Sep 16, 2011 in FOCUS "The Winds and Waves Are Always on the Side of the Ablest Navigators."– Gibbon, Edward

Sep 16, 2011 IN FOCUS "The winds and waves are always on the side of the ablest navigators."– Gibbon, Edward. Weekly Indicators Indicators Current Last Week Curtains draw on the popular DEPB scheme, 1100 items to be hit Sensex 16,934 16,867 As a setback to exporters, shipments of 1,100 items will be entitled to lower tax Nifty 5,084 5,060 refunds from October 1 when curtains draw on the popular Duty Entitlement Pass Food Inflation 9.47% 9.55% Book (DEPB) scheme. On export of these items, the tax refunds would be reduced by 1-3%, finance secretary R S Gujral said while unveiling the transitory scheme for the Exchange Rates DEPB scheme. While different avenues are available to exporters for refund of the Currency Current Last Week duties, the DEPB is the most preferred route for its flexibility and attractive rates US$1 Rs.47.4670 Rs.46.3843 which average about 8 per cent. Since tax incentives for these goods will now be € 1 Rs. 65.7906 Rs. 64.4825 available under the Duty Drawback Scheme (DDS), the total number of items under JP¥ 100 Rs. 61.81 Rs. 59.87 the DDS would increase to about 4,000 from present 2,835. Of the 1,100 being shifted £ 1 Rs. 74.9599 Rs. 74.0085 to DDS, there would be a ceiling of 5.5% tax refund rate on 660 items. However, the ceiling would not apply to 340 items. The government had spent Rs 8,700 crore last Global Economic and Corporate News year on DEPB refunds and engineering, chemical, pharma, textile and marine products • IAC buys stake in China online matchmaker have been the major beneficiaries. Though exports have shown a remarkable IAC/InterActiveCorp.'s Match.com unit acquired a 20% interest in China online-matchmaking provider performance, growing by 54.2% between April-August 2011 to USD 134.5 billion, Zhenai Inc. Financial terms weren't disclosed. there are concerns that the momentum may not be sustained in the wake of • Cobham to buy Trivec-Avant for up to $144M increasing economic problems in the US and Europe. Defense and commercial aerospace equipment maker Cobham PLC said it has agreed to buy U.S.-based India’s Jul IIP at 21-month low of 3.3%; capital goods in negative Trivec-Avant Corporation, a global supplier of India's industrial output in Jul fell to a 21-month-low of 3.3%, compared with 9.9% a sophisticated UHF satellite communication (SATCOM) antenna systems, for up to $144 mn. year ago because of a fall in capital and intermediate goods growth and a moderation • Fiat gets orders for 20,000 Freemont SUVs in manufacturing and mining. The data, released by the Central Statistics Office, takes Fiat SpA (F.MI) has received orders for 20,000 2004-05 as the base year. Since Apr, the government has been releasing the IIP Freemonts since it brought the new sports utility series with a new base year of 2004-05. The new series has up to 600 items, 200 vehicle to market two months ago, the head of the Italian car brand said. more than the old one, and includes mobile phones, computers, and iPods. Capital • Alwaleed, Bloomberg to launch Arabic news goods growth was down 15.2%, compared with a 40.7% rise in the year ago period channel mainly because of a high base effect. The growth in intermediate goods was down Saudi Arabia's Prince Alwaleed bin Talal, who heads 1.1% in July as against 8.5% a year ago. The mining and the manufacturing sectors Kingdom Holding Co., said he has inked an registered subdued growth at 2.8% and 2.3% vs 8.7% and 10.8% a year ago, agreement with news service Bloomberg LP to launch a new Arabic language satellite news channel. respectively. Electricity sector grew 13.1% vs 3.7% a year ago. However, growth in • TomTom makes deals with Mazda, Fiat the basic goods segment was strong at 10.1%, compared with 4.4% a year ago. Dutch navigation-equipment maker TomTom NV Consumer goods segment grew 6.2% vs 5.8% a year ago. India’s Apr-Jul industrial (TOM2.AE) said it has made separate deals with Fiat growth stood at 5.8% vs 9.7% a year go. The CSO's revised industrial growth number SpA (F.MI) and Mazda Motor Corp. (7261.TO) at the for June was unchanged at 8.8%. Frankfurt Motor Show, but provided no financial details. IEA cuts 2011, 2012 oil demand forecast • Toyota to build ¥26 bn Indonesia plant The International Energy Agency cut its forecast for oil demand in 2011 and 2012 Toyota Motor Corp. (7203.TO) said that it will spend ¥26.3 bn to build a new plant in Indonesia adjacent because of the deteriorating global economy, but warned that it may take some time to its existing Karawang Plant, to better cope with for oil prices to fall because of supply problems that are likely to persist despite the increasing local demand. restart of oil production in Libya. In Libya, "the road back to full operational recovery • Brookfield Office acquires Bethesda site is likely to be a long and difficult one," the IEA said in its monthly oil market report. Brookfield Office Properties Inc. (BPO, BPO.T) said it acquired Three Bethesda Metro Center from The "So too could be the route to a more comfortable market." The IEA's view contrasts Meridian Group for $150.1 mn. with that of the Organization of Petroleum Exporting Countries, which gave a more • Thai Beverage to buy Pepsi partner Serm Suk bearish outlook for oil prices and hinted that some of its members could manage this Thai Beverage PCL (Y92.SG) said it has made an risk by reducing production. The two groups largely agree on the weakening of oil offer to acquire Bangkok-listed soft-drink maker demand, but OPEC expects Libya to return to full pre-war crude production twice as Serm Suk PCL, which is partly owned by PepsiCo Inc., for US$513 mn as the Singapore-listed quickly as the IEA. The IEA cut its oil demand estimate by 0.2 mn barrels a day for company seeks to expand its nonalcoholic production 2011 and 0.4 mn barrels a day for 2012, citing lower economic growth. However, the lines. agency still forecasts oil demand to be marginally higher than current supply next • Chrysler to Sell Fiat Van in North America year. Chrysler Group LLC will begin importing a van from Italian parent Fiat SpA in 2013 to sell in the U.S. and Fitch reiterates risk to China credit rating Canada under the Ram brand. Fitch Ratings expects China's government to intervene to support the country's banks, • GM opens $200 mn Thailand diesel-engine plant but warned again that this support "carries negative implications for the sovereign General Motors Co. opened a $200 mn diesel engine plant in Thailand's eastern Rayong province, which is rating". Fitch reiterated that it "believes there is a significant risk of banking system the U.S. auto maker's first such plant in Southeast stress over the next few years" in the notes of a presentation made by Charlene Chu, Asia. head of China financial institutions at the ratings company, in London. In Apr, Fitch revised its outlook on China's long-term local currency default risk to negative from Nishita Shah Parsekar stable, warning that a lending binge by state-owned banks could create contingent [email protected] liabilities for the government. Please refer to important disclosures at the end of the report For Private Circulation Only. Sushil Financial Services Private Limited Member : BSEL, SEBI Regn.No. INB/F010982338 | NSEIL, SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected] Info-Spectrum Bridging the Information Gap in Corporate Landscape

INDEX

1. India’s Data Watch 03-08

2. Economy 09-16

3. Infrastructure 17-33 4. Sectors 34-77 A. IT & ITeS 34-37 B. Pharma & Healthcare 38-40 C. Telecom 41-43 D. Banking & Financial Services 44-49

E. Steel, Metals & Minerals 50-54 F. Auto & Auto Ancillaries 55-61 G. Miscellaneous 62-77 5. IPO Watch 78-79

6. Mergers & Accquistion 80

7. Ratings 81-90

8. Global Economy & Business 91-103

A. Global Economy 91-98 B. Global Business 99-103

Weekly Newsletter 2 Info-Spectrum Bridging the Information Gap in Corporate Landscape

INDIA’S DATA WATCH India’s Jul IIP at 21-month low of 3.3%; capital goods in negative India's industrial output in Jul fell to a 21-month-low of 3.3%, compared with 9.9% a year ago because of a fall in capital and intermediate goods growth and a moderation in manufacturing and mining. The data, released by the Central Statistics Office, takes 2004-05 as the base year. Since Apr, the government has been releasing the IIP series with a new base year of 2004-05. The new series has up to 600 items, 200 more than the old one, and includes mobile phones, computers, and iPods. Capital goods growth was down 15.2%, compared with a 40.7% rise in the year ago period mainly because of a high base effect. The growth in intermediate goods was down 1.1% in July as against 8.5% a year ago. The mining and the manufacturing sectors registered subdued growth at 2.8% and 2.3% vs 8.7% and 10.8% a year ago, respectively. Electricity sector grew 13.1% vs 3.7% a year ago. However, growth in the basic goods segment was strong at 10.1%, compared with 4.4% a year ago. Consumer goods segment grew 6.2% vs 5.8% a year ago. India’s Apr-Jul industrial growth stood at 5.8% vs 9.7% a year go. The CSO's revised industrial growth number for June was unchanged at 8.8%.

The CSO detailed the IIP for July as follows (year-on-year change, in per cent) with 2004-05 as base year:

Jul 2011 Jun 2011 Jul 2010 Total industry output 3.3 8.8 9.9 Mining 2.8 1.1 8.7 Manufacturing output 2.3 10.3 10.8 Electricity 13.1 7.9 3.7 Basic Goods 10.1 7.4 4.4 Capital Goods (-)15.2 38.2 40.7 Intermediate goods (-) 1.1 0.6 8.5 Consumer goods of which 6.2 2.3 5.8 Consumer durables 8.6 1.5 14.8 Consumer non-durables 4.1 3.1 (-)0.9

Apr-Jul Apr-Jul

2011-12 2010-11 Total industry output 5.8 9.7 Mining 1.1 8.2 Manufacturing output 6.0 10.5 Electricity 9.4 5.0 Basic Goods 7.9 5.2 Capital Goods 7.6 23.1 Intermediate goods 0.8 10.1 Consumer goods of which 4.6 10.0 Consumer durables 4.2 18.4 Consumer non-durables 4.9 3.8

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The following table gives the month-wise trend in 2011-12 as per 2004-05 base for mining, electricity, manufacturing, and overall industry, in percentage terms: Mining Electricity Manufacturing General 11-12 10-11 11-12 10-11 11-12 10-11 11-12 10-11 Apr 1.3 9.2 6.5 6.5 6.3 14.4 5.8 13.1 May 1.3 7.9 10.3 6.1 6.1 8.9 5.9 8.5 Jun 1.1 7.0 7.9 3.6 10.3 7.9 8.8 7.4 Jul 2.8* 8.7 13.1* 3.7 2.3* 10.8 3.3* 9.9 Aug 5.9 1.0 4.6 4.5 Sep 4.3 1.8 6.8 6.2 Oct 6.1 8.8 12.4 11.4 Nov 6.9 4.6 6.5 6.4 Dec 5.9 5.9 8.7 8.1 Jan 1.7 10.5 8.1 7.5 Feb 0.9 6.8 7.2 6.5 Mar 0.3 7.2 10.4 8.8 * Provisional

India Aug cement output up 6% on year, down 6% on month India's cement production rose 6.2% year-on-year in Aug to 13.65 mn tn, while despatches increased 4.8% to 13.43 mn tn, the Cement Manufacturers' Association said. However, on a sequential basis, production declined 5.7% from 14.47 mn tn in Jul and despatches fell 6.5% from 14.36 mn tn a month ago. In Apr- Aug, the domestic cement production and despatches increased 2.1% each, to 70.50 mn tn and 69.97 mn tn, respectively. In the year ended Mar 31, India's cement production had grown 4.7% to 168.26 mn tn and despatches rose 4.6% to 167.15 mn tn. Cement production, despatches in Aug and Jul are as follows (in mn tn): Aug 2011 Jul 2011 Aug 2010 Yr-on-Yr Change Production 13.65 14.47 12.85 6.2% Despatches 13.43 14.36 12.81 4.8%

India WPI inflation at over 1-yr-high of 9.78% in Aug India's headline inflation rate rose to a 13-month-high of 9.78% in Aug, from 9.22% in the previous month, due to an increase in prices of non-food items and metals such as gold, the commerce and industry ministry said. The inflation rate based on the Wholesale Price Index was 8.87% a year ago. The latest inflation number is above consensus estimates. The index for all commodities rose 0.6% on month to 154.9 in Aug. The primary articles index was up 0.9% at 199.6, led by higher prices of food articles and non-food articles, taking the inflation rate in the segment to 12.58% from 11.30% a month earlier. Meanwhile, the index for basic metals, alloys and metal products was up 1.6% to 153.4 due to a 14% rise in prices of gold, gold ornaments, 12% jump in steel prices and 10% rise in copper wires. Fuel price inflation for the month rose to 12.84% from 12.04% in Jul, while the index was up 0.8% at 167.0 because of a 6% rise in prices of furnace oil, a 4% jump in naphtha and a 3% rise in light diesel oil. The inflation rate of manufactured products was 7.79% in Aug, compared with 7.49% a month earlier. The index for this segment was up 0.4% at 138.3. The inflation rate is still well above the Reserve Bank of India's comfort level. The central bank has projected inflation at 7% at the end of the current financial year in March. The headline number has remained over the 9% mark since Dec. RBI has already tightened its key repo rate by a total 325 basis points since Mar 2010 in a bid to curb inflationary pressures. It is widely expected to raise repo rate by another 25 bps in its mid- quarter review Sep 16 before it pauses. Meanwhile, the Jun inflation rate was marginally scaled up to 9.51% from provisional 9.44%, with index for the month at 153.1 compared with the earlier estimate of 152.4. In August, the indices for all commodities and the three main groups were as follows:

Weekly Newsletter 4 Info-Spectrum Bridging the Information Gap in Corporate Landscape

--All commodities rose 0.6% to 154.9 from 154.0 a month ago. --Primary articles rose 0.9% to 199.6 from 197.9 a month ago. --Fuel & power group index rose 0.8% to 167.0 from 165.6. --Manufactured products rose 0.4% to 138.3 from 137.7. Below are the provisional levels, month-on-month and year-on-year changes, in per cent, in the indices of key commodity groups: Aug M-on-M Yr-on-Yr Commodity groups Weight 2011 % change % change All Commodities 100.0 154.9 0.58 9.78 I. PRIMARY ARTICLES 20.12 199.6 0.86 12.58 Food articles 14.34 193.7 0.47 9.62 Cereals 3.37 177.8 0.85 5.39 Rice 1.79 172.9 1.71 5.17 Wheat 1.12 170.0 (-)0.58 (-)1.45 Pulses 0.72 193.1 1.36 (-)4.26 Vegetables 1.74 197.0 6.37 11.80 Potatoes 0.20 150.0 5.63 12.53 Onions 0.18 239.3 19.29 45.29 Fruits 2.11 184.1 (-)6.31 22.82 Milk 3.24 193.1 (-)0.16 9.41 Egg, Meat & Fish 2.41 210.6 2.43 10.78 Non-food articles 4.26 181.1 3.10 17.75 Fibres 0.88 215.6 5.84 36.98 Oilseeds 1.78 161.0 3.01 16.33 Minerals 1.52 306.6 (-)0.36 23.43 II. FUEL & POWER 14.91 167.0 0.85 12.84 Liquefied petroleum gas 0.91 147.9 0.14 14.74 Petrol 1.09 172.4 0.00 23.23 High speed diesel 4.67 167.8 0.00 9.32 III MANUFACTURED PRODUCTS 65.0 138.3 0.44 7.79 Food products 10.0 150.4 0.60 8.05 Sugar 1.7 170.9 0.41 6.28 Edible oils 3.0 133.5 0.45 12.94 Beverages, Tobacco products 1.8 163.3 0.93 13.17 Cotton textiles 2.6 142.1 (-)4.37 16.86 Manmade textiles 2.2 119.2 (-)1.16 5.96 Wood products 0.6 162.5 0.56 9.72 Paper products 2.0 131.0 (-)1.06 4.30 Leather products 0.8 129.9 (-)0.15 0.85 Rubber & Plastic products 3.0 133.6 0.30 7.92 Chemical products 12.0 133.0 0.91 8.48 Non-metallic mineral pdts 2.6 149.4 (-)0.33 3.75 Cement & lime 1.4 152.6 (-)0.97 0.79 Basic Metals Alloys & Metal product 10.7 153.4 1.59 11.56

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Iron & semis 1.6 148.9 1.57 20.76 Machinery & machine Tools 8.9 124.3 0.40 2.90 Transport Equipment & parts 5.2 124.3 0.32 4.19

India’s weekly Sep 3 primary articles inflation 13.04% vs 13.34% India's primary articles inflation for the week ended Sep 3 eased marginally to 13.04% from a 17-week high of 13.34% a week ago mainly due to the statistical impact of a high base. Primary articles index was, however, up 0.3% at 202.0. In the year-ago period, primary articles inflation was up 0.56% on week. Non-food articles inflation also eased to 18.49% from 19.88% a week ago, but the index for the segment was up 1.0% at 185.2. Meanwhile, food articles inflation continued to ease to a six-week low of 9.47% against 9.55% a week ago. The segment's index was up 0.2% on week to 195.4. Fuel group inflation inched up to 13.01% from 12.55% a week ago, but its index remained unchanged on week at 166.8. The headline inflation rate based on the Wholesale Price Index for Aug rose to a near one-year high of 9.78% compared with 9.22% in Jul. In its First Quarter Review of Monetary Policy for 2011-12 (Apr-Mar) last month, the Reserve Bank of India had scaled up its March-end inflation projection to 7% from 6% seen earlier. Inflation data shows indices for primary articles, and fuel and power were as follows in the week ended Sep 3: --The primary articles index rose 0.3% to 202.0 from 201.4 in the previous week; food articles index rose by 0.2% to 195.4 from 195.1; non-food articles index was up 1.0% to 185.2 from 183.3 a week ago. --The fuel and power group index remained unchanged at 166.8. Below are the provisional levels, week-on-week and year-on-year changes, in per cent, in the indices of key commodity groups: Sep 3 wk-on-wk Yr-on-Yr Commodity groups Weight 2011 % change % change I. PRIMARY ARTICLES 20.12 202.0 0.30 13.04 Food articles 14.34 195.4 0.15 9.47 Cereals 3.37 177.8 (-)0.17 5.02 Rice 1.79 173.4 0.12 4.39 Wheat 1.12 169.3 (-)0.82 (-)2.03 Pulses 0.72 195.3 (-)0.36 (-)2.45 Vegetables 1.74 212.5 (-)1.21 17.47 Potatoes 0.20 160.3 3.35 21.16 Onions 0.18 251.5 1.13 42.98 Fruits 2.11 181.5 2.37 22.64 Milk 3.24 194.3 0.83 10.02 Egg, Meat & Fish 2.41 209.6 (-)0.80 5.97 Non-food articles 4.26 185.2 1.04 18.49 Fibres 0.88 220.8 (-)0.18 23.91 Oilseeds 1.78 161.6 (-)0.06 16.68 Minerals 1.52 310.8 0.00 27.69 II. FUEL & POWER 14.91 166.8 0.00 13.01 Liquefied petroleum gas 0.91 147.3 (-)0.87 14.27 Petrol 1.09 172.4 0.00 23.23 High speed diesel 4.67 167.8 0.00 9.32

Weekly Newsletter 6 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Highlights of RBI's mid-quarter review of FY12 monetary policy MAIN HIGHLIGHTS * Repo rate hiked 25 bps to 8.25% * Reverse Repo Rate adjusts 25 bps higher to 7.25% * Marginal Standing Facility now at 9.25% INFLATION * Can't dismiss food inflation as temporary phenomenon * Inflation momentum persists * Aug inflation shows continuing demand pressures * Need to persist with anti-inflationary stance * Inflation is high, generalised, "much above" comfort * Food inflation near 10% despite good monsoon * There is still an element of suppressed inflation * Imperative to persist with anti-inflationary stance * Inflation seen high next few months * Rising inflationary expectations remain key risk * Stabilisation of fuel prices to aid lower inflation * Inflationary pressures seen easing later part of FY12 * WPI, non-manufactured inflation uncomfortably high * Moderating local demand to aid lowering of inflation * Rupee fall can have adverse implication for inflation * Food price inflation persists despite normal monsoon * There is still an element of suppressed inflation * Structural demand-supply mismatch aiding food prices * Can't dismiss food inflation as temporary phenomenon GROWTH * Pace of exports unlikely to sustain on weak demand * Kharif pulses output may decline * Risk to FY12 growth projection made in July * Expect record rice, oilseeds, cotton kharif output * Monsoon rains have been normal so far * Companies Apr-Jun margins moderated across sectors * Significant pass through of rising input costs visible * See downside risk to Jul growth projection * Farm growth accelerated, industry services growth slowed * Pass-through of high global oil price incomplete * Domestic demand slowing down * Non-food loan growth in Aug above 18% indicative aim * Export trend unlikely to sustain on weak global demand * Trend of good exports unlikely to sustain GLOBAL * Development in global economy matter of serious concern * Indicators suggest further global economy moderation * Global oil price pass-through still incomplete * Recent global developments are of serious concern * Pass-through of high global oil price incomplete

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* Pace of exports unlikely to sustain on weak demand * Farm growth accelerated, industry services growth slowed * Eurozone crisis has raised global recovery uncertainty * Crude oil prices remain high LIQUIDITY * Liquidity deficit in line with monetary policy * Average LAF borrowing 400 bln rupees/day so far * Liquidity in deficit mode consistent with stance * Higher M3 reflects moderation in currency growth * Higher M3 reflects higher growth in term deposits * 45 banks raised Base Rate 25-100 bps after Jul policy * Money and gilts markets remained orderly * Modal Base Rate of banks 10.75% in Aug vs 10.25% Jul

INDIA DATA CALENDAR Sep 15-20 GSM mobile subscribers data for Aug, by COAI Sep 16 WMA and forex reserves as on Sep 9, by RBI Sep 19-23 Cement production, despatches in August, by CMA Sep 20 CPI for rural, urban areas and combined for August, by CSO Sep 20 CPI for rural and farm labourers for August, by Labour Ministry Sep 20-25 Crude, refinery output for Aug, from petroleum ministry Sep 22 Primary articles inflation rate in week to Sep 10, by commerce and industry ministry Sep 23 Bank deposits and credit as on Sep 9, by RBI Sep 30 Balance of payments for Apr-Jun, by RBI Sep 30 Core sector growth for August, by commerce ministry Sep 30 CPI for Industrial Workers for August, by Labour Bureau Sep 30 Government finances for Aug, Apr-Aug, by CGA Oct 01 Manufacturing PMI for September, by HSBC Oct 01 Trade data for August, by commerce and industry ministry Oct 05 Services PMI and composite PMI for September, by HSBC Oct 05-10 Major port traffic in September, by Indian Ports Association Oct 03-07 Power generation for September, by Central Electricity Authority Oct 07-12 Automobile sales data for September, by SIAM Oct 12 Index of Industrial Production for August, by CSO Oct 13 Foreign tourist arrivals in Sep, by tourism ministry Oct 14 WPI inflation for Sep, by commerce and industry ministry Nov 30 GDP growth estimate for Jul-Sep, and Apr-Sep, by CSO

Sources: Government of India, Reserve Bank of India, Securities and Exchange Board of India, stock exchanges, and various industry and trade bodies.

Weekly Newsletter 8 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ECONOMY ECONOMY: • Rangarajan says containing fiscal deficit would be a major effort in FY12; disinvestment target for 2011-12 achievable. • India's short-term debt to total external debt ratio rose to 21.2%, the highest in five years. • The Prime Minister's Office will monitor pace of completion of infrastructure projects to meet growth targets. • ADB has cut India's growth forecast for 2011-12 (Apr-Mar) to 7.9% from 8.2%, and for 2012-13 to 8.3% from 8.8%. EXPORTS: • Government is mulling financial assistance to exporters on growing fears of slackening global demand. Although Aug exports were up 44% on year, they were 17% lower from the previous month and there are fears of a looming slowdown in the coming months. • Government has notified export of wheat and rice under the open general licence without any quantitative restrictions. • Tea exports have declined 8% to 15.26 mn kg, while production rose 8% to 133.26 mn kg during the month. GOVERNMENT: • Foreign borrowing as a proportion of gross domestic product fell to 17.3% during 2010-11 from 18% a year ago. • The Comptroller and Auditor General of India seeks to widen the scope of its powers to audit the performance of regulators such as SEBI, TRAI, and IRDA. • To bring public procurement policy bill in winter session. • To soon bring electronic services delivery bill. • Cabinet to take up national manufacturing policy Thursday. • The cabinet may raise dearness allowance for central government employees and dearness relief for pensioners by 7 percentage points to 58% of the basic pay/pension. • The government has planned a series of measures to tackle corruption, including setting up 71 fast- track special CBI courts and a three-month limit for sanctioning prosecution. ENVIRONMENT: • The government has relaxed environmental clearance norms for projects that require forest land. • The corporate affairs ministry has inserted a clause in the Companies Bill under which the board of every company would be held directly responsible for any adverse environmental impact on geographical areas within which they operate. DIVESTMENT: • Government has put stake sale in Ennore Port on hold, as the Ministry of Shipping deems it unviable. FOREIGN EXCHANGE: • India's foreign exchange reserves reached an all-time high of $321 bn due to an increase in the gold reserves by $3 bn. FERTILISER: • The ministry of chemicals and fertilisers is likely to move a cabinet note on urea decontrol in a fortnight. FUND RAISING: • The government is likely to review the annual external commercial borrowings limit of $30 bn by this month end. TAX: • US to enforce the Foreign Account Tax Compliance Act from Jan 1, 2013, mandating full disclosure of bank accounts held by US taxpayers in foreign countries, including India.

Weekly Newsletter 9 Info-Spectrum Bridging the Information Gap in Corporate Landscape

• Tamil Nadu to levy 30% entertainment tax on direct-to-home services and 25% on the Indian Premier League. India’s Jul IIP at 21-month low of 3.3%; capital goods in negative India's industrial output in Jul fell to a 21-month-low of 3.3%, compared with 9.9% a year ago because of a fall in capital and intermediate goods growth and a moderation in manufacturing and mining. The data, released by the Central Statistics Office, takes 2004-05 as the base year. Since Apr, the government has been releasing the IIP series with a new base year of 2004-05. The new series has up to 600 items, 200 more than the old one, and includes mobile phones, computers, and iPods. Capital goods growth was down 15.2%, compared with a 40.7% rise in the year ago period mainly because of a high base effect. The growth in intermediate goods was down 1.1% in July as against 8.5% a year ago. The mining and the manufacturing sectors registered subdued growth at 2.8% and 2.3% vs 8.7% and 10.8% a year ago, respectively. Electricity sector grew 13.1% vs 3.7% a year ago. However, growth in the basic goods segment was strong at 10.1%, compared with 4.4% a year ago. Consumer goods segment grew 6.2% vs 5.8% a year ago. India’s Apr-Jul industrial growth stood at 5.8% vs 9.7% a year go. The CSO's revised industrial growth number for June was unchanged at 8.8%. The CSO detailed the IIP for July as follows (year-on-year change, in per cent) with 2004-05 as base year: Jul 2011 Jun 2011 Jul 2010 Total industry output 3.3 8.8 9.9 Mining 2.8 1.1 8.7 Manufacturing output 2.3 10.3 10.8 Electricity 13.1 7.9 3.7 Basic Goods 10.1 7.4 4.4 Capital Goods (-)15.2 38.2 40.7 Intermediate goods (-) 1.1 0.6 8.5 Consumer goods of which 6.2 2.3 5.8 Consumer durables 8.6 1.5 14.8 Consumer non-durables 4.1 3.1 (-)0.9

Apr-Jul Apr-Jul

Weekly Newsletter 10 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Jun 1.1 7.0 7.9 3.6 10.3 7.9 8.8 7.4 Jul 2.8* 8.7 13.1* 3.7 2.3* 10.8 3.3* 9.9 Aug 5.9 1.0 4.6 4.5 Sep 4.3 1.8 6.8 6.2 Oct 6.1 8.8 12.4 11.4 Nov 6.9 4.6 6.5 6.4 Dec 5.9 5.9 8.7 8.1 Jan 1.7 10.5 8.1 7.5 Feb 0.9 6.8 7.2 6.5 Mar 0.3 7.2 10.4 8.8 * Provisional Aquaculture output up on better prices, larger area Aquaculture production in India during 2010-11 increased significantly over the previous year, with a 40 % rise in output, to 145,600 tonnes, valued at Rs.3,585 crore (a rise of 40 %). A rise in acreage and improved prices are both responsible for the rise. The area under aquaculture rose to 50,000 hectares (ha) by the end of 2010-11, a rise of 10,000 ha over the previous year. The average farm gate price rose to Rs.246 a kg from Rs.200. Of the total exports of marine products of 813,091 tonnes in 2010-11, aquaculture items contributed 18.4 %. Last year, this was around 15 %. Of the total export value realisation of Rs.12,901 crore, aquaculture contributed 27.5 %. This was 20 % in 2009-10. Andhra Pradesh led in aquaculture farming, with a total output of 66,631 tonnes (45 % of the total), followed by West Bengal with 42,983 tonnes (30 %). A remarkable increase in productivity was noted in Gujarat, from 1.9 tonnes/ha in 2009-10 to 2.9 t/ha. Compared to the previous year’s output of 95,919 tonnes, shrimp production (of the Black Tiger variety) rose 23.6 %, with an additional 11,592 ha brought under cultivation. Andhra led with 49,030 tonnes from 42,055 ha, followed by West Bengal with 40,725 tonnes from 47,588 ha. The exports rose to Rs.3,080 crore from Rs.2,398 crore in 2009-10, a growth of 28.4 %. Vannamei shrimp production began for the first time in 2009. This increased to 18,247 tonnes, almost entirely from Andhra. Of the total, 10,000 tonnes were exported, with a value realisation of Rs.365 crore. Scampi production also rose in 2010-11, compared to 2009-10, though the area under scampi farming had reduced. The reduction is attributed mainly to lack of good quality seed for farming and the difficulty in marketing small quantities. Compared to the previous year’s production of 6,567 tonnes, production during 2010-11 was 8,778 tonnes, higher by 33.6 %. The total value realisation was Rs.140 crore, an increase of 33 % over the previous year. These three varieties and that of tiger shrimp (output of 118,000 tonnes) make for almost the entire aquaculture production in India. DGFT frees cotton export under OGL for one more season Cotton export has been freed, under Open General Licence (OGL), for one more season starting Oct. And, with much relaxed criteria, unlike the previous season. The Directorate General of Foreign Trade (DGFT) has done away with the eligibility criteria for exporters and the various other stringent conditions of the previous season. The OGL will be valid for the season starting next month to Sep 2012. The only condition that remains is the registration certificate for export and reporting details which specify a penal clause for failure to export after getting the certificate. The criterion demanding a performance bank guarantee has also been dropped. Besides, for rice and wheat, the DGFT has specified no eligibility criteria, except that exports should be made from privately held stocks. India is the second biggest grower of wheat and allowed private companies to export the grain for the first time in four years. A panel of ministers permitted sales of two mn tonnes of wheat and 2.1 mt of non-Basmati rice last week. India banned private companies from shipping wheat in early 2007 and non-Basmati rice in Apr 2008, to bolster domestic supplies amid a global food crisis. Restrictions were eased, allowing some quantities of wheat, rice and wheat products to be shipped to Africa, as well as Bangladesh and Nepal through state-run companies under government-to- government deals. The panel on July 11 this year put off a decision to end the ban on wheat exports due to non-competitive prices globally, while approving a mn tonnes of non-Basmati rice. In the previous season, DGFT had said a cotton export quota would be granted only if an entity had exported in either of the previous two cotton years (2008-09 and 2009-10), and allocation would be done on pro-rata basis. The pre- conditions were challenged at the high court here, which had ordered DGFT to extend the allocation process to Aug 8. DGFT challenged the HC order in the Supreme Court; it is still pending. In Oct last year, the

Weekly Newsletter 11 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Centre had set a ceiling for cotton exports at 5.5 mn bales (170 kg each) to protect the domestic textile industry in the face of rising raw material prices. An additional mn bales were permitted for export in Jun, after prices had corrected sharply. Double taxation avoidance pact signed with Uruguay India has signed a double taxation avoidance agreement (DTAA) with Uruguay. This agreement provides for effective exchange of information, including banking information, besides assistance in collection of taxes between the tax authorities of two countries. Under this DTAA, business profits will be taxable in the source State if the activities of an enterprise constitute a permanent establishment in that State. Dividends, interest and royalty income will be taxed both in the country of residence and in the country of source. The maximum rate of tax to be charged in the country of source will not exceed five % in the case of dividend and 10 % in the case of interest and royalties. Capital gains from sale of shares will be taxable in the country of source and tax credit will be given in the country of residence. The agreement was signed by Mr M.C.Joshi, Chairman of the Central Board of Direct Taxes (CBDT) on behalf of the Indian Government and Mr Cesar Ferrer, Ambassador of Uruguay to India on behalf of Uruguay. The profits derived by an enterprise from the operation of ships or aircraft in international traffic will be taxable in the country of residence of the enterprise, according to the DTAA. Cabinet OKs 7% hike in dearness allowance for govt employees The Union Cabinet approved 7% hike in dearness allowance for central government employees, Information and Broadcasting Minister Ambika Soni said. "The Union Cabinet today approved release of additional instalment of dearness allowance to central government employees and dearness relief to pensioners as due from Jul 1 at the rate of 7% over the existing rate of 51% (of the basic salary)," Soni told reporters after the meeting. Soni said the total financial implications on account of this hike in dearness allowance and dearness relief would be 72.29 bln rupees per annum and 48.19 bln rupees in the current financial year ending year. Ahead of the festival season, about 5 mln central government staff and about 4 mln pensioners would be benefited respectively from the decision to increase dearness allowance and dearness relief. Govt panel OKs 10 road projects worth 107 bln rupees The Public-Private Partnership Appraisal Committee has approved 20 projects, 10 each of ministry of home affairs and ministry of road transport and highways, worth over 145 bln rupees, a finance ministry release today said. The committee approved 10 road projects worth 107 bln rupees, and 10 housing projects worth over 38 bln rupees, the release said. "The 46th Public Private Partnership Appraisal Committee meeting, chaired by secretary, department of economic affairs, ministry of finance met on Sep 14 and granted approval to 20 projects, including 10 projects each of ministry of home affairs and ministry of road transport and highways," the release said. A total 42 projects worth 352.27 bln rupees have been granted approval so far this financial year. Since its inception in January 2006, the PPPAC has granted approval to 255 proposals with a total project cost of 2,424 bln rupees, which include national highways, ports, airports, tourism infrastructure, railways, housing and sports stadia. Reprieve for Gujarat CM as SC refuses to rule on riot case The Supreme Court refused to pass any order against Gujarat Chief Minister Narendra Modi on allegations of inaction while tackling post-Godhra riots in Gujarat in 2002. The court, however, referred the matter to the trial court in Gujarat. On a petition filed by Zakia Nazim Jafri, wife of Congress Member of Parliament Ehsan Jafri, who was killed with 37 others in Gulburg society by a rampaging mob on Feb 28, 2002, the bench said it won't further monitor the probe into the riot cases. "No further monitoring of 2002 Gujarat riots cases is required by it... It is for the magistrate to decide whether to proceed against Modi and 63 others in the riots cases," a bench of justices D.K. Jain, P. Sathasivam and Aftab Alam said. The Supreme Court had sought the comments of amicus curiae Raju Ramachandran after it found contradictions in the findings of the special investigation team, which it had appointed under former CBI director R.K. Raghavan. Zakia Jafri had petitioned that Modi and 62 others had refused to contain post-Godhra riots. Ruchi Soya for edible oil import duty hike to guard local industry Indian government should double import duty on refined palm oil to protect local refineries from cheaper Indonesian oil, said Dinesh Shahra, managing director, Ruchi Soya Industries Ltd. "We have huge refining capacities here in India," Shahra said on the sidelines of a VCCircle ICICI Bank Agri & Food Investment Summit 2011. "So there is a serious concern that cheaper refined palm oil products from Indonesia will hurt our domestic industry." Indonesia has recently cut export tax on refined, bleached and deodorized palmolein to 13% from 25%. India currently imposes a 7.5% duty on refined edible oils. However, due to a freeze in

Weekly Newsletter 12 Info-Spectrum Bridging the Information Gap in Corporate Landscape base import tariff, the effective rate of duty comes to 3.0-3.5%. "Hike in import duty with equalize the impact (from Indonesian duty rationalisation) will help local industry," Shahra said. Econ affairs secy says to decide on Oct-Mar borrow calendar Oct 3 Officials of the finance ministry and Reserve Bank of India will meet on Oct 3 to decide on Oct-Mar government borrowing calendar, Economic Affairs Secretary R. Gopalan said. Gopalan also said the government was not looking to change the borrowing amount for Oct-Mar as of now. The Budget for 2011- 12 (Apr-Mar) pegged the government borrowing at Rs.4.17 trn. Of this, the government has already completed the first half borrowing of Rs.2.50 trn and is due to borrow another Rs.1.67 trn in the second half. On the disinvestment target for the current fiscal, Gopalan said, "We hope that we will be in a position to meet the targets this year." According to the Budget estimate, the government hopes to mop up Rs.400 bn via divestment in the year ending Mar. So far in 2011-12, the government has been able to raise only Rs.11.65 bn via stake sale in Power Finance Corp Ltd. Oil secretary says diesel price revision not on the cards Worried over the staggering inflation rate, the government is unlikely to tinker with diesel prices in the near future even though oil companies' revenue loss on sale of the fuel has reached almost Rs.6 a ltr. "Inflation is ruling very high," Petroleum Secretary G.C. Chaturvedi said. "The (price) assessment, if left free, it may fuel further inflation." He though added that this is only a "transient" phenomenon. The wholesale price index based inflation for Aug stood at 9.78%, and has proven really sticky at these levels despite several rate hikes by the Reserve Bank of India. The empowered group of ministers on oil is likely to meet but will only discuss the possibility of imposing a cap on the number of subsidized cylinders of liquefied petroleum gas to be sold by oil companies, Chaturvedi said. Israel keen on free trade pact with India On going efforts to sign an Free Trade Agreement (FTA) between Indian and Israel would lead to a change in the composition of trade between the two countries and bring focus into new sectors such as information and technology (IT), agriculture and biotechnology, Mr Alon Ushpiz, Ambassador of Israel in India, said. The FTA would ensure a higher volume of trade for both the countries, Mr Ushpiz said at an interactive session, organised by the Indian Chamber of Commerce. Currently the volume of bilateral trade between the two countries stood at $5 bn (Rs.22,500 crore) and is expected to exceed $12 bn (Rs.54,000 crore) in another five years following the FTA. Zuari Ind to shutdown complex fertilizer plants With reference to the earlier announcements dated Aug 22, 2011 and Aug 30, 2011, informing about major break out of fire due to naphtha pipeline leak and subsequent plant shutdown respectively, Zuari Industries Ltd has now informed that the petroleum pipeline which supplies naphtha to the Company is yet to be repaired. Further the Company has informed that, the Company is compelled to shutdown the complex fertilizers plants as well due to exhaustion of Ammonia and Phosphoric Acid the requisite raw materials for production of complex fertilizers. The Company will keep the exchange informed as and when operations are recommenced. Two promoters to up Dalmia Bharat Sugar stake via inter-se transfer Two promoters of Dalmia Bharat Sugar and Industries Ltd plan to buy the entire 8.08% stake of another promoter group company Shree Nirman Ltd through inter-se transfer, according to a notice to the Bombay Stock Exchange. The two promoters, Y.H. Dalmia and Puneet Yadu Dalmia, together hold 1.85% in Dalmia Bharat Sugar now. This transfer of 8.03 mn shares of Dalmia Bharat Sugar between the promoters will take place on or after Sep 15. Bajaj Hind OKs 2-for-1 rights issue at Rs.36/share Bajaj Hindusthan Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 12, 2011 approved Rs.36 per share as issue price and fixed Sep 22, 2011 as Record Date for the Purpose of deciding the shareholders who are eligible to apply for Equity Shares on Right basis in the proposed issue on Right Basis to the existing Shareholders of the Company. Further, the ratio of Rights Issue is 2 (two) new Equity Shares for every 1 (one) existing Equity Share. Chidambaram claims promising but inconclusive leads in Delhi blast Home Minister P. Chidambaram said there were "promising" but no "conclusive leads" in the Delhi High Court blast case. "There are promising leads but I cannot call them conclusive leads. They are being pursued

Weekly Newsletter 13 Info-Spectrum Bridging the Information Gap in Corporate Landscape round-the-clock," Chidambaram told reporters about the progress of the probe into Wednesday's bomb blast that killed 13 people and injured 88. FOCUS: Monsoon session ends dry; crucial bills await another day It was monsoon session but all that rained in Parliament was fire and brimstone. The tumultuous 40-day long session ended Sep 8, much to the relief of the Congress-led United Progressive Alliance government, but the proceedings on most days were marred by charges of corruption, which ensured that no significant piece of legislation was passed. Govt says may mull some export incentive as Aug number down 17% on month The government is considering giving some financial assistance to exporters on growing fears of slackening global demand. "Ya, I think it will have to come," Commerce Secretary Rahul Khullar said when asked bout a likely stimulus package for exporters. No onion auctions in Nashik till export ban is lifted Onion auctions at almost all Agriculture Produce Market Committees in Nashik, Maharashtra, will remain close from Monday and the stir will continue till the Centre lifts ban on export of onion, traders said. MODI RELIEF: In a relief for Gujarat CM Modi, apex court said it will now not monitor the Gulbarga massacre case of 2002. Refusing to pass an order on his alleged inaction on riots, it said the case will be monitored by lower court. CASTE WAR: As Tamil Nadu's southern districts remained gripped by caste tension, the state announced an inquiry panel would be set up to probe the firing incident in Ramanathapuram district where six persons were killed. Japanese investors show keen interest in Haryana Haryana government said the India-Japan Partnership Summit 2011, held in Tokyo recently, helped the state showcase opportunities for investment as Japanese investors showed keen interest in investing in the state. Defence ministry approves 10% disinvestment in Hindustan Aeronautics Ltd The defence ministry has approved 10% disinvestment in state-owned Hindustan Aeronautics Ltd. The modality of the stake sale is yet to be finalised. An official said, there may not be an initial public offering, as the company is not looking to attract retail investors. AIRPORT ALERT: Mumbai airport has been put on alert after Intelligence Bureau warned of a possibility of a small aircraft being used to target the airport. States have been asked to keep an eye on unused airstrips and helipads. AMAR BAIL: A Delhi court adjourned Rajya Sabha MP Amar Singh's bail plea in the cash-for-votes scam till Sep 15. The court also asked for a full report on his health after claims that jail officials had sent a misleading report. KARNATAKA MINING: Rejecting bail applications of former Karnataka minister G. Janardhana Reddy and his brother-in-law Srinavasa Reddy, a special court sent the duo to CBI custody till Sep 19 in an illegal mining case. STATEHOOD STIR: Telangana supporters, including Andhra Pradesh government employees, began an indefinite strike in support of a separate statehood, with rallies, road blockades and sit-ins organised to press for their demands. GANDHI vs MODI: A US Congressional report says the 2014 elections might just turn out to be a direct contest between controversial Gujarat Chief Minister Narendra Modi and Congress' youth leader Rahul Gandhi. TRAIN MISHAP: Human error may have led to the Arakkonam train tragedy in Tamil Nadu, which killed nine people. The train driver is reported to have jumped a few signals, and had also ignored speed restrictions. CWG RAIDS: Central Bureau of Investigation registered a fresh case in connection with alleged irregularities in construction of indoor courts at a stadium for Commonwealth Games and carried out searches in Delhi and Mumbai.

