What Makes the Dollar Drop?

When you travel to a foreign country, you will likely need to exchange U.S. dollars to a local currency to purchase goods and services. The rate at which you can purchase one currency with another is the exchange rate. Exchange rates can fluctuate over time due to a variety of underlying factors, which can cause certain currencies, like the U.S. dollar, to drop in value relative to other world currencies.

1. Inflation
o

Inflation is the rate at which prices are increasing in an economy. When inflation is higher in the U.S. than it is in other countries, it will tend to cause the value of the dollar to fall in comparison to the value of other currencies. High inflation erodes the value of a currency. For example, if the U.S. experienced 7 percent inflation for 10 years, $1 would be worth roughly half what it was 10 years ago.

Increase in the Money Supply

o

An increase in the money supply can lead to falling dollar values. If the U.S. government decides to print dollars to increase the money supply, dollars become easier to come by, so prices in the economy may increase. In other words, printing dollars can lead to inflation: the more plentiful an asset is, the less valuable it tends to be.

Demand for Dollars

o

The value of any asset, including currency, is ultimately determined by the demand for the asset. If everyone wants to hold dollars, dollars will be valuable, while dollars will tend to fall in value if nobody wants to hold them. When consumer confidence in the U.S. economy is low, investors may divert money to assets that are not tied to the dollar. For example, an investor might buy gold, oil, stocks in foreign countries or foreign currencies if he thinks the U.S. economy and dollar will perform poorly. Falling demand for dollars and increasing demand for other world currencies can make the dollar fall in value.

Interest Rates
o

Interest rate differences between countries can impact the value of currencies. When U.S. interest rates are low, demand for dollars may fall because it becomes relatively less attractive to save at American financial institutions. For example, if American banks offered 1 percent interest on savings deposits while banks in the U.K. offered 5 percent interest, foreign and American savers might decide to convert their dollars into pounds and save at banks in the U.K. rather

than saving at banks in the U.S. Low demand for dollars would lead to lower dollar values

What Factors Cause Exchange Rates to Fluctuate?

What Factors Cause Exchange Rates to Fluctuate?

The foreign exchange market, or forex, is one of the largest markets in the world, and is in constant flux. When it's night in one part of the world, it's morning in another, and exchange rates fluctuate as currencies are bought and sold. With trillions of dollars' worth of currency trading each day, the currency market is one of the most important in an economy of global trade, and exchange rates fluctuate in response to a variety of factors ranging from economic data to changes in interest rates.

1. Identification
o

An exchange rate is a ratio that expresses the value of one currency in terms of another. An individual exchange rate is also called a currency cross or pair, and is identified by the abbreviations of the currencies involved. For example, EUR/USD is the number of dollars (USD) that can be purchased by one euro (EUR). Indirect quotation occurs when the home currency is first in the pair. Direct quotation is when a foreign currency is listed first. The major currency pairs are EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD and USD/CAD.

History
o

Originally, currencies were redeemable in gold, silver or some other commodity of value. But demand for currency usually outstrips the available supply of such commodities, and lending institutions historically chased higher profits by lending more currency than they had in reserve. In the 20th century, the United States and other major countries abandoned the gold standard, leaving currencies essentially without intrinsic value other than the gross domestic product of each country.

Function
o

In the most basic sense, currencies fluctuate because of changes in supply and demand. Supply of currency is usually based on the creation of money by national central banks, through a variety of means. The demand for currency can either be transactional, meaning it is needed for actual use in an economy, or speculative, meaning it is purchased simply because it is expected to appreciate in relation to other currencies.

Features
o

The transactional demand for a currency is related to the economic growth of a country, its rate of employment, and the velocity of money, which is the rate at which money moves through the economy from one transaction to another. Speculative demand for currency is based on perceptions of the degree to which it will retain its value. This is related in part to expectations of future economic activity, but also to anticipated inflation, which occurs when the supply outstrips demand and sends the value of the currency down.

