. ay Ltd. Ltd tation Co Total aries IL&FS
Cr. Co.Ltd. Ltd.
Ltd.

Aditya Birla Sun

Life Medium Term 10272 - - - - - 5.29 5.29 1.56 6.85 704
Plan
Aditya Birla Sun
Life Credit Risk 8029 - - - - - 1.36 1.36 1.12 2.48 199
Fund
Franklin India
Income
3865 - - - - 4.05 - 4.05 - 4.05 157
Opportunities
Fund
SBI Credit Risk
5437 - - - - 2.57 - 2.57 - 2.57 140
Fund
L&T Resurgent
2137 6.35 - - - - - 6.35 - 6.35 136
India Bond Fund
Franklin India
Dynamic Accrual 3779 - - - - 3.06 - 3.06 - 3.06 116
Fund
ICICI Prudential
11528 - - - - 1.0 - 1.0 - 1.0 115
Credit Risk Fund
 Franklin India
11960 - - - - 0.89 - 0.89 - 0.89 106
STIP

UTI CCF- Savings

3679 - - - 2.68 - - 2.68 - 2.68 99
Plan

UTI ULIP 4335 - - - 2.06 - - 2.06 - 2.06 89

HDFC Corporate
10819 0.57 0.23 - - - - 0.8 - 0.8 87
Bond Fund
UTI Dynamic
1012 - - - 8.55 - - 8.55 - 8.55 87
Bond Fund
Aditya Birla Sun
Life Dynamic 5125 - - - - - 1.67 1.67 - 1.67 86
Bond Fund
HDFC Dynamic
911 - - 8.61 - - - 8.61 - 8.61 78
Debt Fund
ICICI Prudential
Ultra Short Term 3344 - - - - 2.31 - 2.31 - 2.31 77
Fund
UTI Bond Fund 802 - - - 9.05 - - 9.05 - 9.05 73
HDFC Hybrid
3247 0.97 - 1.23 - - - 2.2 - 2.2 71
Debt Fund
UTI RBP Fund 2692 - - - 2.33 - - 2.33 - 2.33 63
HDFC Floating
8490 - 0.73 - - - - 0.73 - 0.73 62
Rate Debt Fund
UTI Hybrid Equity
6044 - - - 0.97 - - 0.97 - 0.97 59
Fund
UTI Banking &
637 - - - 9.05 - - 9.05 - 9.05 58
PSU Debt Fund
HDFC Short Term
8985 - - 0.57 - - - 0.57 - 0.57 51
Debt Fund
SBI Magnum
Medium Duration 1603 - - - - 3.07 - 3.07 - 3.07 49
Fund
Aditya Birla Sun
Life Regular 2471 - - - - - 1.1 1.1 0.86 1.96 48
Savings Fund
L&T Credit Risk
3700 1.26 - - - - - 1.26 - 1.26 47
Fund
Aditya Birla Sun
Life Short Term
3925 - - - - - 1.16 1.16 - 1.16 46
Opportunities
Fund
HDFC Credit Risk
17053 - - 0.24 - - - 0.24 - 0.24 41
Debt Fund
Aditya Birla Sun
Life Balanced 2987 - - - - - 0.96 0.96 - 0.96 29
Advantage Fund
Invesco India
337 - - - - - - - 7.03 7.03 24
Credit Risk Fund
Aditya Birla Sun
Life Equity Hybrid 13839 - - - - - 0.13 0.13 - 0.13 18
95 Fund
Tata Corporate
298 - - - - - - - 4.15 4.15 12
Bond Fund
HDFC Banking
and PSU Debt 2803 - - 0.29 - - - 0.29 - 0.29 8
Fund
Close ended funds having exposure to IL&FS Group entities

Jharkand
Gujarat Pune
Fund Hazaribag Jorabat Road Annuity ILFS %
AP Road & Solapur
h Ranchi Shillong Projects Exposure
Scheme Corpu Express Infrastru Expressw Expresswa Expressw Implement Projects Subsidia Total
in Rs. Cr.
s in Cr. way Ltd. cture ay Ltd. y Ltd
ay Pvt
ation Co Total ries IL&FS
Co.Ltd. Ltd.
Ltd.

Kotak FMP - Series

572 - - - - - - - 3.73 3.73 21.3
183 (1204 Days)
UTI FTIF - Series
476 - - - 4.15 - - 4.15 - 4.15 19.7
XXVIII - Plan 13
Aditya Birla Sun
Life FTP - Series 92 - - - - - 9.2 9.2 4.64 13.84 12.7
OW
HDFC FMP - April
2018 (40) - 1 - 317 - - 3.27 - - - 3.27 - 3.27 10.4
1146D
UTI FTIF - Series
126 - - - 7.99 - - 7.99 - 7.99 10.1
XXIX - Plan 2
UTI FTIF - Series
141 - - - 7.01 - - 7.01 - 7.01 9.9
XXVIII - Plan 10
Kotak FMP - Series
216 - - - 0 - - - 4.36 4.36 9.4
194 (1099 Days)
Kotak FMP - Series
249 - - - 0 - - - 2.52 2.52 6.3
193 (1098 Days)
DHFL Pramerica
69 - - - 7.13 - - 7.13 - 7.13 5.0
FDF - Series AU
Aditya Birla Sun
Life FTP - Series 133 - - - - - - - 2.92 2.92 3.9
OJ
Kotak FMP - Series
243 - - - - - - - 1.55 1.55 3.8
192 (1100 Days)
DHFL Pramerica
50 - - - 7.35 - - 7.35 - 7.35 3.7
FDF - Series BE
DHFL Pramerica
28 - - - 8.93 - - 8.93 - 8.93 2.5
FDF - Series AZ
Aditya Birla Sun
Life FTP - Series 77 - - - - - - - 2.87 2.87 2.2
OF
DHFL Pramerica
34 - - - 5.76 - - 5.76 - 5.76 2.0
FDF - Series AR
DHFL Pramerica
25 - - - 7.83 - - 7.83 - 7.83 2.0
FDF - Series AT
UTI FTIF - Series
137 - - - 1.33 - - 1.33 - 1.33 1.8
XVIII - Plan 2
UTI FTIF - Series
96 - - - 1.09 - - 1.09 - 1.09 1.0
XXIV - Plan 11
UTI FTIF - Series
81 - - - 1.29 - - 1.29 - 1.29 1.0
XXIV - Plan 13
UTI FTIF - Series
76 - - - 0.68 - - 0.68 - 0.68 0.5
XXIV - Plan 12
UTI FTIF - Series
61 - - - 0.43 - - 0.43 - 0.43 0.3
XXIV - Plan 15
UTI FTIF - Series
46 - - - 0.56 - - 0.56 - 0.56 0.3
XXIV - Plan 5
UTI FTIF - Series
68 - - - 0.38 - - 0.38 - 0.38 0.3
XXIV - Plan 10
In our September 2018 strategy note, we had advised our investors to trim exposures from credit oriented
strategies basis risk-profile and holding period.

The current environment calls for caution in credit space. Therefore, we recommend no allocation to “Credit
Funds” and core allocation to AAA oriented strategies and funds. We maintain overweight on short/medium
term strategies. Higher quality, 1 to 5 year corporate bonds remain preferred segment.

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