Weekly Newsletter 14 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Econ Adviser Basu says RBI will have to balance inflation, growth The Reserve Bank of India, "caught between low industrial growth and high inflation", may have to balance growth and inflation at its monetary policy review on Friday, Chief Economic Advisor to the finance ministry Kaushik Basu said today. CBDT source says OK for state-owned cos' tax-free bond likely today The Central Board of Direct Taxes is today likely to approve the issuance of tax-free bonds by state-owned companies, sources told NewsWire18. "Yes, we are likely to issue a release today on the approval," an official with CBDT told NewsWire18. Trade minister says to review FY12 export prospects on Fri The commerce ministry will meet industry officials and exporters' organisations on Friday to review the country's export prospects for the current financial year ending March, Commerce and Industry Minister Anand Sharma said today. India 2011-12 kharif rice output seen at record 87.10 mn tn, up 8% Notwithstanding weak monsoon rains in the early part of the sowing season that began Jun 1, kharif rice output is seen at a record 87.10 mn tn, up from 80.65 mn tn produced in 2010-11, Agriculture Minister Sharad Pawar said. Sharma discusses exporters' problems with Mukherjee Commerce and Industry Minister Anand Sharma met Finance Minister Pranab Mukherjee and is believed to have discussed introduction of an alternative to DEPB, tax-refund scheme for exporters, ending Sep 30. Government seeks public comments on draft Food Bill The government sought public comments on the draft National Food Security Bill, which seeks to provide a legal entitlement to subsidised foodgrains to 75% of the country''s rural population and 50% of urban India. Govt may review ban on onion exports at EGoM meet Amid farmers' protest against the onion export ban, Food and Consumer Affairs Minister K V Thomas said the government may review the decision at the next meeting of the Empowered Group of Ministers (EGoM) on Food. Rangarajan says containing fiscal deficit to be a major effort Prime Minister's Economic Advisory Council Chairman C. Rangarajan said that containing the fiscal deficit would be a major effort this financial year. Govt notifies wheat, rice export without quantitative restrictions The government notified export of wheat and rice under the open general licence without any quantitative restrictions. Baron Properties ups stake in Nagarjuna Fert via inter-se transfer Baron Properties Pvt Ltd has increased its stake in Nagarjuna Fertilizers & Chemicals Ltd to 3.88% from 3.04%, the latter said in a regulatory filing. Onion wholesale price dips further; farmers stir on Onion prices dropped further by Rs.1 per kg in the wholesale market here today following ban on exports of the bulb, but no immediate impact was visible on its retail cost. Selected foodgrain prices move up; moong dal down Prices of urad dal, gram dal, maida, sooji moved up, while moong dal declined in wholesale markets. Urad dal and gram dal rose by Rs.100, Rs.50 to Rs.6,700, Rs.4,100. Catastrophes cost global economy USD 278 bn in H1 Natural catastrophes and man-made disasters resulted in a staggering USD 278 bn loss for the global economy in the first six months of 2011, with Japan bearing the brunt of calamities. Illegal pesticide sales may cross Rs.2,000 cr The domestic crop protection industry estimates that the sale of illegal pesticides may cross the Rs.2,000 crore mark this fiscal. 'West's economic slowdown to impact work opportunities' The Indian Institute of Foreign Trade (IIFT) is apprehensive about the deepening slowdown in Western markets having an impact on the domestic jobs market.

Weekly Newsletter 15 Info-Spectrum Bridging the Information Gap in Corporate Landscape

India develops low water consuming rice, wheat varieties With depleting water resources in the country, the government has developed 41 varieties of rice and 22 varieties of wheat in the last one decade that require less water for irrigation. Differences over urea decontrol; CCEA to take call Inter-ministerial differences persist over freeing of urea from government price control, with strong opposition to the move coming from ministries of agriculture and fertilisers, sources said. Indian flowers a hit in international markets India earned USD 48.5 mn (around Rs.215.27 crore) from exports of flowers to over 90 countries last year. JAYA IN COURT: Tamil Nadu CM Jayalalithaa was asked by the Supreme Court to appear personally on Oct 20 before a Karnataka trial court, adjudicating a disproportionate assets case against her. PM to announce integrated action plan for 60 Naxal-hit areas Prime Minister Manmohan Singh will announce an integrated action plan for Naxal-hit areas when he meets the collectors of 60 trouble-prone districts, a government source said. Volatile capital goods data irks economists; dents govt credibility The sharp fall in growth in the capital goods segment has not only pulled down India's overall industrial growth for July to a 21-month low, but has also raised eyebrows over credibility of the data. India may OK 3 mn tn sugar export via open licence yr to Sep '12 Anticipating higher output next year, India may allow up to 3 mn tn sugar exports in the new marketing year beginning October, a senior government official said. World coffee exports rose 24% last year, says ICO Global coffee exports rose 24 % to USD 16.5 bn last year, even as the volumes increased only marginally to 96.7 mn bags, International Coffee Organisation (ICO) said. Industry sees moderation in GDP growth: CII survey With rising inflation coupled with spiraling lending cost becoming a bane, a majority of industry representatives surveyed do not see the economic growth at over 8 % mark for the current fiscal. Pranab says volatile capital flows in emerging economies a concern Volatile capital flows into emerging economies can be destabilizing, Finance Minister Pranab Mukherjee said adding that it is matter of concern. MD sees Usher Agro FY12 net profit up over 70% on high rice exports Usher Agro Ltd is likely to see an over 70% on year jump in its net profit in 2011-12 (Apr-Mar) driven by a sharp rise in company's rice exports, Managing Director Vinod Kumar Chaturvedi said. FinMin to hold secretary-level meeting on Sept 28 The Finance Ministry has called a meeting of secretaries on Sep 28 to assess the progress on various suggestions given by India Inc to give a fillip to the economy. Law minister says public procurement bill coming in winter session The government will introduce the public procurement bill in the winter session of Parliament, Law Minister Salman Khursheed said. Econ affairs secy says rate hike impact limited in inflation combat As the day of Reserve Bank of India's mid-quarter review of monetary policy draws near, the clamour from the government to pause on rate hikes is only getting louder. Land Acquisition Bill referred to Standing Committee The much-talked about Land Acquisition Bill has been referred to the Parliamentary Standing Committee on Rural Development which has been asked to give its report within three months. ADB cuts India FY12 econ growth forecast to 7.9% from 8.2% earlier Asian Development Bank lowered India's gross domestic product growth forecast for the current financial year ending Mar to 7.9% from 8.2% projected earlier. EID PARRY INDIA: Has completed acquisition of Sadashiva Sugars.

Weekly Newsletter 16 Info-Spectrum Bridging the Information Gap in Corporate Landscape

INFRASTRUCTURE INFRASTRUCTURE: • Andhra Pradesh government to invest Rs.140 bn in the next four years in transmission and distribution infrastructure in the state. • The government has relaxed norms on investments by foreign institutional investors into infrastructure bonds. • FIIs can buy up to $5 bn of such bonds of one-year residual maturity with a one-year lock-in period, and up to $17 bn of long-term infrastructure bonds with a minimum maturity of five years at the time of issue and residual maturity of three years at the time of purchase, with a three-year lock-in period. • Also, FII can now trade in these papers during the lock-in period, but only among themselves. • Finance ministry may further tweak FII norms on infrastructure bonds. • Life Insurance Corp to invest in the government's Infrastructure Debt Fund and take-out finance schemes to meet its sector target of Rs.300 bn of its total income this financial year. AVIATION: • GMR Group has filed an expression of interest to run the Madrid airport through a special purpose vehicle. • Government is mulling formulating a policy for building low-frills airports. • Civil Aviation Ministry has ruled out review of bilateral agreements for air service. • Air India board to discuss a proposal to defer the delivery of Boeing 787 aircraft to battle the severe cash crunch. • Mahindra Aerostructure, the aero structure arm of Mahindra Aerospace, may opt for a stake sale in return for technology from a right partner; may dilute 25% stake in the company. • Private airlines may hike ticket fares by 10-15% following Air India's move to do away with its "low- cost" tag. • Nordic air carrier Finnair is eyeing partnership with Kingfisher Airlines and American Airlines to increase its passenger traffic between India and Europe. OIL & GAS: • Russian government has planned to sell up to 15% in top oil producer Rosneft next year for around $6.7 bn. • The Organization of the Petroleum Exporting Countries has cut its global crude oil demand growth estimate for 2011 by 150,000 barrels per day to 1.1 mn. • Government plans to strictly enforce cutting the $9-bn subsidy on kerosene and cooking gas; aims at selling kerosene at market price and compensate the poor by paying cash via UID numbers. • State-owned oil retailers are looking at another round of petrol price hike as under-recoveries rise. Companies are also likely to hike aviation turbine fuel prices by around Rs.1,250 a kilolitre in Delhi. • An Empowered Group of Ministers chaired by Pranab Mukherjee will meet to mull limiting the number of subsidised LPG cylinders to 4-6 per household a year. SHIPPING: • Japan's Mitsui OSK Line has hiked freight rates from Far East (including Japan) to the Indian sub- continent. • The government is considering relaxing the coastal shipping norms for container movement in order to promote transhipment activities. • Larsen & Toubro and Abg Shipyard to write a letter to the ministry of defence and National Security Advisor, alleging "lack of transparency and arbitrary decision-making" by Mazagon Dock in its proposed joint venture deal with Pipavav Shipyard. POWER: • POWER FINANCE CORP, RURAL ELECTRIFICATION CORP, Essar Power, TATA POWER, and RELIANCE POWER may default on loans worth Rs.1.35 trn due to slowdown in project implementation.

Weekly Newsletter 17 Info-Spectrum Bridging the Information Gap in Corporate Landscape

• Union Minister Sushilkumar Shinde says India may miss the power capacity addition target by 10,000 MW by the end of 11th Five-Year Plan. • The Asian Development Bank has approved a loan of $100 mn for a solar transmission project in Gujarat. ENERGY: • Exports of iron ore declined 22.5% in Jul on account of the ban of mining activities in Karnataka. • Planning Commission expects domestic coal demand to rise to 1,000 mn tn by the end of the 12th Five Year Plan, necessitating over 200 mn tn of imports. • The Asian Development Bank has approved a $100 mn loan for large- scale solar power parks in Gujarat. REAL ESTATE: • Home sales that have taken a big hit due to rising credit rates are set to worsen. • The Oberoi Group has sold its hotel property in Orissa to Mayfair Hotels and Resorts, a local hospitality company owned by former cabinet minister and industrialist Dilip Ray, for Rs.100 mn. CAPITAL GOODS: • Power equipment manufacturers like Bharat Heavy Electricals and Larsen & Toubro Mitsubishi may see slower flow of orders in short term. ELECTRICITY: • The Maharashtra Electricity Regulatory Commission has ruled that residential consumers in Mumbai will pay surcharge on electricity only if they consume over 500 units a month. ROADS: • National Highways Authority of India expects to award projects for building 7,300 km of roads in the current financial year. GMR files EoI for Madrid airport The Bangalore-based GMR Group has filed an ‘Expression of Interest’ (EoI) for Madrid airport. The Spanish government has authorised the sale of 90.05% stake in the airports at Madrid and Barcelona, to be run through a special purpose vehicle. The successful bidders also have to pay an annual fee, of a fifth of the airport’s revenue. The management contracts for Madrid and Barcelona will be for 20 years and can be extended by five more. “We have shown an EoI on the Request for Qualification for the Madrid airport,” said a GMR spokesperson. Barce-lona’s El Prat airport handles 125 mn passengers annually and Madrid’s Barajas can handle around 70 mn a year. The base price for the bidding has been fixed at $5.2 bn for Madrid. Madrid is the fourth busiest airport in Europe and the 11th busiest in the world. It had 49 mn passengers in 2010. Globally, the GMR group has built and is operating the revamped Istanbul airport and also building ane airport in Male (Maldives). In India, it has built and operates the Delhi and Hyderabad airports. GMR shot into the limelight after it tied up a consortium to build Delhi airport’s Terminal-3, which has a capacity to handle 34 mn passengers a year. The group is in talks with the Indonesian government for some airport projects. The latter had announced a plan to develop 14 new airports in the country. It is also in discussion with the authorities in Kenya and Tanzania, which are also looking at setting up new airports. The Kenyan government is planning to set up a new international airport at Taveta, on the border with Tanzania. L&T to achieve 15% order book growth FY12 despite tepid start Despite lower order inflow so far in the current financial year, Larsen & Toubro Ltd is likely to achieve 15% order book growth during 2011-12 (Apr-Mar), J.P. Nayak, president - operations, said. "...It (order inflow so far) was below our expectations. But, we are hoping that it will be made up by end of this year," Nayak said on the sidelines of an industry event. He expects higher order inflows in the second half of the financial year. The company received orders worth Rs.150.29 bn since April, as against Rs.194.62 bn during Apr-Sep 2010. Nayak expressed concern over rising interest rates as it is slowing down investments, and subsequently the company's order inflow. "High interest rates are something nobody likes. It is hurting...growth. We have to see how inflation (is) going to be. Once inflation comes under control, interest rates may come down," he said. The company now plans to focus on its water infrastructure projects, Nayak said. "We are trying to build business in water segment. Water projects are one important area of focus in our infrastructure business," he said.

Weekly Newsletter 18 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Mazagon Dock to outsource some ship orders to JV with Pipavav Ship Pipavav Shipyard Ltd and state-owned Mazagon Dock Ltd have entered into strategic partnership, and would set up an equal joint venture company, to which the latter will outsource some of its defence contracts. Pipavav Shipyard has already received a letter of intent from Mazagon Dock, and the modalities of the joint venture will be firmed up within the next few weeks, Nikhil Gandhi, chairman of the country's youngest private shipbuilder, told reporters. Pipavav Shipyard, recently renamed Pipavav Defence and Offshore Engineering Co Ltd, aims to become a major player in the defence segment. Earlier this year, The company got the licence to manufacture defence ships. The company had also inked strategic partnerships with US- based Northrop Grumann and UK-based Babcock Group for the defence business. Mazgaon Dock has an order book to build three stealth frigates, three missile destroyers, and six Scorpene-class submarines. It is also modernizing and refitting two SSK-class submarines, and manufacturing four Project 15-B destroyers. Also, the government is soon likely to order seven Project 17A frigates to be built jointly by Mazgaon Dock and Garden Reach Shipbuilders & Engineers Ltd. According to Gandhi, Mazagon Dock's order book is valued at over Rs.1 trn. Bhavesh Gandhi, vice chairman, Pipavav Shipyard, said state-owned Garden Reach Shipbuilders is also looking for a similar partnership with the private sector shipyard but has not yet finalised anything. In its annual report for 2010-11 (Apr-Mar), Garden Reach Shipbuilders said, "The shipyard is also developing the outsourcing base with proper quality assurance for hull fabrication, plumbing, cabling, hull outfit etc..." The Kolkata-based Garden Reach Shipbuilders has an order book of round Rs.71 Bn. Essar Ports shareholders OK raising up to $500 mn Essar Ports Ltd has informed that the members at the 35th Annual General Meeting (AGM) of the Company held on Sep 09, 2011, inter alia, have unanimously approved the following: 1. Adopted the Audited Profit & Loss Account for the year ended Mar 31, 2011 and the Balance Sheet as at that date together with the Report of the Directors and the Auditors thereon. 2. Re-appointment of Mr. Dilip J. Thakkar, Mr. R. N. Bansal and Mr. Anshuman S. Ruia as the Directors of the Company. 3. Appointment of M/s. Deloitte Haskins & Sells, Chartered Accountants, Ahmedabad as Statutory Auditors of the Company to hold office from the conclusion of Thirty-Fifth Annual General Meeting upto the conclusion of the Thirty-Sixth Annual General Meeting. 4. Appointment of Mr. T. S. Narayanasami as a Director of the Company. 5. Approved payment of remuneration to Mr. Rajiv Agarwal, CEO & Managing Director for a period of three years from July 24, 2010. 6. Appointment of Mr. Shailesh Sawa as a Director and Wholetime Director of the Company designated as Director Finance for a period of three years commencing from July 24, 2010 and approved for payment of remuneration to him. 7. Appointment of Mr. Kamla Kant Sinha as a Director and Wholetime Director of the Company designated as Chief Executive Officer for a period of three years commencing from July 04, 2011 and approved payment of remuneration to him. 8. Approved issue of Equity Shares and/or Equity Shares through GDRs/ADRs and/or Optionally/Compulsorily Convertible/Foreign Currency Convertible Bonds, etc., pursuant to the provisions of Sections 81, 81(1 A) and other applicable provisions of the Companies Act, 1956 and SEBI guidelines for an aggregate amount not exceeding US$ 500 mn as more specifically mentioned in the Notice of the AGM. 9. Approved Employees Stock Option Scheme namely, "Essar Ports Employees Stock Option Scheme - 2011" to the employees (including Wholetime Directors) of the Company. 10. Approved extension of "Essar Ports Employees Stock Option Scheme - 2011" to the employees and/or Directors of any present and future subsidiary/holding companies of the Company. OPEC cuts 2011 world oil demand growth estimate by 150,000 bpd The Organization of the Petroleum Exporting Countries has cut its global crude oil demand growth estimate for 2011 by 150,000 barrels per day to 1.1 mn bpd due to a weaker-than-expected driving season in the US and ongoing bearish economic situation in the Organisation for Economic Co-operation and Development countries. Global crude oil demand for 2011 is seen at 87.99 mn barrels per day, against 88.14 mn bpd projected in August, and 86.93 mn recorded a year ago, the OPEC said in its monthly report for Sep released. The US summer driving season fell short of its peak, and slid 2% year-to-date, the OPEC said. "Oil demand in China has also been weaker than expected in the typically peak demand third quarter," OPEC said. The organisation has pegged world oil demand in 2012 to grow by 1.27 mn bpd from 2011 and average at 89.26 mn bpd from the previous estimate of 89.44 mn. Uncertainty in global economic recovery led by the OECD region, specifically the US, is likely to affect oil demand growth next year, it said. India Aug cement output up 6% on year, down 6% on month India's cement production rose 6.2% year-on-year in Aug to 13.65 mn tn, while despatches increased 4.8% to 13.43 mn tn, the Cement Manufacturers' Association said. However, on a sequential basis, production declined 5.7% from 14.47 mn tn in Jul and despatches fell 6.5% from 14.36 mn tn a month ago. In Apr-

Weekly Newsletter 19 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Aug, the domestic cement production and despatches increased 2.1% each, to 70.50 mn tn and 69.97 mn tn, respectively. In the year ended Mar 31, India's cement production had grown 4.7% to 168.26 mn tn and despatches rose 4.6% to 167.15 mn tn. Cement production, despatches in Aug and Jul are as follows (in mn tn): Aug 2011 Jul 2011 Aug 2010 Yr-on-Yr Change Production 13.65 14.47 12.85 6.2% Despatches 13.43 14.36 12.81 4.8%

NHAI expects to award 7,300 of road projects by March The National Highways Authority of India expects to award projects for building 7,300 km of roads in the current financial year followed by equivalent lengths in the next two fiscal years. "Contracts for 7,300 km will be awarded this year and the next two consecutive years," Road Transport and Highways Minister C.P. Joshi said here. The minister said that bids for total length of 6,800 km have been received so far as against the target to award works in 7,300 km national highways under National Highways Development Project during 2011-12. He said the government was committed to developing about 20,000 km length of two-lane national highways in the next three years. "We expect investments of about two trln Rs. by the private sector for highway development over the next five years," Joshi said. Separately, road transport and highways secretary A.K. Upadhyay said the National highways Authority of India was in talks with the World Bank for a loan to develop 3,000 km of roads. Coastal shipping norms to be eased The shipping ministry is considering relaxing the coastal shipping rules for container movement in order to promote transhipment activity at the International Container Transshipment Terminal in down-country Kochi. Current cabotage norms allow foreign ships to ply on the coastline of the country only after getting prior licence from the government. While for cargo like bulk, dry bulk and liquid, the shipping ministry wants to make the cabotage law stricter by making licensing process conservative, it is proposing a lenient policy for containers. According to the Merchant Shipping Act 1958, a ship has to be Indian or one chartered by a citizen of the country for it to engage in coasting trade. This will be the case except — as the same Section 407 suggests — for those operating under a licence granted by the Directorate General of Shipping. The shipping ministry is currently drafting the final proposal on cabotage norms and the kind of relaxation it can provide to foreign vessels. “It should be ready in a couple of months to go for cabinet approval,” says a senior official. While it is for the Cabinet to take a final decision on the matter, the ministry is pushing for a policy that will treat the movement of containers from the port of call to other ports as part of a single export-import process instead of movement on the coastline. The government is also concerned about the rising competition from neighbouring ports like Colombo, Jebel Ali (UAE) and Salalah (Oman) handling most of the Indian transshipment cargo. Now, with China developing ports in Sri Lanka, the government is apprehensive about Indian cargo in Beijing’s hands — for, it raises security concerns. The issue of cabotage relaxation has been under a lot of debate with the domestic shipping companies fearing a loss of business and a level playing field. Several countries, like the United States and Japan have protected coastal shipping. The Indian National Shipowners Association has written to the shipping ministry, seeking stricter cabotage rules that will permit only Indian flag vessels on the Indian coasts. A recent report of Comptroller and Auditor General of India on management of vessels says the Indian shipping companies are in a disadvantageous position vis-à-vis those of other countries. Reason: higher incidence of taxation of around four-five%. Industry experts stress on the need for stricter cabotage laws. For, they are important from the perspective of national security and commercially protecting the Indian tonnage. “It is not as if Indian ships are incapable of handling the transshipment cargo,” says a senior shipping analyst. “But the current norms do not give DP World flexibility of operating ships at ICTT.” The DP World operated ICTT is expected to be operational before this year-end. As a senior official points out, Kochi, in Kerala, is close to the international sea route. “It is a convenient port of call for mainline. We want mainline vessels to come to Kochi. In order for them to come we have to offer better facilities, tariffs, quality of service. The operation of feeder services has to be to their satisfaction.” BGR bid lowest in NTPC 800 MW turbine generator order; L&T second A BGR-Hitachi joint venture company today emerged as the lowest bidder in NTPC Ltd's tender for purchasing nine turbine generator units of 800 MW rating each, according to industry sources. BGR Chairman and Managing Director B.G. Raghupathy later confirmed as much to business news channel CNBC-

Weekly Newsletter 20 Info-Spectrum Bridging the Information Gap in Corporate Landscape

TV18. BGR Turbines Co (P) Ltd, the 74:26 joint venture between BGR Energy Systems Ltd and Japan's Hitachi, put a price tag of 72.98 bln rupees for supplying the turbine generators. L&T-Mitsubishi joint venture company was the second lowest bidder and will get to supply two units. As per tender conditions, state-owned Bharat Heavy Electricals Ltd, despite emerging as the fourth lowest bidder among the five competitors, will be treated at par with the second lowest bidder and also supply as many units under the government's purchase preference policy. Joint venture companies of JSW Energy Ltd and Bharat Forge Ltd were the losers. JSW has a tie-up with Japan's Toshiba and Bharat Forge with France's Alstom. NTPC had divided the tender in two parts--the first part comprising boilers and the second turbine generators. The bids for boilers were opened Wednesday. Doosan was the big winner Wednesday and will supply five boilers with BHEL supplying the rest. The boiler and turbine generator units will be installed at NTPC projects at Lara in Chhattisgarh's Raigarh district (two units), Darlipalli in Orissa's Sundergarh district (two units), Gajmara in Orissa's Dhenkanal district, and Kudgi in Karnataka's Bijapur district (three units). NTPC officials don't foresee much trouble with the tender process now, unlike the previous bulk tender for 11 units of 660 MW each which has been held back due to one unsuccessful bidder--Gammon-Ansaldo--going to the court. The case is currently being heard in the Supreme Court. Gammon-Ansaldo had bid for the 660 MW boilers but as the case is stuck in the courts since last year, NTPC hasn't been able to hand out the order for the part comprising turbine generators sets as well, though that tender is not under dispute. In the 660 MW turbine generator tender, Bharat Forge-Alstom had emerged the lowest bidder and will get an order for five units, followed by BHEL for four units and JSW-Toshiba for two units. Minister says no evidence of cement cos' cartel in initial probe A preliminary probe by the corporate affairs ministry has not thrown up any evidence of cartelisation by cement companies in the country, Minister of Corporate Affairs M. Veerappa Moily said. "Investigation had already been ordered, even before my taking over," Moily said on the sidelines of an event here. "And thereafter the SFIO, that is the Serious Fraud Investigation Office, you know they made an investigation and gave a report to the government. According to my memory, they came to a conclusion that there's no cartelisation." Earlier this month, The Business Line had reported that the Serious Fraud Investigation Office had found UltraTech Cement, ACC and Gujarat Ambuja guilty of price manipulation. Moily, however, indicated that certain discrepancy has been found in the report which is still under consideration. "But there are other certain deficits that have come out. That is being considered, and that matter is before Competition Commission... Since the finding (of CCI) has not come out, we don't want to jump to any conclusion." Source says GMR Infra may dilute up to 30% in Singapore power arm GMR Infrastructure Ltd plans to dilute up to 30% stake in its fully-owned Singapore-based power subsidiary, Island Power Company Pte Ltd, over the next two to three months, a source familiar with the development told. GMR Infrastructure had acquired Island Power in May 2009 from Intergen NV for around $10 mn. Island Power holds the licence to build an 800-MW gas-based power plant at Jurong Island in Singapore. Intergen exited the project after failing to make any progress with the project development. GMR Infrastructure expects to complete the S$1.2 bn (Rs.45.9 bn) project by Dec 2013. "The project is on schedule. All key contracts have been signed. The project construction has commenced. They want to rope in financial partner now," the source said. GMR Group Chief Financial Officer A. Subbarao declined comment on the news. The Bengaluru-based company recently hosted an analyst meet to explain the equity structure, project viability and internal rate of return of the Singapore project, the source said. In July, GMR announced it had achieved financial closure for the project by tying up loans from six banks. The financing package includes a S$670 mn (Rs.24.5 bn) term loan, and a $270 mn loan-cum-working capital credit with tenure of 17 years. Pennar Ind head says arm eyeing revenue of Rs.6.5 bn by FY15 Pennar Engineered Building Systems Ltd is targeting revenue of Rs.6.5 bn by 2014-15 as demand for pre- engineered steel building material is growing rapidly, Chairman Nrupender Rao said here. The fully owned subsidiary of Pennar Industries Ltd reported a revenue of Rs.1.66 bn for 2010-11 (Apr-Mar). The company announced a Rs.240-mn order win from the engineering, construction and contracts division of Larsen & Toubro Ltd for supply and installation of 400,000 sq ft steel building in five months. The order is for construction of Reliance Retail Ltd's distribution centre coming up at Pune, where L&T is the contractor, Rao said at a press conference here. "We are preferred vendor for L&T," Rao said. "We are expecting few more orders from L&T ECC division." During Jul-Aug, the company got Rs.430 mn new orders for pre-engineered building systems from clients like Ultratech Cements Ltd, Schneider Electric and Bharat Biotech. "Our current

Weekly Newsletter 21 Info-Spectrum Bridging the Information Gap in Corporate Landscape order book is Rs.2 bn, which may be executed in next 2-3 months. We are expecting fresh orders from retail and defence sectors. The order flow is seen robust for next 2-3 years and we are hoping Rs.6.5 bn revenue target by FY15 is achievable," Rao said. The company is planning a unit in Rajasthan in the next one year, to cater to the demand from north India. Rao said the planned capital expenditure for Rajasthan unit is around Rs.650 mn, which can be met through internal accruals and debt. The company also plans to expand the capacity of its Hyderabad unit to 90,000 tn from 60,000 tn at present in the next two years at an investment of Rs.150 mn. REpower to invest 10 mn euro on expansion of 2 German facilities Suzlon Energy Ltd's arm REpower Systems SE said it plans to increase the wind turbine production capacity of its plant in Bremerhaven, Germany, by 300 MW in the 2012-13 (Apr-Mar). "Starting in 2012/13 financial year, it will be possible there to assemble wind turbines each year with an output of 900 MW," the company said in a press release. "Up to now, the annual production capacity was 600 MW," REpower said. The company further said the assembly hall at Brandenburg is being converted to enable production of REpower's 3.XM series in four assembly areas in future. The company plans to invest around 10 mn euro (around Rs.647 mn) in expanding the two production locations. "REpower leads the way for multi-megawatt offshore turbines and our 3.XM series, which was launched in 2008, is also in great demand on the market," Chief Operating Officer Gregor Gnadig said. "We have to re-position our three German plants and expand capacities in good time. The European offshore business will also increase significantly over the next few years," he said. Coromandel Engg plans residential projects in Kerala, Karnataka Coromandel Engineering Company Ltd (CECL), a division of Murugappa Group, plans to launch new residential projects in Kerala and Karnataka. The company has commenced groundwork for a new 100 apartment residential project at Kochi and a similar one at Mysore, Karnataka. The investment envisaged in both projects is Rs.25 crore. Coromandel also plans to launch premium projects at Guindy and Egmore in Chennai and two more new projects at Coimbatore. Land for the projects has already been identified. The company has also launched a 181-apartment complex “Coral Ennar” at Coimbatore and the construction of 100 apartments in phase I is expected to be completed in 24 months. Spread across the area of 3.5 acres land, the Rs.55-crore project would feature facilities such as swimming pool, gym, party hall, gas bank and garden. $100-m ADB loan for Gujarat solar power project The Asian Development Bank (ADB) has approved a loan of $100 mn for a solar power transmission project in Gujarat. The loan will be used for establishing a sub-station and transmission lines and installation of other equipment to collect and distribute solar power generated at the Charanka Solar Park in Patan district of Gujarat. This is expected to facilitate private companies to set up more cost-effective solar power plants in the park. A large number of solar energy parks are planned in Gujarat to meet the rising demand for power and to help reduce the use of fossil fuel. The Charanka Park is one of them and it targets an output of over 500 MWs. These parks will provide the developers with the necessary permits and services to accelerate the setting up of the solar plants. The Indian Government, meanwhile, is aiming at building solar facilities in the country with a total generating capacity of 20,000 MWs by 2022. The Charanka project will provide vocational skills training for around 300 people, with 30% of them women. Also it will ensure livelihood programmes for up to 100 poor women. The loan will have a 25-year term with a grace period of five years. The annual interest rate will be set in accordance with the bank's LIBOR-based lending facility. The total project cost is about $137 mn and the Gujarat Government will provide counterpart funds of nearly $37 mn. Chevron, Exxon keen to be part of TAPI gas project consortium US companies, Chevron and ExxonMobil, and Russian company Gazprom are among those that have shown interest in being part of the consortium that will be mandated to construct the TAPI Gas Pipeline project. Indian gas transportation and transmission major GAIL (India) may also take a small equity participation in the consortium, sources said, adding that decision with regard to the consortium will be made either in 2012 or 2013. The decision will be jointly taken by member countries — Turkmenistan-Afghanistan- Pakistan- India — in consultation with the Asian Development Bank (ADB). ADB will render technical advice with regard to the terms and conditions for potential consortium partners and be involved in the final selection process, sources added. Once the Gas Sale and Purchase Agreement (GSPA) has been signed, all TAPI member-countries, with assistance from ADB, will work towards finalisation of the consortium, whose mandate is to build the pipeline and operate it for 30 years. The three buyers will be paying transmission fee

Weekly Newsletter 22 Info-Spectrum Bridging the Information Gap in Corporate Landscape to the consortium for the gas utilised from the pipeline. All sides want the consortium to be financially capable, technically competent and politically adaptable for building and operating the pipeline. The gas price formula which will determine the price payable to Turkmenistan by India remains to be finalised. “There have already been two bilateral meetings with Turkmenistan to inch closer towards agreement. Over and above the gas price, the Indian side has to finalise transit fees payable to both Afghanistan and Pakistan,” sources said. The next TAPI Steering Committee meeting is planned in Ashgabat on September 20-21. All sides are working to reach an agreement on the price issue, sources said. The TAPI project envisages constructing 1,680 km of pipeline with a total gas capacity of 90 mscmd. The length of pipeline in Turkmenistan, Afghanistan and Pakistan up to the Indian border is 145 km, 735 km and 800 km, respectively. Mytrah Energy close to raising $189 mn to fund Suzlon orders Mytrah Energy Ltd is close to raising $189.3 mn in India to finance the order for 261.2 MW wind turbines given to Suzlon Energy Ltd since Apr, the former informed the London Stock Exchange in an earnings release. Mytrah Energy, earlier known as Caparo Energy Ltd, is looking at 5,000 MW wind generation capacity by 2017 in India. In the first phase, the company plans to commission 500 MW by March next year and another 500 MW by March 2013. Of the 5,000 MW targeted generation capacity, Suzlon will supply turbines for 3,000 MW. Mytrah has also signed a pact with Gamesa Wind Turbines Pvt Ltd for delivery of remaining 2,000 MW capacity by 2016. Mytrah currently has an installed capacity of 60.9 MW at its wind farms in Rajasthan and Gujarat. It has also finalised locations for the next 750 MW of projects, including 300 MW in Gujarat, 100 MW each in Andhra Pradesh, Maharashtra and Karnataka, and 75 MW each in Rajasthan and Tamil Nadu. BHEL seeks technology licence tie-ups for wind electric generators Bharat Heavy Electricals Ltd has sought technology licensing tie-ups for manufacturing of wind electric generators of 1 MW capacity or more, according to an expression of interest floated by the company on its website. The last date for bidders to submit expressions of interest is Oct 10. "BHEL is seeking technology for machines of capacities 1 MW and above output power in 50 Hz to cater to the Indian market and other markets that can be agreed with the licensor," the state-owned power equipment maker said. BHEL had earlier acquired the technology for smaller wind electric generators from Germany's Nordex. With the renewed interest in non-conventional energy sources, the company is now looking to re-enter the wind electric generator business with 1MW and above capacity machines. BHEL has earlier had technology tie-ups with General Electric and Siemens for gas turbines, Alstom for steam generators, etc. Britain's BG keen to buy stake in ONGC's KG block Britain's BG is eyeing stakes in ONGC's deepwater block and considering investment in an LNG terminal. But the company wants natural gas prices to be freed from government control. Walter Simpson, the head of BG India, said his company was keen to pick up a stake in one of ONGC's oil and gas blocks in the Krishna Godavri Basin, which is adjacent to Reliance Industries' gas-rich D-6 block. ONGC plans to produce 25-30 mn standard cubic metres per day of gas from the block by 2016-17. "We had sent ONGC a proposal detailing our interest in picking up an equity stake in their Krishna-Godavari DWN 98/2 block about a year back. We are waiting for ONGC's response and continue to remain very keen to partner in the block," Simpson told ET. India's exploration sector and the attractive market has lured oil major BP to invest $7.2 bn in a deal to acquire 30% in oil and gas blocks of Reliance Industries. A senior BP executive said that gas pricing freedom was important for investors. Simpson shares his views. "Pricing freedom is imperative to encourage private sector involvement in natural gas production," he said. The KG DWN 98/2 block is right next to Reliance's KG-D6 block. The region is India's most prolific gas basin and home to some of India's biggest natural gas discoveries. ONGC had earlier said it planned to invest $7.7 bn to develop its gas field in the KG basin. Gas reserves of 3.42 trn cubic feet (tcf) have been established in the KGDWN-98/2 block, of which 1.904 tcf is recoverable. Cairn India is already a 10% partner in the block. Ashiana Housing in pact to acquire 10 acres in Kolkata Ashiana Housing Ltd today said it has entered into an agreement with Shriram Properties Ltd's subsidiary Bengal Shriram Hi-Tech Pvt Ltd to acquire around 10 acres at Uttarpara in Kolkata, West Bengal. The company did not disclose the value of the deal. "We expect to receive the requisite clearances in this financial year and start development next financial year," Ashiana Housing said in a release to the stock exchanges. The company plans to develop on this land a residential project named 'Utsav' for senior citizens. Ashiana Housing has built similar projects at Bhiwandi in Mumbai, Jaipur, and Pune. The project in Kolkata will be part of the 314-acre integrated township planned by Bengal Shriram Hi-Tech.