Considerations
o

One of the most direct influences on exchange rates is the interest rate differentials between different countries. Central banks attempt to manipulate demand for their currency by raising or lowering benchmark interest rates, which represent the cost of borrowing in the currency. The variation in interest rates around the world produces a type of speculative demand called a carry trade, where money is borrowed in a low-interest currency and converted and lent in a high-interest currency. The carry trader is able to keep the difference in the rates as profit, but runs the risk that changes in the relative interest rates and exchange rates will erode that profit.

Fluctuations in Indias Rupee Rate and its Economic Impact

Posted on December 5, 2011 by India Briefing

Dec. 5 After depreciating to a record low of 52.73 against the U.S. dollar on November 22, the Indian rupee (INR) rose in value to 51.206 per dollar on Friday to complete the currencys first weekly advance since October. The Indian rupee is under great stress as overseas investors are paring their exposure to Asias third-largest economy amid international uncertainty and mounting worries over the domestic economy. On November 21 alone, overseas funds sold more than US$500 million worth of Indianlisted shares over the five trading sessions, reducing net inflows for 2011 to under US$300 million a tiny sum compared with the record investments of more than US$29 billion experienced in 2010. The rupee has lost more than 10 percent of its value this year, making it one of the worst performing currencies in Asia. The rupees modest 2.1 percent advance against the dollar last week occur red as six monetary authorities, led by the U.S. Federal Reserve, agreed to lower the interest rate on dollar-liquidity swap lines. The premium banks pay to borrow dollars overnight from central banks will fall by half a percentage point to 50 basis points, the Fed said. It coordinated the move with the European Central Bank and monetary authorities in Canada, Switzerland, Japan and the U.K. Sentiment has improved slightly after the central banks actions, Vikas Babu, a Mumbai-based currency trader at state-owned Andhra Bank, told Bloomberg News. This is unlikely to last long as only the symptoms of the crisis are being tackled, and I expect dollar-buying to resume soon. The exchange rate of the Indian rupee is dependent upon the market conditions. Though, in order to sustain effective exchange rates, the Reserve Bank of India (RBI) actively trades in the US$/INR currency market. The RBI also intervenes in the currency markets to maintain low volatility in exchange rates and remove excess liquidity from the economy. The rupee is pegged by the Bhutanese ngultrum at par and with the Nepali rupee at INR1 to NPR1.6.

India has a managed floating exchange rate system. This means that the Indian government intervenes only if the exchange rate gets out of hand by increasing or reducing the money supply as the circumstances demand. Impact on economy Rupee appreciation makes imports cheaper and exports more expensive. According to intelligence reports by the Associated Chambers of Commerce and Industry of India, sectors like petroleum and petroleum products, drugs and pharmaceuticals and engineering goods which have import inputs of as much as 77 percent, 19 percent and 21 percent, respectively will gain if the rupee appreciates. They would have to pay less for the imported raw materials which would increase their profit margins. Likewise, a depreciating rupee makes exports cheaper and imports expensive. So, it is good news for industries such as IT, textiles, hotels and tourism which generate income mainly from exporting their products or services. Rupee depreciation makes Indian goods and services cheaper for overseas buyers, thus leading to increases in demand and higher revenue generation. The foreign tourists would find it cost effective to come to India, therefore increasing the business of hotel, tours and travel companies. Indias IT sector is dependent on foreign clients, especially the United States, for more than 70 percent of its revenue. When an IT company gets a project from a client, it predecides on the length of the contract and the cost of the project. The contracts with U.S. clients are usually quoted in U.S. dollar terms. So, the fluctuation in the exchange rate can bring about a considerable difference in the performance of a company. Some companies undertake a range of measures like hedging exchange risks using forwards and futures contracts. This helps in mitigating some of the losses due to exchange rate fluctuations, but none-the-less the impact is substantial. The exchange rate is a significant tool that can be used to examine many key industries; with fluctuations potentially having a serious impact on the economy, industries, companies, and foreign investors. Rupee appreciation is generally helpful for industries which rely closely on imported inputs while depreciation of the rupee is welcome news for industries which are exporting a majority of their products.

External commercial borrowing (India)

An external commercial borrowing (ECB) is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs (public sector undertakings). ECBs include commercial bank loans, buyers' credit, suppliers' credit, securitised instruments such as floating rate notes and fixed rate bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of multilateral financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc. ECBs cannot be used for investment in stock market or speculation in real estate. The DEA (Department of Economic Affairs), Ministry of Finance, Government of India along with Reserve Bank of India, monitors and regulates ECB guidelines and policies. For infrastructure and greenfield projects, funding up to 50% (through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs is allowed. Recently Government of India has increased limits on RBI to up to $4[1]0 billions and allowed borrowings in Chinese currency Renminbi. Borrowers can use 25 per cent of the ECB to repay rupee debt and the remaining 75 per cent should be used for new projects. A borrower can not refinance its existing rupee loan through ECB. The money raised through ECB is cheaper given near-zero interest rates in the US and Europe, Indian companies can repay their existing expensive loans from that. The ministry has not put any ceiling on individual companies for using renminbi as currency for ECB. Even though the overall limit for permitting it under ECB is only $1 billion, the officials denied possibilities of a single company using the entire amount as it would come under approval route. The cost of borrowing in Renminbi is far less, said a finance ministry official. Companies go for it as it is on easier terms. We are getting their (Chinas) money cheap. The limit for automatic approval has also been increased from $100 million to $200 million for the services sector (hospitals, tourism) and from $5 million to $10 million for non-government organisations and microfinance institutions. The decisions will come into effect through a notification by RBI. The Reserve Bank of India on Tuesday said the Small Industries Development Bank of India (SIDBI) can tap the external commercial borrowing route for on-lending to the micro, small and medium enterprise (MSME) sector. For on-lending to the MSME borrowers, the RBI has stipulated that SIDBI should hedge the foreign currency risk in full in case the on-lending is in rupees. On-lending in foreign currency will only be to those MSMEs which have a natural hedge by way of foreign exchange earnings. Availment of ECB by SIDBI, including the outstanding ECBs, up to 50 per cent of owned funds, for on-lending to the MSME sector, will be under the automatic route and beyond 50 per cent of

owned funds, the availment will be under the approval route, subject to a ceiling of $500 million per financial year. Keywords: Reserve Bank of India, Small Industries Development Bank of India, SIDBI, external commercial borrowingS, micro, small and medium enterpriseS, MSME, foreign currency risk

A PRESENTATION ON EXTERNAL COMMERCIAL BORROWINGS :

A PRESENTATION ON EXTERNAL COMMERCIAL BORROWINGS Presentation by: SPC Consulting Services Pvt. Ltd.

What is ECB? :
What is ECB? Source of funds for corporates from abroad with advantage of lower rates of interest prevailing in the international financial markets longer maturity period for financing expansion of existing capacity as well as for fresh investment Defined as to include commercial loans [in the form of bank loans, buyers credit, suppliers credit, securitised instruments (e.g. floating rate notes and fixed rate bonds, CP)] availed from non-resident lenders with minimum average maturity of 3 years

Statutory Provisions :
Statutory Provisions The set of rules that governs foreign investment in form of borrowings is called ECB Regulations by MOF Section 6(3)(d) of FEMA1999 Section 6 of Notification no FEMA 3 Dated 3-5-2000 and amended from TIME TO TIME Section 5(3) of ABOVE NOTIFICATION-IMPORT CREDIT Section 6(2) PUTS CAP ON TOTAL ECB