Weekly Newsletter 23 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Southern Petrochem to sell Tuticorin phosphatic ops Southern Petrochemicals Industries Corporation Limited has informed the Exchange that as part of the financial restructuring of the Company the Board of Directors at its meeting held on Sep 14, 2011 approved the proposal for the sale of the Phosphatic (including Sulphuric Acid, Phosphoric Acid, DAP, NPK, Single Super Phosphate and Aluminium Fluoride) Business of the Company situated at Tuticorin, together with the Business Undertaking, for a consideration of not less than Rs.300 crores, (which price may be adjusted against any secured liabilities that may be transferred along with the Business Undertaking) on the terms and conditions and in the manner as deemed fit by the Board. The above proposal will be subject to the approval of the shareholders by postal ballot and other necessary approvals. McNally gets 746-mln-rupee order from Bhavnagar Energy McNally Bharat Engineering Company Ltd has informed BSE that the Company have received an order from Bhavnagar Energy Company Ltd. (BECL) for the Complete Design & Engineering, Manufacture, Supply & Delivery at site, construction, erection, trial operation, performance testing and commissioning on a total turnkey basis for Limestone Milling and Conveying system for 2X250 MW Lignite Based Thermal Power Project at Village Padva, Tal: Ghogha, Dist: Bhavnagar at a price of Rs. 74.60 Crores (Rupees Seventy Four Crores and Sixty Lakhs only) inclusive of spares, all applicable taxes and duties. Official says ONGC to start gas output from KG block by FY17 Oil and Natural Gas Corp Ltd plans to start natural gas production from the deepwater block in the Krishna- Godavari Basin by 2016-17 (Apr-Mar), and is scouting for foreign partners for its development, an official with the state-owned exploration company said. "We have submitted the DoC (declaration of commerciality)...We are looking at starting production from the northern area of the block in 2016-17," the official said on condition of anonymity. The block KG-DWN-98/2 has two discovery areas--north and south. ONGC is developing the northern area, which has several gas discoveries. "The peak output is anticipated at 27 mscmd. The area's production life is 17 years," the official said. Oil India may diversify to upstream ops; to invest 50 bln rupees Oil India Ltd is chalking out plans to diversify into midstream and downstream businesses, mostly in partnership with Hindustan Petroleum Corp Ltd, and may invest 50 bln rupees for the same, N. M. Borah, chairman and managing director of Oil India, said. The Hydrocarbons explorer and producer may invest in projects that include a refinery, city gas distribution operations, and gas pipelines. Oil India is also keen on acquiring some overseas assets, and is conducting due diligence on some overseas hydrocarbon blocks in Australia, Africa, and Latin America, Borah said. Jyoti Structures, Lauren Engineers JV gets 5.51-bln-rupee order Lauren Jyoti Pvt Ltd has received a 5.51-bln-rupee order from Godawari Green Energy Ltd for setting up a 50 MW power plant in Rajasthan. Lauren Jyoti is an equal joint venture between Jyoti Structures Ltd and US- based Lauren Engineers and Constructors Inc. Lauren Jyoti will set up the solar thermal power plant in Jaisalmer on turnkey basis and supply power to the Rajasthan state grid by May 2013, Jyoti Structures said in notice to the Bombay Stock Exchange. DGH says RIL yet to amend production sharing pacts to induct BP Reliance Industries Ltd is yet to amend the production sharing contracts for the D6 block and 20 other blocks of the Krishna Godavari basin to induct BP Plc as a partner, S.K. Srivastava, Director General of Hydrocarbons, said. "Amendment to the PSC (production sharing contract) is yet to be signed. So, BP will come only when that happens," Srivastava said on the sidelines of Offshore India and Unconventional Oil & Gas Conference. Earlier this year, RIL had entered into an agreement with BP to sell 30% stake in 23 of its blocks in India for $7.2 bn. The company has already received the government's approval for sale of the stake in 21 of these blocks, including KG-D6. RIL expects that the induction of BP as a partner will help in restricting the decline in gas production from the KG-D6 block. Srivastava said that production from the block has declined to 44 mscmd now. RIL has been struggling to maintain production from KG-D6 after it reached a peak of around 62 mscmd in September 2010. According to earlier projections by the company, KG-D6 gas output was to hit a peak of 80 mscmd by March this year. Meanwhile, RIL can go ahead with the development of its satellite fields in the KG-D6 block, as it is not related to the issues raised by the Comptroller and Auditor General in its report on expenditure incurred on development of KG-D6, Srivastava said. "Those (satellite field development) are independent issues. Not linked with this (CAG report). They can move forward with development," he said. RIL has made 20 hydrocarbon discoveries in the satellite fields around the main producing fields--Dhirubhai 1 and Dhirubhai 3. The company proposes to invest

Weekly Newsletter 24 Info-Spectrum Bridging the Information Gap in Corporate Landscape

$1.52 bln to develop these discoveries, with potential reserves of around 1.2 trln cu ft. Srivastava, however, declined to comment on the Comptroller Auditor General's report that indicted the Director General of Hydrocarbons for allowing RIL to go ahead with higher capital expenditure on the entire KG-D6 area despite not meeting initial obligations. "We are right now studying that report. It's too early to comment anything on the report," he said. Divestment in 3 shipping PSUs on hold till Mar due to weak market The government's plan to divest its stake in Dredging Corporation of India, Cochin Shipyard Ltd, and Ennore Port is unlikely in the current fiscal year ending March due to prevailing volatile market conditions, Shipping Secretary K. Mohandas said. "As of now (listing of) these is not on the anvil," he said on the sidelines of an infrastructure conference. "This year is not the right time for (divestment in) these companies," he said. The government owns around 78.5% stake in its listed company Dredging Corp, and completely owns Cochin Shipyard and Ennore Port. Petrol to cost Rs.66.84/ltr in Delhi; Rs.71.92 Mumbai State-owned oil marketing companies will raise price of petrol by over Rs.3 per ltr from midnight tonight due to increase in global price of the fuel and devaluation of the Indian currency against the dollar. Indian Oil Corporation Ltd said in a statement that the hike will be Rs.3.14 per ltr in Delhi, which includes 48 paise per ltr on exchange rate variation, Rs.1.72 per ltr on rise in international prices and the remaining 53 paise due to value-added tax. The following are the revised prices of petrol in rupees per ltr and the effective hikes in four metropolitan cities with effect from Sep 16. CITY PRICE HIKE Delhi 66.84 3.14 Kolkata 71.28 3.27 Mumbai 71.92 3.30 Chennai 70.82 3.82

Air India says August passenger revenue up 12.3% on year Air India said its passenger revenue in Aug rose 12.3% on year as it flew more passengers that in turn translated into better utilisation of its total available capacity. Passenger revenue in Aug rose to Rs.9.98 bn, up from Rs.8.89 bn in the same month last year, the company said in a statement after its board met. Passenger count went rose to 1.09 mn from 1.07 mn in Aug last year, a growth of 1.8%, it said. The national carrier said its domestic passenger load factor increased to 73.1% in the month from 64.3% in the same month last year. "Yield per revenue per kilometer went up by 15% on international sectors. On domestic sectors the increase was 23.2% and on the network the increase was 18.5%," Air India said in the statement. The airline said the board also reviewed the liquidity position and the infusion of funds from the government it has received so far by way of equity in 2011-12. The government has already infused an additional equity of Rs.20 bn in two tranches in 2009-10 and 2010-11 into the airline. This year so far, an ad-hoc amount of Rs.7.10 bn has been released from the provision of Rs.12 bn for 2011-12. The statement also said the board discussed the turnaround plan prepared by SBI Caps. NTPC starts ops at unit 3 of 500 MW Simhadri project National Thermal Power Corporation Ltd has informed that the Unit # 3 of 500 MW of Simhadri Super Thermal Power Project is declared on commercial operation w.e.f. 00:00 Hrs of Sep 16, 2011. With this the commercial capacity of Simhadri is 1500 MW and that of NTPC is 30330 MW. Elecon Engg gets Rs.297.2-mn order from BHEL Elecon Engineering Company Ltd has informed that the Company has been awarded prestigious order of Rs.29.72 Crores from Bharat Heavy Electrical Limited for Design, engineering, manufacture, supply and erection & Commissioning of wagon tippler, Side arm charger with guide rails, Apron feeder with Dribble conveyor, Crushers with GERB V I S, Vibrating Screen and Stracker cum Reclaimer for CHP machine package for 2x250 MW Expansion project at Barauni TPS Unit #3 & 4, Begusarai Bihar. PFC seeks SEBI OK to raise up to Rs.69 bn via infra bonds Power Finance Corp Ltd has filed a draft shelf prospectus with the Securities and Exchange Board of India to raise up to Rs.69 bn through infrastructure bonds in one or more tranches. CRISIL Ltd has assigned

Weekly Newsletter 25 Info-Spectrum Bridging the Information Gap in Corporate Landscape

AAA/Stable rating to the bonds while ICRA Ltd has assigned AAA rating with a 'stable' outlook, the company said in the draft available on the regulator's website. "The issue does not exceed 25% of the incremental infrastructure investment made by the company during Fiscal 2011 (2010-11, Apr-Mar)," it said. These long- term secured, redeemable, nonconvertible debentures provide income tax benefits and are used to fund the infrastructure sector projects. The bonds will be listed on the Bombay Stock Exchange. SBI Capital Markets Ltd and ICICI Securities Ltd are the lead managers to the issue, and PNB Investment Services Ltd is the debenture trustee to the bondholders. South City Projects to foray into Sri Lanka South City Projects (Kolkata) Ltd, is foraying into the real estate sector in Sri Lanka. The company is investing around $100 mn in a project on Sir James Peiris Mawatha street in Colombo. The mixed-use development project will be executed by the company's subsidiary, Indocean Developers Pvt Ltd. Currently, details of the project are being finalised. The project, spread over two acres, envisages high-end retail stores, restaurants, spas and residential apartments and is expected to be completed in 2014. The project will be financed through the debt and equity. South City Projects is a consortium of six Kolkata-based real estate companies - the Merlin Group, Shrachi, Rameswara Group, Emami Group, JB Group and Sureka Group. Parsvnath promoters jointly buy 2.16% co shrs; up stake to 69.32% The three key promoters of Parsvnath Developers Ltd—Pradeep Kumar Jain & Sons (Hindu Undivided Family), Parsvnath and Associates Pvt Ltd and Pradeep Kumar Jain--have together acquired 9.42 mn shares from the open market on Sep 8, taking up their combined holding to 69.32% from 67.15% earlier, the company said in a regulatory filing. In a separate disclosure, the company said that Pradeep Kumar Jain bought 1.2 mn shares from the market on Sep 9 for Rs.71.6 mn, which takes up his personal holding to 22.32% from 22.04%. GTL says reports on co's debt revamp "mere speculation" News Verification: The media had reports that lenders had approved a debt restructuring proposal for GTL Limited. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company. GTL Limited has vide its letter inter-alia stated,"Whenever the company reaches an agreement with lenders and/or potential investors the company would disseminate the same to the stock exchanges. In the mean time kindly note that the reports in the sections of media related thereto are mere speculation." Godrej Properties launches third residential project in Bengaluru Godrej Properties Ltd has launched its third residential project, Godrej Platinum, at Airport Road, Hebbal, in Bengaluru. The project comprises three- and four-bedroom premium apartments and penthouses of 2,914- 6,320 sq ft, the company said in a release. The tower will come up next to Godrej Properties' other two residential buildings--Godrej Woodsman Estate and Godrej Crest. The company did not detail the planned investments in the project. The project will include luxurious amenities such as a clubhouse, a gymnasium, a swimming pool, and a squash court among others. KS Oils not inked "concrete" pact for sale of its ops News Verification : The media had reports that K S Oils Limited may consider a sale of all its key businesses, including wind power. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company. K S Oils Limited has vide its letter inter-alia stated, "The company has not entered into any concrete agreement with any party for sale of its business so far." Turkey seeks bids from Indian cos for 15,000 MW power generation The government of Turkey has invited Indian companies to bid for the country's proposed 15,000 MW coal- based power generation plants, a coal ministry release said. At the 22nd World Mining Congress inaugural session at Istanbul, India's Coal Minister Sriprakash Jaiswal offered technical cooperation to develop coal and lignite deposits and coal washing in Turkey, the release said. Turkey had evinced keen interest for technical cooperation with India in coal mining and clean coal technologies. HPCL raises Rs.954 mn through sale of 6.35%, 2024 oil bonds Hindustan Petroleum Corp Ltd has raised Rs.954 mn through the sale of oil bonds in the secondary market, merchant bankers said. HPCL sold 6.35%, 2024 oil bonds at Rs.82.20 or at a yield of 8.63%. The

Weekly Newsletter 26 Info-Spectrum Bridging the Information Gap in Corporate Landscape government issues oil bonds to public sector oil retailers to help minimise their losses on sale of fuel at subsidised rates. Gayatri Projects forms arm for Odisha highway project Gayatri Projects Limited has informed that the Board of Directors of the Company at their Meeting held on Sep 06, 2011 has accorded their consent for Incorporation of a Wholly Owned Subsidiary of the Company in the Name and Style : SAI MAATARANI TOLLWAYS LIMITED for executing Project i.e. the Four - laning of Panikoili - Rimuli Section of NH-215 from Km 0.000 to Km 163.000 in the state of Orissa to be executed as BOT (Toll) basis on DBFO Pattern under NHDP Phase III as per the Letter of Award sanctioned by the NHAI. IVRCL promoter Sudhir Reddy ups stake in co to 5.37% from 4.97% E. Sudhir Reddy, one of the promoters of IVRCL Ltd, has increased his stake in the company to 5.37% from 4.97%, according to a regulatory filing by the company. Reddy holds 14.3 mn shares in the engineering and construction company after he bought about 1.06 mn shares through the open market on Friday, IVRCL said. Reddy has been steadily raising his stake in the company since August. According to data available on the exchanges, Reddy held 3.93% in IVRCL as on Jun 30. Marg gets EPC order worth Rs.376.6 mn from Braithwaite & Co Marg Ltd, the infrastructure and real estate development company, said it has received a Rs.376.6-mn engineering, procurement and construction order from Braithwaite & Co Ltd for fabrication and assembly work of 247 wagons. This is the company's first fabrication order, and is likely to be completed in seven months, the company said in a release. The scope of work includes fabrication, assembly, fitment of components, painting, and finishing. Marg will supply components and consumables, except steel, for the wagons, which will be developed at the Braithwaite workshop. Braithwaite will provide the other raw materials. Company Law Board rejects petition against Man Ind Man Industries (India) Ltd has informed BSE as under : "We refer to the Company Petition No. 78 of 2010 under Sections 397- 398 of the Companies Act, 1956 filed by Mr. Jagdishchandra Mansukhani, Vice Chairman & Managing Director of the Company and others against the Company and others before the Company Law Board, Mumbai Bench and wish to inform you that the Company Law Board, Mumbai Bench has vide its order dated September 12, 2011 dismissed the said Company Petition without granting any relief." Electrotherm declines comment on co unit sale report With reference to news item appearing in leading financial daily titled "Saint Gobain in Talks to Buy Electrotherm Unit", Electrotherm (India) Ltd has clarified to BSE that, while the Company is constantly considering various options of expanding, developing, building, restructuring, streamlining and reorganizing its businesses and also evaluate various financial, technical, strategic and other options for its lines of business, the Company as per its policy does not comment on speculation. From time to time, the Company does initiate discussion with various parties for all lines of businesses and all available options to achieve such objectives but at the moment there is nothing definitive or specific to comment on the said news article. Korea's Doosan lowest bidder in NTPC 9-unit, 800 MW bulk tender Brushing aside competition from four Indian companies, two of whom have joint ventures with Japanese power equipment manufacturers, South Korea's Doosan emerged as the lowest bidder in NTPC Ltd's tender for purchasing nine boiler units of 800 MW rating each. Doosan will get order for five units while state- owned Bharat Heavy Electricals Ltd will get it for four units under the government's purchase preference policy. The losers included Larsen & Toubro, BGR Energy Systems Ltd and Thermax Ltd. L&T has a joint venture with Mitsubishi, BGR with Hitachi and Thermax with Babcock & Wilcox. NTPC had divided the tender in to two parts--the first part comprising boilers and the second one turbine generators. Ambuja Cements buys 60% in fly ash co Dirk India for Rs.165 mn Ambuja Cements Ltd, the country's third-largest cement maker by capacity, has acquired 60% stake in Maharashtra-based processed fly ash company Dirk India Pvt Ltd for Rs.165.1 mn. Dirk India, which also markets processed fly ash, has a manufacturing capacity of 2,500 tn per day, Ambuja Cements said in a release. The acquisition will help Ambuja Cements to bring down its input cost, as fly ash is one of the key ingredients for manufacturing of cement. In line with its peers, Ambuja Cements' earnings for the past five quarters have remained under pressure due to high costs. In Apr-Jun, the company's raw material

Weekly Newsletter 27 Info-Spectrum Bridging the Information Gap in Corporate Landscape consumption had risen 20% on year, and 4% sequentially. "With this acquisition, Dirk India Pvt Ltd and (its subsidiary) Dirk Pozzocrete (MP) Pvt Ltd have become subsidiaries of the company," Ambuja Cements said. Crompton Greaves gets order for German offshore wind farm project Power equipment maker Crompton Greaves Ltd said it has got an order from Germany's wpd group for design and installation of a high-voltage sub-station for the latter's offshore wind farm project. As part of the contract, the Avantha Group company will deliver and integrate all critical power equipment to connect the 33kV and 155kV networks of the wind farm, Crompton Greaves said in a release without disclosing the value of the order. The capacity of the wind farm would be 288 MW. However, a person familiar with the development told that the value of the order is "several mn euros." Bremen-based wpd group is a developer and operator of wind farms globally. The company currently has operational projects with around 1,400 turbines and an output of 2.1 GW. CEBBCO begins commercial production at MP plant Commercial Engineers & Body Builders Co Ltd (CEBBCO) has commenced commercial production at its plant at Deori in Jabalpur district of Madhya Pradesh. The plant set up at a cost of Rs 130 crore has a capacity to manufacture 1,200 wagons and 150 EMU coaches. CEBBCO designs, manufactures and sells vehicle and locomotive bodies like tipper and tanker bodies, skip-loaders and garbage-bin collectors, water tanker bodies, light recovery vehicle bodies, and garbage tippers for municipal applications; and troop carrier vehicles, prison vans, and water bowser bodies for defense sector. The company also offers load cargo bodies; refrigerator-fitted vehicle bodies and containers; and trailer bodies, including for box trailers, tip trailers, skeletal trailers, and flat bed trailers for goods transportation, fire engine bodies, and ambulance bodies for miscellaneous applications. RIL puts up KG-D6 defence citing 3 independent consultants' reports A day after the Comptroller and Auditor General of India submitted a relatively muted final report on the performance audit of Reliance Industries' KG-D6 block, the company put up a strong defence citing reports by three international independent consultants. Harparshad & Co raises stake in Escorts Ltd to 4.04% from 3.85% Harparshad & Co Pvt Ltd raised its stake in Escorts Ltd to 4.04% from 3.85%, the latter said in a notice to the Bombay Stock Exchange. Harparshad & Co acquired 150,000 shares on Aug 26, and 50,000 shares on Aug 31 through open market purchases, Escorts said. ONGC gives in to govt, withdraws some perks of executives Working for the country's most coveted public sector entity, Oil and Natural Gas Corp Ltd, may not be as attractive as before, with the Maharatna company deciding to withdraw benefits such as reimbursement of telephone and internet expenses for its 25,000-odd executives. Finance ministry ask Railways to hike passenger fares The finance ministry has asked the Indian Railways to increase fares for the second and sleeper class categories to help it raise resources and reduce reliance on government support. These fares have not been revised for several years. GMR Group files express of interest for buying stake in Madrid airport GMR Group has filed an expression of interest for acquiring stake in Madrid airport. The Spanish government has authorised the sale of 90.05% stake in the airports at Madrid and Barcelona that would be operated through a special purpose vehicle. DLF sells 28-acre plot in Gurgaon for Rs.4.4 bn DLF has sold a 28-acre plot in Gurgaon to developer M3M India Ltd for Rs.4.4 bn to prune its mounting debt burden. M3M, which beat Tata Realty and Mahindra in the race for the land, has already paid around Rs.1.5 bn to DLF. Sourcing of fuel Adani Power's responsibility: APTEL Ruling against Adani Power's move to terminate its power purchase pact with Gujarat state utility GUVNL on the basis of higher coal prices, the top electricity tribunal has said that sourcing of fuel is the responsibility of the seller and not the buyer.

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'Pipeline of projs needed to overcome infra bottlenecks' The government should come out with a robust pipeline of bankable projects to win investors'' confidence, with the private sector likely to contribute half of the projected USD 1 trillion investment in infrastructure during the 12th Five-Year Plan (2012-17), a report said. NTPC eyes overseas JV in South Africa NTPC Ltd is eyeing joint ventures overseas, especially in coal, gas and hydel based power plants in South Africa, Power Minister Sushilkumar Shinde said. It is already in a JV with Sri Lanka's Ceylon Electricity Board for a 500 MW coal-based plant with $700 mn investment. Patel Engineering to pay Rs.1/share final dividend Patel Engineering Limited has informed that the Board of Directors of the Company at its meeting held on Sep 10, 2011, inter alia, has recommended Final Dividend of Re.1 per Equity share amounting to Rs.6.98 crores excluding Dividend Distribution Tax of Rs.1.13 crores for the financial year 2010-11. OPEC says Aug tanker freight rates dn 4-5% on month; levels unviable Freight rates for very large crude carries and Suezmax tankers declined 4%-5% month-on-month in August taking them to levels where even covering operations cost is becoming difficult, Organization of Petroleum Exporting Countries said in its monthly oil market report for Sep. Fin min chalks out clearer definition of infrastructure Finance ministry has chalked out a clearer definition of infrastructure, which is expected to be cleared by a panel of secretaries by month end. Core sector is now likely to include health and some aspects of education, which will boost easier access of funds. NAL-Mahindra developed aircraft makes maiden flight National Aerospace Laboratories, a constituent laboratory of Council for Scientific and Industrial Research and Mahindra Aerospace, announced the successful maiden flight of their jointly developed C-NM5 aircraft, marking an important "milestone" in their collaborative aircraft development programme. CVC recommends CBI probe into alleged loan scam in HUDCO The Central Vigilance Commission has recommended a CBI probe to unearth "criminal conspiracy" in an alleged loan scam in state-run HUDCO which led to a loss of Rs.50 crore meant for creating houses for people living below the poverty line. Ingersoll Rand India leases 10.75 acre in Tamil Nadu to set up unit Ingersoll Rand India Ltd has entered into a lease agreement with Mahindra World City Developers Ltd to acquire 10.75 acres in Kancheepuram, Tamil Nadu to set up a new manufacturing facility, the company said in a notice to the National Stock Exchange. GAIL arm inks pact to take 25% stake in Andhra gas distribution co GAIL Gas Ltd, a wholly owned subsidiary of state-owned GAIL (India) Ltd, inked an agreement to take a 25% stake in Andhra Pradesh Gas Distribution Corp Ltd. Reliance Infra buys back 3.65 mn shares for Rs.2.01 bn Reliance Infrastructure Ltd has bought back 3.65 mn shares, representing around 20.6% of the total offer size of Rs.10 bn, for Rs.2.01 bn, the company said in a regulatory filing. RInfra can impose Rs.0.03/unit surcharge on migrating consumers The Maharashtra Electricity Regulatory Commission has ruled that residential consumers in Mumbai will pay surcharge on electricity only if they consume over 500 units a month. Brigade Enterprises launches 60-acre budget-township in Bengaluru Brigade Enterprises Ltd has launched a 60-acre township project in Bengaluru that will develop 1,850 budget apartments in the first phase, the company said in a release. UltraTech Cement head says cost, overcapacity to weigh on sector Overcapacity and high input costs are likely to continue weighing on performance of cement companies for some time, UltraTech Cement Ltd Chairman Kumar Mangalam Birla said. Ansal Properties' promoters buy 138,865 shares from open market Promoters Sushil Ansal and Kusum Ansal bought 138,865 shares of Ansal Properties and Infrastructure Ltd for Rs.4.06 mn through the open market, the company said in two separate filings to the exchanges.

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Suzlon arm to invest A$1.3 bn in Australian wind energy project Suzlon Energy Australia Pty Ltd, a subsidiary of Suzlon Energy Ltd, plans to invest Australian $1.3 bn (nearly 64 bn Rs.) in a 600 MW wind energy project in Yorke Peninsula near Adelaide in South Australia. Promoter co Avantha Holdings ups stake in Crompton to 39.47% Promoter company Avantha Holdings Ltd has raised its stake in Crompton Greaves Ltd to 39.47% from 39.38%, the former informed exchanges in a disclosure. Promoter Jain ups stake in Parsvnath Developers to 22.04% Promoter Pradeep Kumar Jain increased his stake in Parsvnath Developers Ltd to 22.04% from 21.81% by acquiring 1 mn shares through the open market on Sep 8, the company said in a regulatory filing. Petronet may set up its third LNG terminal in Dhamra port Petronet LNG Ltd may set up its third liquefied natural gas terminal at Dhamra port in Odisha. The company has already completed a pre-feasibility study at Dhamra. 'India needs Rs.200 crore a day for highway projects' India needs to invest Rs.200 crore everyday for the next 20 years for road projects under NHDP and requires an efficient financing plan to meet this objective, says a Parliamentary panel. RBI says no hedging support to IDFs from forex reserves The Reserve Bank has indicated to the government that it will not provide any hedging support to the infrastructure development funds (IDFs) from the country's foreign exchange reserves. Cummins India sets Sep 21 as record date for bonus shr Cummins India Ltd has informed that Sep 21, 2011 has been fixed as Record Date for the purpose of Issue of fully paid Bonus Equity Shares in the ratio of 2:5. Govt relaxes norms on investments by FIIs in infrastructure bonds Paying heed to market players' demands and to ensure the funding needs of the sector, the government relaxed norms on investments by foreign institutional investors into infrastructure bonds. Fin Min source says plan to cut lock-in for FIIs' infra bond invest Alarmed over foreign institutional investors' lacklustre response to infrastructure bonds, the government is now planning a slew of measures to ensure more fund flows. India sees 25% rise in air traffic in last 2 years India has witnessed an over 25% increase in air traffic in the last two years with Kingfisher emerging as the number one carrier. India may miss 11th Plan power capacity target The country may miss the power capacity addition target by 10,000 MW by the end of 11th Five-Year Plan on March 31, 2012, Union Minister Sushilkumar Shinde has said. Rs.50k cr investment expected in road sector in '12 The government said it envisages Rs.50,000 crore private investment in the highways sector this fiscal as it awards contracts for building 7,300 km of roads. Chartered Logistics gets order worth Rs.90 mn Chartered Logistics Ltd has informed that the Company has bagged a transportation order from Kalpataru Power Transmission Ltd (KPTL) worth Rs.9 Crore. Despite govt easing norms, FII investment in infra bonds low Higher infrastructure spending in mind, the government has eased norms for investments in Indian infrastructure bonds by foreign institutional investors thrice so far in the current financial year. Railways may give 78-day bonus in festive season Despite facing an acute financial crunch, Railways is planning to give Productivity Linked Bonus equivalent to 78 days' wages to its 12 lakh employees in the festive season. Virgin Atlantic launches websites for travel agents British carrier Virgin Atlantic launched a website which will help travel agents and tour operators easily access information like the airline's policies, destinations and special offers.

Weekly Newsletter 30 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Air travellers to get real-time baggage location info Harried air travellers who lose their baggage in transit may now have the satisfaction of getting real-time information about the location of their lost articles through a high-tech tracking system. Cairn India shareholders OK govt conditions on Vedanta deal Cairn India Ltd shareholders want the company to accept the conditions set by the government for the company's parent to sell a majority stake to Vedanta Resources Plc, the former said in a regulatory filing. NHB tightens provisioning rules for housing finance companies In a move aimed at creating adequate buffer in rising interest rate scenario, National Housing Bank has tightened provisioning requirements for housing finance companies. Source says PFC Jul-Sep advance tax seen at Rs.2.7-2.8 bn Power Finance Corp Ltd is expected to pay between Rs.2.7 bn and Rs.2.8 bn as advance tax for the September quarter, a top company official told. Mahindra Aerospace test flies 5-seater civilian plane Mahindra Aerospace, the aircraft and aero-structures arm of the Mahindra Group, said it has successfully flown its maiden five-seater civilian plane. 'No cost recovery of underutilised facilities for RIL' The Solicitor General of India has held that Reliance Industries should not be allowed to recover the cost of facilities that remain underutilised due to lower than anticipated output at its KG-D6 gas field. RELIANCE INDUSTRIES: • Says it is confident to unlock KG-D6 full potential with BP partnership. • Government officials have advised that the cost recovered by the company from the D6 block of Krishna-Godavari basin be dependent on capacity utilisation. • The oil ministry may consider the company's $1.5-bn plan to develop satellite fields in its KG-D6 block, which may deliver about 10 mmscmd of natural gas in five years. • The solicitor general has held that the company should not be allowed to recover the cost of facilities that remain underutilised due to lower-than-anticipated output at the KG-D6 gas field. CAIRN INDIA: • The board of directors will meet to discuss royalty and cess payment on its mainstay Rajasthan oilfields. • Over 97% shareholders have voted in favour of accepting government conditions for Vedanta deal. NTPC: • Has received bids from LARSEN & TOUBRO, BGR ENERGY, BHARAT HEAVY ELECTRICALS, BHARAT FORGE, AND THERMAX, among others for its Rs.180-bn project to supply 800 MW supercritical equipment. • South Korea's Doosan has emerged as the lowest bidder in company's tender for purchasing nine boiler units of 800 MW rating each. • Has scrapped a deal with COAL INDIA to import fuel for its power plants. DLF: • Has sold a 28-acre plot in Gurgaon to developer M3M India for Rs.4.4 bn to bring down debt. • Looks to sell its 17.5-acre NTC Mill land in central Mumbai for around Rs.40 bn. • Company's proposal to sell stake in Pune Special Economic Zone will come up for consideration of the high level government panel on Sep 19. • PUNJAB NATIONAL BANK to file an appeal against the Delhi High Court asking the bank to return security worth Rs.10 bn to the company. OIL AND NATURAL GAS CORP: • To follow the perquisite norms applicable to all central public sector undertakings, withdraws some perks of its 25,000-odd executives. • Seeks a six-year, Rs.4-bn insurance cover against potential compensation claims from shareholders as the government prepares to sell 5% of the company's shares via follow-on public offer.

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RELIANCE INFRASTRUCTURE: • Residential consumers in Mumbai using Tata Power's supply but connected to Reliance Infra's network, will pay Rs.0.03 per unit surcharge. • The Maharashtra Electricity Regulatory Commission has said the company may collect cross-subsidy surcharge from their consumers who have shifted to TATA POWER within the last two years. RELIANCE POWER: • Wants to scrap a proposed 4,000MW power project in Raigad, Maharashtra, as the government could not complete land acquisition in the legally stipulated timeframe. • Company has intensified development work at the captive Moher & Moher Amlohri coal mines in order to begin operations at its 4,000 MW Sasan ultra mega power project by Dec 2012. ULTRATECH CEMENT: • Says overcapacity continues to plague the sector. • Has planned to invest Rs.110 bn and to increase output by 9 mts annually by June 30, 2013. BRIGADE ENTERPRISES: • Has launched a 60-acre township project in Bengaluru to develop 1,850 budget apartments in the first phase. • Plans to raise Rs.6 bn through private equity for hospitality and residential projects. GTL INFRASTRUCTURE: • Lenders have agreed to clear a proposal to restructure debt if promoters provide personal guarantee and infuse fresh equity. • Bankers will evaluate proposals to sell the company's tower business during the implementation of the corporate debt-restructuring package. KINGFISHER AIRLINES: Audit firm BK Ramadhyani & Co has raised doubts over the company's survival; says the company's ability to remain a going concern will depend on its promoters bringing in money into the company. GVK POWER & INFRASTRUCTURE: The Delhi high court has quashed Airports Economic Regulatory Authority's notice to the company, saying that penalty can't be imposed until tariff disputes are sorted out. PIPAVAV SHIPYARD: Plans to tie-up 12-bn-Rs. worth term loan with STATE BANK OF INDIA, PUNJAB NATIONAL BANK, and UNION BANK OF INDIA to primarily fund the development of its second dry dock. BHANSALI ENGINEERING POLYMERS: A Kolkata-based businessman Mahendra Jalan has filed a petition in the Mumbai bench of the Company Law Board alleging mismanagement of funds by the promoter. OBEROI REALTY: Has cut interest rates charged on delayed payments towards flat purchase in its Andheri project in Mumbai to 9% from 24%, following a delay in the possession date. ANSAL PROPERTIES & INFRASTRUCTURE: Promoters Sushil Ansal and Kusum Ansal have acquired 138,865 shares for Rs.4.06 mn through the open market. ASHIANA HOUSING: US-based Hyatt International Hotels And Resorts has signed a deal with the company to manage its new upcoming property in Jamshedpur. ELECTROTHERM INDIA: Has introduced a new modular continuous casting machine for billet products for the secondary steel market at Rs.150-200 mn. SUZLON ENERGY: Arm REpower Systems plans to increase wind turbine production capacity at its plant in Germany, by 300 MW in 2012-13 (Apr-Mar). OIL INDIA: Plans to close the deal with French oil explorer Maurel and Prom in March to buy stake in the latter's Gabon blocks valued at around $2 bn. INFRASTRUCTURE DEVELOPMENT FINANCE CO: May look at raising funds through foreign currency denominated bonds in 2011-12 (Apr-Mar). BHARAT HEAVY ELECTRICALS: Seeks technology licence tie-ups for manufacturing wind electric generators of 1MW capacity or more. REMIDICHERLA INFRA & POWER: Has received orders for road widening and construction worth Rs.4.68 bn from Super Build Constructions.

Weekly Newsletter 32 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ATLANTA: National Highways Authority of India has awarded a 10.43-bn-Rs. contract to the company's joint venture with Essar Projects. PARSVNATH DEVELOPERS: Promoter Jain has raised stake to 22.04% from 21.81% by acquiring 1 mn shares through open market. CONSOLIDATED CONSTRUCTION CONSORTIUM: Company's orders worth Rs.12 bn are stuck causing a lag in the company's growth. GREAT EASTERN SHIPPING CO: To focus on lucrative offshore service business and trim investments in its traditional shipping business. PETRONET LNG: May set up third liquid nitrogen gas terminal on Dharma port in Odisha, coastal trade of LNG to start from 2012-end. GODREJ PROPERTIES: Has launched its third residential project, Godrej Platinum, at Airport Road, Hebbal, in Bengaluru. CESC: Is mulling tying up with Shanghai Electric Power Generation Group to jointly bid for ultra mega power projects in India. IRB INFRASTRUCTURE DEVELOPERS: Promoter has pledged 2.71 mn more shares from August 25 to August 30. BHARAT PETROLEUM CORP: To raise $400 mn to fund the capital expenditure plans of the current financial year. GVK POWER & INFRASTRUCTURE: The deal to acquire Hancock Coal faces financial jitters as lenders seek to scale down exposure. HINDUSTAN PETROLEUM CORP: Has raised Rs.954 mn through the sale of 6.35%, 2024 oil bonds at Rs.82.20 in the secondary market. POWER FINANCE CORP: Expected to pay between Rs.2.7 bn and Rs.2.8 bn as advance tax for Jul-Sep. GAIL (INDIA): Plans to borrow $300 mn overseas in the next month for funding its pipeline projects. INDIAN OIL CORP: To spend Rs.6 bn to upgrade fire safety equipment across its installations. LARSEN & TOUBRO: May delay the restructuring of its electrical and automation business. OMAXE: Expects to raise around Rs.1.5 bn through sale of 25 acres land in Chandigarh. SPICEJET: Promoter Kalanithi Maran will increase his stake in the airline to 43% by Oct. ZANDU REALTY: In pact with Sheth Corp to develop a plot of land in Mumbai. AMBUJA CEMENTS: Has acquired 60% stake in Dirk India for Rs.165.1 mn.

Weekly Newsletter 33 Info-Spectrum Bridging the Information Gap in Corporate Landscape

IT & ITeS INFORMATION TECHNOLOGY: • TATA CONSULTANCY SERVICES and Cognizant race ahead amidst economic slowdown, while INFOSYS and WIPRO occupy the slow track. • Hiring by IT companies bares no sign of a slowdown in the sector; August saw strong IT hiring of 7% in the local market compared with July. • India is considering making it mandatory for all government departments to make at least one-third of the annual purchases of computers and other electronic equipment from domestic manufacturers. • Computer Sciences Corp has acquired Hyderabad-based AppLabs Technologies for an undisclosed amount. US-based CSC buys AppLabs Tech CSC, a New York Stock-Exchange listed company, has bought AppLabs Technologies, the Hyderabad-based testing tools and quality management company, for an undisclosed consideration. The integration process is likely to be completed in three to six months. The buy comes with a rider of compulsory stay of some top executives for a period of two years. CSC acquired 50% from WestBridge, 40% from promoters and 10% from employees to make a 100% acquisition. Addressing a press conference here on Wednesday to announce the acquisition, Mr Brian Manning, President and Managing Director of CSC India, said CSC would assimilate AppLabs into it. The $16-billion company, with over 93,000 employed globally and 20,000 in India, has about 6,000 staff working on testing practice. AppLabs employs 2,500, including 1,900 in India, 350 in the US and the remaining in the UK. “We received the first tranche of investment of $20 million from WestBridge in 2004. We have to show them an exit route. While dealing with enquiries, there was a proposal for acquisition that we found attractive,” Mr Sashi Reddi, founder and Chief Executive Officer of AppLabs, said. “The acquisition vaults CSC into a leadership role in providing application testing services in the high growth testing market.” The acquisition came close on the heels of CSC announcing its India-specific plans. “We are going to focus on financial services, banking, insurance and healthcare sectors,” he said. PC sales seen crossing 12.6 m units, MAIT says With rise in disposable income and job stability, India's computer sales is projected to grow at 35% in FY12, more than double the pace in previous year, according to hardware association MAIT. As per its latest estimates, the sales of personal computers desktops, notebooks and netbooks combined are expected to cross 12.6 mn units during 2011-12. There is an important rider to achieving this target, though. The study only gauges the pent-up demand in India's market, that is, the keenness by households and enterprises to buy PCs, and MAIT admits that a lot hinges on factors like broadband penetration, interest rates and inflation influencing SEC B and C buying, as also the cascading impact of the global uncertainty. Any adverse incident could act as a spoiler, it cautions. For the year ended March 2011, the total PC sales rose 16% to 9.31 mn units. The notebooks and netbook sales growth continued to outpace the desktop segment. The desktop sales stood at 6.03 mn (60.3 lakh) units, a growth of 9%. On the other hand, notebooks and netbooks together recorded a consumption of 3.28 mn units, about 31% higher than the previous fiscal. Dell picks online ambassadors to boost client relations PC maker Dell which has two billion online interactions with clients annually resulting in revenues of over $13 bn a year has in a unique initiative identified 3,000 of its employees as its online ambassadors. These employees are trained and also awarded certificates after which they can participate in the company's social media for his or her job on behalf of the company. While employees are allowed to use their own profiles, only SMaC (Social Media and Communities University) certified employees are allowed to participate on behalf of Dell. According to Allison Dew, Executive Director, Social Media and Online Marketing, Dell, the company launched the programme because â€œit is really about constantly listening to customers rather than just revenue returns. Apart from participating in the social media, the SMaC certification also enables a Dell team member to make use of the Dell branded Twitter profile, says Dew. Axis-IT&T to restructure group cos under new entity Axis-IT&T Ltd's board today approved the merger of its subsidiary Cades Digitech Pvt Ltd and holding company Tayana Digital Pvt Ltd into a new company named Axis Aerospace & Technologies Ltd. Cades Digitech shareholders will get one share of Axis Aerospace of 4 rupees face value for every 10-rupee share held by them in the company. The appointed date for the merger is Apr 1, 2011, according to a notice filed with the exchanges. Later, Axis-IT&T will itself be merged into the new entity, with its shareholders getting

Weekly Newsletter 34 Info-Spectrum Bridging the Information Gap in Corporate Landscape one share of Axis Aerospace of 4 rupees face value for one equity share of face value 5 rupees held. Upon receiving the necessary approvals, shares of Axis Aerospace will be listed on the Bombay Stock Exchange and National Stock Exchange. The mergers are subject to approval of the shareholders and creditors of Axis IT&T, Cades Digitech, and Axis Aerospace and other regulatory authorities, the company said. Mahindra Satyam ties up with US firm Mahindra Satyam, the IT services provider, has partnered with iPipeline, a US-headquartered company providing marketing, selling and processing solutions to the banking, financial services and insurance and markets. As a part of this partnership, Mahindra Satyam will position CRM for financial services to the banking and financial services clients in the Asia Pacific, India and West Asian markets. “iPipeline is committed to capturing business opportunities in the Asian insurance and financial services markets. This partnership with Mahindra Satyam gives us an excellent opportunity to extend the deployment of our CRM for financial services solution to a broad range of banks and financial services companies,” said Mr Andrea Evans of iPipeline. Mahindra Satyam has a strong focus in the banking and financial services sector, and “we plan to actively position iPipeline CRM for Financial Services to our customers and prospects in Asia, especially those focusing on wealth management,” said Mr Rohit Gandhi, Senior Vice-President - APAC, India, MEA, Mahindra Satyam. Nucleus Software gets order from Saudi Arabian auto finance co Nucleus Software Exports Ltd has received an order from Saudi Arabian auto finance company, Aqsat International Trading Co Ltd, to provide its financial software solution 'FinnOne.' Following this news, shares of Nucleus Software hit a high of 73.20 rupees. Nucleus Software will help Aqsat International to completely automate its business operations. The automation will help Aqsat to efficiently manage its customers and monetary operations. The auto finance company will use several systems under the FinnOne software suite, such as customer acquisition system, loan management system, collection and delinquency management, securitization, fleet finance and document management system. Infosys partners with Singapore university for training programmes Infosys Ltd has partnered with Singapore Management University to develop training programme content for Infosys employees, the company said in a release today. The three-year pact will allow the university to create case studies and research laboratories for its Bachelor of Science (Information System Management) and Master of IT in Business degree programmes. It will also enable collaboration on research and projects of interest to Infosys and Singapore university, Infosys said in a release. NIIT Technologies launches 2 IT solutions for US airline cos NIIT Technologies Ltd has launched two technology solutions - Monalisa Passenger Revenue Accounting and Revenue Analytics - designed for the US airline industry, a company release said today. The two solutions meet US regulator International Air Transport Association's requirements, the release said. Monalisa Passenger Revenue Accounting software features automated distribution handling and issuance of invoices in Canadian dollars, while Revenue Analytics software aids in revenue data analysis. Satyam Computer moves to tap West Asia sports market Satyam Computer Services Ltd is planning to tap the emerging sports market in West Asia even as some of the countries in the region have announced plans to bid for major international sporting events, a company release said. Qatar is set to host the 2022 FIFA World Cup and the Dubai government has announced plans to bid for the 2024 Olympics. Satyam Computer has a strategic pact with Qatar's ASPIRE Zone Foundation, a leading sports body in the region, the release said. The company plans to provide key solutions like corporate sales, sponsorship and rights management, stakeholder systems, merchandising and physical sales management, the release said. The company is also targeting sports club management opportunities by positioning an integrated suite of solutions called 'Solutions for Clubs', which focuses on club administration, player management and coaching support. Computer Sciences Corp acquires AppLabs Technologies Computer Sciences Corp, a US-based business solutions and services provider, has acquired Hyderabad- based AppLabs Technologies Pvt Ltd for an undisclosed amount, the New York-listed company said in a release today. AppLabs Technologies provides software testing and quality management services. "AppLabs will strengthen CSC's portfolio of services that are offered to its customers... AppLabs customers will benefit from the geographic reach and breadth of services that CSC has to offer...," the release quoted AppLabs' Chief Executive Officer Sashi Reddi as saying. The release quoted research firm IDC as saying the

Weekly Newsletter 35 Info-Spectrum Bridging the Information Gap in Corporate Landscape independent testing and validation services market is growing faster than the information technology services market with a forecasted compound annual growth rate of 21% in 2013. Satyam Comp in pact with US co for customer relation mgmt services Satyam Computer Services Ltd has entered into a pact with US-based technology services provider, iPipeline, to provide customer relationship management services to the latter's clients in Asia Pacific, India and West Asia, the Indian company said in a release today. iPipeline specialises in providing technology solutions for the insurance and financial services sectors. The release did not mention the financials of the deal and the tenure of the partnership. Persistent Systems signs software partnership with European co Software product developer, Persistent Systems Ltd has entered into a partnership with Europe's CloudSense to provide its expertise to enhance the latter's Older Management Solutions. CloudSense's Older Management Solution is used for managing sales order process. Persistent Systems will also provide implementation and professional services to CloudSense. Prism Informatics calls off acquisition of Germany's GOD Barcode Prism Informatics Ltd has dropped its plan to acquire German technology services firm GOD Barcode Marketing. In March, Prism Informatics had entered a share purchase agreement with GOD Barcode Marketing for an undisclosed amount. "The termination of this acquisition will not affect business growth of the company," Prism Informatics said in a release. 'Indian IT firms need to look at EMEs for momentum' Indian IT firms need to look at emerging economies and newer verticals like health and transportation to continue its growth momentum, in the wake of slowdown in traditional markets like the US and Europe, a senior Nasscom official said. AMD crafts world’s fastest processor Advanced Micro Devices (AMD) announced it has found a place on the Guinness World Record for the highest frequency of a computer processor,by overclocking the upcoming 8- core AMD FX desktop processor. AMD said the AMD FX CPU achieved a top speed of 8.429 GHz, surpassing earlier record of 8.308 GHz. Dell to focus on Chandigarh's USD 15 mn IT market IT solutions provider Dell India today said it would build its focus on USD 15 million spending market of small and medium businesses (SMBs) in Chandigarh in sync with its plans to deepen its business in mid size markets in the country. Intel showcases comp with solar-powered processor Underlining Intel's efforts to push the boundaries for reduced power consumption in computing activities, its Chief Paul Otellini demonstrated such a system during his keynote speech at the Intel Developer Forum (IDF) 2011. Intel showcases comp with solar-powered processor Underlining Intel's efforts to push the boundaries for reduced power consumption in computing activities, its Chief Paul Otellini demonstrated such a system during his keynote speech at the Intel Developer Forum (IDF) 2011. 'TCS and Cognizant race ahead of Infosys and Wipro' Analysts at brokerage firms today said the transition and exit of key managers at Infosys and Wipro and the economic slowdown have separated the leaders from the laggards in the IT industry nearly halfway into the 2011-12 financial year. Official says Satyam Computer to hire 15,000 people in FY12 Satyam Computer Services Ltd will hire an additional 9,000 people, taking the total number of new personnel to 15,000 in 2011-12 (Apr-Mar), Chief People Officer & Chief Marketing Officer Hari T. told. Accel Systems sells 4.4% stake in Accel Frontline on Sep 7 Accel Systems Group Inc has sold 4.4% stake, or 1 mn shares, in Accel Frontline Ltd at Rs.43.50 a share in an off-market transaction on Sep 7, the former said in a notice to the stock exchanges. HP launches on-site service pack starting Rs 4,000 Computer maker Hewlett-Packard (HP) announced a service pack priced between Rs.4,000 and Rs.4,800, which will provide on-site and extended warranty to its customers of notebook across India.