Purpose of ECB :
Purpose of ECB Sources of Finance for Indian Corporate For expansion of existing capacity For fresh Investment To give greater priority on Infrastructure, Power, Oil Exploration, Telecom, Railways, Roads, Bridges, etc. To give priority medium and small scale units To be utilized for foreign exchange costs of capital goods and services

Permitted Routes for ECB :

Automatic Route Approval Route

Slide 6:

Automatic Route Indian Companies except financial intermediaries (such as Banks, Financial Institutions (FIs), Housing Finance companies and NBFCs). Units in Special Economic Zones (SEZ) are allowed to borrow funds through ECBs for their own requirements. (Individuals, Trusts and Non-Profit making organisations are not eligible to raise ECBs). Approval Route Financial Institutions dealing exclusively with infrastructure or export finance Banks and Financial Institutions which participated in the textile or steel sector restructuring package ECBs with minimum average maturity of 5 years by NBFCs to finance import of infrastructure equipment for leasing to infrastructure projects. FCCBs by housing finance companies satisfying the prescribed criteria SPVs, or any other entity notified by RBI, set up to finance infrastructure companies / projects. Multi-State Co-operative Societies engaged in manufacturing activities. Corporates engaged in industrial & infrastructure sector NGOs engaged in micro finance activities satisfying the criteria laid down Corporates in service sector for import of capital goods.

ELIGIBLE BORROWERS :
ELIGIBLE BORROWERS ECBs under the automatic route :-Corporates incorporated under Companies Act NGOs engaged in micro finance activities are eligible subject to: - at least 3 years of borrowing relationship with an Authorised Dealer. Authorised Dealer should certify fit and proper due diligence certificate about the management of the NGO Ineligible intermediaries such as Banks, Financial Institutions, housing Finance Companies and NBFCs.

ELIGIBLE BORROWERS (Contd..) :

ELIGIBLE BORROWERS (Contd..) ECBs under the approval route:- Financial Institutions dealing exclusively with infrastructure or export finance such as IDFC, IL&FS, Power Finance Corporation, Power Trading Corporation, IRCON and EXIM Bank. ECBs with minimum average maturity of 5 years can be raised by NBFCs from multilateral financial institutions. Corporates in service sector viz., hotels, hospitals and software companies can also avail ECBs up to USD 100 million in each financial year for import of capital goods.

ELIGIBLE BORROWERS (Contd..) :

ELIGIBLE BORROWERS (Contd..) ECBs under the approval route:-Multi-State Co-operative Societies engaged in manufacturing activities. Non-Government Organisations (NGOs) engaged in micro finance activities having satisfactory borrowing relationship for at least 3 years with a scheduled commercial bank, which is authorised to deal in foreign exchange, can also raise ECBs.

Recognised lenders :
Recognised lenders International Banks IFC,ADB,CDC etc. Multilaterals Export Credit Agencies Suppliers of Equipments, Foreign collaborators and Foreign Equity Holders, Overseas Organisation lenders to NGOs

Basic Financing Structure :

Basic Financing Structure Investments Equity Long Term Borrowings Short Term Borrowings FDI FEM (Borrowing or Lending in Foreign Exchange) Regulations, 2000 Debentures Convertible Preference Shares Convertible Debentures Unfunded Loans ECBs

Modes of Raising ECBs :

Modes of Raising ECBs Foreign currency loan raised by residents from recognised lenders The ambit of ECB is wide. It recognizes simple form of credit as suppliers credit as well as sophisticated financial products as securitisation instruments. Basically ECB suggests any kind of funding other than Equity (considered foreign direct investment) be it Bonds, Credit notes, Asset Backed Securities, Mortgage Backed Securities or anything of that nature, satisfying the norms of the ECB regulations.

Modes of Raising ECBs - (Contd.) :

Modes of Raising ECBs - (Contd.) Commercial Bank Loans : in the form of term loans from banks outside India Buyer's Credit Supplier's Credit Securitised instruments such as Floating Rate Notes (FRNs), Fixed Rate Bonds (FRBs), Syndicated Loans etc. Syndicated Loan, CP Credit from official export credit agencies Commercial borrowings from the private sector window of multilateral financial institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC,

Modes of Raising ECBs - (Contd.) :

Modes of Raising ECBs - (Contd.) Loan from foreign collaborator/equity holder, etc and corporate/institutions with a good credit rating from internationally recognised credit rating agency Lines of Credit from foreign banks and financial institutions Financial Leases Import Loans Investment by Foreign Institutional Investors (FIIs) in dedicated debt funds External assistance, NRI deposits, short-term credit and Rupee debt Foreign Currency Convertible Bonds

Modes of Raising ECBs - (Contd.) :

Modes of Raising ECBs - (Contd.) Non convertible or optionally convertible or partially convertible debentures Redeemable preference shares are considered as part of ECBs - As per Indian corporate law, all preference shares are mandatorily redeemable unless they are convertible - Hence, convertible preference shares will not be ECB (will be Foreign Direct Investment) - Non convertible, partly convertible or optionally convertible preference shares are treated as ECBs Bonds, Credit notes, Asset Backed Securities, Mortgage Backed securities - Not expressly covered but Guidelines refer to securitised notes

Amount and Maturity of ECBs :

Amount and Maturity of ECBs UPTO $20 mn-------- MIN.AVG.MATURITY OF THREE YEARS $20mn TO $500mn----Min.avg.mty 5years Maximum amount in a financial year$500mn ECB upto$20mn can have call/put option AFTER 3 YEARS

All-In-Cost Ceilings :
All-In-Cost Ceilings All-in-cost includes interest, fees, expenses in foreign currency, except commitment fee, pre payment fee, withholding taxes and all fees payable in INRS MAMP All-in-cost LIBOR+ of respective currency 3 to 5 years 300bps Above 5 years 500bps

End-User-Criteria :
End-User-Criteria Import of capital goods New projects Modernization/ expansion of existing projects in real sector including infrastructure, S.M.Es Infrastructure means sectors in Power, Telecom, Railways, roads and bridges, ports, industrial parks, water supply, sanitation, sewerage Overseas direct investment in J.V / W.O.S subject to FEMA 120 Acquisition of shares in disinvestment process-first stage and mandatory 2 stage NGOS can use for micro finance lending to self help groups Bonafide micro credit purposes

Prohibited Users :
Prohibited Users On-lending or investment in capital market or acquiring a coy in India Real estate(except development of integrated township vide G.O.I. Press note 3 dated 4-1-2002 Working capital General corporate purpose Repayment of existing rupee loans Guarantees Prohibited Guarantees, Letter of Credit, Standby L/C, Undertaking, Comfort Letter Prohibition applies to Banks, FIS, NBFCS

Security :
Security Choice of borrower and lender Compliance with REG.8 FEMA21 and REG.3 FEMA20, that is prior approval of RBI required for creation of charge immovable properties and shares in India

Parking of Funds :
Parking of Funds Compulsory to park outside pending actual requirement in India Parked funds can be invested in products of Banks rated AA- BY S&P or AA 3 by moodys Deposits with overseas branches of A.D Treasury bills of 1 year maturity Liquidity to meet the use in India

Trade Credits :
Trade Credits Credits for imports Credit provided by overseas Supplier, Bank, Financial Institution. Period-original maturity- less than 3 years Suppliers Credit or Buyers Credit Buyers Credit and Suppliers Credit of more than 3 years will be treared as ECB

Quantum and Maturity Period :

Quantum and Maturity Period Import of items allowed under EXIM policy A.D.s can allow upto $ 20 mn upto a period of one year(from date of shipment) For import of capital goods A.D.s can allow upto $20mn with maturity of over 1 year upto 3 years No roll overs/extension can be allowed beyond permissible periods Amounts above $20 mn apply to RBI

All-In-Cost-Ceilings :
All-In-Cost-Ceilings Upto one year libor+50 bps 1 to 3 years libor+125 bps All-in- cost includes arranger fees, upfront fees, MNGMT fees, handling/processing charges, out of pocket and legal expenses

Guarantees :
Guarantees A.D.S should take prior approval of regional offices of RBI for issue of guarantees, letter of comfort etc Reporting to RBI Particulars of ECB in form T. C to be reported to DEAP, Mumbai Monthly-before 10th of succeeding month Each trade credit to be given a unique identification number by A.D.