Weekly Newsletter 36 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Amazon in talks to launch digital-book library service Amazon is in talks with publishers for launching a Netflix like service for digital books, where customers would pay an annual fee to access a library, says a media report. SATYAM COMPUTER SERVICES: • Will hire 9,000 people, taking the total number of new personnel to 15,000 in 2011-12. • Securities Appellate Tribunal has rejected Securities and Exchange Board of India's plea to review the earlier order to allow Pricewaterhouse to cross-examine witnesses in the Satyam Computer fraud case. • The Income Tax Department has raised Rs.5.71-bn tax demand on the company. INFOSYS: • In advanced talks to acquire a US-based company for $500 mn-$750 mn. • Is close to acquiring the health care business of Thomson Reuters in a $700 mn-$750 mn deal. AXIS-IT&T: Plans to form a new entity Axis Aerospace & Technologies, and merge itself, subsidiary Cades Digitech, and promoter company Tayana Digital with it. NIIT TECHNOLOGIES: Has launched two technology solutions—passenger revenue accounting and revenue analytics--for the US airline industry. PERSISTENT SYSTEMS: Has signed a pact with Europe-based CloudSense to enhance the latter's Older Management Solutions. PRISM INFORMATICS: Has dropped plans to acquire German technology services from GOD Barcode Marketing.

Weekly Newsletter 37 Info-Spectrum Bridging the Information Gap in Corporate Landscape

PHARMA & HEALTHCARE PHARMACEUTICAL: • Madras High Court has revoked ban on manufacture and sale of pediatric drugs nimesulide and phenylpropanolamine. The ban was challenged by writ petitions filed by drug makers CIPLA and UNICHEM LABORATORIES. Govt may soon bring cancer drugs under public health programmes Cancer patients can now heave a sigh of relief, with the government soon planning to bring cancer treatment drugs under its public health programme. "Cancer is a big challenge and the government now wants to manage it systematically," one of the sources close to the development told NewsWire18 today. "The treatment and especially the medicines for such diseases are very expensive. The government's attempt is to make at least some cancer medicines affordable through public health programmes," he said. The health ministry and the Planning Commission are working on "a comprehensive plan" to bring several non-communicable diseases such as cancer, hypertension, diabetes and nervous system disorders under the public health programme, the source said. "The work is already in progress," he added. According to another person in the know, the government has also initiated talks with some pharmaceutical companies for bulk procurement of cancer drugs. "The government is planning to procure cancer drugs from companies at a negotiated price," the source said. Multinational companies supplying cancer drugs in India include Merck and Co Inc, GlaxoSmithKline Plc, Novartis AG, Bristol Myers Squibb Co, and Amgen Inc. Indian companies that sell cancer drugs in the domestic market are Ranbaxy Laboratories Ltd, Dr Reddy's Laboratories Ltd, Intas Pharmaceuticals Ltd, Cipla Ltd and Sun Pharmaceutical Industries Ltd. The scheme is likely to be part of a non-communicable disease management programme that will find a place in the 12th Five-Year Plan of the government, a third source said. "NCD (non-communicable disease) management programme is going to be a huge focus area for the government in the 12th Five-Year Plan. The planning commission is also likely to allocate a significant budget for the same," this source said. Currently, the government provides several vaccines under its public health programmes. It buys its vaccine requirements for the public medication programmes--estimated at around Rs.7.5 bn--from private companies such as Serum Institute, Panacea Biotec and Shantha Biotec. Ranbaxy Laboratories to roll out Lipitor Clone in US on Nov 30 Ranbaxy Laboratories is on track to launch a low-cost version of the world's largest-selling drug, Lipitor, in the United States. There is "no change" in the company's "timetable" to launch the generic version of the anti-cholesterol pill on Nov 30, Tsutomu Une, chairman of the board of India's largest drugmaker, said in an interview to Japanese newspaper Nikkei. Following a settlement in 2008, Pfizer Inc, the original patent holder, gave Ranbaxy exclusive marketing rights to sell Lipitor's low-cost version for six months. Une denied media reports that Ranbaxy may sell its exclusive marketing rights to third parties and said the company "will stick to selling the product by ourselves". During the 180-day window, Ranbaxy, 64% owned by Daiichi Sankyo, is estimated to rake in $500-550 mn in revenues. Under a separate arrangement, Pfizer will also let Watson Pharmaceuticals Inc of the US sell an authorised generic of Lipitor on Nov 30. Ranbaxy is yet to get the US Food and Drug Administration's marketing approval for the generic version of Lipitor, which has annual sales of $7 bn in the US alone. USFDA had banned 30 drugs and halted approval of new medicines produced at Ranbaxy's two Indian plants for violating US manufacturing rules. In the past, Ranbaxy has managed to get marketing nod for a similar lucrative drug by shifting manufacturing to its American plant or has sold marketing right to other drugmakers. Source says Panacea to launch transplant drug Tacpan in Germany Oct Panacea Biotec Ltd plans to launch its generic drug tacrolimus, used during organ transplantation, in Germany on Oct 1, a company source told. "We have all the requisite regulatory approvals in place and will launch it on Oct 1 in Germany," the source, close to the development, said. The company will sell the drug under its brand Tacpan in Germany. According to the source, Panacea is targeting an annual sales of $100 mn per year from Tacpan in Germany. Tacrolimus is used to help improve the body's response and acceptability to a transplanted organ. The Delhi-headquartered biotechnology firm plans to launch more drugs in Germany very soon, once sales of Tacpan pick up successfully, the source said. Panacea Biotec also plans to launch the drug in US, the world's largest drug market. However, the company is waiting for a go ahead from the US Food and Drug Administration. "There is a slight delay in the US approval. There were minor labeling deficiencies which they (US FDA) expected us to address," the source said. The company has already addressed the US FDA's concerns on labelling and is now eagerly looking forward to the regulator's clearance to the drug, he said. The company will launch Tacpan in strengths of 0.5 mg, 1 mg and 5 mg.

Weekly Newsletter 38 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Biocon starts work on Iskandar Malaysia manufacturing facility Biocon Ltd has started work on its biopharmaceutical manufacturing, and research and development facility in Bio-Xcell, a biotechnology park in the Iskandar Malaysia region in Malaysia. Biocon plans to invest around $161 mn in the first phase of the project, which is targeted to be operational by 2014, it said. The project will also focus on R&D and production of other biopharmaceutical products later. "This facility will cater to the global requirements for Biocon's range of biosimilar insulin and insulin analogs for diabetes treatment, being commercialised by Pfizer Inc," Chairman Kiran Mazumdar-Shaw was quoted as saying in the release. The plant will be built in compliance with US Food and Drug Administration cGMP standards. On Jan 22, 2010, Biocon had signed a memorandum of understanding with Malaysian Biotechnology Corp SdnBhd to establish the facility in Bio-Xcell. 2-day international bio meet in Hyderabad The two-day, BIO India international conference will be held in Hyderabad during September 21-22. It will bring together biotechnology and pharma companies from North America, Europe and Asia to meet and explore business opportunities with India's emerging biotech sector. Keynote addresses by Mr G.V. Prasad, Vice-Chairman and Chief Executive Officer, Dr Reddy's Laboratories, Ltd., Aaron Schacht, Executive Director and Chief Operating Officer, Global External R&D, Eli Lilly & Company and Mr Glenn Saldanha, Managing Director and CEO, Glenmark Pharmaceuticals, will be the highlights. The conference will also feature company presentations, exhibition and networking opportunities. Experts will discuss innovation and financing, and global biopharma among other topics. Jubilant Life arm in $70 mln, 4-yr pact for OTC women's health pdt Jubilant Life Sciences Ltd's subsidiary, Jubilant HollisterStier, has entered into a contract with a US pharmaceutical company to manufacture an over-the-counter women's health product, the company informed exchanges. The company however, did not specify the product, the name of the collaborating US company or the quantity that will be manufactured per year. The total value of the four-year contract is $70 mln for the minimum quantity, with the possibility of a two-year extension for a higher quantity. Production of the said product has already started at the company's Montreal facility in Canada earlier this month, the company said in its press release. Lupin gets US FDA nod to sell generic of UCB Pharma's Keppra Lupin Ltd has received the final approval from the US Food and Drug Administration to sell its generic drug levetiracetam in the world's largest drug maket. Levetiracetam is the generic version of UCB Pharmaceuticals Inc's Keppra. The Mumbai-based drug maker has received the US FDA's nod to sell the drug in strengths of 500 mg and 750 mg in tablet form. Other domestic pharmaceutical companies like Sun Pharmaceuticals and Glenmark already have US FDA approval to sell generic Keppra, which is used to treat epilepsy. The drug is also indicated as adjunctive therapy in the treatment of myoclonic seizures in patients with juvenile myoclonic epilepsy. Vivimed Labs acquires majority stake in Octtantis Nobel Labs Vivimed Labs Ltd has acquired 60% stake in Hyderabad-based drugmaker Octtantis Nobel Labs Pvt Ltd for an undisclosed sum, the company said in a notice to the National Stock Exchange. Octtantis, which manufactures and markets pharmaceutical and neutraceutical formulations, aims to have a portfolio of over 50 products with its own licence, Vivimed said without giving any timeframe. HC quashes Centre's ban on Phenylpropanolamine The Madras High Court today quashed the Centre's ban on Phenylpropanolamine (PPA) manufactured by pharmaceutical company Cipla observing that before arriving at a subjective satisfaction the ban could not come into force. 'India pharma industry to be in global top 5 by 2020' India will emerge as one of the Top 5 global markets for pharmaceutical products by 2020, driven by huge domestic demand and increased consumer spending on drugs, according to a study by city-based Ikon Marketing Consultants. Montek says aim to up public spend in health sector in 12th Plan The Planning Commission aims to increase public expenditure in health sector to around 2.5% of the GDP in the 12th Five-Year Plan starting April 2012, Deputy Chairman Montek Singh Ahluwalia said. Opto Circuits arm may raise up to Rs.10 bn via IPO

Weekly Newsletter 39 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Opto Circuits (India) Ltd has informed that OPTO EUROCOR HEALTHCARE LTD., wholly owned subsidiary of the Company proposes to raise upto Rs.1000.00 crores through Initial Public offering. BIOCON: To set up a bio-pharmaceutical manufacturing, research and development facility in BioXcell in Iskandar Malaysia, Johor and will invest $161 mn in the first phase. AMRUTANJAN HEALTHCARE: To enter service sector by evolving the business model around healing pain through CARE-specialised centre for pain management. RANBAXY LABORATORIES: Is in talks with IndSwift to source raw material for its generic of Pfizer's low- cholesterol drug Lipitor. OPTO CIRCUITS INDIA: Arm Opto Eurocor Healthcare may raise up to Rs.10 bn through an initial public offering. IPCA LABORATORIES: Is planning to merge Torina Pharma with itself. CADILA HEALTHCARE: Jul-Sep advance tax seen Rs.105 mn.

Weekly Newsletter 40 Info-Spectrum Bridging the Information Gap in Corporate Landscape

TELECOM TELECOMMUNICATION: • State-owned Bharat Sanchar Nigam Ltd has threatened to disconnect the links with all mobile operators if they do not clear their dues. • Essar's stake sale to Vodafone is unlikely to get the Department of Telecom's approval anytime soon. • BHARTI AIRTEL and IDEA CELLULAR are seeking termination fee of 10 paise for every text message from mobile phone companies. • Qualcomm Inc's application for internet service provider licence has been rejected by the Department of Telecommunications. • The telecom ministry has proposed for a new entity to handle spectrum allocation. • The communications ministry will soon allow telecom service providers to share spectrum. • VIOM Networks has appointed KPMG to probe fund diversion allegations. • Government mulls setting up Telecom Finance Corp to meet long-term funding needs of the sector. • The new draft telecom policy 2011 proposes to introduce a one nation-one licence regime for mobile phone companies and do away with roaming charges. • The Department of Telecommunications is mulling initiating criminal proceedings against Matrix Cellular (International ) Services for allegedly procuring SIM cards from Vodafone Essar; DoT plans to impose Rs.500-mn penalty on Vodafone. • The Department of Telecom has decided to issue show-cause notices to 85 of the 122 mobile permits awarded to nine companies by former telecom minister A Raja. BSNL to digitise land records In an effort to generate additional streams of revenue, public sector telecoms entity BSNL is digitising its land records. “All the land data across India (except Delhi and Mumbai where MTNL operates) is being worked out. The land details will soon be available in a digital format, which will then be put to best use for generating revenues,” a senior BSNL official told. BSNL will later work along with the Department of Telecommunications (DoT) to to realise the true value of the land asset. Subsequently, the land could be given out to private firms on lease. About 49 % of the revenues of BSNL go towards paying salary. The telecom entity, which posted Rs.1,823-crore loss in 2009-10, has been struggling to arrest its declining market share and revenues, amid increased competition and low tariff. It may post a loss of Rs.2,500 crore for 2010-11. The PSU is now betting big on enterprise business and expects to clock over Rs.3,000 crore from the segment in the current fiscal. It has also recently started leasing out telecom towers to the service providers and rent out space in the existing buildings for telecom and IT-related services. For instance, space could be leased out to set up a KPO/BPO or a call centre. BSNL, which keeps a close tab on the revenues of all the circles has asked the circle heads to increase revenues by at least 15 %. After Sam Pitroda report, which suggested that BSNL should lay off about one-third of its employees at about 1 lakh, the Board for reconstruction of public sector enterprises also recommended that it should give voluntary retirement (VRS) to its employees. However, BSNL proposed a plan of VRS for about 21,000 of its employees, which was rejected by DoT. BSNL has now been asked by DoT to prepare a revised plan for VRS saying the figure of 21,000 is very less keeping in mind the financial burden of the entity. Some of the DoT officials are of the view that BSNL should lay off about 1 lakh people, as suggested by the Pitroda report. TRAI says mobile number portability requests top 15.5 mn end Jul Requests for mobile number portability touched 15.55 mn till end Jul since the scheme it was launched in Nov. According to the monthly data released by the regulator, this is a 20% increase from 12.98 mn requests for mobile number portability at the end of June. Under the scheme, which was launched on Nov 25 in the Haryana circle and Jan 20 pan-India, mobile users in India have the option of switching service operators while retaining their existing numbers. Of the total, Gujarat circle received the maximum number of requests for number portability at around 1.5 mn. According to TRAI data, the total wireless subscriber base in the country rose to 858.37 mn at the end of Jul, marginally up from 851.70 mn a month ago. TRAI data showed that of the total wireless subscriber base, only 601.73 mn were active subscribers, or subscribers that use the services on a regular basis. According to the regulator's operator-wise classification, Idea Cellular Ltd continued to report the highest number of active subscribers at 93.31% of its total. Bharti Airtel Ltd came in second with 89.86% active subscribers, while Videocon had the least number of active

Weekly Newsletter 41 Info-Spectrum Bridging the Information Gap in Corporate Landscape subscribers at 33.84%. The country's broadband penetration grew by less than 1.5% on month to 12.50 mn users at the end of Jul. MD says Kavveri Telecom Products to acquire N American co by March Kavveri Telecom Products Ltd has signed a Letter of Intent to acquire a radio frequency products company in North America, which it plans to complete by March, Managing Director Shiv Kumar Reddy told. "The due diligence is going on. We are intending to acquire it before March 2012," Reddy said. Although he refused to share the size of this acquisition, Reddy said the target company had annual revenue of around $30 mn. This will be the company's second acquisition in the current financial year that started Apr 1. In May, the company had announced the buyout of a Europe-based company that deals in radio frequency products. He said the North American acquisition was likely to be funded by the company's proposed qualified institutional placement of shares. The shareholders have already approved the proposal to raise up to Rs.750 mn via QIP. However, the company is waiting for improvement in the market conditions to launch the issue. "We have got a shareholder approval...depends on the markets. We are just waiting for the market to be right for it," he said. BSNL notice to pvt telecom cos for non-payment of carriage fees State-owned telecom operator Bharat Sanchar Nigam Ltd has sent notices to private telecom operators for not clearing their carriage fee dues for landline services. "We have set dates, sent warnings (to the operators)...basically everything short of disconnections in all the circles," Chairman and Managing Director R.K. Upadhyay told. Mobile phone companies pay carriage fees to fixed line operators for calls that landing of the latter's network. BSNL holds around 72% market share among fixed line telecom operators. Upadhyay said most private operators owed BSNL carriage charges since April 2009, but so far no disconnections had been made. As every circle has different dues and time lines attached, it wouldn't be possible to give a cumulative sum owed by private telecom operators at this time, he added. JMD Telefilms may demerge mobile ops in bid to recast business JMD Telefilms Industries Ltd plans to demerge its mobile operations division in a bid to restructure its business, the company said in notification to the Bombay Stock Exchange. The demerger would help the recently established unit to resolve issues such as allocation of appropriate resources, exploiting opportunities, and optimising returns, the company said. On Sep 19, the company board will discuss the proposal to hive off the business into a separate entity which will be listed on the stock exchange. In June, JMD Telefilms had entered into a pact with China's Century Exports Ltd for import of mobile phones. The entertainment and media solutions company said the board will also review the business model and revenue growth. Redington to distribute Vodafone brand mobiles in India Redington (India) Ltd has informed that the Company has been appointed to distribute Vodafone branded Mobiles & Telecom products across India to the channel addressing the Retail space. Under this tie-up the Company would sell through the Re-Distribution Stockist to be appointed across India. This distribution tie up will strengthen the Company's foot-hold in the fast growing Telecom Vertical in the Smart Phone & Feature Phone category and also give the Company an opportunity to deal with multiple brands and Operating systems. Bharti Airtel says recast of ops not to result in job losses Bharti Airtel Ltd said restructuring of its Indian and South Asian operations would not lead to any job losses. The company is looking at synergies in its business, and would look to post employees in different verticals and geographies, Krish Shankar, executive director-human resources, said on the sidelines of an industry event. Private telecom cos accuse BSNL of 'coercive' tactics Private telecom operators slammed BSNL for charging higher interconnection fee in violation of TRAI and TDSAT regulations and accused the state- run company's threats of disconnection of services in Rajasthan as "illegal and coercive". ZTE bags enterprise solutions contract from PGCIL Chinese telecom equipment-maker ZTE Corporation made its maiden foray into the enterprise solutions space in India after bagging a contract from Power Grid Corporation of India Ltd to help the state-run firm reduce costs.

Weekly Newsletter 42 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Govt moots plan to set up a Telecom Finance Corp for financing needs The government in its Telecom Policy, 2011, has mooted plan of setting up a Telecom Finance Corp on the lines of the Power Finance Corp to provide long- and short-term loans to companies in the sector. The telecom sector could also be given infrastructure status. Qualcomm may not get wireless broadband service permit as bid invalid Chipmaker Qualcomm may not get wireless broadband service permit in India, which it had solely won in a June 2010 auction, as the company's bid was invalid, a telecom department official said. Qualcomm had not applied and acquired licences within three months of the auction. RComm trebles 3G data download limit under new plans; rate unchanged Telecom major Reliance Communications said it has launched new limited-period 3G plans for its users wherein it has trebled the data download limit that was available, at the same price. CAG seeks powers to evaluate Sebi, Trai performance Government auditor CAG is seeking to widen the scope of its powers to audit the performance of regulators such as Sebi, Trai and Irda as part of the new legislation that will replace the CAG Act, 1971. Dell to introduce more mobiles in coming months With the mobile handset industry witnessing fast growth, IT major Dell plans to introduce more s in the coming months, a top official of the company said. Viom denies reports of wrongdoing in company Amid reports of financial irregularities, Viom Networks- a shared passive telecom infrastructure provider- denied any wrongdoing in the company even as it hired auditor KPMG to look on the issues. BHARTI AIRTEL: Says restructuring of its Indian and South Asian operations would not lead to any job losses.

Weekly Newsletter 43 Info-Spectrum Bridging the Information Gap in Corporate Landscape

BANKING & FINANCIAL SERVICES BANKING: • The Reserve Bank of India has approved loans below base rate under government scheme to entrepreneurs who either belong to a scheduled tribe or are physically challenged. • State-run banks asked by the government to give unsecured loans of up to Rs.10,000 to landless labourers to boost rural consumption. • The Reserve Bank of India has imposed a Rs.1-mn fine on Credit Agricole and a Rs.500,000 fine on Karnataka Bank for derivative norm breach. • RBI likely to issue the final guidelines for granting bank licences to corporates only after Parliament approves the Banking Laws (Amendment) Bill, 2011. • Bank of America Corp will cut 30,000 jobs and slash annual expenses by $5 bn by the end of 2013. • Private equity and venture capital investments in India rose 29% to $648 mn in Jan-Sep from $500 mn same period last year. FINANCE: • National Housing Bank has tightened provisioning requirements for housing finance companies by raising the provisioning requirement for doubtful assets up to 100%. MICROFINANCE: • The sector is likely to de-grow 20-40% in the current financial year, according to data available with Microfinance Institutions Network. • Microfinance companies to cut interest rates on past loans in Andhra Pradesh to 15% to recover part of over Rs.100 bn loans that are unrecoverable after the state enacted a law to curb unfair practices. Court releases Rs.6.5 bn to banks, FIs from Harshad Mehta assets The special court looking into the securities scam of 1992 has ordered the custodian to release Rs.6.5 bn to the income tax department, banks and financial institutions from the liquidated assets of Harshad Mehta Group of entities against the pending claims, a finance ministry release said. Mehta was the prime accused in the securities scam of 1992. Based on a distribution proposal submitted by the custodian, the special court has directed payment of Rs.3.46 bn to Standard Chartered Bank, while State Bank of India will be given Rs.2.60 bn and SBI Caps Rs.163 mn from the attached account of Harshad Mehta Group. The court has also ordered payment of Rs.283 mn to the income-tax department. The payments are to be released on an interim basis on undertakings to be provided by the receiving entities that the amounts will be brought back to the custodian if so ordered by the special court. In the case of Standard Chartered Bank, the court has ordered submission of a board resolution along with an undertaking from the bank, to be given to the custodian, who will further place it before the special court for final examination and orders. The custodian has been asked to release the amount to Standard Chartered Bank only after final court clearance. In March, the custodian had released Rs.22 bn against the outstanding dues of Harshad Mehta Group, of which Rs.20 bn went to the income-tax department and the rest to State Bank of India. The special court was set up by Parliament in 1992 with the objective of recovering huge amounts of money lost by the banks and for restoration of public confidence in the financial system. Stockbroker Mehta is alleged to have engineered the surge in key equities on the Bombay Stock Exchange in 1992. He and his associates siphoned off funds from inter-bank transactions and bought shares heavily at a premium, leading to a rise in the Sensex. When the scam was exposed, banks started demanding their money back, causing the collapse. Mehta was later charged with 72 criminal offences. He died in 2002. ANZ to roll out Indian operations in phases In its second foray into the Indian banking space, Australian banking group, ANZ is planning a roll out in three phases, over a period of four years. The bank plans to tap institutional banking, commercial banking and wealth management, according to CEO, Mr Michael Smith. The bank, which opened its first branch in Mumbai in Jun, plans to open 25-30 branches during this period, subject to regulatory approvals. The bank had exited its Indian operations in 2000 when it sold off its business in India, West Asia and other parts of South Asia to Standard Chartered Bank. In October last, it received a licence from the Reserve Bank of India to re-enter India. Mr Smith said the bank is better placed to enter India now because its balance-sheet is strong and the quality of loan book is much better than earlier. “Indian business is a very critical business for the group. Our focus would be to grow our client base in the next six months,'' he said at a press meet.

Weekly Newsletter 44 Info-Spectrum Bridging the Information Gap in Corporate Landscape

In the first phase of its roll out, ANZ plans to focus on institutional and corporate banking. In the second phase the focus would be on commercial banking and in the third phase on wealth management and the affluent retail segment. ANZ is targeting about 25-30% of its total income from the Asia Pacific region by 2017 and India would be among the top five Asian markets. About the advantages of the presence of foreign banks in India through the subsidiary route, as suggested in the RBI's draft guidelines, Mr Smith said it is not a concern. ANZ already operates in many markets where it is been incorporated as a subsidiary. However, it may add a little bit to the cost as the subsidiary is rated below the parent and the parent can never guarantee a subsidiary. Axis Bank board OKs Axis-Enam Securities deal With reference to earlier announcements, AXIS Bank Ltd has now informed BSE that at a meeting of the Board of Directors of the Bank ("Board") held on Sep 16, 2011, the Board has considered and unanimously approved the transfer of the financial services business of Enam Securities Private Limited ("Enam") in the following manner: (i) the Enam Financial Services Business will be demerged from Enam into the Bank by way of the Demerger under a Scheme of Arrangement and as consideration for the Demerger, the Enam Shareholders will be issued 1,37,82,600 equity shares on the basis of the agreed swap ratio of 5.7 (Five Point Seven) equity shares of the Bank for every 1 (One) equity share of Enam; (ii) immediately upon the completion of step (i) above and concurrent thereto, the Bank shall sell the Enam Financial Services Business to ASSL, its wholly owned subsidiary, by way of the Sale under the said Scheme of Arrangement and ASSL shall pay the Bank a cash consideration of approximately Rs.274 crores, which represents the book value of the Enam Financial Services Business. The above actions are proposed to be undertaken pursuant to a Scheme which was tabled and approved by the Board at its meeting, and which was formulated in compliance with the conditions prescribed by the Reserve Bank of India in this behalf. The Scheme is subject to the receipt of necessary approvals under applicable law, including the approval of the shareholders and creditors of the Bank, Enam and ASSL, the relevant High Courts and the relevant regulators. Bank of Baroda to up rates on some deposits by 25-50 bps Bank of Baroda will hike interest rates on some term deposits and non-resident ordinary deposits by 25-50 basis points. On investments below Rs.10 mn, the bank has raised the rates by 25 bps to 9.25% for deposits of 1 year to 443 days maturity and 445 days to 3 years maturity. On deposits of maturity over 3 to 5 years, the bank will offer 9.00%, an increase of 50 bps. The state-owned bank will increase interest rates on deposits of 10 mln rupees and above by 75-175 bps. Following are the revised interest rates on Bank of Baroda's bulk deposits: For deposits of 10 mn rupees and above MATURITY EXISTING REVISED 7-14 days 3.25% 5.00% 15-45 days 3.75% 5.00% 46-90 days 5.25% 7.00% 91-180 days 7.00% 8.00% 181-270 days 7.60% 8.50% 271 days to 364-days 7.75% 9.00% 1 years to 3 years 8.50% 9.25%

RBI says active co-op credit society should get priority to turn bank An existing co-operative credit society should be given priority in getting licences to run as urban co- operative banks, a Reserve Bank of India panel report on licensing of such banks said. "The existing well managed co-operative credit societies meeting certain financial criteria like profits, capital adequacy, NPAs'(non-performing assets) proportion etc should be given priority for granting licenses as urban co- operative banks particularly in unbanked or inadequately banked centers," said the report. The panel headed by Y.H. Malegam suggests that every co-operative credit society applying to convert into a urban co- operative bank should have a minimum capital of Rs.5 mn- Rs.50 mn. The RBI would have complete powers to control and regulate the functioning of the urban co-operative bank. Functions of a new urban co- operative bank must be segregated from those of the co-operative society, the panel report said. The new

Weekly Newsletter 45 Info-Spectrum Bridging the Information Gap in Corporate Landscape organisation structure should consist of a Board of Management in addition to the Board of Directors, the RBI panel report said. The Board of Directors will be established in harmony with the provisions of the respective Co-operative Societies Acts. The Board of Directors will appoint a Board of Management, which in turn will appoint the chief executive officer. The bank must seek prior RBI approval for appointment of chief executive officer, the panel report said. The CEO will be responsible for the management of the bank, but will be subject to control and direction of the Board of Management. Asian Development Bank OKs $100 mn loan for Gujarat solar project The Asian Development Bank will provide a $100 mn loan to Gujarat to help accelerate the rollout of new large-scale solar power parks as part of the Gujarat Solar Power Transmission Project. The board of directors of the Manila-based multilateral financing institution has approved the funding for the project, ADB said in a release. The funds will be used for a substation, transmission lines and other equipment to collect and distribute power generated by plants in the Charanka Solar Park in Patan district of the state. "By putting in reliable power transmission facilities in the solar park, ADB will help draw in private sector developers, while providing a model which can be replicated to scale up solar power in a significant manner in India," said Naoki Sakai, senior climate change specialist, ADB. The loan will have a 25-year tenure with a five-year grace period, and annual interest set in accordance with ADB's London Inter Bank offered Rate-based lending facility. The Gujarat government will also provide nearly $37 mn funds for the project. The Gujarat Energy Transmission Corp and state government will jointly execute the project. Charanka, which is targeting output of over 500 MW, is one of many large-scale solar energy parks that Gujarat plans to build to meet growing demand. ICICI Bk Kochhar says may issue foreign currency bonds FY12 ICICI Bank is likely to issue foreign currency bonds in the current financial year ending Mar to fund the credit needs of companies, Managing Director and Chief Executive Officer Chanda Kochhar told. "We will keep doing a few more of these (foreign bond) issuances this year because in a way, money is raw material for this business... businesses would grow and therefore, they would need money. Hence, we would raise funds through this route," Kochhar was quoted as saying in the report. The report said ICICI Bank is exploring raising funds in Swiss franc and Japanese yen. In May, ICICI Bank had raised $1 bn through overseas bonds of five-and-half-year maturity carrying a coupon of 4.75%. Kochhar said the bond issue would depend on market conditions and the interest rate differential between the rupee and other currencies. "Every few months, we will review the situation. How much we would raise, at what tenure and what price would depend a lot on the market." RBI Sinha says bank licence draft strict; checks cos' self-dealing Reserve Bank of India Deputy Governor Anand Sinha said the draft guidelines for new bank licences are strict enough to check self-dealing by corporate houses while promoting banks. "The draft guidelines talk in terms of very stringent eligibility criteria and host of surrounding controls to ensure that self-dealing is not allowed, or checked in time," Sinha told reporters on the sidelines of an event here. In an attempt to deter self-dealing by entities, the RBI proposed that a new bank's exposure to a single entity of the promoter group must not exceed 10% of the paid-up capital of the bank and aggregate exposure to all group firms must not top 20%. When asked about rupee falling below 47 per $1 level, Sinha said, "RBI policy is very clear that we will address volatility and not the level unless it is a very adverse situation." The Indian rupee fell to a 15-month low against the greenback following weakness in the European unit and local share indices. Industrial and Commercial Bk of China may announce India ops Industrial and Commercial Bank of China is likely to announce launch of its India operations with a branch in Mumbai, a source close to the development told. "The first branch is in Mumbai, as it is the main financial centre in India. ICBC will look to expand operations with due RBI approvals over time," the source said. With this launch, Industrial and Commercial Bank becomes the first Chinese bank to start operations in India. ICBC is the largest of China's four government-owned commercial banks. The other three are Bank of China, China Construction Bank and the Agricultural Bank of China. ICBC is also world's largest bank by market capitalisation. Foreign banks have the option of setting up a branch model or a wholly-owned subsidiary to start banking operations in India, but so far all banks have preferred the branch route. Srei Infra mulling NCD issue by Mar; may raise up to Rs.10 bn Kolkata-based Srei Infrastructure Finance Ltd is considering raising up to Rs.10 bn through a non- convertible debenture issue by March, Chairman and Managing Director Hemant Kanoria told. "...We are just

Weekly Newsletter 46 Info-Spectrum Bridging the Information Gap in Corporate Landscape waiting for the right time because interest rate stabilisation has to take place," he said on the sidelines of a conference on infrastructure here. He said the proposal to launch a non-convertible debenture issue is "definitely on the anvil". "We are in a state of preparedness (for the NCD issue). As soon as we see the market is good, we will launch it," he said adding the issue is likely to be launched before Mar. The company is looking to raise anywhere between Rs.5-10 bn in multiple tranches through the proposed issue. Recently, a number of companies, including Muthoot Finance Ltd, Manappuram Finance Ltd and Religare Enterprises Ltd raised funds through the non-convertible debenture route. Srei Infrastructure Fin hikes benchmark loan rate 75 bps to 17.50% Srei Infrastructure Finance Ltd has raised its benchmark lending rate by 75 basis points to 17.50% with immediate effect, the company said in a release sent to the stock exchanges. "Hike in key policy rates by RBI to contain inflation and the resultant increase in interest rates by banks has necessitated this hike," Hemant Kanoria, chairman and managing director said. "We hope that any more rate hike by RBI will be minimal as the high interest rates have already slowed the growth momentum." Srei Infrastructure Finance's rate increase comes just a day before the Reserve Bank of India's mid-quarter review of monetary policy for 2011-12 (Apr-Mar). The central bank has raised its repo rate 11 times by a cumulative 325 bps since March last year. Another 25 bps hike will take repo rate to 8.25%. India's headline inflation rate rose to a 13- month high of 9.78% in Aug, from 9.22% in the previous month. This remains well above RBI's projection of 7.00% by the end of the current financial year. SBI head says rights issue on track; expect government nod shortly State Bank of India's proposed rights issue is on track, and is likely to soon receive the government's approval for the same, Chairman Pratip Chaudhuri said. "The rights issue will definitely happen this year. We are in final stages of talks with the government on the issue," Chaudhuri told reporters on the sidelines of a seminar on infrastructure financing. "We hope to launch the rights issue by Dec," he said. The rights issue of the country's largest lender to infuse much-required funds has been hanging fire for two years now. The bank has been planning to raise Rs.200 bn via a rights issue, which would peg government's share at Rs.118.8 bn. In 2008, the government had subscribed to its share in SBI's rights issue by issuing bonds. Last month, a senior finance ministry official said the government will recapitalise State Bank of India in 2011-12 (Apr-Mar), and the finance minister's approval for the same has already been obtained. The government will also maintain it current shareholding in State Bank of India at 59.4%, the official had said. IDFC may raise funds via foreign currency denominated bonds FY12 Infrastructure Development Finance Company Ltd may look at raising funds through foreign currency denominated bonds in 2011-12 (Apr-Mar), Chief Executive Officer Rajiv Lall said. "We are looking at the possibility of foreign currency denominated bonds this fiscal," he told on the sidelines of an industry conference on infrastructure financing. Lall, however, did not reveal the amount of fund the company is planning to raise through these bonds. The company may also consider tapping the Singapore market for its proposed medium-term note issue, he said. "The timing of the MTN issue would depend on the cost of funds and the interest rates prevailing at that point in time," he said. L&T Finance in pact with National Collateral Management Services L&T Finance Ltd, a subsidiary of L&T Finance Holdings Ltd, has signed a pact with National Collateral Management Services Ltd for collateral management and warehousing facilities. The partnership will assist industries, traders and farmers in financing their working capital requirements at all stages of the supply chain. L&T Finance expects this move to boost the warehouse receipt financing business and help the farmers to sell the produce at a competitive price. National Collateral Management Services provides warehousing services and supply chain management solutions. It also manages risk involved in physical deliveries for commodity exchanges. RBI OKs Axis Bank's revised plan to buy Enam's investment banking ops The Reserve Bank of India has approved Axis Bank's revised plan to acquire the broking and investment banking businesses of Enam Securities and has to be an all-cash deal. The earlier proposal was revised following RBI's discomfort with the deal structure that entailed Axis offering shares to Enam, while the acquisition was done by its subsidiary. RBI fines Credit Agricole, Karnataka Bk for derivative norm breach The Reserve Bank of India slapped a penalty of Rs.1 mn on Credit Agricole-Corporate & Investment Bank, and Rs.500,000 on Karnataka Bank for violation of guidelines on derivatives, the central bank said in a release.

Weekly Newsletter 47 Info-Spectrum Bridging the Information Gap in Corporate Landscape

RBI OKs loans below base rate under govt scheme to scheduled tribes Bank loans to entrepreneurs who either belong to a scheduled tribe or are physically challenged under the government's special scheme can be extended at a concessional rate that is even below banks' base rates, the Reserve Bank of India said. Government rejects panel suggestion for ESOPs to top PSU bank employees The finance ministry has shot down a panel's recommendation to give stock options to top employees in state-owned banks. According to the minsitry, such a step cannot be taken until a wider mechanism is in place. Religare Finvest closes NCD issue ahead of scheduled Sep 26 Religare Finvest Ltd, a 100% subsidiary of Religare Enterprises Ltd, closed its Rs.4-bn non-convertible debenture issue for subscription ahead of the closing date of Sep 26. Allahabad Bank ups deposit rate for 91-179 days tenure Allahabad Bank has informed that the Bank has decided to revise the interest rate upward by 0.30% p.a. on domestic term deposits scheme for 91 days to 179 days on deposit below Rs.5.00 crore with effect from Sep 14, 2011. INTERVIEW: Dena Bank CMD Rawal says loan prepayment fee must not go Giving a major boost to borrowers' sentiment, the Reserve Bank of India, at the annual banking ombudsman conference, said banks must not levy prepayment charges on floating rate home loans. Reliance Cap insurance biz 'stake sale' gets IRDA nod Reliance Cap said it has received in- principle nod from insurance sector regulator Insurance Regulatory Development Authority for its proposed 26% stake sale. LIC Housing Finance launches dual-rate home loan scheme LIC Housing Finance Ltd launched a dual-rate loan scheme wherein the home loan subsidiary of Life Insurance Corp would charge a fixed rate for the first five years and floating rate thereafter. ICICI Bank to hire 6,000 people FY12 to sustain 18-20% growth ICICI Bank will hire around 6,000 people in order to sustain a business growth of 18-20% in the present financial year, Managing Director and Chief Executive Officer Chanda Kochhar said. MD Kochhar says ICICI Bank going slow on education loans ICICI Bank is going slow on the education loan portfolio, but has not exited the business, Managing Director and Chief Executive Officer Chanda Kochhar told on the sidelines of a human resource meet. FM to attend IMF & World Bank's annual fund meet Finance Minister Pranab Mukherjee said he would attend the IMF and World Bank annual fund meeting at Washington this month as the president of the G-24 group. Banking facilities in 73,000 villages by Mar '12 The banking facilities, including mobile banking, would be reached to areas with a population of 2,000 within the period, Mukherjee said at the inauguration of a branch of the Oriental Bank of Commerce. ICICI BANK: • Is going slow on the education loan portfolio, but has not exited the business. • Plans to recruit 5,000-6,000 employees, mostly at the entry level, up to Mar. • Plans to raise funds through foreign currency bonds in the coming quarters to meet funding needs of domestic companies. STATE BANK OF INDIA: • Expects lending costs to remain high due to spiraling inflation. • SBI card and STANDARD CHARTERED are competing to buy Barclays' India credit cards business. BANK OF BARODA: • To hike interest rates on some term deposits and non-resident ordinary deposits by 25-50 basis points. • May pay Rs.6 bn as advance tax for Jul-Sep as against Rs.3.8 bn last year.

Weekly Newsletter 48 Info-Spectrum Bridging the Information Gap in Corporate Landscape

LAKSHMI VILAS BANK: Plans to raise Rs.10-12 bn in a year via Tier-I and Tier-II capital to grow its business by 20-25% a year; intends to raise Rs.8-10 bn of this via qualified institutional placement issue. KARNATAKA BANK: RBI has slapped Rs.500,000 penalty on the bank for failing to carry out proper due diligence on user suitability of derivative products. CORPORATION BANK: Has sought around Rs.3 bn from the government to boost future credit growth; hopes to receive funding by 2011-12 end. INDIABULLS FINANCIAL SERVICES: Has raised Rs.5 bn through issuance of secured non-convertible debentures with 10-year tenure. RELIGARE FINVEST: Has closed its Rs.4-bn non-convertible debenture issue for subscription ahead of the closing date on Sep 26. BANK OF INDIA: May pay Rs.2.6 bn as advance tax for Jul-Sep as against Rs.2.5 bn last year. ALLAHABAD BANK: Has raised deposit rates by 30 bps for 91-179 days tenure.