Why ECB is attractive? :

Why ECB is attractive? Investor - ECB is for specific period, which can be as short as three years - Fixed Return, usually the rates of interest are fixed - The interest and the borrowed amount are repatriable - No owners risk as in case of Equity Investment Borrower - No dilution in ownership - Considerably large funds can be raised as per requirements of borrower - Usually only a fixed rate of interest is to be paid - Easy Availability of funds because ECB is more appealing to Investors

Data Bank :
Data Bank The information regarding Approval, Utilization, Remittance & Other relevant details please visit http://www.rbi.org.in

Conclusion :
Conclusion External Commercial Borrowings (ECBs) occupy a very important position as a source of funds for Corporate. Thus, it is to be maintained within prudent limits for total external borrowings and to provide flexibility to Corporate in external borrowings and that is reflected in its guidelines. However, the main purpose of ECB is to encourage borrowings which provides basis for strongest economy. This is amply clear from the fact that the funds raised through ECBs in October 2008 were USD 1.12 billion as compared to USD 2.80 billion raised in September 2008. Nevertheless the significance of ECBs as a source of raising finance can not be undermined. Thus according to some Maven: ECB is not only three letter word but lifeline of corporate world

Data on ECB/FCCB for the month of September 2012 I AUTOMATIC ROUTE* ECB/ Borrower Equivalent Purpose FCCB Amount in USD

Maturity Period (Appx)

1 ECB 2 ECB 3 ECB 4 ECB 5 ECB 6 ECB 7 ECB 8 ECB 9 ECB 10 ECB 11 ECB 12 ECB 13 ECB 14 ECB 15 ECB 16 ECB 17 ECB 18 ECB 19 ECB 20 ECB

Quadrant EPP Surlon India Ltd. # Quadrant EPP Surlon India Ltd.# Quadrant EPP Surlon India Ltd. # Indosolar Limited # HF Metalart Private Limited # Samhita Community Development Services Heubach Colour Pvt.Ltd. Marquardt India Pvt. Ltd. Jaiprakash Associates Ltd. Anil Limited Punarnava Rasayan Pvt Ltd Bilt Graphic Paper Products Ltd Suven Life Sciences Limited Erandia Resorts Pvt Ltd Star Coolers & Condensers Pvt. Ltd Dayco Vikas Power Transmission pvt. Ltd. IPCA Laboratories Ltd. Dayco Vikas Power Transmission pvt. Ltd. IPCA Laboratories Ltd. AIA Engineering Limited

96,318 77,054 128,424 999,965 462,687 892,858 3,800,000 751,066 150,000,000 5,000,000 98,500 25,000,000 6,000,000 4,494,823 241,367 1,284,235 10,000,000 513,694 10,000,000 20,000,000

Rupee Expenditure Loc.CG Import of Capital Goods Modernisation Working Capital Other Micro Finance Modernisation New Project Redemption of FCCBs Import of Capital Goods New Project Modernisation Modernisation Modernisation Modernisation Modernisation Modernisation Modernisation Modernisation Import of Capital Goods

10 Years 5 Months 8 Years 8 Months 6 Years 2 Months 10 Years 1 Month 9 Years 1 Month 4 Years Months 9 Years Months 7 Years Months 7 Years 11 10 2 1 Month

5 Years 10 Months 7 Years 1 Month 7 Years 1 Month 5 Years 1 Month 5 Years 9 Months 5 Years 5 Years 7 Months 5 Years 5 Years 7 Months 6 Years 5 Years

21 ECB 22 ECB 23 ECB 24 ECB 25 ECB 26 ECB 27 ECB 28 ECB 29 FCCB 30 ECB 31 ECB 32 ECB 33 ECB 34 ECB 35 ECB 36 ECB 37 ECB 38 ECB 39 ECB 40 ECB 41 ECB 42 ECB 43 ECB 44 ECB

GAIL (India) Ltd. Alpla India Pvt.Ltd. The Supreme Industries Ltd. Denso Haryana Pvt. Ltd. Perrigo API India Pvt. Ltd. Skaps Industries India Private Limited Hindustan Polyamides & Fibres Ltd. Apicore Pharmaceuticals Pvt. Ltd. Amtek India Ltd. Angerlehner Composites Pvt. Ltd. Toto India industries Pvt. Ltd Rieter India Pvt Ltd. JSW Steel Ltd. Laxmi Organic Industries Ltd. Inox Renewables (Jaiselmer) Limited Coromandel International Ltd. Larsen & Toubro Limited Godrej Industries Ltd. Fresenius Kabi India Pvt.Ltd. Amtek Auto Ltd. Essar Steel India Limited Blue Ridge Hotels Private Limited # Welspun Corp Ltd Bellsonica Auto Component India Pvt. Ltd

300,000,000 1,155,812 20,000,000 23,807,126 15,000,000 10,300,000 4,000,000 2,000,000 70,000,000 282,532 19,843,792 4,254,692 19,622,250 10,000,000 50,000,000 20,000,000 20,000,000 20,000,000 18,094,881 60,000,000 160,000,000 19,000,000 40,000,000 17,283,303

Rupee Expenditure Loc.CG New Project Import of Capital Goods Modernisation Import of Capital Goods Import of Capital Goods Rupee Expenditure Loc.CG New Project Modernisation Rupee Expenditure Loc.CG New Project Rupee Expenditure Loc.CG Import of Capital Goods New Project New Project Rupee Expenditure Loc.CG Rupee Expenditure Loc.CG Modernisation New Project Rupee Expenditure Loc.CG Rupee Expenditure Loc.CG Other Redemption of FCCBs Modernisation

6 Years 3 Months 6 Years 1 Month 5 Years 5 Years 9 Years 8 Months 5 Years 9 Months 5 Years 5 Years 5 Years 4 Years 10 Years 1 Month 5 Years 11 Years 6 Months 7 Years 9 Months 14 Years 9 Months 3 Years 6 Months 5 Years 5 Years 6 Years 2 Months 6 Years 4 Months 10 Years 1 Month 7 Years 3 Months 7 Years 1 Month 12 Years 6 Months

45 ECB 46 ECB 47 ECB 48 ECB 49 ECB 50 ECB 51 ECB 52 ECB 53 ECB 54 ECB 55 ECB 56 ECB 57 ECB 58 ECB 59 ECB 60 ECB 61 ECB 62 ECB 63 ECB 64 ECB 65 ECB 66 ECB 67 ECB

Gayatri Projects Ltd. Inabensa Bharat Private Ltd AT India Auto Parts Pvt. Ltd. Chalet Hotels Ltd. Tarapur Textiles Park Ltd Maroli NH Road Pvt.Ltd. Buckman Laboratories (India) Pvt. Ltd. NTPC Ltd. Tata Steel Ltd. Kasturi & Sons Ltd. # Eastern Hatcheries Private Limited Motherson Sumi Systems Ltd. Omya India Pvt. Ltd. Jakson Power Pvt. Ltd. Anupam-MHI Industries Limited Atul Ltd. Toyo Ink India Pvt. ltd. Tag Offshore Ltd. GMR Kamalanga Energy Limited Jericho Chemicals Pvt. Ltd. Dia Aluminium India Pvt. Ltd. Mobis India Limited Steelcast Ltd.