Weekly Newsletter 49 Info-Spectrum Bridging the Information Gap in Corporate Landscape

STEEL, METALS & MINERALS STEEL: • Odisha High Court has stayed acquisition of land by South Korean steel maker Posco for the setting up of its 12 mn tn steel mill. • The steel ministry is working on a proposal to increase the export duty on iron ore to 30% from present 20% to enhance export deterrence. MINING: • The new mining bill likely to be introduced in the winter session of parliament. SAIL set to ink JV with Posco State-run Steel Authority of India Ltd (SAIL) is on the verge of signing the joint venture agreement with top Korean steel maker Posco for a three mn tonnes steel plant near Bokaro in eastern Jharkhand state. SAIL and Posco had signed a memorandum of understanding for setting up the plant nearly an year ago. "We are on the last level of discussion and this should be finalised soon," SAIL chairman Chandra Sekhar Verma told TOI. The plant is expected to use FINEX technology developed by Posco. It is an environmentfriendly iron- making process that allows the direct use of iron ore fines and non-coking coal as feedstock, according to the company's website. It says the technology helps lower the operating costs and emissions compared to the blast furnace process. FINEX reduces overall construction costs by eliminating the need for sinter and coke plants. A plant using the technology occupies only 60% of the area of a blast furnace plant of equal capacity, and requires less space to operate. Verma said the holding structure in the new joint venture is still being discussed but SAIL is flexible on the issue as it is keen to bring the technology to India. "They want to hold majority of shares as the technology is their's . We are discussing with them and let us see how we structure the shareholding pattern. We are not very rigid. It is a closely guarded technology. We want to bring that technology to India. Likemindedness is there and we should be able to resolve all the pending issues," Verma said. Verma said SAIL has undertaken various initiatives to overcome the shortage of coking coal and would meet its requirements through a mix of coal from its captive mines as well as acquisition of coking coal mines overseas. "We have formed the International Coal Ventures Ltd. This company has been formed by five government companies SAIL, Coal India, RINL, NTPC, NMDC. The purpose of forming this company is to acquire coking coal assets outside." Verma said MOU has been signed with the Indonesian government and SAIL was working on selecting a particular coking mine in the country. In return SAIL has offered to set up a three mn tonnes steel plant in Indonesia. "The coking coal produced will be used for making steel in Indonesia and surplus coking coal will be brought into India." Rio Tinto, OMC to invest $2 bn in Odisha mines Anglo-Australian mining giant Rio Tinto proposes to jointly invest up to $2 bn with local partners in developing iron ore mines in Odisha over the next few years. Rio Tinto has, over the past two years, renegotiated an agreement with OMC to develop and mine three iron ore deposits in Keonjhar district of Odisha. “We expect to finalise the agreement in the near term,” said Dr Nik Senapati, Managing Director, Rio Tinto India. Rio Tinto owns 51% stake in the joint venture in which Orissa Mining Corporation (OMC) and NMDC have 44% and 5% stake each. The proposed agreement is awaiting the go-ahead from the Odisha Chief Minister, Mr Naveen Patnaik. As part of the renegotiated pact, the Rio Tinto joint venture will sell iron ore to domestic steel firms, Dr Senapati said. Rio Tinto will bring in its expertise in exploration, sustainable mining and beneficiation practices to develop the ore bodies owned by OMC. “We are looking at a scale of between 5 mn to 25 mn tonnes per annum in the long term,” Dr Senapati told a group of visiting journalists. Total investments could go up to $2 bn with each joint venture partner investing in proportion to their holdings. The joint venture Rio Tinto Orissa Mining Company Ltd was set up way back in 1995-96, but it could not make any headway for various reasons. The initial agreement was focussed on iron ore exports from India and included development of a rail line and port in Odisha. If the renegotiated agreement goes through, it could be the single largest investment in Indian iron ore mining. With the domestic steel industry witnessing huge capacity addition, Rio Tinto is bullish on the Indian market for iron ore. The joint venture would look at blending of iron ore to meet the industry requirement. NTPC-SAIL JV plans 2,225-MW power capacity addition at steel plants NTPC-SAIL Power Co Pvt Ltd, the 50:50 joint venture of the two state-owned companies, is planning a major expansion totalling 2,225 MW generation capacity across various plants of the steelmaker, an official with one of the companies told. "The capacity addition is at very initial stages. The preparation of feasibility reports has been approved by the board," the official said. He said it would take at least five to six years to

Weekly Newsletter 50 Info-Spectrum Bridging the Information Gap in Corporate Landscape add that capacity. "The entire capacity can't be used for SAIL's captive purposes. So, long-term power purchase agreements will need to be signed with the state governments, plus all the linkages of water, coal, etc have to be made," he said. The steelmaker has seven manufacturing plants while the joint venture company operates 840 MW capacity across three of SAIL's plants at Durgapur, Rourkela and Bhilai. NTPC is entrusted with the task of operating these plants. SAIL's 2010-11 (Apr-Mar) annual report mentions expansion of joint venture's power capacities by 500 MW and 250 MW at SAIL's Bhilai and Rourkela plants, respectively. It is silent on capacity addition at other plants. The expansion is for adding power capacities at four of the seven plants, two of which--Rourkela and Bhilai--already have power plants operating under the joint venture company. The expansion plan at all but one plant envisages coal-based units of 250 MW each. The joint venture company proposes to set up one unit at Rourkela, two at Bhilai and four at Bokaro. A 475- MW gas-based plant is proposed at SAIL's Jagdishpur plant. "We are not very confident about being able to set up the gas-based plant due to lack of availability of the fuel in the country," the official said. Court rules against Mahindra Ugine in water charges case Mahindra Ugine Steel Company Ltd has informed BSE that the Company, since 1992, have had been legally disputing the unreasonable increase of water charges levied by the Irrigation Department, for usage of river water for the Khopoli Plant of the Company. Pursuant to the civil suit filed by the Company against such increase of water charges, the said Hon'ble Civil Judge, Panvel vide its order dated October 20, 2003 upheld the stand of the Company and restrain the department from unreasonable increase in water charges. The Irrigation Department aggrieved by the decision of the Hon'ble Panvel Court, filed an appeal with the Hon'ble District court, Alibaug, in 2003. The Hon'ble District court, Alibaug, has now decided the case in the favour of the Irrigation department (State of Maharashtra) Raigad. The Alibaug Court has allowed time to the Company till September 22, 2011 for filing an appeal against the aforesaid order. As per the latest demand of the Irrigation Department the total liability (inclusive of penal charge) for arrears is Rs.17.74 crores. The Company is in the process of filing an appeal before the Hon'ble Bombay High Court at Mumbai, against the said order of the Hon'ble Court of Alibaug, to defend the case suitably. Neyveli Lignite Apr-Aug provisional PAT Rs.5.21 bn vs Rs.5.19 bn Neyveli Lignite Corp Ltd posted provisional net profit of Rs.5.21 bn for Apr-Aug, as against Rs.5.19 bn a year ago, Chairman and Managing Director A.R. Ansari told shareholders. The marginal rise in net profit is due to higher output leading to better sales. Provisional sales stood at Rs.18.89 bn during Apr-Aug as against Rs.18.65 bn a year ago, Ansari said at the company's annual general meeting. During the five-month period, Neyveli produced 10.32 mn tn lignite as against 10.20 mn tn a year ago. The company's gross power generation during Apr-Aug stood at 7.75 bn units as against 7.68 bn units a year earlier. "The power exported during the first five months period of (the) current financial year 2011-12 is 6,496.49 MU (mn units) compared to 6,449.59 MU achieved during the corresponding period of the year 2010-11," Ansari said. He said the company plans to invest Rs.402.48 bn on five new projects, including a Rs.200-bn investment to set up a 4,000 MW thermal power plant in Tamil Nadu and another Rs.100 bn on a 2,000 MW project in Uttar Pradesh. Neyveli Lignite also plans to spend Rs.3.58 bn to develop the Devangudi lignite block near its existing lignite mines. The block has extractable reserves of 42.5 mn tn and the proposed capacity of the mine will be 2 mn tn per year. "Preparation of feasibility report is in progress," Ansari said. The company aims to expand its lignite mining capacity to 37.35 mn tn per year by Mar 2017 from 23.14 mn tn now, and 8,140 MW of power from 2,740 MW as on Mar 31. The company is also looking to diversify into wind and solar energy. SAIL to spend over 1% of gross sales on R&D under new master plan State-owned Steel Authority of India Ltd will spend over 1% of its gross sales in research and development as part of the company's new master plan, the steel major said in a release. "Clearly, the new strategy takes R&D to a much higher pedestal in SAIL, with R&D expenditure set to exceed 1% of gross sales," the company said. SAIL plans to have a corporate R&D set-up as an umbrella organisation, verseeing both centralised R&D and the plant-level centres of excellence. "...the plan specifically targets production of Cold Rolled Grain Oriented electrical steels, development of alternative iron making technologies, endless strip production, carbon dioxide reduction and sequestration, and optimizing land use by designing compact steel plants," the company said. SAIL will undertake at the corporate level, projects that are targeted at reducing raw material and energy consumption. "The plan targets beneficiation and pelletisation of low-grade ores and increasing the use of medium and non-coking coal in steel making," it said. At the individual level, the company plans to set up centres of excellence that would be primarily focus on product development and improvement. The plan identifies "demanding markets", such as steels for supercritical thermal and nuclear

Weekly Newsletter 51 Info-Spectrum Bridging the Information Gap in Corporate Landscape power generation, defence, renewable energy, high strength profiles for high rise buildings with seismic and fire resistance, as focus areas for product development, SAIL said. SAIL head says to commission new IISCO steel plant by Jun Steel Authority of India Ltd Chairman C.S. Verma said the 2.5-mn-tn West Bengal steel plant of the company's subsidiary IISCO will be commissioned by Jun. "IISCO is setting up a brand new steel plant of the capacity of 2.5 mn tn per annum and this plant will be ready for commissioning by June 2012...," Verma said at the state secretariat here after meeting Chief Minister Mamata Banerjee. Verma said SAIL also had plans of investing in railway projects in the state and had spoken to the chief minister about it. "We will also be making investments, capital investments in some other railway projects in the state. The honourable chief minister has given me a very patient hearing and she has committed full support to the Steel Authority of India," he said. SAIL has three steel plants in West Bengal. Verma said all the three facilities were in "a massive capacity expansion mode" and the company will invest around Rs.200 bn on the capacity expansion of the steel plants. "Total investment in the pipeline is Rs.20,000 crore (Rs.200 bn) only in the steel plants," he said. Tata Steel to install 500,000-sterling sheet leveller at UK unit Tata Steel Ltd is installing a new sheet leveller at its Dudley plant in the UK at an investment of 500,000 pound sterling, the company said in a release. The sheet leveller will be used for making premium products for supply to the company's lifting and excavating clients that manufacture forklift truck frames, wheels, agricultural equipment, trailers and excavators. The sheet leveller will decoil, cut and flatten hot rolled steel coil in the thickness of 3-5 mm and width of 2 meters. The leveller is due to come on stream in January, Tata Steel said in the release. The steel giant has so far invested around 2 mn pound sterling on the Dudley plant at West Midlands. "The lifting and excavating sector has shown positive growth this year and is forecast to continue growing into next year," Tata Steel Marketing Manager, Lifting and Excavating, Terry Bennett said. "The new investment at Dudley will mean Tata Steel is best placed to meet this demand." JSW Steel says to start work on Rs.200-bn Salboni plant by Oct JSW Steel Ltd will start work on its proposed Rs.200-bn, 3 mn tn steel plant and 300MW thermal power unit in Salboni, West Bengal, by Oct, Vice-Chairman and Managing Director Sajjan Jindal said at the state secretariat here after meeting Chief Minister Mamata Banerjee. "Ms Banerjee, honourable chief minister has given full support for the project... The honourable chief minister said the project must start construction as soon as possible… So I have given my commitment to the honourable chief minister that after the Puja holidays (Durga Puja will be celebrated in the first week of Oct), the work on the project site which is pending for the last more than three years will start," Jindal said. Jindal said the chief minister had assured him that all the technical issues, relating to land and water, would be resolved within next 15 days. Tata Steel to invest 800 mn euros in Netherlands by FY16 Tata Steel Ltd will invest around 800 mn euros (approximately Rs.52.3 bn) in its Ijmuiden steelworks in the Netherlands over the next five years to improve product quality and cut down cost, a company release today said. The investment will help the company to reduce around 1,000 jobs at Ijmuiden steelworks, it said. It will also increase the liquid steel manufacturing capacity of the plant to 7.7 mn tn per year by 2015-16 from 7.2 mn tn now. Tata Steel has shared the improvement programme for the Ijmuiden steelworks with the workers unions. "The intention as far as possible is that there should be no compulsory redundancies," the company said. Tata Steel's European steelmaking operations are located in the UK and the Netherlands. Shares of Tata Steel ended 2.7% down today at 469.50 rupees on the National Stock Exchange. SAIL head says likely to sign JV with Japan's Kobe Steel in 3-4 mos Steel Authority of India Ltd is likely to sign a joint venture agreement with Kobe Steel in three-four months, a move which will help the state-owned company acquire the Japanese major's patented technology, SAIL Chairman C.S. Verma said. "We are engaged in a feasibility study about the proposed venture. We are also finalising the JV agreement and hope to complete it in the next three to four months," Verma said at the state secretariat here after meeting Chief Minister Mamata Banerjee. "The 0.5-mn-tn project with Kobe would be implemented at Alloy Steels Plant at Durgapur and the investment would be Rs.1,500 crore (Rs.15 bn)," Verma said. SAIL and Kobe are in talks in talks to set up a 0.5 mn tn greenfield steel plant in India with the Japanese steel maker's technology used for value-added applications. Mercator may sell up to 40% stake in coal arm to investor, via IPO Mercator Lines Ltd plans to sell as much as 40% stake in its coal mining and trading subsidiary to a strategic investor, and through an overseas listing, Managing Director Atul J. Agarwal, told. "I am already in

Weekly Newsletter 52 Info-Spectrum Bridging the Information Gap in Corporate Landscape discussion with investment bankers, to look for an investor..." Agarwal said. "Probably I can bring in an investor now, and I can offload probably 10%, 15% and then look for an IPO (initial public offering)." Over the last three to four years, coal has emerged as the biggest vertical for the Mumbai-based company known primarily for shipping. It has mining operations in Indonesia and Mozambique. Steel ministry plans to increase iron ore export duty by 10% The steel ministry is working on a proposal to hike the export duty on iron ore by 10% to 30%. While the ministry maintains that the rationale behind such a hike is to ensure sufficient supply of raw material for the domestic steel industry, the move also aims to check illegal mining. Mineral rich states are top choice for investors: DIPP Mineral-rich states Chhattisgarh, Orissa and Madhya Pradesh have caught the fancy of investors, attracting proposals worth Rs.8.06 lakh crore last year from India Inc's nation-wide investment plans of Rs.17.40 lakh crore. IL&FS may buy majority stake in Russian coking coal mine IL&FS has been invited by Russia's state-owned mining firm VO Zarubezhugol to discuss with International Coal Venture Ltd a proposal to buy majority stake in its coking coal mine in Kuzbass province. Meanwhile, an IL&FS official said they are yet to take a view on it. Hindustan Zinc ups zinc price by RS.2,100/tn to Rs.118,700 Hindustan Zinc Ltd raised zinc price by Rs.2,100 to Rs.118,700 per tn on Sep 12, according to the company's website. The company also increased lead price by Rs.1,000 to Rs.130,200 per tn. The Vedanta group company aligns its product prices in line with London Metal Exchange prices. Coal deficit to widen to 200 MT by end of 12th Plan: Plan Comm India's coal demand will go up to 1,000 mn tonnes (MT) by the end of the 12th Five-Year Plan (2012-17), necessitating about 200 MT of imports to bridge the shortfall in domestic output, a senior Planning Commission official said. SAIL to pump Rs.20,000 crore in Bengal by 2012 Steel Authority of India Ltd (SAIL) today said its proposed Rs.20,000 crore investment plan for capacity expansion in West Bengal would be completed by June 2012. SAIL eyeing rail track laying and coach making biz The country's largest state-owned steel company, SAIL, is foraying into rail coach manufacturing and is looking at the possibility of entering railway track laying. Orissa's Posco site work resumes after 25 days Work at proposed Posco steel plant site in Jagatsinghpur district resumed after a gap of around 25 days, Paradip additional district magistrate Surjeet Das said. E-auction for iron ore in Karnataka starts from Sept 14 The electronic auction of iron ore stocks in Karnataka, as directed by the Supreme Court, will begin from Sep 14 and iron and steel producers have been invited to register for it, officials said. New Mines Bill to be tabled in Parl in winter session The new Mines Bill, which provides for sharing of profits and royalty with project-affected people, is likely to be introduced in the winter session of Parliament, a senior official said. 'Coal demand to go up to 1000 MT by 12th Plan-end' The Planning Commission has estimated the country's coal demand to go up to 1,000 mn tonnes (MT) by the end of the 12th Plan period (2012-2017), necessitating over 200 MT imports. SAIL raises funds via 88-day short-term bank loan Steel Authority of India Ltd raised funds through an 88-day short-term bank loan, a company official said. The company has raised the funds at 9.25%, the official said. NMDC bids for 50% stake in Oz's Legacy Iron Ore State-owned miner NMDC said it has submitted a formal binding bid to acquire 50% stake in Australian exploration firm Legacy Iron Ore for an undisclosed amount.

Weekly Newsletter 53 Info-Spectrum Bridging the Information Gap in Corporate Landscape

STEEL AUTHORITY OF INDIA: • The 2.5-mn-tn West Bengal steel plant of the company's subsidiary IISCO will be commissioned by Jun. • Company likely to sign a joint venture agreement with Kobe Steel in three-four months. • Will spend over 1% of gross sales on research and development as part of new master plan. • Oman Oil seeks to set up a steel plant through a joint venture partnership with the company. JSW Steel: • Sajjan Jindal has ruled out the possibility of JFE picking more stake in the company • To start work on its proposed Rs.200-bn., 3-mn-tn steel plant and 300 MW thermal power unit in Salboni, West Bengal, by October. NATIONAL ALUMINIUM CO: • Has shut down 60 out of its 960 smelting units in Odisha due to power shortage on account of low coal supply. • Insufficient power supply has forced the company to cut its daily aluminium output by around 6%. TATA STEEL: • Is installing a new sheet leveller at its Dudley plant in Europe at an approximate cost of 500,000 pound sterling. • Will invest around Rs.52.3 bn in Ijmuiden Steelworks in the Netherlands over five years to improve product quality, and cut costs. MAHINDRA UGINE STEEL CO: The Alibaug Court has ruled out the company's civil suit against the irrigation department for increasing water charges. JINDAL STEEL & POWER: Plans to install HIsmelt technology, a new steel making process developed by the Rio Tinto Group, at its Angul plant. NMDC: Is likely to submit the bid to acquire a 50% stake in Australian exploration firm Legacy Iron Ore for around Rs.2 bn by month end. NEYVELI LIGNITE CORP: Has posted Apr-Aug provisional profit after tax at Rs.5.21 bn and provisional sales at Rs.18.89 bn.

Weekly Newsletter 54 Info-Spectrum Bridging the Information Gap in Corporate Landscape

AUTO & AUTO ANCILLARIES AUTOMOBILE: • Toyota Kirloskar Motor Pvt Ltd has launched diesel variants of the Etios sedan and Liva hatchback, with an aim to sell 30,000 units of the two cars from Sep to Dec. • India passenger car sales fell 10% on year in August, CV up 22.6%. • German luxury carmaker Audi plans to hire 600 more people and raise its dealerships to 25 by the end of 2012 in India. • Japanese auto major Suzuki Motor Corp plans to invest more in Haryana, despite the rising instances of labour unrest in the Gurgaon-Manesar automotive hub of the state. • Suzuki Motor seeks to dissolve its two-year-old alliance with Volkswagen after the German carmaker accused it of violating their partnership pact by agreeing a diesel engine deal with Italy's Fiat. Anand Group seeks licence to use Gabriel brand in more countries Delhi-based Anand Group, the licence holder of the shock absorber brand Gabriel, wants to use the name in more countries and has applied for permission to do the same, the group's Chief Executive Officer Deepak Chopra told. Gabriel India Ltd, the flagship company of the group, currently owns the brand in India, China and Egypt. The licensor, The Gabriel Co, is based at Cleveland in Ohio, US. "We do own the brand in India in addition China and Egypt and (for) few more countries we have filed the applications now. So, there could be a possibility tomorrow of growing out of India with this product line," he said. He said the Group has applied for licences in three more countries where the brand was free. "We are looking at more opportunities," he said. Asked if Anand Group could also look at owning the Gabriel brand worldwide, Chopra said, "Gabriel India is expanding its cooperation with Gabriel USA, which owns the brand in USA and many other countries. So, there could be opportunities for us." The auto parts maker also plans to set up overseas manufacturing plants to make the shock absorber under the brand, he said. "Another opportunity here could be taking one of the companies global...In the sense that there could a first overseas plant we could consider," Chopra said. Gabriel India, that makes shock absorbers, struts and front forks, was established in 1961 with an industrial licence from The Gabriel. The tie up was eventually converted into a financial and technical agreement between the US manufacturer and the Anand Group. Gabriel India became a wholly- owned entity of the Anand Group after a slew of financial transactions between the two partners and a change of hands at The Gabriel Cleveland. Currently, Anand Group owns 54.63% in Gabriel India while the US partner owns 5.52% and the rest of the stake is with retail shareholders. Chopra said Gabriel India already has the base to expand globally. "We have in Gabriel, which is our flagship company, a standing where we are one of the top 10 producers worldwide in terms of the number of products that we produce," he said. Gabriel India has tie ups with KYB Corp of Japan, KYBSE of Spain and Yamaha Motor Hydraulic Systems of Japan for product development. He said although Anand Group was just a supplier to Gabriel US, the fact that it was a private equity-backed company could throw opportunities for the Indian firm. "We don't have a link any longer but one of the factors that the company is owned by a PE player, so there could be opportunities. I don't have to say anything," he said. Chopra also added that Gabriel India was probably the largest entity globally using the brand. Toyota Introduces Etios Diesel in India, Cuts Sales Target Again Toyota Motor Corp. introduced diesel versions of its Etios sedan and hatchback in India to take advantage of customer preference for cars that run on the cheaper fuel. The auto maker also cut its sales target for this calendar year for the second time due to supply constraints from its parent company in Japan following the Mar 11 earthquake and tsunami. Toyota has priced the base model of the Etios sedan at Rs.644,000 ($14,000) and the top-end model at Rs.787,000. The Etios Liva hatchback will cost Rs.554,000, while the top-end model will set the buyer back Rs.584,500. The company already sells gasoline versions of both models. Rising fuel prices have impacted automobile demand in India. The government has deregulated gasoline prices, but it still controls prices of diesel, making it a cheaper fuel option. India is unlikely to deregulate diesel prices soon, since the fuel feeds commercial vehicles and farm equipment and therefore has an impact on food and commodity prices. Diesel prices have been increased once this fiscal year which began on April 1, and the fuel now sells at Rs.41.29 a liter in Delhi. Gasoline currently sells at Rs.63.70 per liter. Toyota aims to sell 12,000 units of the diesel Etios sedan and hatchback in the next four months, Sandeep Singh, deputy managing director of marketing at Toyota Kirloskar Motor Pvt. Ltd., told a press conference. Toyota Kirloskar is 89%-owned by Toyota and 11% by India's Kirloskar group. Mr. Singh said also the company aims to sell 63,000 units of all Etios car models this year. He had earlier said the diesel

Weekly Newsletter 55 Info-Spectrum Bridging the Information Gap in Corporate Landscape variants would likely comprise 30% of total Etios volumes. The company in June cut its sales target for this calendar year 7% to 140,000 units on supply constraints from Japan. Toyota Kirloskar no longer faces sourcing constraints from Japan, but Mr. Singh said the company will only be able to sell 135,000 vehicles this fiscal year. He expects sales to grow to 190,000-195,000 vehicles next financial year due to higher production at its factories. Toyota Kirloskar makes vehicles at two adjacent factories near Bangalore. It plans to expand annual production capacity at its two plants from 150,000 to 210,000 vehicles in the first half of 2012 with an investment of about 4.9 bn yen. Asia MotorWorks to launch five new models by Dec Commercial vehicles-maker Asia MotorWorks (AMW) said it plans to launch up to five models by December this year as it looks to increase sales volumes by three-fold this fiscal. The company is also looking expand its export market, eying an entry into the Middle East and Africa by the second half of next fiscal. "In the next three to four months, there will be a slew of products that we will be introducing in the market, starting with a 16-tonne tipper next month," Asia MotorWorks Managing Director and CEO Anirudh Bhuwalka told PTI here on the sidelines of the Society of Indian Automobile Manufacturers (SIAM) annual summit here. He said the 16-tonne tipper will be the first product in the segment. The other five models that will follow will be in the 25-tonne to 49-tonne commercial vehicles segment. He said the company is eying the sale of about 20,000 commercial vehicle units this fiscal, as against 7,000 units last fiscal. Commenting on the export plans, Bhuwalka said AMW is already exporting its vehicles in small numbers to Nepal and Bhutan. "Going forward, we are looking at the other SAARC countries and also the Middle East and Africa," he said. The groundwork for exports, such as setting up of dealerships in the Middle East and Africa, would happen in the first half next fiscal and physical shipping of commercial vehicles to these markets may happen toward the latter half of FY'13. Asked about the company's capital expenditure plans, Bhuwalka said the company has invested Rs.1,500 crore on its Bhuj plant, in Gujarat, which has an installed capacity of 50,000 units per annum, and is not looking at any major spending at present. He, however, said some amount of investment would be made on improving its service and dealer distribution network. By 2012, the company plans to have 122 dealers, up from 79 at present. Suzuki Powertrain stir ends; diesel engine supply to Maruti resumes The strike at Suzuki Powertrain India Ltd's Manesar unit was called off as workers resumed their shifts and restored diesel engines supplies to Maruti Suzuki India Ltd. While the workers' stir at Maruti Suzuki's Manesar plant is still on, the company has now decided to keep this assembly unit open on Sep 18. The strike has been called off at SPIL," a Maruti Suzuki official told. "The Manesar assembly strike continues. But, we would keep the plant open Sunday to make whatever number we can and also catch up on lost production," he said. Workers at Suzuki Powertrain India had gone on strike since Sep 15 in support of the strike at Maruti's Manesar assembly plant. Suzuki Powertrain India supplies 1,000-1,200 diesel engines per day to Maruti Suzuki. Suzuki Powertrain India is a joint venture between Maruti Suzuki and Suzuki Motor Co. On Sep 16, Maruti Suzuki had said production at both its Manesar and Gurgaon manufacturing facilities would be suspended on Sep 16 due to shortage of some critical components including diesel engines and transmission systems. All production work was to resume only on Sep 19, as Sep 17 was a holiday on account of Vishwakarma Puja, and Sunday is a weekly off. Although production has been normal at the Gurgaon assembly unit, overall production of cars has been severely curtailed as the Manesar plant has not been able to produce its normal daily output. Maruti Suzuki makes 1,200 cars every day at Manesar, and about 3,300 cars daily at Gurgaon. While the Manesar plant produces the Swift, SX4 and A-Star models, the Gurgaon unit assembles the M800, Alto, WagonR, Estilo, Ritz, Dzire, Gypsy, and Omni models. Mahindra Reva to launch electric vehicle based on M&M platform Mahindra Reva Electric Vehicle said it will introduce a new electric vehicle in the next 18 months based on a model from parent group Mahindra & Mahindra's existing portfolio. "In the next 18 months, we will launch an M&M product with electric vehicle technology in India," Mahindra Reva Electric Vehicle Chief of Technology and Strategy Chetan Maini told reporters on the sidelines of the Society of Indian Automobile Manufacturers' (SIAM) annual summit here. The company has already fitted the technology in M&M's vehicles and it is currently being tested, he added. Maini, however, declined to name the Mahindra vehicle in which the electric technology will be introduced for commercial sale. M&M had earlier announced plans to roll out its flagship sports utility vehicle, 'Scorpio', with an electric fuel option and gradually introduce it in other models as well. In 2010, M&M had acquired majority stake in Reva. When asked about Reva's dealership network, Maini said: "We will gradually introduce a Reva electric car in all Mahindra outlets. Our plan is to have 50 outlets by end of this year and go up to 100 showrooms by the end of next year." The company

Weekly Newsletter 56 Info-Spectrum Bridging the Information Gap in Corporate Landscape currently sells the Reva car through 24 Mahindra showrooms and two of Reva's own outlets. Maini also said the company is evaluating the possibility of overseas distribution of its vehicles through M&M dealerships abroad. He said the company will introduce its 'NXR' model next year and is also looking to roll-out the 'NXD' model. The company is currently expanding its production capacity from 3,000 units to 30,000 units with the opening of a second production facility in Bangalore. Hero Motors' proposed Bihar cycle plant encounters land buy hurdle Hero Cycles Ltd, part of the Munjal family-owned Hero Motors group, may drop its plans to set up a bicycle manufacturing unit in Bihar as it is finding it tough to buy land for the project. "The entire land acquisition issue is upsetting our plans," Hero Motors Managing Director Pankaj Munjal told. "In worst case, we might have to look at other states," he says. Hero Cycles had identified a plot of land in Bihta near the state capital Patna to set up the factory with an initial investment of Rs.450 mn. The proposed project would also involve investments from ancillary units. Munjal said the proposed plant was scheduled to begin operations by mid- 2012 "but the whole process is upset now." Hero Cycles is the world's largest manufacturer of bicycles by volumes. "We have had meetings with Deputy Chief Minister Sushil Kumar Modi and the principal secretary at the industry department. Now, we are trying for an appointment with the Chief Minister (Nitish Kumar) himself," Munjal said. Munjal, however, did not specify the exact cause of the problem. Domestic bicycle manufacturers sensed a huge business opportunity in Bihar after Kumar announced a bicycle scheme for school students in the state. The state government promised to pay Rs.2,500 for buying a bicycle to any student willing to get enrolled in a school. Munjal said Hero Cycles already had a significant business in the state and so thought of setting up a manufacturing unit there instead of supplying from its Ludhiana-based factory. "The factory would immediately have had an annual topline of Rs.3 bn, but now we are trying to re- assess things," he said. Munjal said Hero Cycles sold about 4,000 bicycles in Bihar every day and thus a factory in the state made sense. According to unconfirmed reports, Bihar government is likely to place orders for 1.3 mn bicycles during the current financial year (Apr-Mar). Tata Group cos pay flat-to-higher Jul-Sep advance tax vs 2010 Three of the five Tata Group companies that paid advance tax for Jul-Sep in Mumbai showed a year-on-year improvement in payout for the second quarter of the current financial year to Mar. Corporate taxpayers pay 15% of their annual estimated tax liability in advance in Apr-Jun. In Jul-Sep and Oct-Dec they pay 30% each, while the rest is to be paid by Mar 15. Tata Group comprises of over 90 operating companies across seven business sectors including communications and information technology, engineering, materials, services, energy, consumer products, and chemicals. Tata Consultancy Services Ltd, the country's largest software exporter, paid 111% higher advance tax for Jul-Sep at Rs.5.70 bn as against Rs.2.70 bn in the corresponding quarter last year. The company had paid Rs.2.40 bn as advance tax for Apr-Jun. Tata Steel Ltd paid 19% higher advance tax for Jul-Sep at Rs.6.2 bn, as against Rs.5.2 bn last year. The company had paid Rs.2.6 bn as advance tax for Apr-Jun. Tata Power Ltd's advance tax payout for the quarter under review rose marginally to Rs.700 mn as against Rs.600 mn a year ago. Tata Motors Ltd and Tata Chemicals Ltd paid Rs.900 mn and Rs.600 mn, respectively, as advance tax for Jul-Sep, same as a year ago. Following is the table of advance tax payments by Tata Group companies in Jul-Sep as per income-tax sources: Advance Tax (in bn rupees) Company Jul-Sep 2011 Jul-Sep 2010 Apr-Jun 2011 Tata Chemicals 0.60 0.60 0.27 Tata Consultancy 5.70 2.70 2.40 Tata Motors 0.90 0.90 0.62 Tata Power 0.70 0.60 - Tata Steel 6.20 5.20 2.60 Note: Apr-Jun, year ago, advance tax numbers are as detailed in previous quarters. M&M, TVS Motor say high interest rates hurting urban auto sales Mahindra & Mahindra Ltd and TVS Motor Co Ltd said rising interest rates are hurting sales in urban areas but robust demand from rural areas is partially offsetting the overall impact on volumes. In an interview with television news channel CNBC-TV18, M&M's Executive Director and Group Chief Financial Officer Bharat Doshi said higher interest rates were affecting demand, and purchasing power of consumers in urban areas. As a result, sales of premium segment vehicles were affected. But there has been some support from the

Weekly Newsletter 57 Info-Spectrum Bridging the Information Gap in Corporate Landscape rural sector. "For us, the play is substantially in the rural area," Doshi said. "All our tractors as well as a substantial number of vehicles, particularly the Bolero, operate in the rural areas and the market is still buoyant there." Over 70% of M&M's sales are in the rural sector, analysts said. In a separate interaction with the news channel, TVS Motor Chairman and Managing Director Venu Srinivasan echoed Doshi's view. "One of the reasons the two-wheelers are doing much better is because rural demand accounts for more than 50% of our sales," Srinivasan said. In the past few months, steel prices have softened, which has given the company some relief on raw material costs. However, uncertainty in global commodity prices and volatility in the foreign exchange market remain concerns for the industry, Doshi said. Sustained monetary tightening by the Reserve Bank of India has increased the cost of vehicle loans, which has hit demand for automobiles. Doshi hopes the central bank would pause on rate hikes at its mid-quarter monetary policy review. Srinivasan believes rate hikes alone would not bring the inflation rate down. He said high global commodity prices and widening fiscal deficit were driving inflation. "Now, if you have global commodity prices and food prices remaining at very high levels, and if you have fiscal deficit going higher than planned which is already going to suck money out of the system and you put a monetary (tightening) policy, you could end up in stagflation," Srinivasan said. He expects demand for vehicles to fall further after the Diwali festival due to slowing growth in the country's economy. Hindustan Motors to launch more variants of iconic Ambassador C.K. Birla Group's automobile arm Hindustan Motors Ltd will launch more variants of the iconic Ambassador in the next few months from its Uttarpara plant in Hooghly, West Bengal, a company press release said. "The next few months shall witness the launch of more vehicles on the Ambassador platform from our Uttarpara plant in Hooghly," the release said quoting Managing Director, Manoj Jha. Early last month the company had launched two models of the 800-kg commercial vehicle VEER and VEER LX in Kolkata and both were built on the Ambassador platform. VEER is built on the tried-and-tested Ambassador platform, incorporating changes in transmission and suspension systems required for a sturdy load carrier. The vehicle is available in both diesel (BS III) and CNG (BS IV) versions and in two models - VEER and VEER LX. While VEER has a separate load tray, VEER LX's load tray is integrated with the front cabin. Hindustan Motors is also developing compressed natural gas variants of its one-tonne payload light commercial vehicle, Winner, and is expected to launch them soon, Jha said. "The company's Pithampur plant near Indore is focusing on CNG (compressed natural gas) variants of the one-tonne payload LCV (light commercial vehicle) Winner and the vehicles will hit the streets sooner than later." Parts supply to Hero MotoCorp hit due to unrest at Munjal Showa Supplies of shock absorber to Hero MotoCorp Ltd and Honda Motorcycle and Scooter India have been severely hit sas production at Munjal Showa Ltd's Manesar plant has been impacted due to worker unrest. Munjal Showa is a joint venture between the Hero Group and Japan's Showa Corp, and designs and manufactures shock absorbers and struts for two-wheelers and four-wheelers. "A handful of casual workers have been creating noise demanding to be confirmed," a senior official of Munjal Showa told. Munjal Showa manufactures only two-wheeler shock absorbers at its Manesar factory that it supplies to Hero MotoCorp, Honda Motorcycle and Scooter India, Mahindra two-wheelers and India Yamaha Motor. "We are a single source supplier for Hero MotoCorp and for Honda Motorcycle and Scooter India, our share is over 90%," the official said. Munjal Showa's Manesar factory makes 50,000-60,000 two-wheeler shock absorbers every day. "Our other two plants in Haridwar and Gurgaon are operating normally," the official said. The news comes at a time when the worker unrest at Maruti Suzuki's Manesar factory is yet to be resolved. Production at the Maruti Suzuki factory has been severely hit after workers refused to sign a "Good Conduct" bond mandated by the management. "We are sure there are outside elements behind this," the official said. "Perhaps this could be of a political nature." Tata Motors launches Vista variant at Rs.3.88 lakh The country's largest auto-maker Tata Motors has launched a new version of its Vista model at a starting price of Rs.3.88 lakh (ex-showroom Delhi). The new model, which comes in both petrol and diesel engine versions, is now available in the market, the company said in a statement issued. The new Vista is available in six colours -- 'summer sparkle', white, silver, red, blue and grey, it added. The latest avatar of the hatchback would be available for Rs.3.88 lakh for the base Safire petrol and Rs.4.79 lakh for the QuadraJet diesel model (all prices ex-showroom, Delhi). The new Vista is powered by a 1.3-litre common rail direct injection Quadrajet diesel engine and a 1.4-litre MPFi Safire petrol engine. The new Tata Vista diesel model delivers a mileage of 22.3 km per litre, while the petrol variant offers 16.7 km per litre. The car comes with a new front chrome grill ,complemented with a new triple-barrelled head lamp to ensure better visibility in

Weekly Newsletter 58 Info-Spectrum Bridging the Information Gap in Corporate Landscape low-light conditions. The new Vista also comes with added safety and security features like ABS with EBD, dual airbags, crumple zones and side intrusion beams, an engine immobiliser and remote keyless entry. Audi to enter used-car biz; sees generating 10% of revenues Audi, the German luxury car maker, plans to enter the used car business in India in a big way. “By the end of this year, we will start our used car business under the Audi Approved Plus brand. In the first year, it can account for 5-10% revenue, and we expect this to go up to 25% over a five-year period,” Audi India Head, Mr Michael Perschke, told. The used-car service will be available across 14 Audi dealership in India. At present, there are 5,500 to 6,000 Audis on Indian roads. “Our sales target for this calendar year is 5,000, having already sold close to 3,900 cars. In a market such as Mumbai, where our sales are strong, we expect a good response,” Mr Perschke said. “The used-car business of Audi in markets such as Europe accounts for almost 30-40% of its revenue,” he added. Mr Perschke, however, refused to comment on the expected price differential, stating that it was still early to predict. “Our products have good residual value. A three-year-old Audi A6 is worth more than 50% of its original value and a Q7 retains more than 55% of its value after three years of usage,” he added. Maruti Suzuki labour trouble spreads; diesel engine plant impacted Labour stir at Maruti Suzuki India Ltd threatened to grow in proportion after workers at its diesel engine manufacturing unit too struck work. The fresh spate of trouble comes even as the labour unrest at Maruti Suzuki's Manesar car plant, where production has been impacted since Aug 29, is yet to be resolved. "Workers at Suzuki Powertrain India struck work beginning evening demanding settlement of wage," a Maruti Suzuki official told. Suzuki Powertrain India makes 1,000-1,200 diesel engines and transmission systems for Maruti Suzuki every day. Production at Maruti Suzuki's Manesar car plant has been impacted since Aug 29 after workers refused to sign a "good conduct" bond as demanded by the company. "Production at the Gurgaon plant continues to be unaffected by the crisis," the official said. Labour unrest at the Manesar belt of Haryana has been a cause of worry for most manufacturers in recent times. Skoda to launch MissionL in India by year end German carmaker Volkswagen’s Czech unit, Skoda Auto, said its new compact car MissionL will be launched in India by the end of this year. The company has showcased MissionL at the ongoing Frankfurt International Motor Show. “The MissionL will be launched in Europe, Russia and China in 2012, and the customers in India will see it arrive in the market even earlier, before the end of 2011,” Skoda said in a statement, adding that the car is under the final stage of development. “This new compact model and the new products to follow are a guarantee of accomplishing our goal to increase global annual sales to 1.5 mn by 2018. We are going to present a new car approximately every six months,” Skoda Board Chairman HC Winfried Vahland said. M&M begins construction of new plant in China The foundation stone was laid for construction for a state-of-the-art engine manufacturing and assembly plant at Yancheng City, Jiangsu province in China. The plant is being set up by Mahindra Yueda Yancheng Tractor Company Ltd (MYYTCL), a joint venture between Mahindra & Mahindra with the Yueda Group of China. The plant will manufacture reliable and fuel-efficient engines for the Chinese market. An investment of $14.6 mn has been earmarked for the engine plant and another $3.7 mn for the R&D programme. So far, M&M has invested $110 mn in China and is enjoying a 9.2% market share of the fast-developing Chinese market, with annual sales of 29,000 units. Maruti suspends all plant ops for Sep 16; Sep 17 scheduled holiday Maruti Suzuki India Ltd has suspended production at both its manufacturing facilities on Sep 16 due to, as it says, shortage of certain critical components including diesel engines and transmission systems. There would be no production even on Sep 17 as it is a designated holiday on account of Vishwakarma Puja. "Following the strike at its vendor, Suzuki Powertrain India Ltd, supply of certain critical components to Maruti Suzuki's facilities has been disrupted," the company said in a statement. The decision to suspend operations comes on a day when the workers' stir took a violent turn after some company supervisors were attacked on their way to work. Tata Motors Aug global vehicle sales 87,459 units, up 3% on year Tata Motors Ltd reported a 3% year-on-year rise in global sales at 87,459 units in Aug, powered by strong commercial vehicle sales, the automaker said in a release. Global sales of commercial vehicles in Aug rose 17% on year to 48,032 units, whereas those of passenger vehicles dropped 11% to 39,436 units. Passenger vehicle sales include those of luxury brands Jaguar and Land Rover. During Aug, the company sold 21,242

Weekly Newsletter 59 Info-Spectrum Bridging the Information Gap in Corporate Landscape units of the two brands, 31% higher than a year ago. However, sales of Land Rover were higher during the month at 17,833 units, up 43% from a year ago, while those of Jaguar fell 10% to 3,409 units. Michelin's Chennai plant to roll by Nov 2012 French tyre manufacturer Michelin has announced that the work on its Rs.4,000-crore facility in Thiruvallur district is in progress and production is expected to commence by November next year. The plant will have an initial capacity to manufacture 3 million truck and bus tyres per annum. Michelin had inked a MoU with the state government in 2009 for the project, which is the company’s first plant in India. When fully commissioned, the Chennai plant will be one of the biggest plants for the Michelin group, rolling out 20 mn rubber tyres per annum. Aisin Seiki of Japan to invest in Haryana Aisin Seiki Co Ltd of Japan plans to set up an auto components manufacturing facility at IMT Rohtak in Haryana with an investment of Rs.406 crore. The company has also proposed to set up another manufacturing facility for brake parts at an estimated cost of Rs.330 crore. The automotive components plant would cover around 30 acres while the brake parts plant would require 20 acres of land. Aisin Seiki manufactures automotive components like drive train, body, brake and chassis etc. M&M to sell up to 8.09% stake in Mahindra Holidays by Jun 2013 Mahindra & Mahindra Ltd will divest up to 8.09% stake in subsidiary Mahindra Holidays & Resorts India Ltd by Jun 2013, the company said in a notice to the stock exchanges. M&M currently holds 83.09% stake, part of which it will divest in one or more tranches to comply with public shareholding norms, which stipulate at least 25% stake of listed companies should be with the public. Atul Auto rights issue to open Sep 15, close Sep 29 Atul Auto Ltd's rights issue of around Rs.43.9 mn will open on Sep 15 and close Sep 29. The Rajkot-based company plans to issue around 1.46 mn shares on a 1:4 basis. The shares will be issued at Rs.30 each, which includes a premium of Rs.20. Maruti to recruit new workers for Manesar plant Encouraged by support from Haryana labour authority and its parent Suzuki Motor Corp in the ongoing tussle with workers at the Manser plant, Maruti Suzuki India is understood to be planning to recruit new permanent employees to replace the existing ones. Volkswagen plans to launch Up in India after spilt with Suzuki Volkswagen plans to launch the UP compact car in India next year after Suzuki Motor, parent of Maruti Suzuki, ended its alliance with the European carmaker. Volkswagen had earlier planned to source cars from Maruti, such as the A-Star hatchback. Workers' strike at Munjal Showa's Manesar plant Workers at auto component-maker Munjal Showa Ltd's Manesar plant resorted to a strike that hit production, an indicator that the labour unrest at Maruti Suzuki India's unit in the region is spreading to surrounding areas. Suzuki Chairman says indiscipline at Maruti won't be tolerated Suzuki Motor Corp Chairman Osamu Suzuki has told the workers' union that the company would not brook indiscipline. Car sales down again in Aug but cos eye long-term growth Domestic passenger car sales may have slipped for the second consecutive month in Aug, but the auto industry is still not calling it a "slowdown". India car sales slip again in Aug; automakers eye long-term growth Domestic passenger car sales may have slipped for the second consecutive month in Aug, but the auto industry is still not calling it a "slowdown". Tata Motors group CEO, MD Carl-Peter Forster resigns Tata Motors Ltd said Carl-Peter Forster, the group chief executive officer and managing director, has resigned with immediate effect, due to some "unavoidable personal circumstance". WB govt violated lease agreement for Singur land: Tata Tata Motors told the Calcutta HC that the West Bengal govt had "violated" the lease agreement for the land at Singur and "unconstitutionally" taken it over by framing an act.