25,000,000 14,000,000 5,493,952 30,000,000 10,910,000 4,500,000 450,000 500,000,000 15,337,299 12,514,392 4,545,455 18,000,000 3,400,000 20,303,724 9,000,000 10,000,000 921,776 23,500,000 56,000,000 3,600,000 213,000 20,000,000 5,000,000

Redemption of FCCBs New Project New Project New Project Industrial Parks New Project Modernisation Power Import of Capital Goods Import of Capital Goods Modernisation Rupee Expenditure Loc.CG Rupee Expenditure Loc.CG Rupee Expenditure Loc.CG New Project Modernisation New Project Import of Capital Goods Power Rupee Expenditure Loc.CG Import of Capital Goods New Project Import of Capital Goods

6 Years 10 Months 8 Years 9 Months 4 Years 9 Months 5 Years 7 Months 7 Years 7 Months 12 Years 1 Month 4 Years 3 Months 10 Years 1 Month 11 Years 5 Months 6 Years 2 Months 7 Years 6 Years 5 Years 7 Years 1 Month 8 Years 1 Month 5 Years 5 Years 8 Years 1 Month 5 Years 2 Months 5 Years 1 Month 3 Years 3 Years 6 Months 5 Years

68 ECB 69 ECB 70 ECB 71 ECB 72 ECB 73 ECB 74 ECB 75 ECB 76 ECB

Pioneer Elastic (India) Private Limited Toyoda Gosai India Private Limited Sata Vikas India Pvt. Ltd. General Motors India Pvt. Ltd. Kpit Cummins Infosystems Ltd. P+W silo System India Pvt. Ltd. # Tetra Pak India Pvt. Ltd. Ramgad Minerals and Mining Ltd Jakson Power Pvt. Ltd.

500,000 5,000,000 513,694 53,199,769 20,000,000 64,212 37,500,000 5,560,000 8,121,490

New Project Import of Capital Goods Modernisation Rupee Expenditure Loc.CG Overseas Acquisition Rupee Expenditure Loc.CG Import of Capital Goods New Project Rupee Expenditure Loc.CG

5 Years 5 Years 6 Years 1 Month 8 Years 10 Months 5 Years 5 Years Months 7 Years Months 8 Years Months 7 Years 5 4 7 1 Month

2,087,634,139 Automatic Route Total * Based on Form 83 submitted for allotment of Loan Registration Number # Clarification sought from the company for conformity with the end-use requirement, eligibility of the borrower and other parameter of ECB
II APPROVAL ROUTE*

1 FCCB 2 ECB 3 ECB 4 ECB 5 ECB 6 ECB 7 ECB 8 ECB 9 ECB 10 ECB

Jaiprakash Associates Ltd. Interglobe Aviation Limited The Andhra Pradesh Paper Mills Ltd DOCOMO InterTouch (India) Pvt. Ltd. Rural Electrification Corporation Ltd. Tasty Bite Eatables Ltd. Intuit India Product Dev.Centre Pvt. Ltd Nestle R & D Centre India Pvt.Ltd. Jhajjar Power Ltd. Essar Steel India Limited
Approval Route Total Grand Total

150,000,000 100,000,000 40,000,000 915,659 250,000,000 4,000,000 16,481,856 21,975,808 65,000,000 40,000,000 688,373,323 2,776,007,462

Redemption of FCCBs Other Modernisation Rupee Expenditure Loc.CG Onward/Sub-lending. Modernisation Import of Capital Goods Rupee Expenditure Loc.CG Refinancing of rupee loan Refinancing of rupee loan

5 Years 10 Years 1 Month 8 Years 7 Months 3 Years 3 Months 3 Years 2 Months 9 Years 11 Months 5 Years 5 Months 5 Years 4 Months 11 Years 3 Months 10 Years 1 Month