Weekly Newsletter 60 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Maruti Manesar workers stage rally Workers of Maruti Suzuki India's first plant at Manesar approached district authorities here seeking intervention to bring an end to the impasse that has resulted in production being affected since Aug 29. Tata Motors may have cut monthly passenger vehicle production Hit by a slowdown in demand, Tata Motors Ltd seems to have cut its monthly passenger vehicle production, a component supplier to the company told. MSI workers adamant on strike: Haryana Labour dept The Haryana Labour department said the agitating workers of Maruti's Manesar plant were adamant on not rejoining their duties, despite its best efforts to resolve the issue. Maruti to hire hundred workers for its Manesar plant Maruti Suzuki India (MSI) said it would hire 100 new permanent employees today for its troubled Manesar plant to replace those who have refused to sign the good conduct bond. MARUTI SUZUKI: • Suzuki Motor Corp Chairman Osamu Suzuki has told Maruti Suzuki's workers' union that the company will not brook any indiscipline. • Has asked major component-suppliers to supply their own skilled workers to fill positions in the sub- assembly and quality-checking roles at Manesar. • To hire permanent employees for its Manesar plant to replace those who refused to sign the good conduct bond. • The company suspended five more workers at Manesar unit for an alleged attack on three supervisors and a worker on Sep 16. • Workers at Gurgaon diesel manufacturing unit go on strike. TATA MOTORS: • Carl-Peter Forster resigns as group chief executive officer and managing director, to continue on the board as a non-executive member. • Tata Sons has increased its stake in the company to 25.44% from 25.38%. FORCE MOTORS: Its joint venture with Germany's MAN Truck and Bus AG is going through a rough patch as it continues to be a fringe player in the domestic market. Its plant at Madhya Pradesh is operating at half its capacity. ASHOK LEYLAND: Has commercially launched 'Dost' in the light commercial vehicle segment, which is priced at Rs.379,000-439,000 band, (ex-showroom Chennai). HERO MOTOCORP: Supplies of shock absorbers to the company have been severely hit due to worker unrest at auto parts maker Munjal Showa's Manesar plant. TVS MOTOR CO: Has ended its 5-year joint venture with Columbia's Andina Sociedad Anonima and signed a new pact with AKT Motos. GABRIEL INDIA: Plans overseas acquisitions in order to enter new markets. ATUL AUTO: Rights issue will open on Sep 15 and close on Sep 29. MRF: Will start production at its Tiruchirapalli plant in Jan-Mar.

Weekly Newsletter 61 Info-Spectrum Bridging the Information Gap in Corporate Landscape

MISCELLANEOUS REGULATORY: • Securities and Exchange Board of India will bring out a draft norms on advisors and distributors to eliminate risks evolving out of conflict of interest. • The Prime Minister's Office has asked the corporate affairs ministry to move ahead with the Companies Bill, 2011. • Government has said a proposed competition council will act as a forum to resolve turf wars between regulators. • SEBI may implement alternative investment funds in next few months. INSURANCE: • According to estimates by Zurich-based reinsurance company Swiss Re, the global insurance industry's losses more than doubled on year to $70 bn during Jan-Jun. • Insurance Regulatory and Development Authority has recommended the overall exposure in promoter group companies to be brought down to 5% from the current 25%. RETAIL: • Kishore Biyani-led Future Group plans to divest stake in its non-core businesses such as insurance, financial services, logistics, media, and textile mills in the next 6-12 months. • Foreign Direct Investment in multi-brand retail is likely to be taken for discussion only in the next year. EXTERNAL BORROWING: • Policymakers will meet on Sep 15 to decide whether to allow local companies to borrow in yuan. FOREIGN INVESTMENT: • Praxair will spend about Rs.9.23 bn in 2012 to set up new facilities in India. FMCG: • Yum! Brands Inc that runs KFC and Pizza Hut restaurants, expects its Indian operations to be around $1 bn by 2015. MANUFACTURING: • India set to gain in manufacturing of electrical goods, household goods, textiles, as China loses ground due to rising labour costs. PACKAGING: • Moldtek Packaging will invest Rs.400 mn to set up manufacturing facilities in Pune, north India by 2012, and in Dubai by 2013. PRIVATE EQUITY: • Promoters look to private equity to raise capital as public listing has become uncertain due to prevailing market conditions. TOURISM: • The Planning Commission's working group has recommended a four-fold increase in allotment of funds in 2012-17 from previous Rs.51.56 bn. MARKETS: • National Stock Exchange is in talks to launch a derivative product with a European equity index as the underlying. SPECIAL ECONOMIC ZONE: • The legal affairs department has overruled an objection made by The Board of Approvals to allow promoters of SEZs to sell their stake. CORPORATE: • Indian companies' capital expenditure in 2011-12 (Apr-Mar) is likely to be lower than 2010-11, according to RBI's corporate investment division. CONSUMER DURABLES:

Weekly Newsletter 62 Info-Spectrum Bridging the Information Gap in Corporate Landscape

• Japanese company Daikin is set to increase its India investments to around 5 bln rupees by pumping Rs.2.5 bn in Daikin Airconditioning India, its fully owned subsidiary. EXCHANGE: • The Securities and Exchange Board of India Wednesday approved the application of MCX Stock Exchange for renewal of registration for currency futures trading for a period of one year. FOOTWEAR: • Italian fashion brand GAS is making its foray in the Indian footwear segment. TEXTILE: • The duty-free access given to the Bangladesh garments sector is likely to hit the Indian textile industry. VENTURE CAPITAL: • Lok Capital has invested $3 mn in Bengaluru-based rural business process outsourcing company RuralShores. India cos on M&A overdrive in Aug; value of deals soars to $2.2 bn Driven by the Indian industry's overseas inorganic growth plans, the value of mergers and acquisitions by domestic companies in Aug was up more than seven fold to $2.18 bn, according to data compiled by accounting and advisory services firm Grant Thornton India. In Aug 2010, the value of M&A deals was pegged at just $401 mn. The value of such deals in Aug is also substantially higher than the previous month, which totalled $1.58 bn. In volume terms, 49 merger and transaction were announced in Aug, compared with 42 year ago. "The M&A activity has shown some improvement compared to the last two months," said Srividya C.G., partner and practice head, valuations, Grant Thornton India. Of the total $2.18 bn, more than half, or around $1.36 bn, came from cross-border transactions signalling a growing trend of more and more Indian companies looking to acquire assets abroad. In the year ago period, there were 23 cross-border deals totalling $313 mn. Domestic merger and acquisition deals also witnessed a significant uptrend, with their value climbing to $822 mn compared with a meagre $88 mn year ago. The biggest M&A deal during August was of Piramal Healthcare Ltd acquiring 5.5% stake in Vodafone Essar for $640 mn. Other notable transactions during the month included GMR Energy Ltd acquiring 30% stake in Indonesia's PT Golden Energy Mines for $50 mn and Group Danone's acquisition of Wockhardt's nutrition business for $355 mn. Telecom was the pick among sectors, with three merger and acquisition deals totalling $708 mn. Pharma and healthcare witnessed five transactions worth $362 mn. During Jan-Aug, there have been 414 merger and acquisition deals valued at $30.5 bn, compared with 454 deals worth $41.8 bn a year ago. Indian companies' fund raising through the private equity route slowed down significantly during the month, the Grant Thornton data showed. According to data, there were 29 private equity transactions amounting to $364 mn in Aug, compared with 21 such deals totalling $648 mn a year ago. "Private equity has shown a considerable decline in investments for the month of Aug, with much lower deal values as well as average deal size," Srividya said. Private equity giant Blackstone Group's acquisition of a 7% stake in Monnet Ispat & Energy for $50 mn was the biggest transaction in Aug. During Jan 1-Aug 31, there have been 266 private equity deals by Indian companies totalling $6.16 bn. In the same period last year, there were 167 deals worth $4.37 bn. Following is the value and volume of India's mergers and acquisitions and private equity deals in Aug, according to data from Grant Thornton: VALUE(In US $) VOLUME 2011 2010 2011 2010 Inbound M&A 466 24 11 7 Outbound M&A 893 289 11 16 Domestic M&A 822 88 27 19 Private Equity 364 648 29 21 QIP - 321 - 02

Weekly Newsletter 63 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Easier PAN norms for FIIs, foreign nationals In a move which could improve the fund flow and provide some stability to the choppy Indian bourses, the finance ministry has relaxed norms for foreign nationals and foreign institutional investors to obtain Permanent Account Numbers (PAN) that could also double up as KYC (know your customer) compliance for any investment they make in Indian stocks. Till now, FIIs or foreign nationals had to obtain a PAN and separately meet KYC requirements prescribed by the market regulator before investing in stocks. The tax obligation on any transaction is twice the due amount if they fail to mention PAN. In the revised rules that come into effect from Oct 1, a foreign national will have to only produce either her/his citizenship number or taxpayer identification number to obtain a PAN. The government is making amendments in Rule 114 and Form 49A of the Income Tax Rules and has proposed to introduce a new Form 49AA. While Form 49A will be used for Indian citizens, the other is for foreign nationals and FIIs. Earlier rules stipulated that citizenship or taxpayer identification number would not be accepted as proof of identity in case of foreign nationals seeking PAN card. The applicant is required to take prescribed documents to an officer of Indian Embassy or High Commission where he is a resident to get them attested. The revised guidelines ensure that a foreign national or an FII need not make rounds of Indian Embassies or High Commissions anymore. They can get copies of their documents attested by recognized authorities in their respective countries. Several countries and trade and industry organizations had represented the finance ministry seeking changes in the rules, in particular documents to be accepted as proof of identity and address and their attestation. The department of economic affairs and the central board of direct taxes (CBDT) also worked on harmonizing the requirements of PAN and meeting KYC obligation. "Since most of the basic information for both are common, it was decided to harmonize them into one so that compliance burden for a foreign investor is substantially reduced," said a senior finance ministry official. The directorate of Income Tax has devised a single integrated form that incorporates the requirements of both PAN and KYC. Sanlam takes 26% stake in Shriram Capital in Rs.2,000-cr deal Sanlam Ltd (SLM), a South African-based insurer, is to buy 26% in Shriram Capital Ltd (SCL), part of the Rs.30,000-crore Shriram Group. The estimated investment is Rs.2,000 crore. According to sources in the Group, $266 mn (Rs.1,200 crore) will come as cash from Sanlam. The additional amount will come as upstream investment in the insurance business. “They (Sanlam) will now have indirect holding in the insurance business, through Shriram Capital. Both the companies are waiting for the regulators' nod,” said the source. Sanlam joined hands with Shriram Group five years earlier to launch Shriram Life Insurance Company Ltd. A 26% stake was taken by Sanlam. After this, the partners launched a non-life insurance company, Shriram General Insurance Ltd, three years before, in which Sanlam again took 26%. “The proposed investment in Shriram Capital came after the confidence which Sanlam got in us, after five years with the Group,” said the source. He added the investment would not only help SCL expand the insurance business but also help to buy out shares from some of the private equity (PE) investors in the Group. Shriram is a PE favourite, with 23 of these firms having invested in the Group. Besides, the money can be utilised for expansion of other finance business and even for the proposed foray into the banking sector, said the official. SCL is the holding company for the financial services and insurance entities of the Shriram Group. It is the main promoter of the two listed companies, Shriram Transport Finance Company Ltd, the largest asset financing company in India, and Shriram City Union Finance Ltd, a retail finance company, now foraying into the housing sector. SCL is also the promoter of Shriram Life Insurance Company Ltd and, recently, Shriram General Insurance Ltd, Shriram Fortune Solutions, Shriram Insight Share Brokers and Shriram Wealth Management. Yesterday, Shriram CCL, a subsidiary of Shriram Capital, had diluted 10% to private equity (PE) firm LeapFrog Investments, for Rs.67 crore. Concor arm lines up big expansion in storage biz FHEL to invest Rs.1,500 crore in opening cold storage units. With big retail chains as clientile, Fresh and Healthy Enterprises Ltd (FHEL), a fully owned subsidiary of Container Corporation of India (Concor), has planned an expansion in its cold storage business. The company directly sells to Bharti-Walmart, Big Apple, Reliance Retail, Mother Dairy, Future Group and Heritage Foods in the northern part of the country. It has a tie-up with Unifrutti, a multinational company, for sale of fruits in the south. “The investment will be to the tune of Rs.1,500 crore in opening cold storage units. Capacity expansion at various cities will depend on the location of the place and the quantity of horticulture produce at nearby places,” said a senior Concor executive. The launch of FHEL in 2006 was part of Concor's attempt at diversification from its core business of container transportation. FHEL offers cold-chain logistic solutions —storage, transportation, inventory management, delivery. It has a 12,000-tonne store at Rai, near Delhi. FHEL directly buys from farmers and sell to retailers. “The cold storage facility is to develop long-term linkages with farmers, agricultural

Weekly Newsletter 64 Info-Spectrum Bridging the Information Gap in Corporate Landscape institutes and government agencies to improve the quality of produce, yield, storability and shelf life of a variety of fruits and vegetables to enable availability for longer durations and at reasonable rates,” said a senior executive. He said it was an uphill task to break into the entrenched network of intermediaries and commissioned agents. FHEL incurred losses for its first three years but managed to break even last year, registering a profit Rs.42 lakh on a turnover of Rs.65 crore. It procured 9,000 tonnes of fruit last year and is targeting a 12,000-tonne business this year. With an estimated annual production of 220 mn tonnes, the fruit and vegetable business is estimated at Rs.2,60,000 crore in India. Most of this is in the unorganised sector, with a great amount of wastage in post-harvest activity. In fact, 25% of the total produce goes waste. It is here that FHEL sees great potential in being a logistics provider in the supply chain. Besides apples, FHEL stores kinnow and is also trying with oranges on a commercial scale. During the off-season, it gives the chamber on hire for storage of rice and carrots. It is also importing apples. State-owned MMTC keen on buying stake in Russian diamond miner The government has given green signal to state-run companies to pick up stake in Russian diamond major Alrosa, subject to it scrutinizing the company. Alrosa plans to divest 20% of its equity in the current year in a deal expected to cross $2 bn. New Delhi is keen on an Indian entity picking up interest in Alrosa in order to ensure a stable supply of rough diamonds for its over Rs.60,000-crore industry that employs more than five lakh people, a government official said. State-owned MMTC is keen to pick up stake in Alrosa. The government is also exploring asking two or more state-run companies to put in a joint bid, but wants to tread cautiously. "The government wants a thorough examination of the company before any Indian entity puts in a bid," said a government official. The decision for a scrutiny of Alrosa, which has a 25% share in world's rough diamonds production, was taken at a meeting of officials from ministries of commerce, finance and mines. Commerce ministry is likely to seek details of the company, its mines and balance sheet from the Russian government, said an official privy to the deliberations. India has 95% share in the world's cut and polished diamond exports. Its total exports in 2010-11 stood at $28.25 bn. A secure supply of rough diamonds can give a leg up to the local diamond processing industry and boost employment. Moreover, New Delhi also wants to preempt any move by other countries, such as China and US, to buy stake in world's largest diamond miner as it could have long-term supply and pricing implications for its diamond hub. Commerce minister AnandSharma has already had preliminary discussions with his Russian counterpart. He had sought Russian government's support for participation of Indian companies in Alrosa stake sale during his meeting with Russian minister of economic development Elvira Nabiullina in Jun this year. Sale of stake in Alrosa is part of Russian government's privatization plans, which envisages sale of stakes in 10 major state-owned banks and companies worth 1 trillion roubles or $33 bn over the next three years. These include Rosneft, RusHydro, shipping company Sovcomflot, Sberbank, VTB bank and the United Grain Company. The Russian federal government holds 50.92% in Alrosa, republic of Sakha (a state in Russia) has 32%, administrations of eight municipal districts in Sakha have 8% share and the balance 9% is held by other legal entities and individuals. Canon, Olympus turn focus on e-commerce market With more Indians logging on to the net; digital camera makers Canon India and Olympus are increasingly tapping the expanding e-commerce market in the country to push up sales. The e-commerce market in India, according to industry sources, currently stand at $400 mn (Rs.1,800 crore) and is dominated primarily by mobile handsets. Canon India is witnessing a substantial 10% monthly growth in sales of digital cameras and inkjet printers through home-shopping channels and e-business sites, this year. Expectation is rife that e-commerce revenue will increase ten-fold to Rs.20 crore during 2011. “Our e-businesses are growing at 10% on a month to month basis this year,” Mr Alok Bharadwaj, Senior Vice-President, Canon India, told. Olympus said that 7 to 8% of its camera sales are from e-commerce sites. Canon has a 20% market share in the digital camera segment while Olympus has 6%. Market leader Sony, however, claimed that it was not into e-commerce. Canon India and Olympus have already entered into distribution agreements with TV shopping channels such as Homeshop TV 18 and Star CJ; and online shopping sites such as flipkart, Letsbuy, infibeam, futurebazar and eBay. Canon is also planning to enter into a similar agreement with Amazon (once it starts India operations). “Since multi brand digital stores are few in number; online shopping sites are emerging as a good option for camera companies,” Mr. Rahul Sethi, President, e-commerce, ibiboWeb Pvt Ltd, which manages the online shopping site Traders.in, said. These sites generally follow the pricing policy of digital camera makers, he added. Canon, in order to prevent price discrepancies across its network, allows a maximum price reduction of 3% on its MRP. Olympus, in some cases offers special offers on its SKUs (Stock Keeping Units) while regular products are available at a minimum operating price.

Weekly Newsletter 65 Info-Spectrum Bridging the Information Gap in Corporate Landscape

PE, VC investments in small units rise 29% Private Equity (PE) and venture capital (VC) investment rose by 29% to $648 mn (around Rs.2,916 crore) in the period January-September 2011, compared to $500 mn (around Rs.2,250 crore) in the corresponding period of 2010. The number of deals rose by 21% during this period. Industry experts said investors are bullish about this segment and the growth potential remains strong in the SME sector. According to industry estimates PE players have lined up almost $1 bn to be deployed in India. With a fast-growing market, increased consumer presence and a growing middle class, India is fast becoming a ground for new business start-ups. Previously a heavily regulated economy, India has started to allow more foreign investment, and has become one of the fastest-growing economies — as well as being one of the four BRIC nations. As a result, investments in Indian start-up companies have started increasing steadily and are growing faster. According to data compiled Chennai-based research firm Venture Intelligence, investors have injected $648 mn, from Jan 2011 year till date, as compared to $500 mn in the year-ago period. The number of deals reported this year is 115, compared to 95 in the year-ago period — an increase of 21%. Investments were led by the information technology (IT) and IT-enabled services (ITES) sector which witnessed 62 deals, with a total investment of $323 mn (around Rs.1,453.5 crore), followed by the energy sector with $93 mn in investment. Some major deals include $20 mn by Tiger Global in Flipkart in June 2011; $20 mn by Intel Capital, Nexus Ventures and others in Kaltura in Feb 2011; $20 mn by International Finance Corporation (IFC) in NSL Renewable Power; $18 mn by IDFC PE in Green Infra in August 2011; and $16 mn by Tiger Global and Accel India in Exclusively.in during May 2011. While SMEs are considered key players in the growth of the Indian economy, access to finance for funding growth has been a constant and major challenge for them. Their fund requirements are too large for microfinance institutions, but commercial banks consider them a risk. It is this funding gap that PE and VC funds address. SMEs are typically promoter-or individual-driven and, in many cases, are led by first-generation entrepreneurs. Many of these companies are very competitive and have, over the last few years, capitalised on opportunities that have presented themselves. The sector has traditionally depended on bank loans, but bankers have curtailed lending to SMEs due to the greater risk of non-performing assets (NPAs) in a downturn. Moreover, large firms that raise funds through both the capital market and banks have turned increasingly to banks, ever since the capital market crashed at the beginning of 2008 - thereby offering banks a line of business that is more lucrative than lending to SMEs, said industry representatives. AkzoNobel to strength position in China and India AkzoNobel plans to further strengthen its leadership position in speciality surfactants while enhancing its manufacturing footprint in Asia by acquiring Boxing Oleochemicals. Boxing is the leading supplier of nitrile amines and derivatives in China and throughout Asia. Established in 1993 and based in the province of Shandong, Boxing had revenues in 2010 of approximately €100 mn. Its activities will be integrated into AkzoNobel's Surface Chemistry business, a global leader in the manufacture and supply of speciality surfactants, synthetic and bio-polymers additives, used as formulation ingredients and process aids in many applications ranging from home and personal care to asphalt road paving. Demand in Asia for amines and derivatives is being driven by population growth, expanding middle class, increased focus on sustainability and the build-up of infrastructure, notably in China and India. "This is an excellent opportunity which couples our strategic ambition to accelerate growth in Asia with our commitment to locate production closer to our customers," said Rob Frohn, AkzoNobel's Executive Committee member responsible for Speciality Chemicals. "Boxing's leading market position in amines will complement AkzoNobel's growing speciality surfactant business in Asia. The acquisition will also provide a strong local manufacturing operation in the region." Added Bob Margevich, Managing Director, AkzoNobel Surface Chemistry: "The demand for amines and derivatives is expected to increase significantly over the next few years, with a third of the Asian demand for amines coming from China alone. We plan to enhance the process capabilities and increase capacity at the Shandong site by introducing our state-of-the-art manufacturing technology. We will also introduce new products to the marketplace based on AkzoNobel's product and application knowhow." The completion of the transaction is subject to closing conditions, including the approval of the Chinese authorities. It is expected to be finalised in the last quarter of 2011. AkzoNobel currently employs over 6,700 people in China, with 2010 revenue totalling €1.3 bn. The majority of revenue is generated from local demand. The company's ambition is to achieve revenue of $3 bn in China by 2015. Maharashtra tops in travel & tourism survey Maharashtra topped an all-India annual ranking on travel and tourism, conducted by hospitality consultant HVS for the year 2010-11. Goa was second, followed by Delhi. Some of the criteria include tourist arrivals, expenditure on tourism, presence of branded hotels, marketing campaigns, urbanisation, road and rail

Weekly Newsletter 66 Info-Spectrum Bridging the Information Gap in Corporate Landscape infrastructure and aircraft movement, among others. While Maharashtra scored high on all counts, rising from the fourth rank in 2009 to the top slot, Delhi was relatively weaker on marketing effort, state expenditure on tourism and luxury tax on hotel rooms. Goa needs to improve, said the study, in certain intangible areas like safety and security. The survey also noted that Goa remains a difficult market from a developer's point of view. The state also scored very low on airport infrastructure. However, the survey said that irrespective of how much a hotel developer or investor may complain about the state, Goa remains a strong market from the demand perspective. Tamil Nadu dropped from the number one position in 2009 to the fourth place this year. While it continued to do well in tourist arrivals, branded hotel rooms, road and rail infrastructure, the state has reduced its budgetary provisions for travel and tourism. The state also scored low on luxury tax. Karnataka has been one of the largest gainers, moving up from the 12th position in 2009 to the top five. The fifth place is primarily due to two reasons: the state's expenditure on travel and tourism, and an effective marketing campaign. The state increased its budgetary spending on travel and tourism from 0.03% of the total in 2009-10 to 0.22% in 2010-11. Andhra Pradesh, in the 15th place, took a hit because of the ongoing Telangana dispute and high-risk security concerns. Among other Indian states, the biggest fall was seen in the ranking of Arunachal Pradesh, at 22nd due to budgetary cuts on the tourism sector. Uttar Pradesh and Haryana moved up in the ranking to 12th and 16th place, respectively. While UP performed poorly on most grounds, it scored due to tax-friendly policies and a high number of domestic tourist arrivals. Haryana's ranking improved due to the surge in hotel inventory in Gurgaon. The survey said both states need to improve their socio-economic indicators in the light of the hotel investments being made. Mediclaim portability starts in Oct Come Oct and health insurance policyholders, dissatisfied with the service of their insurer, can switch to another company and carry with them their track record and no-claim bonuses. The IRDA issued final guidelines which gives insurance companies directions on portability. In terms of the guidelines, a policyholder will have to approach an insurer 45 days before his policy with the old insurer expires, to enable the new company consider his application. The acquiring insurer will verify the claims history from the common database which will have two years of claims experience. Based on the data, the acquirer will decide whether to accept the proposal and the price at which it will do so. The old insurer will be bound to provide additional data to the new insurer within 7 days of receipt of the application and the new insurer will have to either accept or reject the proposal within 15 days after receipt of data from the old insurer. If the decision is not communicated within a fortnight the new insurer will be bound to accept the proposal. "It is unlikely that there will be a price war as insurers will quote rates based on what they have filed with the regulator," said K G Krishnamoorthy Rao, CEO, Future Generali Insurance. He added that since Future Generali was a relatively young company, portability was an opportunity to acquire new customers. Besides benefiting those who are unhappy with the service provided by their current insurer, portability will also benefit those who are covered under a group policy provided by their employer and do not have any individual policy of their own. According to the final guidelines, the insured under the group policy will have to first shift his policy into an individual or a family floater cover with the same insurance company which has provided the group policy. After a year he will have the option to shift to any other insurance company just like any other individual policyholder. While the new insurer will be bound to consider every application, the acceptance will be subject to the new insurers rules. For instance, if the old policy offers 90 day post hospitalization treatment and the new insurer provides only 60 days, the new policy will have only 60 days cover. According to one private insurer, companies have been providing portability albeit selectively to customers based on their renewal notices. The advantage of the present guidelines are that they completely remove the risk that the new insurer will reject a claim on the grounds that the ailment was existing before the policy was issued. Swiss Re sees global insurers' Jan-Jun losses double to $70 bn The global insurance industry's losses more than doubled on year to $70 bn during Jan-Jun largely due to catastrophes--natural and man-made, according to estimates by Zurich-based reinsurance major Swiss Re. In the same period last year, the insurers' losses stood at $29 bn. Claims from natural catastrophes alone reached $67 bn in the first half of this year, compared with $27 bn in the same period of 2010. During Jan- Jun, around 26,000 people lost their lives in catastrophes, including the earthquake at Fukushima in Japan. In 2005, total catastrophe claims had amounted to $120 bn globally. Of this, over $90 bn were due to hurricanes Katrina, Wilma and Rita. "In terms of catastrophe claims, 2011 is already the second costliest year in history for the insurance industry. Additional claims from the ongoing US hurricane season or

Weekly Newsletter 67 Info-Spectrum Bridging the Information Gap in Corporate Landscape expensive winter storms in Europe have the potential to bring figures for the full year even closer to the record claims of $120 bn experienced in 2005," Swiss Re Chief Economist Thomas Hess said in a release. Cords Cable Inds’ unit gets ISO 9001 certification Cords Cable Industries Ltd, which had commenced commercial production at its new state-of-the-art cable manufacturing facility at Kahrani, Rajasthan in January 2011, has received the prestigious ISO 9001:2008 Certification from TUV Rheinland. The new unit spread over 68,360 sq. mtrs. area, has an initial installed capacity 65,000 cable k.ms. With the successful completion of ISO Certification process for its new facility, the company plans to initiate plant approval procedures with various Public Sector Companies, project authorities, consultants & major EPCs. Shri Lakshmi Cotsyn plans Rs.950-cr capex Shri Lakshmi Cotsyn has earmarked over Rs.950-crore for its ongoing expansion of technical textiles and denim fabrics. The company is likely to complete the expansion by Dec 2011. The project is being financed through a term loan from a consortium led by the Central Bank of India and promoters investment of around Rs.299 crore. Besides, the Central Bank of India has also approved syndication of mezzanine debt of Rs.175 crore for the expansion. As part of the expansion, the annual fusible interlining capacity will be raised to 25 mn mtrs, flex fabric to 17 mn mtrs, IRR fabric to 5 mn mtrs, blackout fabric at 20 mn mtrs and nuclear bio- chemical fabric to 10 mn mtrs. The company’s requirement of yarn will be increased to 150 tpd from the current 70 tpd. In view of the present development and huge requirement of yarn after expansion of capacities, the company proposes to install 150,000 spindles and 5,000 rotors to fulfill its requirement. Crompton Greaves promoter Avantha Holdings ups stake to 39.55% Avantha Holdings Ltd, one of the promoters of Crompton Greaves Ltd, has acquired 490,272 shares or 0.08% stake in the company for Rs.74.7 mn through the open market. Avantha Holdings, which has been steadily increasing its stake in the company, now holds 39.55% as against 16.38% as on Jun 30. The promoters are raising their stake to consolidate holding as well as to support the share price by buying from the open market. After Crompton Greaves posted disappointing earnings for Apr-Jun, the scrip has been on the decline. On Jul 19, the company posted a steep drop in Apr-Jun net profit at Rs.794.7 mn as against analysts estimate of Rs.2.07 bn. The company also shocked investors by saying it expects its earnings before interest, taxes, depreciation, and amortisation margin to fall to 8-10% in 2011-12 (Apr-Mar) from 14.4% in the year ended March. Vivanta by Taj launched in Bangalore Taj Hotels and Resorts and Palaces have launched a Vivanta by Taj at Yeshwantpur in Bangalore. The 327- room hotel, spread over 3.5 acres, was set up with an investment of Rs.230 crore. The hotel has over 18,000 square feet of convention and banqueting area, parking capacity for 400 cars, restaurants and recreational facilities, including Jiva Spa, a 24-hour fitness centre and a swimming pool. Vivanta by Taj brand is positioned as an upscale brand and the Taj Group plans to launch five more properties under its Vivanta by Taj brand this fiscal, Currently, the group has 21 hotels under this brand. The company is planning resorts at Amritsar, Nagpur and Guwahati also. “This year, we have opened two properties at Srinagar and Bangalore. We have five more properties coming up in Hyderabad, Bekal-North Kerala, Coorg, Coimbatore, and Gurgaon this year and another in Dwarka by 2012-end,” said Mr Veer Vijay Singh, Chief Operating Officer, Vivanta by Taj. HUL cuts 3.8 kg Surf Excel Blue powder rate 21% Aug, scraps freebie Hindustan Unilever Ltd has cut the price of its 3.8 kg Surf Excel Blue detergent powder in August by 21% to Rs.375, industry sources told. With the price cut, the company has also withdrawn the freebie--a plastic bucket--that it was offering with the product. "A company normally charges Rs.40 or Rs.50 extra for a bucket. So even though the bucket offer has been withdrawn, a Rs.100 cut also means that the company has effectively undertaken a price cut," an analyst of fast moving consumer goods sector said. The company also sells Surf Excel Blue detergent powder in packs of 500 gm, 713 gm, 1.43 kg and 3.1 kg. "At Rs.475, the 3.8 kg pack was a fully priced one compared to the 500 gm and 1.43 kg packs. But with the new pricing, the consumer is being incentivised to go for the higher weight," the analyst said. As per July batches, the 500 gm, 713 gm, 1.43 kg and 3.1 kg packs cost Rs.60, Rs.90, Rs.180, and Rs.445, respectively. The 3.1 kg pack also comes with a complimentary bucket. RBI's corporate investment division sees cos' capex down in FY12 Indian companies' capital expenditure in 2011-12 (Apr-Mar) is likely to be lower than in the previous year, according to an article in the Sep bulletin of the Reserve Bank of India. The article was prepared by the

Weekly Newsletter 68 Info-Spectrum Bridging the Information Gap in Corporate Landscape corporate investment division of the central bank's Department of Statistical and Information Management. Industrial sector growth is likely to soften due to persistent high input prices and rise in cost of capital, the article noted. "The capital expenditure already planned to be spent in 2011-12 aggregated to 2,74,919 crore (Rs.2.75 trn) and if companies do not deviate from the investment decisions and adhere to their investment plan, this pipeline investment is expected to provide the momentum of investment in 2011-12," the article said. In 2010-11, capital expenditure for the current financial year was forecasted to be Rs.3.83 trn, the article said. To meet this forecast, companies will have to invest Rs.1.07 trn over and above the already planned Rs.2.75 trn "Going by the assessment on date, capital expenditure of the above order does not appear to be feasible," the article said. Moldtek to invest Rs.40 cr in 3 plants Moldtek Packaging Ltd (MPL) plans to set up two new manufacturing units, one near Pune in Maharashtra and another in North India. The company also proposes to set up a facility in Dubai to cater to the West Asian market. Moldtek will invest around Rs.40 crore in the three projects which are expected to be commence production by 2012. The Indian plants will be financed through internal accruals, whereas for the Dubai unit the company will tap the debt or equity route to raise funds. The Pune facility will have an initial capacity of 3,000 tonnes per annum, expandable to 4,000 TPA. The facility in Northern India will have a capacity of 2,000 TPA. The company has five units with a cumulative annual capacity of 15,000 tonnes, including three at Hyderabad and one in Daman. The capacity at Daman is being expanded to 19,000 TPA at a cost of Rs.15 crore. The expansion will be complete by Dec 2011. US Consulate properties in South Mumbai up for sale DTZ International Property Advisors Pvt Ltd has invited bids for sale of two properties in Mumbai on behalf of the US Consulate, according to a newspaper advertisement. The two properties for sale are Lincoln House at Breach Candy, measuring a plot size of 8,345 sq mtr, and the Washington House at Altamount Road, measuring 2,712 sq mtr, the advertisement said. According to reports, the US consulate is likely to move to a new facility in the suburban Bandra-Kurla complex. The deal is likely to fetch at least Rs.15 bn for the consulate, newspaper reports said. Chisel & Hammer to invest Rs.250 mn in luxury lingerie ops Chisel & Hammer (Mobel) Ltd plans to foray into manufacturing of luxury lingerie in India, with an initial investment of Rs.250 mn, the company said in a release. Chisel & Hammer has a distribution network of 2,600 dealers across the country, and plans to leverage this network for retailing the new lingerie brand in Tier-I and Tier-II cities, the company said. Promoters up stake in TV18 Broadcast to 59.56% from 58.43% Promoters of TV18 Broadcast Ltd have raised their stake in the company to 59.56% from 58.43%, the company informed the stock exchanges. Until Monday, Network18 Group Senior Professional Welfare Trust, along with other promoter and promoter group entities, had bought over 4.1 mn shares of TV18 Broadcast from the open market for Rs.246.14 mn. Pankaj Polymers seeks shrholders OK for unit demerger Pankaj Polymers Ltd has informed that as per the order issued by the Honorable High Court of Andhra Pradesh dated Aug 25, 2011 pursuant to Company Application No 980 of 2011, company is convening the Extra Ordinary General Meeting of Shareholders of the company on Oct 15, 2011 at 11 00 a.m., at Lions Bhavan, 1-8-179, Lakhapath Building, Behind HDFC Bank, S. D. Road, Paradise Circle, Secunderabad - 500003 to consider and approve the scheme for the De merger of PP Sheets / PP Disposable wares division in to M/s PANKAJ POLYPACK LIMITED in terms of a Scheme of Arrangement under section 391 to 395 of the Companies Act 1956. Esab India says UK co makes bid for parent Charter Intl Esab India Ltd has informed BSE as under: "Our parent company Charter International Plc has informed us that Colfax UK Holdings Ltd, a wholly owned subsidiary of Colfax Corporation has made a cash and share offer for the entire issued and to be issued share capital of Charter International Plc. The Board of Directors of Charter International Plc has decided to recommend to the shareholders of Charter to vote in favour of the Colfax offer." CESC arm Haldia Energy in pact with China co for boilers, turbines CESC Ltd, the RP-Sanjiv Goenka Group-promoted power utility, today said its wholly-owned arm Haldia Energy Ltd has signed a 10-bln-rupee contract with China's Shanghai Electric Group Co Ltd. The contract is

Weekly Newsletter 69 Info-Spectrum Bridging the Information Gap in Corporate Landscape for supply of boilers, turbines, and generators for the 32.5-bln-rupee, 600 MW Haldia Thermal Power Project, which is likely to be completed by Jul-Aug 2014. "We have also signed a broad spectrum cooperation agreement to explore avenues of further cooperation between the two companies for the Indian market...," group Chairman Sanjiv Goenka said at a press conference here. The agreement with Shanghai Electric "could lead to a joint venture" in areas where "possible co-operation could be worked out", Goenka said. "We will become a local company and we will establish Shanghai Electric India Pvt Ltd...So it's a long- term cooperation with Indian companies...," Shanghai Electric Vice-President Zhu Denian said. Shanghai Electric is also supplying boilers, turbines, and generators for Dhariwal Infrastructure Ltd--also an CESC subsidiary--which is building the 600 MW Chandrapur Power Project in Maharashtra at a cost of Rs.32 bn. Goenka said the Chandrapur project is likely to be commissioned by Jul-Aug 2013. CESC expects to raise its generation capacity to 7,000 MW over the next six years at an investment of Rs.300 bn from the current 1,250 MW, the company said in a release. Lok Capital invests $3 mn in Bengaluru BPO co RuralShores Venture capital fund Lok Capital has invested $3 mn in Bengaluru-based rural business process outsourcing firm RuralShores. RuralShores will use the funds for scaling up operations, business development and robust systems and technology development, Lok Capital said in a release. Following this investment, Ganesh Rengaswamy, partner, Lok Capital, will be joining the board of RuralShores. Besides Lok Capital, Housing Development Finance Corp is an existing investor in RuralShores. The company already has 10 rural BPO centres across seven states, with more than 1,000 rural youth on its roll. "The validation of the RuralShores business model, proven track record, and leadership position in the category with big-ticket clientele are some of the key factors that have driven this round of funding," said Rengaswamy. Lok Capital is focused on investments in social enterprises that empower lower income and bottom-of-pyrmaid communities. Lok Capital currently has two funds with a corpus of over $85 mln under its management. Founded by Rajiv B. Lall, who is also the chief executive officer of Infrastructure Development Finance Co, Lok Capital was established in 2000 with a seed grant from the Rockefeller Foundation. Lok Capital currently has invested over $25 mn in companies such as Ujjivan, Basix, Janalakshmi, and Ashirwad. Kilburn Chem gets shareholders' nod to sell chemical division Kilburn Chemicals Ltd's shareholders have approved the sale and transfer of the company's chemical division, including identified assets and liabilities, for a consideration of 1.10 bn rupees, the company said in a regulatory filing. The chemical division of the Chennai based-company manufactures and sells anatase grade titanium dioxide, the release said. Temptation Foods to mull raising 1 bln rupees Sep 22 Temptation Foods Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 22, 2011, to consider and approve the following matters: 1. Extension of time for holding of Annual General Meeting. 2. To appoint Aabid & Co. Company Secretary, Mumbai for Corporate Law Matters & SEBI matters. 3. Issue of Global Depositary Receipt (GDR)/ Preferential Issue/ Right Issue up to Rs. 100 Cr. Coca Cola India, Jain Irrigation in pact for mango farming project Jain Irrigation Systems Ltd and Coca Cola India have entered into a pact to cultivate mangoes using the ultra high density plantation methodology, the two companies said in a joint release today. Jain Irrigation and Coca Cola will together spend $2 mln on the mango plantation project Unnati over three years, said Atul Jain, joint managing director, Jain Irrigation Systems. In the initial phase, mangoes will be grown over 120 ha in Andhra Pradesh. Under the ultra high density method, gestation period for mango plants is three-four years less than in traditional cultivation, making mango orchards commercially viable sooner. It also allows 600 trees to be planted over an acre compared to 40 trees through conventional plantation, the release said. The first phase of project will commence on select mango farms in Chittoor and Cudappa districts of Andhra Pradesh. The project will undertake cultivation of Totapuri variety, which is a key ingredient used in the production of Coca Cola's fruit-based drink Maaza. Jain irrigation is one of the largest suppliers of mango pulp to Coca Cola India. RBI Policy: Will Mint Street pause on subtle cues from North Block? The setting couldn't have been better. Far away from the national capital and the centre for policy action, Finance Minister Pranab Mukherjee dropped more than a subtle hint in the quiet of Kolkata earlier this month when he told a motley group of journalists that the current round of rate tightening may not have to be extended.

Weekly Newsletter 70 Info-Spectrum Bridging the Information Gap in Corporate Landscape

US food flavours maker McCormick, Kohinoor Foods forms JV US food flavours maker McCormick & Co and Delhi-based Kohinoor Foods have completed the formation of a joint venture to market basmati rice in the country, the partners said on Wednesday. The venture, announced three months back, will be called Kohinoor Specialty Foods India. Satish Rao, who has worked with McCormick for the past 16 years, will be the managing director of the firm with 275 employees and a production facility at Haryana. McCormick, which has invested $113 million in the venture, holds 85% stake in it. Daikin to invest Rs 250 cr Daikin of Japan is investing Rs 250 crore to augment production of room air-conditioners (ACs) and enhance service network in the country. A new manufacturing line, with an annual production capacity of 5 lakh room ACs would be installed at the existing facility at Neemrana in Rajasthan. This line is expected to be operational by July 2012. Of the Rs 250 crore investment, Rs 122 crore would be for setting up a new line for production of room ACs and the balance would be used to reinforce the service centres and distribution networks. Presently, the company imports room ACs for the Indian market from Thailand. So far, Daikin has invested Rs 210 crore at its Neemrana plant. The new unit will also house a sub-research centre for customisation of products for the Indian consumers. Country Chicken to venture into Indian market Country Chicken, a premier food chain of Australia, plans to foray into Indian restaurant market and is teaming up with the Chennai-based Star Quick Service Restaurants for the venture. Country Chicken plans to open 300 outlets in three years through the franchisee route and has earmarked Rs 200-crore investment by 2015. However, the two companies will jointly invest and set up centralised kitchens based upon the number of outlets. The company also plans to set up express take-away and larger fine-dining restaurants for the metros and other big cities. Besides, the food chain is also targeting institutions – educational as well as IT parks. Besides, there are also plans to develop processing units to supply processed chicken and pizza range across outlets. Nalli Silks plans Rs 150 cr capex for retail expansion Nalli Silks is mulling Rs 100-150 crore investment for retail expansion over the next two years. The company will set up stores in smaller cities across India. The expansion will commence with the launch of a store in Coimbatore in April 2012, followed by more stores in Delhi & Punjab. The company plans to foray into the eastern market with a store in Kolkata and open three more stores at Puducherry, Kanchipuram and Ahmedabad. Presently, Nalli has got 24 stores across the major metros like Chennai, Bangalore, Delhi and Mumbai and a strong brand presence in South India. Nalli has got stores in US and in Singapore and plans are underway to open in Sri Lanka. Bergner India to set up manufacturing unit in Gujarat Bergner India, a subsidiary of Austrian kitchenware making company Bergner Austria, is scouting for land to set up a manufacturing unit in Gujarat. The company is considering Dahej near Bharuch for the proposed plant, but details regarding the project are yet to be finalised. This will be the first manufacturing facility in India. Currently, Bergner Austria has manufacturing facilities in China, Italy and Thailand. Vidhi Dyestuffs commences production at new unit Vidhi Dyestuffs Mfg. Ltd. has commenced commercial production of the first phase of its second Synthetic Food Colour manufacturing facility at MIDC Dhatav in Roha district of Maharashtra. The expansion is being implemented in two phases. The first phase will be add 960-million tonnes per annum capacity to the existing capacity of 1140 MTPA, thereby increasing its total annual production capacity to 2100 MTPA. The second phase is expected to commence production by November 2011. The second phase will add an additional capacity of 1260 M thus taking the total capacity to 3360 M. CAG seeks powers to evaluate Sebi, Trai, Irda Indian government auditor CAG is seeking to widen the scope of its powers to audit the performance of regulators such as SEBI (Securities and Exchange Board of India), TRAI (Telecom Regulatory Authority of India) and IRDA (Insurance Regulatory and Devpt Authority) as part of the new legislation that will replace the CAG Act, 1971. MTE Inds, Escofier of France float JV for rolling dies unit MTE Industries and Escofier of the Galile Group of France have signed an agreement to form a joint venture company named MTE Escofier Forming Technologies Pvt Ltd, to manufacture a range of rolling dies at

Weekly Newsletter 71 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Hyderabad, Andhra Pradesh. The 50:50 joint venture project envisages an investment of €4 mn, which will be shared equally by the joint venture partners. Under the agreement, Escofier will transfer technology & provide machinery the electro discharge machine. The JV will manufacture Incremental spline rolling dies and rack rolling dies, gear rolling machines and dies, which will be exported to Europe and other markets. DB Corp to acquire MP Printers' ops on slump sale basis D. B. Corp Ltd has informed that the meeting of the Executive Committee of the Board of Directors of the company held on September 12, 201, a decision was taken for acquisition of running business of M. P. Printers, a division of Writers and Publishers Private Ltd (a Dainik Bhaskar Group company) engaged in high quality commercial printing and having state-of-the-art printing facilities, on a slump sale basis, subject to completion of requisite legal formalities. Anand Electric Supply Co OKs 17-for-1 bonus share issue Anand Electric Supply Company Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 09, 2011, inter alia, have accorded their approval for the following; 1. Issue of Bonus Shares in the ratio of 17 Bonus Shares for every 1 existing Equity Share held; 2. Adoption of new set of Articles of Association of the Company; and 3. Approval of Members of the Company for the above in the Extraordinary General Meeting to be held on Oct 10, 2011. Tata Chemicals JV in pre-construction pact with French co Technip Gabon Fertiliser Co, in which Tata Chemicals Ltd holds 25.1%, has signed a pre-construction services pact with France-based Technip S.A. for the proposed 1.3 mn tn per year urea unit in Gabon. Gabon Fertiliser Co is a joint venture between Tata Chemicals, Singapore-based Olam International Ltd, and government of Gabon. Technip is a project management, engineering, and construction company with significant presence in energy and chemical industry. Pidilite plans facility in Saudi Arabia Pidilite Industries Ltd., which owns the adhesive brand “Fevicol”, is eyeing acquisitions both in India and abroad and planning to expand its overseas business. The company has manufacturing units in Bangladesh, Egypt and Dubai and another manufacturing facility in Saudi Arabia. “We want to set up a plant in Saudi Arabia as a part of our overseas expansion plans. However, it is difficult to mention a timeline as it depends on the economic conditions and demand in that country,” said Manab Ghosh, President - Business Development, Fevicol Division, Pidilite Industries. Promoter Avantha Holdings ups Crompton stake to 39.8% from 39.5% Avantha Holdings Ltd, one of the promoters of Crompton Greaves Ltd, has raised its stake in the company to 39.8% from 39.5%, it informed the Bombay Stock Exchange. Avantha bought 0.25% or over 1.6 mn additional Crompton Greaves shares through the open market, it said. On Sep 12, it had acquired 0.08% stake in the electric equipment maker for Rs.74.7 mn through the open market. Promoters' stake in Alok Ind rises to 29.82% from 29.56% Alok Industries Ltd has informed that Alok Finance Private Limited a promoter group Company have purchased additional equity shares of the Company in the open market under creeping acquisition (constituting 0.26% of the paid up capital of the Company) and thereby increased their holding in the paid up capital of the company to 2.62% from 2.36%. With this acquisition, the holding of Promoters and Promoters Group of the Company in the paid up capital of the Company stands at 29.82% from 29.56%. United Breweries launches locally-brewed Heineken beer in India India's largest beer maker United Breweries Ltd launched locally brewed and bottled Heineken beer in pint and bottle sizes in in the country. United Breweries had entered an agreement with Netherlands-based Heineken Group in 2009 for manufacturing and distribution of Heineken beer in India. Samar Singh Sheikhawat, senior vice president, marketing, at United Breweries said the Heineken brand has been received well in Mumbai and Pune and would now be launched in the rest of the country. Future Group plans to divest stake in non-core ops next 6-12 months The Future Group plans to divest stake in its non-core business, valued Rs.45-50 bn, over the next 6-12 months. Chief Executive Officer Kishore Biyani said the company will cut its debt after the stake sale. Future is in talks with private equity firms like JP Morgan and KKR to sell stake in Future Capital, its financial services arm.

Weekly Newsletter 72 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Official says NSE to launch SME bourse in 2-3 weeks National Stock Exchange is likely to launch a share trading platform dedicated to small and medium enterprises in the next two to three weeks, Vice President K. Hari said. "We are going to launch the SME exchange very, very soon," Hari told reporters on the sidelines of an event here. Earlier this year, the Securities and Exchange Board of India had given in-principle approval to NSE and the Bombay Stock Exchange to launch such platforms. According to media reports, BSE is also gearing up to launch the platform by Oct. Delta Corp arm told to pay 65 mn Rs. on casino ship duty evasion Delta Corp Ltd's step-down subsidiary, Victor Hotels and Motels Pvt Ltd has been asked to pay Rs.65 mn for under payment of customs duty on the import of new casino vessel Horseshoe Casino, a Directorate of Revenue Intelligence source said. Victor Hotels had wrongly classified the vessel and also suppressed its value, the source said. Victor Hotels has so far paid Rs.59 mn, the source said. Delta Corp also owns the vessels Casino Royale Goa and King's Casino, which ply on the Mandovi river in Goa. Promoter Ekta Kapoor ups stake in Balaji Telefilms to 16.02% Promoter Ekta Kapoor bought 3,791 shares of Balaji Telefilms Ltd via the open market on Sep 6, taking her total shareholding to 16.02% from 16.01%. Of the 3,791 shares, Kapoor purchased 3,587 shares on the National Stock Exchange for Rs.104,314, while the rest were bought on the Bombay Stock Exchange for Rs.5,926, the disclosure said. Pitti Laminations allots 4 mn shr at Rs.39.15/shr Pitti Laminations Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 07, 2011 has allotted 4050000 equity shares to the Promoters on a preferential basis at a price of Rs.39.15 per share in accordance with SEBI ICDR 2009 guidelines. 1. Pitti Electrical Equipment Pvt. Ltd - 3490000 shares. 2. Smt Madhuri S. Pitti - 560000 shares. Lock out at Amit Spinning Kolhapur yarn unit lifted Amit Spinning Industries Limited has informed the Exchange that a Lock Out in yarn manufacturing unit of the Company located at Kolhapur, Maharashtra has been lifted, the management and the labour Union has reached a fruitful understanding and production is likely to start shortly in the said unit. SEBI head says draft norms on advisors, distributors to be out soon Securities Exchange Board of India Chairman U.K. Sinha said the regulator will bring out a draft paper on investment advisors soon. He said the advisory and distribution roles being mixed up look very risky due to the conflict of risks involved. Official says Hindustan Unilever to hire around 1,000 people FY12 Hindustan Unilever Ltd plans to hire around 1,000 people this financial year, Executive Director-Human Resources Leena Nair said. The company's attrition rate was 5% in the past 12 months but has now fallen below 5%, Nair said at an event organised by the Confederation of Indian Industry. EIH Ltd promoter increases stake in co to 14.01% via open market buy EIH Ltd promoter Oberoi Hotels Pvt Ltd has increased its stake in the company to 14.01% from 13.97% by acquiring 206,651 shares between Sep 2-6 from the open market, according to a regulatory filing to the stock exchanges. Shoppers Stop now sees Hypercity turning profitable beyond 2012-13 Shoppers Stop Ltd sees challenges in penetration of Tier-II cities by its subsidiary, Hypercity Retail (India) Pvt Ltd, and has advanced the prospects of the arm turning profitable at the net level by another six months. India to have over 4 lakh mnaires by year 2012 The mnaire club is set to witness a major boom as their numbers are expected to more than double to 4.03 lakh by 2015 on the back of a robust economic growth and impressive returns from stock and property markets. Govt OKs PSU cos bidding for stake in Russian diamond firm Alrosa Government has given its nod to state-owned companies, such as MMTC Ltd, buying a stake in Russian diamond company Alrosa, which is looking to divest 20% stake this year for over $2 bn. Rough diamond supplies are sought to feed India's Rs.600-bn industry.

Weekly Newsletter 73 Info-Spectrum Bridging the Information Gap in Corporate Landscape

DB Corp launches 3rd edition of Dainik Divya Marathi in Maharashtra DB Corp Ltd has launched the Jalgaon edition of its Marathi newspaper Dainik Divya Marathi, its third in Maharashtra since May, a company release said. The publishing group had earlier launched the newspaper in Aurangabad in May and Nashik in Jul. Zee Learn to mull fund raising plan Zee Learn Ltd has informed that a meeting of the Board of Directors of the Company will be held on Sep 16, 2011, inter alia, to consider a proposal for raising long term funds by issuance of securities either in domestic or international capital markets. Cabinet to take up new Companies Bill soon: Moily Corporate Affairs Minister Veerappa Moily said he expects the Union Cabinet to take up the New Companies Bill for approval within 10-15 days and expressed hope that it will be passed by Parliament before the end of this year. Industrial growth target may be revisited: PMEAC Industrial growth projections for the current fiscal will have to be revisited in the wake of "disappointing" pace of expansion in the factory output, which plunged in Jul to 3.3%, Chairman of Prime Minister's Economic Advisory Council C Rangarajan said. Law ministry strikes down objections on stake sale in SEZs The law ministry has struck down the revenue department's objections over stake sale in Special Economic Zones, saying a change in equity structure does not amount to transfer or sale of land. The Board of Approvals will examine the case next week. NSE mulls derivative product with European equity index as underlying National Stock Exchange is in talks to launch a derivative product with a European equity index as the underlying, Managing Director Ravi Narain said. NSE also has plans to offer products with indices of Japan or Hong Kong. Formula 1 India organisers slapped 6-bln-rupee customs duty The customs department has demanded 6-bln-rupee duty from Jaypee Sports India, the organiser of the Formula 1 Airtel Indian Grand Prix, slated to start in 45 days' time. The duty is for the equipment brought in for the racing event. French co Saint Gobain eyes Electrotherm's pipes division French construction and glass company Saint Gobain is in talks to buy the pipes division of Electrotherm (India) Ltd, valued at about 3.0-3.5 bln rupees. The Indian company's pipes division has an annual capacity of about 200,000 tn. Econ affairs secy says RBI policy of not interfering in FX right The recent depreciation in the value of the rupee vis--vis the dollar looks to be a short-term phenomenon and the Reserve Bank of India's policy of not intervening in the forex market is a right step, Economic Affairs Secretary R. Gopalan said. INTERVIEW: CFO sees better year brewing for Mcleod Russel in FY12 Mcleod Russel India Ltd, the world's largest tea producer, expects 2011-12 (Apr-Mar) to be a healthy year for growth on the back of higher production and firm prices in both export and local markets due to the prevailing demand-supply mismatch. Source says Dredging Corp plans 17.5-bln-rupee capex in 12th Plan State-owned Dredging Corp of India Ltd is planning beef-up its ageing fleet during the 12th five-year plan period beginning April through investments of up to 17.5 bln rupees, a senior official told. PRESS: Govt may decide on FDI in multi-brand retail only after Apr The government is likely to take a decision on whether to allow foreign direct investment in multi-brand retail sector only after April, Business standard reported quoting an unnamed official close to the development. Sahara plans major expansion in FMCG retail space Business conglomerate Sahara India today announced a mega expansion plan in the fast-moving consumer goods retail space, with plans to launch a range of food and non-food items at over 10,000 retail outlets across 285 cities in India.

Weekly Newsletter 74 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Cabinet may clear manufacturing policy, DMIC fund infusion The proposed National Manufacturing Policy which aims at creating mega industrial zones with world-class infrastructure without the rigid labour and environment laws, is likely to come up before the Union Cabinet. FOCUS: Global risk aversion dims prospect of FX flows, hurts rupees Deleveraging in global markets has taken a toll on the Indian rupees, dragging it below the key 47 per dollar mark with the currency hitting a 15-month low. Crew BOS promoters Elan Trade Post, Fable Concepts cut stake in co Crew BOS Products Ltd's promoters Fable Concepts and Technology Pvt Ltd and Elan Trade Post Pvt Ltd have cut their stake in the company. Two investors make open offer for Safari Ind at Rs.170/share Independent investors Sudhir Jatia and Neeti Jatia have made an open offer for 20% additional stake in the Bombay Stock Exchange-listed Safari Industries (India) Ltd at Rs.170 a share. Pitti promoters make open offer for 20% in co at Rs.41/share Pitti Laminations Ltd's promoters and group company Pitti Electrical Equipment Pvt Ltd have made an open offer for up to 20% more stake, or 2.69 mn shares, in the company at Rs.41 a share. Mandakini Hospitality ups S Kumars Online stake to 9.00% vs 6.29% Mandakini Hospitality Pvt Ltd has raised its stake in S Kumars Online Ltd to 9.00% from 6.29% by purchasing 776,598 shares from the open market. Choice Capital Advisors acquires 2.62% stake in Suave Hotels Choice Capital Advisors Pvt Ltd, a wholly owned subsidiary of Choice International Ltd, acquired 2.62% stake in Suave Hotels Ltd, according to a regulatory filing to the Bombay Stock Exchange. Damodar Threads adding capacity to cut dependence on outsourcing Damodar Threads Ltd is increasing production capacity and reducing dependence on outsourcing to improve operating profit margins, Anil D. Biyani, director of the yarn maker, told. CEO Gupta says worst of rising input cost is behind Marico With easing copra prices, the worst of spiralling input costs is behind Marico Ltd, Saugata Gupta, chief executive officer - consumer products, told. 'Organised kids wear mkt to touch Rs.3,800 cr soon' The organised kids wear market is expected to touch Rs.3,800 crore this fiscal, up from the current Rs.3,000 crore, says a report prepared by Images Retail Intelligence Services (Iris Retail). CSE gets SEBI approval to adopt NSE trading platform The ailing Calcutta Stock Exchange (CSE) has finally received approval from the Securities and Exchange Board of India (SEBI) for its members to share the National Stock Exchange's (NSE) trading platform. RSWM to invest Rs.1,500 crore for capacity expansion Textiles firm Rajasthan Spinning & Weaving Mills (RSWM) plans to invest Rs.1,500 crore in capacity expansion, as it aims to become a USD 1 bn entity in the next five years. Plan panel against CAG scrutiny of PPP projects The Plan Panel is against CAG scrutiny on the role of private sector players implementing the Public Private Partnership (PPP) projects running into thousands of crores. Bengal ties up with IL&FS for skill development The West Bengal government has awarded an Expression of Interest to the IL&FS Skill Development Corporation for enhancing skill of students who opted for voctaional training. Industrial growth falls to a meagre 3.3% in Jul Industrial growth fell to 3.3% in Jul this year on account of poor performance mainly by capital goods, manufacturing and mining sectors, reflecting sluggishness in economy. 'Indian tourist arrival in US to double to 1.2 mn by 2016' The US Travel Association said it expects the number of Indian tourist arrivals in the country to nearly double to around 12 lakh by 2016 compared to last year.

Weekly Newsletter 75 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Indian Hotels appoints Mehernosh Kapadia as ED Indian Hotels Company that owns the Taj brand of luxury hotels today said it has appointed Mehernosh Kapadia as its executive director. Credit card transactions up by over 28% in Jul Transactions worth Rs.7,471.76 crore were carried out using credit cards in the country in Jul, this year, 28.4% more than that in the same month last year. Gulf Oil ropes in Dhoni as brand ambassador Hinduja Group firm Gulf Oil said it has signed Indian cricket team captain Mahendra Singh Dhoni as its brand ambassador for an undisclosed amount. Liquor sales high in Kerala during Onam season Tipplers in Kerala kept up the record in liquor consumption during the current Onam festival season as brews worth Rs.288.63 crore were sold during the 10-day prior to ''Thiruvonam'' on Sep 9. ICICI Prudential launches two life insurance products ICICI Prudential launched two life insurance products, ICICI Pru Elite Life and ICICI Pru Elite Wealth, that offer customers the flexibility of choosing the frequency of their premium payments. 'RBI has good policy of not interfering in forex mkt' The government said the Reserve Bank of India is following a good policy of not interfering in the forex market even when the rupee breached the Rs 48 per US dollar-mark in early trade. Cambridge varsity looking for partnerships in India Aiming to strengthen its engagement with India, Cambridge varsity is looking to form high quality partnerships in the areas of drug discovery and disease management. HINDUSTAN UNILEVER: • Has hiked prices of Rin bar of 250 gms by Re.1 to Rs.13 and 500 gm pack to Rs.50 from Rs.40. • Has also hiked Surf Excel 125 gm bar price to Rs.10 from Rs.7. CROMPTON GREAVES: • Promoter Avantha Holdings has increased its stake in the company to 39.55% through open market purchase. • Promoter Avantha Holdings has raised its stake in the company to 39.8% from 39.5%. BOMBAY DYEING & MANUFACTURING CO: Promoters have acquired 821,932 shares from market. CITYMAN LTD: Has planned preferential issue of 8 mn shares to promoter. ESCORTS: Promoter Harparshad & Co has raised stake to 4.04% from 3.85%. LIC HOUSING FINANCE: Has launched a dual-rate loan scheme with a fixed rate for the first five years and floating rate thereafter. MMTC: Is keen to pick up a stake in Russian diamond major Alrosa. RSWM LTD: Plans to invest Rs.15 bn in capacity expansion as it aims to become a $1-bn entity in the next five years. SR INDUSTRIES: Has approved hiving off terry towel division. ANAND ELECTRIC SUPPLY CO: Has approved 17-for-1 bonus share issue. DB CORP: Will acquire MP Printers on a slump sale basis, subject to completion of requisite legal formalities. EROS INTERNATIONAL: Has signed a multi-film agreement with South Korea's KT Corp to showcase 50 of its film titles on multiple digital platforms. FUTURE CAPITAL HOLDINGS: Future Group's plan to sell stake in the company faces valuation hurdle. HOTEL LEELAVENTURE: Promoters are in exploratory talks to sell their upcoming luxury property in Chennai to industrialist Ravi Pillai in a move to reduce the debt. PITTI LAMINATIONS: Has allotted 4.05 mn shares to promoters on preferential basis at Rs.39.15 each. TATA CHEMICALS: Gabon Fertiliser Co, in which co holds 25.1%, has signed a pre-construction services pact with France-based Technip for the proposed 1.3 mn tn per year urea unit in Gabon.

Weekly Newsletter 76 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ZEE LEARN: Will meet to consider raising long-term fund by issuance of securities either in domestic or international capital markets. ALOK INDUSTRIES: Promoters have raised their stake to 29.82% from 29.56%. ELECTROTHERM (INDIA): France's Saint Gobain is in talks to acquire the company's pipes division as the French firm plans to expand in water distribution segment. UNITED BREWERIES: Has launched locally brewed and bottled Heineken beer in India. HAVELLS INDIA: To expand the product range of its US subsidiary Havells Sylvania. HINDUSTAN UNILEVER: Has roped in four retired high court judges as independent ombudsmen to resolve cases filed against the company by its suppliers, distributors, stockists, and retailers. KILBURN CHEMICALS: Shareholders have approved chemical unit sale for 1.1 bln rupees. KOHINOOR FOODS: Has formed a joint venture with US' McCormick; the latter will invest 5.2 bln rupees and have an 85% stake in the venture. MACLEOD RUSSEL: Expects domestic price of good quality tea to be higher by 10-15 rupees per kg in 2011. MARICO: Does not expect its net profit to meet street estimates the next couple of quarters owing to macroeconomic factors and rising input costs. NAHAR SPINNING MILLS: The Nahar Group's flagship brand Monte Carlo Fashions is in talks with private equity firms to sell 25% stake in the company for around 3 bln rupees. TEMPTATION FOODS: To mull raising 1 bln rupees through equity on Sep 22. VISAGAR POLYTEX: To mull allotment of convertible warrants on Friday. ZUARI INDUSTRIES: To shutdown complex fertiliser plants on input shortage.

Weekly Newsletter 77 Info-Spectrum Bridging the Information Gap in Corporate Landscape

IPO Watch IPO Alert: Jiji Industries plans 9-mn-share issue Jiji Industries Ltd has planned a 9-mn-share initial public offer that constitutes 48.91% of its post-issue paid-up capital. The face value of each share is Rs.10 The advertisement did not specify the price band or the IPO opening date. Hem Securities Ltd is the book-running lead manager for the issue. The Indore-based company manufactures aluminium products for architectural and industrial use and produces aluminium, copper, and zinc alloys. Mercator may sell up to 40% stake in coal arm to investor, via IPO Mercator Lines Ltd plans to sell as much as 40% stake in its coal mining and trading subsidiary, Oorja Holdings Pte Ltd, to a strategic investor, and through an overseas listing, Managing Director Atul J. Agarwal told. "I am already in discussion with investment bankers, to look for an investor..." Agarwal said. "Probably I can bring in an investor now, and I can offload probably 10%, 15% and then look for an IPO (initial public offering)." Over the last three to four years, coal has emerged as the biggest vertical for the Mumbai-based company known primarily for shipping. It has mining operations in Indonesia and Mozambique. Oorja Holdings is likely to be listed in an overseas market only, Agarwal added. "India, (to me) it doesn't makes sense at all," he said. "London looks the best bet to me. Idea is to go to the (stock exchange) main board." "First I will get an investor in... And then probably with the little money, whatever I raise, comes in, I can further acquire assets," Agarwal said. "And then what happens is then you are looking at an IPO to raise more funds. At no point, including the IPO and the investor, I don't think we will dilute more than 40%." And all this will happen within a year. "I would like to do it in six months, but looks unlikely," he said. "Max (maximum) a year. Ek saal mein toh kar hi dunga (I will do it within the year). Otherwise my growth prospects would get hurt." Mercator, Agarwal said, is keen to expand its coal business further and may close a deal to buy a 60-mln-tn mine in Indonesia within 10-15 days. The company has been shifting its focus towards the coal business, looking to become an integrated commodities, logistics and shipping player. The coal business, which also includes trading of the commodity apart from mining, accounted for nearly 50% of Mercator's revenue in 2010-11 (Apr-Mar) at around Rs.13.4 bn. In the first quarter of the current financial year the share of coal in revenue went up to 60%. A year ago, revenue from coal operations was just 20% of the total, and before that it was almost nil. "Now that we have been in Indonesia for four years, I must leverage that knowledge," Agarwal said adding that the company, as of now, is looking for mines only in that country. Mercator is targeting to produce 1 mn tn coal in 2011-12 (Apr-Mar) and the total turnover of coal, including trading, is likely to be over 5 mn tn. The company's total turnover of coal in 2010-11 was 4.88 mln tn including 0.83 mn tn excavated from its own mines. IPO Alert: Prakash Constrowell's Rs.600-mn IPO to open Sep 19 Prakash Constrowell Ltd's Rs.600-mn-rupee initial public offering will open on Sep 19 and close Sep 21, an advertisement in The Financial Express newspaper said. The face value of each share is Rs.10, and the price band for the IPO will be detailed by the company later. The Nashik-based company is engaged in infrastructure development and civil construction. Shares of the company will be listed on the Bombay Stock Exchange and the National Stock Exchange. Intensive Fiscal Services Pvt Ltd is the sole book running lead manager to the issue. Opto Circuits arm may raise up to Rs.10 bn via IPO Opto Circuits (India) Ltd has informed BSE that OPTO EUROCOR HEALTHCARE LTD., wholly owned subsidiary of the Company proposes to raise upto Rs.1000.00 crores through Initial Public offering. IPO Alert: RDB Rasayans price band at Rs.72-79/shr, opens Sep 21 RDB Rasayans Ltd has set a price band of Rs.72-79 rupees a share for its 4.5-mln-share initial public offering that will open on Sep 21 and close on Sep 23. The face value of the each share is Rs.10. The issue will constitute 25.40% of the company's fully diluted post-issue paid up capital. The company plans to use the funds raised by the issue mostly to finance its capital expenditure and to raise the manufacturing capacity by 7,450 tn per annum to 13,500 mn tn per annum, according to the draft red herring prospectus filed with the Securities and Exchange Board of India. The shares of RDB Rasayan are proposed to be listed on the Bombay Stock Exchange. The company is engaged in manufacturing of polypropylene tape, polypropylene woven sacks, woven fabrics, industrial woven fabric, polypropylene woven fabrics and polypropylene woven bags. Chartered Capital and Investment is the book running lead manager to the issue.

Weekly Newsletter 78 Info-Spectrum Bridging the Information Gap in Corporate Landscape

* Securities and Exchange Board of India and the finance ministry are pushing for an e-IPO facility, a move that will help cut the cost of issue and also bring down the listing time to 3-4 days from the current 12 days.

ISSUES ANNOUNCED Size Face Issue Issuer Shares:Rupees Value Issue Period Lead Manager Price (mn:bn) (rupees) Tijaria Polypipes 10.0:0.6 10 50 -- Hem Prakash Constrowell N.A:0.60 10 - 19/09-21/09 Intesive RDB Rasayans 4.5:N.A 10 72-79 21/09-23/09 Chartered Taksheel Solutions 5.5:0.80 10 - 29/09-04/10 PNB Investment

ISSUES CLOSED Size Face To Issue Issuer Shares:Rupees Value Issue Period List Lead Manager Price (mn:bn) (rupees) on PG Electroplast 5.75:N.A 10 190-210 07/09-12/09 - Almondz Readymade Steel N.A:0.347 10 108 27/06-29/06 - Arihant India VMS Industries N.A:026 10 40 30/05-02/06 - Ashika Vaswani Industries 10:0.49 10 49 29/04-03/05 - Ashika

Weekly Newsletter 79 Info-Spectrum Bridging the Information Gap in Corporate Landscape

MERGERS & ACCQUISITIONS == ABROAD-INDIA ==

COMPUTER SCIENCES CORP - APPLABS TECHNOLOGIES Announced: Sep 14 US' Computer Sciences Corp has acquired Hyderabad-based AppLabs Technologies Pvt Ltd for an undisclosed amount. Status: Complete

== INDIA-INDIA ==

AXIS BANK - ENAM SECURITIES Announced: Sep 16 Axis Bank's board approved a two-stage process to acquire Enam Securities for Rs.2.74 bn in cash. Status: Ongoing AMBUJA CEMENTS - DIRK INDIA Announced: Sep 14 Ambuja Cements buys 60% in Dirk India for Rs.165.1 mn. Status: Complete DB Corp - MP Printers Announced: Sep 12 DB Corp to acquire MP Printers on a slump-sale basis. Status: Ongoing VIVIMED LABS - OCTTANTIS NOBEL Announced: Sep 12 Vivimed Labs acquires 60% stake in Hyderabad-based Octtantis Nobel Labs Pvt Ltd for an undisclosed sum. Status: Complete ==GLOBAL M&A==

BERKSHIRE - LUBRIZOL Berkshire Hathway to acquire 100% stake in Lubrizol Corp for about $9 bn. BR PROPERTIRES – WTORRE PROPERTIES Brazilian real estate developer BR Properties to merge operations with rival WTorre Properties in a $2.5 bn deal. DEUTSCHE BOERSE - NYSE EURONEXT Deutsche Boerse gets approval from a German supervisor to buy NYSE Euronext for $9 bn. BROADCOM CORP - NETLOGIC MICROSYSTEMS Broadcom Corp to acquire networking chipmaker NetLogic Microsystems for $3.7 bn. COLFAX CORP - CHARTER INTERNATIONAL Colfax Corp has agreed to buy Charter International for around $2.42 bn. STANLEY CONVERGENT - NISCAYAH Stanley Convergent Security Solutions acquires Sweden's Niscayah for $1.2 bn. HEWLETT-PACKARD - AUTONOMY CORP Hewlett-Packard extends deadline for around $11 bn takeover offer for Autonomy Corp. FOSTER'S GROUP - SABMILLER Australia-based Foster's Group reiterates opposition to a $10 bn takeover bid by rival SABMiller. TECHNIP - GLOBAL INDUSTRIES France's Technip to buy US-based Global Industries for $937 mn.

Weekly Newsletter 80 Info-Spectrum Bridging the Information Gap in Corporate Landscape

RATINGS Vishesh Kumar Contractors' fund based limits get ICRA B+

PSTS Heavy Lift and Shift's fund based facilities get ICRA C

PSTS Logistics' fund based facilities get ICRA C

Regal Plywood Ind's fund based limits get ICRA BB-(stable)

ICRA affirms A(Stable) on Repro India's fund based-term loan

ICRA affirms BBB-(stable) on Sudar Garments' long-term loans

ICRA affirms A1+ on Tata Petrodyne's non-fund based limits

ICRA affirms D on Unitex International's term loan

Vishal Malleables' cash credit gets ICRA B

ICRA affirms BB+(stable) on Nikiyog Buildwell's term loan

Japfa Comfeed India's cash-credit gets ICRA BBB(Stable)

ICRA affirms D on LML's preference share capital programme

Lucky Yarn Tex India's term loan facilities get ICRA B-

Manav Rachna Education Society's term loans get ICRA D

ICRA affirms A4+ on Mehta Brothers Gems' fund based limits

Mothi Spinner's term loan facilities get ICRA BBB+(Stable)

ICRA affirms rtg on Navkar Corp's long term fund based limits

ICRA put Indrox Global's term loans rtg on withdrawal notice

ICRA affirms rtg on Brightstar Infra's fund based facilities

Continental Hospitals' term loans gets ICRA BB

ICRA affirms BBB+(Stable) on Electronica Finance's bank lines

ICRA affirms C on Homera Tanners' fund based limits

Hotel Polo Towers' term loans get ICRA B+

Imperial Garments' fund based limits get ICRA D

ICRA affirms AA(stable) on Indraprastha Medical's term loans

Volkswagen Finance gets Fitch AAA(ind) national long-term rtg

Pawa Builders' term loan gets CRISIL B+/Stable

CRISIL BB/Stable on Rajesh Gems' enhanced cash credit

CRISIL BB/Stable on Saumil Impex's enhanced cash credit

CRISIL affirms rating on Uniline Energy Systems' cash credit

Fitch affirms AAA(ind) national ratings to on DSP ML Capital

Fitch affirms AA-(ind) national long-term rtg on Satyam Auto

Weekly Newsletter 81 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Murli Electrode's cash credit gets CRISIL B+/Stable

Micky Metals' cash credit gets CRISIL BB/Stable

CRISIL affirms BB+/Stable on Eros Motors' term loan

Jindal Nickel and Alloys' cash credit gets CRISIL B+/Stable

CRISIL affirms BBB-/Stable on Kalika Steel Alloys' term loan

CRISIL affirms BBB-/Stable on Kalika Steel Jalna's term loan

MB Rubber's cash credit gets CRISIL B+/Stable

ME Project's cash credit gets CRISIL BB-/Stable

CRISIL affirms CCR AAA corporate credit rating to MRPL

Eastern Navigation's cash credit gets CRISIL B/Stable

CARE affirms A+ on Apar Industries' long-term bank facilities

City Mall Developers' long term bank facilities get CARE BB

CARE retains AA+ on Hindusthan National Glass' bk facilities

CARE affirms A on Micro Technologies' bank facilities

Shri Ramchander Straw Products' bank facilities get CARE BBB-

CARE affirms BBB+ on Visa Steel's long-term bank facilities

CARE affirms grade 2 to Adroit Industries' proposed IPO

CARE ups rtg on Arvind Lifstyle's long-term bank facilities

CARE ups rtg on Arvind Retail's long-term bank facilities

CARE ups Uniflex Cables' bank facilities rtg to A+(SO)

CARE ups rtg on Intec Capital's long-term bank facilities

ICRA cuts rtg on Electronics & Controls Power's term loan

ICRA ups Rai Bahadur Narain Singh Sugar's fund-based limit rtg

ICRA cuts rtg on SA Iron and Alloys' fund-based limits to D

ICRA ups Suzlon Energy's long-term credit facility rtg outlook

ICRA cuts rating on ASP Sealing Products' cash credit to D

ICRA cuts rating on Jyoti CNC Automation's term loans to D

ICRA cuts rating on Lahoti Terra Knitfab's term loans to D

ICRA ups rtg on Prabhat Dairy's term loan to BB+(Stable)

ICRA cuts rating on Permanent Magnets' term loans to D

ICRA cuts rtg on Maritime Energy Heli Air's long-term loans

ICRA cuts rating on Community Centre's term loan to D

ICRA cut rating on Shrichakra Udyog' term loans to D

Weekly Newsletter 82 Info-Spectrum Bridging the Information Gap in Corporate Landscape

CRISIL ups rating on Camlin' cash credit to A+/Stable

CRISIL cuts rating on Amara Raja Power Systems' cash credit

Tata International's term loans get ICRA AA- (Stable)

ICRA affirms BB+(Stable) on SBEC Projects' fund based limits

Mash Agro Foods' term loan gets ICRA B+

ICRA affirms BBB- on Escorts Construction's bank facilities

ICRA affirms A4 on Kadalkanny Frozen Foods' fund based limits

ICRA affirms A4 on Edhayam Frozen Foods' fund based limits

ICRA affirms rtg on Hwaseung Auto Parts' fund based facilities

J-Marks Exim (India)'s long-term bk facilities get CARE BB+

Maxmech Equipments' long-term bank facilities get CARE BB+

Rana Bar's long-term bank facilities get CARE BB

Sidh Designers' short-term bank facilities get CARE A4+

Vardhman Chemtech's long-term bk facilities get CARE BBB-(SO)

Aarambh India's long-term bank facilities get CARE BB

Core Education & Technologies' NCDs gets CARE A+

DJ Exim (India)'s long-term bank facilities get CARE BB+

CARE affirms A4+ on Eastern Exports' short-term bk facilities

Gentleman Suitings' long-term bank facilities get CARE B

AirFlow Equipments' cash credit gets CRISIL BB-/Stable

CARE ups rtg on Ridhi Petrochem's bank facilities to B- vs D

CRISIL A1+ on Shriram Equipment Finance Co's short-term debt

CRISIL affirms A1+ on Godrej and Boyce's CP programme

CRISIL affirms AA-/Stable on Lohia Starlinger's cash credit

CRISIL affirms AAA/Stable on BASF India's NCD programme

CRISIL affirms B+/Stable on Global Ispat's term loan

CRISIL affirms BBB-/Stable on Divyansh Steel's term loan

CRISIL affirms rtg on Geecy Engineering's line of credit

CRISIL affirms rtg on Mahalaxmi Trading Corp's cash credit

CRISIL cuts rating on Suryachambal Power's long term loan

CRISIL cuts rtg on Mangal Precision Products' term loan

CRISIL ups rtg on Diam Star Jewellery's post-shipment credit

CRISIL ups rtg on Galla Food's term loan to BB+/Positive

Weekly Newsletter 83 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Data Sons' cash credit gets CRISIL BB/Stable

ICRA affirms AA-(SO)(Stable) on Rasi Tex India's term loans

ICRA affirms BB(Stable) on Theva & Co's term loans

ICRA affirms BB(Stable) on YSR Spinning' term loan

ICRA cuts rating on Dev Fun Point Realitys' term loans to D

ICRA cuts rating on SMC Power Generation's term loan to D

ICRA cuts rtg on Prafful Industries' term loan to D

ICRA cuts rtg on Shipra Estates' term loans to D

ICRA cuts rtg on Shrichakra Udyog's bank facilities to D

Rasi Seeds' term loans get ICRA AA-(Stable)

Shapoorji Pallonji & Co's commercial paper gets ICRA A1+

Shiv Paras Steel's cash credit gets CRISIL BB-/Stable

Swajas Air Charters' proposed IPO gets ICRA Grade 2

Taneja Iron & Steel Co's cash credit gets CRISIL B-/Stable

Tapasya Shiksha Samiti's term loan gets CRISIL D

ICRA ups Mica Ind's long term fund based facilities rtg to B+

CRISIL affirms A+/Stable on L&T Shipbuilding's long-term loan

CRISIL ups rtg on Gold Star Jewellery Designs' packing credit

CRISIL ups rtg on Gold Star Jewellery's export packing credit

CRISIL BB-/Stable on Jagat Jagdamba Rice & Flour's cash credit

CRISIL BBB-/Stable on Ashtavinayaka Construction's cash credit

CRISIL BBB-/Stable on RCCL Infrastructure's overdraft facility

CRISIL ups rtg on Gold Star Diamond's term loan to BBB-/Stable

ICRA affirms A4 on Diamond Sea Food Exports' fund based limits

CRISIL ups rtg on Varun Beverages' term loan to A/Stable

CRISIL ups rating on Vandana Global's term loan to B/Stable

CRISIL ups rating on Hari Udyog's cash credit to BB/Stable

CRISIL cuts rtg outlook on First Flight couriers' cash credit

CRISIL cuts rating on Divij Infraprojects' cash credit

Lodha Dwellers' NCD issue gets Brickwork A-(SO)

ICRA affirms BB(Stable) on Vatika's fund-based limits

Zylog Plastalloys' fund based limits get ICRA BBB

ICRA affirms C on PSTS Logistics' fund based facilities

Weekly Newsletter 84 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ICRA affirms rtg on Raghu Rama Renewable's fund based limits

REC's long-term borrowing programme gets ICRA AAA

ICRA affirms BB- on Shree Shankar Vijay Saw Mill's cash credit

ICRA affirms BBB-(negative) on Transpek Ind fund based limits

ICRA affirms BB- on Chirchind Hydro Power's bank facilities

ICRA affirms A4+ on Kantilal Chhaganlal Securities' bk lines

ICRA affirms rtg on Lall Construction's fund based limits

ICRA AAA(Stable) on PFC's long-term borrowing plan

ICRA affirms C on PSTS Heavy Lift's fund based facilities

CRISIL BB/Stable on PRG International Electricals' cash credit

Satyamaharshi Power Corp's term loan gets CRISIL B+/Stable

Shivam Corp India's cash credit gets CRISIL B-/Stable

Uttar Pradesh State Bridge cash credit gets CRISIL BBB/Stable

ICRA affirms A1 on Archies' 150-mln-rupee commercial paper

CRISIL affirms BB+/Stable on Modern Packaging's cash credit

Oja Motors Dealer's cash credit gets CRISIL B+/Stable

Orbit Products' cash credit gets CRISIL B+/Stable

Prateek Plastometals' term loan gets CRISIL D

Pravin Mohanlal's cash credit gets CRISIL B+/Stable

Jagmohan Lal Gupta Estates' term loan gets CRISIL B-/Stable

CRISIL B/Stable on Jassar Dental Medical Education Health loan

CRISIL BBB-/Stable on Micas Organics' enhanced cash credit

CRISIL affirms BB+/Stable on Modern Laminators' cash credit

CRISIL affirms BB+/Stable on Modern Packaging's cash credit

CRISIL affirms BBB-/Stable on Apra Auto India's cash credit

Basudha Udyog's term loan gets CRISIL BB-/Stable

CRISIL affirms rtg on Bhandari Foils and Tubes' term loan

CRISIL affirms BB+/Stable on Compact Lamps' cash credit limit

Incom Cables' cash credit gets CRISIL BB+/Stable

CARE affirms A1+ on Shree Ganesh Jewellery's bank facilities

Som Shiva (Impex)'s long-term bank facilities get CARE BBB-

Supreme Gums' long-term bank facilities get CARE B+

Nuberg Engineering's cash credit gets CRISIL BBB/Stable

Weekly Newsletter 85 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Tenova Hypertherm's cash credit gets CRISIL A+/Stable

Kanani Cotton Industries' long-term bk facilities get CARE B

Kirti Stampings' long-term bank facilities get CARE BB

CARE affirms BBB- on Kriti Industries' long-term bk facilities

CARE B+ on Sawar Lall Singhania Memorial Trust's bk facilities

Shiva Cement's long-term bank facilities get CARE BBB

Bijnor Steel & Alloys' long-term bk facilities get CARE BB+

Doaba Rolling Mills' long-term bank facilities get CARE C

Endurance Technologies' long-term bk facilities get CARE BB

GD Overseas' long-term bank facilities get CARE B+

Godawari Power and Ispat's NCDs issue gets CARE A

Fitch ups M&M Financial Services' rtg to AA+(ind) vs AA(ind)

CRISIL cuts rtg on SemIndia Systems' cash credit to D

CRISIL ups rating outlook on Carzonrent's long-term loan

ICRA cuts rating on Westside Hotels and Resorts' term loans

ICRA cuts rtg on Chakradhar Chemicals' cash credit to BB-

ICRA cuts rtg on Just Textiles' fund based limits to D

ICRA ups Mirza International's fund based limits rtg to A-

ICRA ups Superhouse's fund based limits rtg to A- from LBBB+

CRISIL cuts rtg on Aluplex India's cash credit to BB/Negative

ICRA cuts rtg on Jagdish Chand Gupta, Engineers' term loans

CRISIL cuts rtg outlook on Galwalia Ispat Udyog long-term loan

CRISIL cuts rtg outlook on Kashi Vishwanath Steels cash credit

ICRA cuts Blue Bird Arts Manufacturing's fund based limits rtg

Payorite Print Media's term loans get ICRA D

ICRA affirms BBB- on Raghu Rama Renewable's fund based limits

SNN Builders' cash credit limits get ICRA BBB (Stable)

Space Matrix's term loans get ICRA BBB+ (Stable)

ICRA affirms BB (Stable) on Vatika's fund-based limits

ICRA affirms ICRA BBB on Duplex Industries' bank lines

ICRA affirms BBB- on Escorts Construction's bank facilities

Maberest Hotels' term loans get ICRA BB(Stable)

ICRA puts Netalkar Power's bk facilities on withdrawal notice

Weekly Newsletter 86 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ICRA affirms BB- (stable) on Balaji Iron's cash credit limit

Bhagwati Ferro Metal's fund-based limits get ICRA BB+(Stable)

Bhagwati Steel Cast's fund-based bk limits ICRA BB+ (Stable)

ICRA affirms B+ on Airolam's fund-based limits

Arani Power Systems' fund based limits gets ICRA B+

Archies' commercial paper gets ICRA A1

ICRA BBB- on Arvindbhai Bechardas Jewellers' cash credit

Fitch affirms B+(ind) long-term rating on Railone Projects

Fitch affirms BB-(ind) national long-term rtg to Sai Sponge

Fitch B(ind) national long-term rtg to Shalimar Industries

Fitch affirms BB-(ind) long-term rtg to Spencer's Travel

Prachi India's cash credit gets CRISIL B/Stable

Purbanchal Lumbers' cash credit gets CRISIL B+/Stable

Radhika Transmission's cash credit gets CRISIL BB-/Stable

CRISIL affirms B+/Stable on Sandeep Associates' cash credit

CRISIL affirms BB+/Stable on Teleecare Networks' cash credit

Mirza International's term loan gets CRISIL A-/Stable

MSP Paper Mill's long-term loan gets CRISIL D

CRISIL affirms B/Stable on Narmada Cereal's cash credit

Nirvana Fashion Clothing's cash credit gets CRISIL B/Stable

Pattabhi Agro Foods' bill discounting gets CRISIL A4

Aar Aar Technoplast's cash credit gets CRISIL BB/Stable

Artech Realtors' bank loan facility gets CRISIL BB-/Stable

CRISIL affirms BBB-/Stable on Auctus Pharma's long-term loan

CRISIL affirms A1+ on GE Money Housing's short-term debt

Goyal Engineering Polymers' cash credit gets CRISIL BB-/Stable

CARE affirms BBB- on Jyoti Power Corp's enhanced bk facilities

CARE BBB on Oriental Nagpur Bypass Construction bk facilities

RP Industries' long-term bank facilities get CARE BB

Uttranchal Welfare Society's bank facilities get CARE BBB

Vaibhav Ispat's long-term bank facilities get CARE BB-

Ambuja Ginning Pressing & Oil's bank facilities get CARE B+

CARE affirms BBB on Artemis Medicare Services' bk facilities

Weekly Newsletter 87 Info-Spectrum Bridging the Information Gap in Corporate Landscape

CARE affirms BBB- on BLA Coke' long-term bank facilities

Diamond Power Transformers' bank facilities get CARE A(SO)

Hi-Tech Elastomers' long-term bank facilities get CARE BB+

ICRA cuts Shree Swastic Sales Corp's fund based facilities rtg

ICRA cuts Pravara Rural Education Society's term loan rtg to D

ICRA ups rtg on DS Kulkarni Developers' fund based facilities

CARE ups rtg on Garware Polyester's bank facilities to A-

Fitch cuts national long-term rtg on Uttam Sugar Mills

ICRA cuts rtg on Blue Bird Arts Manufacturing's cash credit

ICRA cuts rtg on Dev Fun Point Reality's term loans to D

ICRA cuts rtg on Kanco Enterprises' fund based facilities

ICRA cuts rtg on RTStar Diamonds' proposed bank limits to D

ICRA cuts rtg on RTStar Jewelry's working capital term loans

ICRA cuts rtg on RTStar Solitaires' fund based facilities

ICRA cuts rtg outlook on Super Spinning Mills' term loans

ICRA revises rtg on Artefact Projects' fund based limits

ICRA ups rtg on Steamline Industries' fund based facilities

CRISIL ups rtg on HT Media's NCDs to AA+/Stable

Fitch ups SRF's national long-term rating to AA(ind)

CRISIL cuts rtg on Lulu International Shopping Mall's loan

CRISIL cuts rtg on Rana Denim's cash credit to B+/Stable

RSPL's non-convertible debentures get CRISIL AA-/Stable

CRISIL cuts rating on Saini Industries' term loan to D

CRISIL ups rtg on Speciality Restaurants' term loan

CRISIL cuts rtg on Virola International's packing credit

Tirubala International's fund based limits get ICRA BBB-

ICRA affirms AA on Merck's fund based limits

Plastene India's initial public offering gets ICRA Grade 3

Rane (Madras)'s commercial paper programme gets ICRA A1

Shree Hari Industries' term loans get ICRA BB(Stable)

Tirubala Exports' fund based limits get ICRA BB+

ICRA affirms A+ on Merck Specialities' long term limits

ICRA affirms AA+(stable) on Aditya Birla Nuvo's term loans

Weekly Newsletter 88 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ICRA affirms AA on Afcons Infra's fund-based facilities

ICRA affirms AA+/stable on Barclays Investments' NCDs

Heeru Paints Contracts' term loan gets ICRA BB+(Stable)

Indochem & Polymers' fund based limits get ICRA BB(Stable)

Mash Agro Foods' term loan gets ICRA B+

CRISIL affirms BBB+/Stable on Vishal Infra's cash credit

CRISIL BB-/Stable on Vigneshkumar Spinning Mills' cash credit

SKT. Textile Mills' cash credit gets CRISIL BB+/Stable

CRISIL affirms BBB/Stable on Saj Food Products' cash credit

Shabro Metals & Tech's cash credit gets CRISIL BBB-/Stable

CRISIL affirms rtg on Shree Arihant Tradelinks' cash credit

CRISIL affirms BBB-/Stable on Solid Stone Co's cash credit

CRISIL A3+ on Talib and Shamsi Construction's bank Guarantee

Vanitha Textiles' cash credit gets CRISIL BB+/Stable

Reliance Fabrications' cash credit gets CRISIL B+/Stable

CRISIL affirms B+/Stable on Livingstones' post-shipment credit

CRISIL BB/Stable on Lovely International enhanced cash credit

MS Ship Breaking's letter of credit gets CRISIL B/Stable

CRISIL affirms BBB+/Positive on Machino Plastics' cash credit

CRISIL affirms rtg on Pearson Drums & Barrels' cash credit

CRISIL affirms BB/Stable on Permali Wallace's term loan

Precision Engineering's cash credit gets CRISIL BB-/Stable

CARE affirms A+ on Alok Industries' long-term bk facilities

CRISIL BBB+/Negative on Lanco Infratech's enhanced term loan

CRISIL affirms BB/Stable on Permali Wallace's term loan

CRISIL affirms D on Kundil Sponge Iron's cash credit

CRISIL BBB+/Negative on Lanco Infratech's enhanced term loan

CRISIL affirms B+/Stable on Livingstones' post-shipment credit

CRISIL BB/Stable on Lovely International enhanced cash credit

MS Ship Breaking's letter of credit gets CRISIL B/Stable

CRISIL affirms BBB+/Positive on Machino Plastics' cash credit

CRISIL affirms rtg on Pearson Drums & Barrels' cash credit

CARE affirms A+ on Alok Industries' long-term bk facilities

Weekly Newsletter 89 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Cheminova India's long-term bank facilities get CARE AA-

CARE puts Grabal Alok Impex's bk facilities under credit watch

Servomax India's long-term bank facilities get CARE BBB+

CARE cuts rtg on Gemini Industries & Imaging's NCDs to A

CARE cuts rtg on Pheroze Framroze & Co's bk facilities to BB

CRISIL cuts rating on Kundil Ispat's cash credit to D

CRISIL cuts rating on Kundil Rolling Mills' cash credit to D

CRISIL cuts rating on Noel Pharma's cash credit to D

CRISIL cuts rating on Rana Oil Industries' cash credit to D

CRISIL cuts rtg outlook on Total Packaging Svcs' cash credit

CRISIL ups rtg outlook on Integrated Equipments' term loan

Fitch cuts national long-term rtg on First Blue Home Finance

ICRA cuts rating on P&R Engineering Services' term loan to D

ICRA cuts rating on Yash Papers' term loan to D

CRISIL ups rtg on Specialty Polyfilms India's rupee term loan

ICRA cuts Sri MVR Cotton Oil Mills' fund based facilities rtg

CRISIL ups rtg on Nicomet Industries' cash credit to BB/Stable

ICRA cuts rtg on GSR Textiles' long-term fund based facilities

Weekly Newsletter 90 Info-Spectrum Bridging the Information Gap in Corporate Landscape

GLOBAL ECONOMY Chinese inflation cools in Aug, data show Chinese consumer and producer prices cooled in Aug from a three-year high in Jul, with softening inflationary pressures possibly giving Chinese policy makers more room to manoeuver. Food prices were the biggest factor underpinning the Aug inflation figures, which were slightly above forecasts. The Aug consumer price index came in 6.2% higher than a year earlier, easing from Jul’s three-year-high inflation rate of 6.5%. The PPI rose 7.3% from the year-earlier period, above the 7.1% Dow Jones Newswires forecast and 7.2% Reuters estimate, but slower than July’s 7.5% rise. Food prices remained the major driver for consumer prices, even though data showed a slight overall easing. Food prices were 13.4% higher in Aug than they were a year earlier, easing slightly from Jul’s 14.8% rise. In the final months of the year, they said, prices are likely to soften as a result of the base effects from comparisons against the year-earlier period, when inflation was high. Meanwhile other figures released later by National Bureau of Statistics showed housing investment and consumer spending holding up, though industrial activity was a tad below expectations. Fixed-asset investment in urban areas, an indicator of construction activity, rose 25% in the Jan-to-Aug period, slightly below expectations of a 25.2% rise, according to a poll of economists by Dow Jones Newswires. Value-added industrial output was up 13.5% in Aug from a year earlier, cooling from July’s 14% rise and below the forecast for a 13.7% rise expected in the Dow Jones Newswires survey. Retail sales were up 17% in Aug from a year earlier, while investment in real-estate jumped 33.2% to 3.78 trillion yuan ($590 bn) in the Jan-Aug period, compared to the 33.6% rise in the first seven months of the year. Bank of Mexico's Aug. rate decision was unanimous The Bank of Mexico said that its members voted unanimously last month to hold interest rates steady, although discussions of worsening domestic and world growth prospects, as well as lower inflation risks, led to the central bank opening the possibility of cutting rates in the future. In the minutes to last month's policy meeting, the central bank said that all members agreed external economic conditions had deteriorated since the previous meeting, and that while Mexico's economy continued growing, prospects for growth were less favorable. The bank held the overnight lending rate target at 4.5%, and indicated in its Aug. 26 statement that it could consider rate cuts if economic and market factors led to a tightening of monetary conditions. The statement was seen by numerous analysts as a shift to a neutral bias from a tightening bias, although expectations for rate cuts this year have been increasing. Members agreed that any change in monetary policy would keep in focus the goal of meeting the bank's 3% inflation target, the central bank said. During the discussions, several members said that annual inflation has hardly ever been below 3%, even though the bank's target range is 2% to 4%. While some members noted that core inflation excluding corn and tobacco was under 3%, others were concerned that food prices, beyond their heavy weighting in the consumer price index, could influence inflation expectations and affect the poorest parts of the population. Annual inflation measured by the consumer price index was 3.42% at the end of Aug, compared with 3.55% at the end of Jul. Food prices remained among the main contributors to inflation, up 6.2% from a year earlier. Members discussed the effects of currency moves on inflation, noting that while a stronger peso earlier in the year helped keep inflation down, the recent depreciation of the currency ran the risk of reverting that effect. One member noted that passthrough from the currency to inflation has fallen significantly in Mexico. Members also commented that although local debt yields have fallen--yields on government paper up to one year have been consistently below the 4.5% policy rate--they remain relatively high compared with the U.S., which could lead to "unnecessary tightening" of monetary conditions in Mexico, which the bank has said would be the cue for considering rate cuts. One member considered that monetary conditions have become looser and will become even looser if the peso continues to depreciate. Fitch reiterates risk to China credit rating Fitch Ratings expects China's government to intervene to support the country's banks, but warned again that this support "carries negative implications for the sovereign rating". Fitch reiterated that it "believes there is a significant risk of banking system stress over the next few years" in the notes of a presentation made by Charlene Chu, head of China financial institutions at the ratings company, in London. In Apr, Fitch revised its outlook on China's long-term local currency default risk to negative from stable, warning that a lending binge by state-owned banks could create contingent liabilities for the government. S&P raises Israel's foreign-currency rating Standard & Poor's raised its long-term foreign-currency sovereign rating on Israel a notch, citing the nation's improved economic policy flexibility. The credit ratings company has the ratings at A-plus, four steps below the highest level of investment grade. S&P also affirmed Israel's local currency rating at AA-minus, which is

Weekly Newsletter 91 Info-Spectrum Bridging the Information Gap in Corporate Landscape one level higher. The outlook is stable amid S&P's opinion that Israel's "popular consensus" about containing public debt will remain despite social protests. The ratings could be raised if Israel "makes material progress in defusing external security risks," S&P said. On the other hand, downward pressure on the rating could arise if there is "any significant setback with regard to fiscal consolidation, a reversal in external performance, or a substantial deterioration of the security situation in Israel." S&P said Israel's ratings benefit from a prosperous and resilient economy, strong institutions, continuing debt reduction and current account surpluses. However, in addition to tense relations with Palestinians and regime changes among a number of neighboring countries, a "sizeable" public debt burden weighs on the ratings. ECB's Nowotny: Stark exit won't change direction The fundamental direction of the European Central Bank will remain unchanged even after Juergen Stark leaves the bank, ECB Governing Council member Ewald Nowotny said. "The basic orientation of the ECB, which is clearly set in the EU treaty, remains untouched by the resignation of Juergen Stark," Nowotny said in a statement. The statement also said that the Austrian National Bank, which Nowotny heads, regretted Stark's decision to leave the ECB's Executive Board. The ECB announced that Stark, often referred to as the bank's chief economist--though that isn't an official title--and an outspoken advocate of tight monetary policy, would leave the bank before his term expires in May 2014 due to personal reasons. The ECB said Stark would stay in his position until a successor is found, which should be by the end of the year. Nowotny also said that Stark would still give a speech in Vienna, as previously planned. G-7 seeks to calm market fears on Europe, banks The finance ministers and central bankers of the Group of Seven richest industrial countries sought to calm market fears about Europe’s debt crisis. In a statement after stocks in Europe and the United States sank Friday on heightened worry about Greece’s debt crisis, the G-7 reminded investors that Europe was acting to ameliorate the situation and that the countries would stand behind the banking and financial systems. A senior U.S. official told Dow Jones that the G-7 leaders spent most of their time behind closed doors dissecting Europe’s problems. The group trumpeted the EU’s Jul 21 agreement to ease financial tensions, saying it would make the European Financial Stability Fund more flexible. At the same time, the euro-zone countries reaffirmed their “inflexible determination” to honor their sovereign debts and their commitments to sustainable fiscal policies and structural reforms. The G-7 said that their central banks “stand ready to provide liquidity to banks as required. … We will take all necessary actions to ensure the resilience of banking systems and financial markets.” The group also said it would maintain close consultations about exchange markets. After the meeting, German Finance Minister Wolfgang Schaeuble dismissed a report by Bloomberg News that German officials were readying a plan to recapitalize German banks should their Greek holdings overcome balance sheets. Schaeuble insisted that the agreement reached with Greece in Jul was still the focus of the government. “To speculate over other outcomes is pointless,” he said, according to Dow Jones. European Union Commissioner for Economic and Monetary Affairs Olli Rehn told reporters after the G- 7 meeting that European banks were better capitalized than they were a year ago, Dow Jones reported. The G-7 statement said that countries must find a way to support the global recovery given the clear signs of a slowdown: “Given the still-fragile nature of the recovery, we must tread the difficult path of achieving fiscal adjustment plans while supporting economic activity, taking into account different national circumstances.” U.S. officials said that the G-7 offered strong support for President Barack Obama’s $450 bn jobs plan. The G-7 consists of Canada, France, Germany, Italy, Japan, the United States and the United Kingdom. Stocks were rattled after the European Central Bank said that Juergen Stark, a proponent of higher interest rates, would step down from its executive board by the end of the year. Read more about Stark’s resignation. But ECB President Jean Claude Trichet told reporters that Stark resigned for personal reason, Dow Jones said.. Some ECB watchers had speculated the resignation was a signal of a possible dispute among policy makers over how to combat the regional debt crisis. Bundesbank President Jens Weidmann said many of the factors that affected the German economy in the second quarter were only temporary and that no new stimulus was needed, Dow Jones reported. U.S. expanding Swiss bank-account investigation The U.S. is readying legal documents in an attempt to force several Swiss banks and international banks with Swiss branches to reveal the identities of U.S. clients evading bns of dollars in taxes, Reuters reported, citing sources briefed on the matter. The grand jury subpoenas and broad requests known as John Doe summonses could be served within about a month on 10 banks, including some with headquarters outside Switzerland, Reuters reported, citing the sources.

Weekly Newsletter 92 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Pain Mounts for Europe Banks Fears About Greece Persist Despite Efforts to Quell Worry Europe's banks, burdened by concerns about exposure to ailing Greece, took a perilous turn despite efforts by the biggest of them to calm panicked investors. France's financial system was especially hard hit, with shares in its three largest banks all falling more than 10%, as concerns about Greek default continued to cascade across Europe. European banks are cutting back on dollar-denominated loans, a troublesome sign of credit contraction at a time when American and European economies can least afford it. Frictions Remain as U.K. Leader Visits Russia U.K. Prime Minister David Cameron sought to find common ground during the first visit by a British leader to Moscow in six years, but talks equally highlighted the lingering points of friction between the two sides. After their Kremlin meeting, Russian President Dmitry Medvedev said Moscow still opposes Western efforts to bring new sanctions against the government of Syrian President Bashar Assad. He also made clear the Kremlin isn't softening its rejection of British calls to extradite Andrei Lugovoi, the Russian KGB veteran London suspects in the 2006 poisoning murder of Kremlin critic Alexander Litvinenko in the British capital. China trade surplus shrinks sharply China’s trade surplus narrowed in Aug as imports jumped sharply, suggesting domestic demand remains a bright spot for the Chinese economy. China’s trade surplus totaled $17.8 bn in Aug, according to customs data released Saturday, narrowing from $31.5 bn in Jul. Imports rose 30.2% from a year earlier, and gained on the 22.9% rise in Jul. Exports rose 24.5% on the same year-ago period, improving from a 20.4% lift in Jul, the reports said. The rebound in imports was reportedly largely due to Chinese companies’ restocking of raw materials, including refined oil, iron ore and other commodities. Daiwa Capital Markets cautioned against reading too much into the trade numbers, however, saying that Aug figures are distorted by a surge in shipments ahead of the holiday shopping season starting in the fourth quarter. When adjusting for seasonal distortions, exports actually declined 3.3% in Aug from the prior month, following Jul’s 5.4% increase, while imports were flat, after rising 1.5% in Jul, according to Daiwa calculations. “On the surface, these figures appear encouraging. However, they are very different on a seasonally adjusted basis. ... A substantial month-on-month drop is certainly not good news,” wrote Daiwa analysts in a note following the data release. Hurricane Irene caused up to $5.5B in insured loss Hurricane Irene, the storm that struck the East Coast late last month, could cost insurers up to $5.5 bn, according to the latest estimate from a disaster-modeling company. The modeling firm, Risk Management Solutions Inc., said Irene caused insured losses of $2 bn to $4.5 bn in the U.S. and $500 mn to $1 bn in the Caribbean. Irene downed trees and power lines, ripped off roof shingles and left mns of homes without power as it carved a path through some of the most densely packed parts of the country. But the worst of the damage from North Carolina to Vermont appeared to be the result of flooding, which isn't covered under standard homeowners' policies and is largely excluded from the RMS estimate. The insured losses pale in comparison to the pricetag of some other recent disasters. Swiss Reinsurance Co. Ltd. (RUKN.VX) last week estimated that catastrophes in the first six months of 2011 cost the insurance industry about $70 bn, primarily because of earthquakes in Japan and New Zealand. Tornadoes that struck the U.S. this year may also have cost more than Irene, according to data from Swiss Re. The series of April twisters caused insured losses of $6.6 bn in Alabama and elsewhere, while May's tornadoes in Missouri and several other states cost $5.9 bn. Previous estimates from a rival modeling company, AIR Worldwide, pegged the insured losses from Irene at $3.5 bn to $7.1 bn in the U.S. and the Caribbean. Moody's cuts American capital goods sector outlook Moody's Investors Service lowered its outlook on the North American capital goods industry to stable from positive, mostly on expectations for continued weakness in the construction sector. The credit ratings company still expects demand for capital goods will increase, but Moody's anticipates the pace will moderate amid increasing concerns about the U.S. economic recovery. Moody's expects replacement demand will continue but new equipment demand will moderate. While Moody's doesn't expect the weakness to lead to a negative outlook in the near future, but a return to a positive view isn't likely until construction "shows meaningful improvement and equipment demand shows renewed growth." Moody's expects that construction activity will be slightly lower this year than in 2010, and anticipates only modest growth for next year. The outlook change comes as Fitch Ratings downgraded several U.S. homebuilders including Ryland Group Inc. (RYL) and KB Home (KBH), reflecting continuing challenges in the U.S. housing market.

Weekly Newsletter 93 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Moody's noted that commercial- and agriculture-related demand may partly offset the softness in the construction sector as truckers replenish fleets and agricultural exports benefit from a weak dollar and population growth in key markets. The latter should help equipment makers such as Caterpillar Inc. and Deere & Co., Moody's said. However, commercial and agriculture are a smaller component of the overall capital goods sector, Moody's noted. Meanwhile, Moody's said weakness in government spending on infrastructure is likely to hurt companies such as Oshkosh Corp. (OSK). Australian business confidence drops in Aug Australian business confidence nosedived in Aug as global markets trembled amid concerns of contagion flowing from Europe and the U.S., raising the prospect of a further rises in unemployment in coming months. According to National Australia Bank's monthly business survey, business confidence fell 10 points to -8 points in Aug from July, with significant falls being posted by a range of industry groups. Business conditions edged lower by 2 points to -3 points in the same period, it said. Australia's multi-speed economy remained a feature in Aug with manufacturing, retail, wholesale and construction conditions very weak, while mining stayed very strong, the survey said. The collapse in confidence raises doubts about the willingness of business to continue hiring in the second half of the year. With fears of a Greek debt default intensifying and global markets still weak in Sep, confidence in Australia is unlikely to see much of a bounce. Stock markets in developed economies were down 10% in Aug, with volatility levels spiking back to levels not seen since 2009. Alexandra Knight, an economist at National Australia Bank, said there isn't much hope of a significant confidence rebound in Sep, given the heightened risks of a credit crunch in Europe and talk of more stimulus being rolled out for the flagging U.S. economy. Manufacturers in Australia were also in the headlines in Aug, with steel maker BlueScope Ltd. (BSL.AU) announcing 1,400 layoffs and the closure of export operations. A lot of the pain for manufacturing is coming from the high Australian dollar, which remains near 30-year highs against its U.S. counterpart. The survey showed the employment index for manufacturing at -25 points in Aug. The turmoil internationally and evidence of a slowdown in some local industries has resulted in the Reserve Bank of Australia signaling a neutral tone recently. Knight expects interest rates to remain on hold at 4.75% until mid-2012, when inflation risks will force a further hike. IEA cuts 2011, 2012 oil demand forecast The International Energy Agency cut its forecast for oil demand in 2011 and 2012 because of the deteriorating global economy, but warned that it may take some time for oil prices to fall because of supply problems that are likely to persist despite the restart of oil production in Libya. In Libya, "the road back to full operational recovery is likely to be a long and difficult one," the IEA said in its monthly oil market report. "So too could be the route to a more comfortable market." The IEA's view contrasts with that of the Organization of Petroleum Exporting Countries, which Monday gave a more bearish outlook for oil prices and hinted that some of its members could manage this risk by reducing production. The two groups largely agree on the weakening of oil demand, but OPEC expects Libya to return to full pre-war crude production twice as quickly as the IEA. The IEA cut its oil demand estimate by 0.2 mn barrels a day for 2011 and 0.4 mn barrels a day for 2012, citing lower economic growth. However, the agency still forecasts oil demand to be marginally higher than current supply next year. "Things are balanced to tight," which explains why international oil prices have remained stubbornly high, said David Fyfe, head of the Oil Industry and Markets Division at the IEA. The oil market could be pushed into a small surplus next year if "significant downside risks" to the economy were to push the rate of global economic growth a third lower, IEA data showed. The balance between oil supply and demand next year, and therefore oil prices, will also depend greatly on the speed at which Libya restores production. OPEC expects Libya to produce 1 mn barrels a day of crude within six months and return to full pre-war production of around 1.5 mn barrels a day within 12-18 months. The IEA expects Libya to be producing between 350,000 and 400,000 barrels of oil by the end of this year and 1.1 mn barrels a day by the end of 2012. It may take two to three years to reach full pre-war output, but even that time scale could be optimistic, the IEA said. "With Colonel Gadhafi still at large and pockets of loyalist resistance still putting up a fight, security remains uncertain," it said. "Repair work could take much longer than assumed, given security issues." U.S. budget deficit is $134 bn for Aug The federal government ran a budget deficit of $134 bn in Aug, the Treasury Department reported, pushing the deficit up to $1.23 trillion for the fiscal year to date. The monthly shortfall was $44 bn more than the deficit recorded in the same month last year. Much of the increase was due to the timing of payments for certain government benefits, Treasury said. Adjusting for one-time transactions and calendar shifts, the year-to-date deficit would be $122 bn lower when compared with fiscal 2010. Without adjustments, it’s $25

Weekly Newsletter 94 Info-Spectrum Bridging the Information Gap in Corporate Landscape bn above where it was in Aug 2010. The $1 trillion-plus pool of red ink is bound to further unsettle members of Congress. The new budget figures arrived as members of the congressional “super committee,” charged with reining in the budget deficit, were diving deeper into their work. Super-committee members seek to identify $1.5 trillion in savings over a decade by Thanksgiving. The deficit hit a record $1.41 trillion in fiscal 2009. Congressional Budget Office Director Douglas Elmendorf warned the panel’s 12 members on Tuesday that the United States won’t be able to keep up its spending programs and policies while keeping current tax policies in place. “Citizens will either have to pay more for their government, accept less in government services and benefits or both,” he said. Read earlier story about 'super-committee' meeting. The panel is also emphasizing job creation, with unemployment at 9.1% nationwide. But Republicans and Democrats differ sharply about how to create jobs, with the GOP arguing for deep tax and spending cuts, and with Democrats saying that some taxes need to rise to pay for infrastructure and other projects. Democrats also want to preserve entitlement programs like Social Security and Medicare and vow that they won’t make changes, unless Republicans agree to raising revenues. Spending on Medicare jumped by $20 bn in Aug, according to the budget statement — a 68% increase over the same month last year. Spending on Medicaid, meanwhile, fell by 12%. In all, the U.S. government spent $303 bn in Aug and collected $169 bn. China CPI likely to rise 5.5% in 2011: report China's consumer price index is likely to increase 5.5% in 2011 from a year earlier, exceeding Beijing's full- year inflation target of 4%, the state-run China Securities Journal reported Wednesday, citing a government think tank. Niu Li, a director at the State Information Center, was cited as saying that China should allow a faster appreciation in its currency to combat inflation and boost domestic consumption. China's CPI rose 6.2% in Aug from a year earlier, a tad lower than July's 6.5% increase. Australia revises Q2 CPI data downward Pressure on the Reserve Bank of Australia to raise interest rates eased substantially Wednesday after the Australian Bureau of Statistics released downwardly revised core inflation data for the second quarter. The Australian dollar was sold heavily after the bureau announced core inflation averaged a seasonally adjusted rise of 0.6% in the second quarter from the first. At the end of July, it reported a rise of 0.9% for the second quarter. Economists said the central bank will now have more time on its hands, with the new inflation figures in line with recent evidence of weakness in the economy. Core inflation is crucial to decision making at the RBA. Michael Blythe, chief economist at Commonwealth Bank of Australia, said he was surprised by the data, describing it as "a significant shift" that will force a rethink about the inflation risks facing the economy. "It will make them (the central bank) more comfortable with the idea of sitting still," he added. The RBA has left official interest rates on hold at 4.75% since November, and recent signs of slowing in the economy have prompted it to indicate interest rates are on hold. Still, the RBA has consistently warned about the risk of inflation and economists said the inflation concerns were a key factor preventing it moving to an easing bias. Aug's Retail Sales Reflect Stalling Recovery U.S. retail sales were flat in Aug, signaling that nervous consumers are putting off spending amid high unemployment and an anemic recovery. However, wholesale prices also were flat, which could ease inflation fears and give the Federal Reserve more leeway to try to spur growth by easing credit.Retail and food- services sales were almost unchanged from the previous month at a seasonally adjusted $389.50 bn, the Commerce Department said Wednesday, significantly worse than many economists had predicted. Spanish banks' ECB borrowing up sharply in Aug Spanish banks sharply increased their borrowing from the European Central Bank in Aug as a deepening sovereign debt crisis cut off alternative ways for banks in southern Europe to fund themselves. According to data released Wednesday by Spain's central bank, gross borrowing by Spanish banks at the ECB's liquidity window shot up to EUR81.22 bn in Aug, compared with EUR57.20 bn in Jul. The figures include funds placed in the ECB's deposit facilities, which more than doubled, to EUR11.3 bn from EUR5.72 bn in Jul. Net borrowing, which excludes the deposit facility, jumped to EUR69.92 bn from EUR52.05 bn in Jul. Both the gross and net borrowing figures were the highest recorded since Sep 2010. The higher dependency on funding from the ECB is an indication that banks are having trouble tapping other financing sources, such as bond markets or repurchase operations. Spanish banks have seen a significant erosion of their ability to raise funds in financial markets, driving them to rely more on ECB funding, as the borrowing costs of Spain's government rose to a decade-high last month amid a worsening of Europe's sovereign debt crisis.

Weekly Newsletter 95 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Moody’s downgrades SocGen, Credit Agricole Moody’s Investors Service downgraded French banks Credit Agricole SA and Societe Generale SA as the credit-rating company also said it has become increasingly concerned about the funding and liquidity needs of the lenders. Moody’s had said in June that it was considering downgrading France’s top three listed banks because of their exposure to Greek debt and said Wednesday that it is still reviewing BNP Paribas SA. The announcements came after big swings for French-bank stocks in recent days amid reports that downgrades were imminent and as investors became increasingly nervous about the banks’ funding situation. Moody’s cut its long-term debt and deposit rating on SocGen by one notch to Aa3 from Aa2 and said the outlook for the rating is negative. Moody’s said SocGen has enough capital to absorb potential losses on Greek- government bonds as well as a deterioration in the creditworthiness of Portuguese and Irish sovereign debt. However, it added that it’s reconsidered the level of potential government support it factors into its rating. Credit Agricole was downgraded one notch to Aa2 from Aa1. The rating company said the bank has “considerable capital resources to absorb potential losses,” but the overall exposures were too large to be consistent with the previous rating. In both cases, Moody’s also highlighted the worsening funding and liquidity situation. “During the review, Moody’s concerns about the structural challenges to banks’ funding and liquidity profile increased, in light of worsening refinancing conditions,” the rating company said. It will therefore continue to review the bank-financial-strength ratings of both firms. In the case of Credit Agricole, that could lead to a further downgrade of its key long-term debt rating, though likely not by more than one notch. The ability of European banks to access funding, especially in dollars, has come under increasing scrutiny in the last few weeks as U.S. money-market funds have reduced their exposure to European banks and shortened the time period over which they will lend money. All three of the French lenders are among the European banks that are most dependent on money-market funds for funding of that type. Read more on the worries bank funding could seize up again. In another sign of the problems banks face getting hold of dollars, the European Central Bank said Wednesday that two unnamed banks will pay a fixed rate of 1.1% to borrow a total of $575 mn in its seven-day dollar term auction. It’s the second time banks have tapped the ECB for dollars in the last month. The facility had not been used for around six months before that. Russia unexpectedly cuts repo, ups deposit rates Russia's central bank unexpectedly cut the spread between repurchase and deposit rates Wednesday, a move it said would ensure liquidity while reducing volatility in money markets. The Bank of Russia cut its repurchase rate by 25 basis points to 5.25% while simultaneously raising the deposit rate by 25 basis points to 3.75%. Both changes take effect Sept. 15. The refinance rate was left unchanged at 8.25%. "The decision to narrow the gap between rates will serve to contain the volatility of money market interest rates amid emerging risks of a ruble liquidity deficit in the banking sector," the central bank said. Market players said that while the move would increase the effectiveness of central bank policy and bring Russia closer to a free float of its currency, it would also weaken the ruble, which has already lost some 9% since Aug. 1 amid turmoil in global markets. Prime Minister Vladimir Putin last month ordered the central bank and finance ministry to be ready to provide liquidity amid global market volatility and Russia's limping economic recovery. Central Bank First Deputy Chairman Alexei Ulyukayev said Sunday that he anticipates tightening liquidity in Sep and Oct, in part because of the bank's policy of reducing currency interventions as it steers the ruble towards a free float. By cutting the spread between the repo rate, which provides liquidity, and the deposit rate, which absorbs it, the Bank of Russia narrows the corridor for money market rates to bounce around in and increases the effectiveness of its policies, said Dmitry Polevoy, an economist at ING. But the move may also weaken the ruble, said Alexander Morozov, chief economist at HSBC Russia. "They are taking another step toward rate targeting, which means that they will have to take a step away from managing the ruble, since a central bank cannot do both at once," Morozov said. That would mean either reducing the volume of foreign currency interventions, or widening the ruble's trading band, now at around 32.25 to 37.25 versus a basket of dollars and euros, Morozov said. The central bank last widened the ruble's trading corridor on March 1. "Since the recent trend in the ruble has been one of weakening, this could ensure that the ruble weakens even faster, without the central bank to prop it up," Morozov said. The new rate levels are "appropriate" for balancing risks of quicker price growth and a slowing economy near term, the bank said. Fitch downgrades Spanish regions on fiscal issues Fitch Ratings Wednesday downgraded five Spanish regions, as worries mount that local governments could derail Spain's efforts to slash one of the euro zone's largest budget deficits. In a short statement, the credit ratings company said it had lowered Andalusia and the Canary Islands to A+ from AA-, Catalonia to A- from A, Murcia to A from AA- and Valencia to A- from A. It has negative outlooks on all five. Fitch cited "sharp

Weekly Newsletter 96 Info-Spectrum Bridging the Information Gap in Corporate Landscape fiscal deterioration" as the reason for the downgrades, noting that the Spanish finance ministry recently said first-half revenue for Spanish regions had declined by 3.6% on the year and that they had a combined budget deficit equal to 1.2% of gross domestic product. The finance ministry also said most of the country's 17 regions were not on track to meet their year-end deficit targets. "Considerable efforts will still need to be undertaken by the regions, particularly in the area of cost controls," Fitch said. In March, Fitch maintained its AA+ rating on Spain but revised its outlook to negative, citing among other reasons weak economic growth and the danger that the regional governments that control one third of spending in Spain would not adhere to their budget targets. Earlier this week, Moody's Investor Service said the Spanish regions' high first-half deficits were "credit negative" for Spain. On July 29, the credit ratings agency put Spain's Aa2 rating on review for possible downgrade. Spain is struggling to cut its overall budget deficit to 6% of GDP this year from just over 9% last year. U.S. wholesale prices are flat in Aug The price of U.S. goods at the wholesale level were unchanged in Aug as another decline in fuel costs offset an increase in food, the Labor Department reported. The more closely followed core producer price index edged up 0.1% last month to mark the ninth straight increase. Core prices are viewed the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. Over the past year wholesale prices have climbed 6.5% overall, though the core rate has risen at a slower 2.5% pace. By and large, companies have absorbed higher wholesale prices, but consumers are still paying more for fuel and other necessities even though costs have leveled off compared to earlier in the year. That leaves them less cash to spend on discretionary items and contributes to economic weakness. Fresh worries about a weak economy contributed to a raft of poor data in Aug. In a separate report Wednesday, for example, the government said retail sales in the U.S. were also flat in Aug. Read about retail sales. Since consumer spending is the main source of domestic growth, flat or declining retail sales are generally a negative sign. Mexico's auto output said up 7.7% from Aug 2010 Mexico's production of cars and light trucks in Aug rose by 7.7% compared with the year-ago month, but exports were lower due to weakness in the U.S., the Mexican Automobile Industry Association said. Total production for Aug was 221,637 vehicles, AMIA said. Auto exports last month fell 3.3% from Aug of 2010 to 170,086 vehicles, with exports to the U.S. slipping 15% to 101,030, AMIA added. Domestic new-car sales rose 13% to 75,680 autos. Through the first eight months of the year, Mexico's auto production was 15% higher than in the same period last year at 1.68 mn units, AMIA added. Brazil July economic activity up 3.4% on year The Brazilian Central Bank's monthly Economic Activity Index for July, released Wednesday, showed a slight rebound in activity after declining in June. The July IBC-Br index was up 0.46% from June and 3.4% from July 2010 on a seasonally adjusted basis, the central bank said on its website. In June, activity contracted slightly from May, while growing 3.07% from the year-earlier month. However, that still represents a decline from yearly figures earlier in 2011, when expansion was closer to 4%. For the accumulated 12 months, economic activity expanded 4.5% on an adjusted basis, the central bank said. Brazil's government had been raising interest rates through July to cool growth, reversing that trend only in Aug on concern a prolonged global economic slump will hurt Brazilian exports and curb economic growth this year. The central bank unexpectedly slashed the benchmark Selic rate half a percentage point, to a still-high 12%. The global slowdown will likely have "one-fourth" the effect of the 2008 crisis, central bank President Alexandre Tombini has said, and curb Brazilian growth this year by 125 basis points. Blast at French nuclear-waste site kills 1 A furnace explosion at a southern French nuclear-waste site operated by a subsidiary of energy provider Electricite de France SA killed one person and injured four others, the French Energy Ministry said. In a news release, the ministry said the explosion occurred in a furnace at the treatment facility. The blast occurred at 12:37 p.m. local time. The Wall Street Journal said EDF confirmed the explosion and, along with the state nuclear regulator, said no leaks had been detected. The newspaper said the village of Codolet, where the plant is located, was not evacuated. China's Aug electric use up 9.1% year-on-year China's total electricity consumption in Aug rose 9.1% from a year earlier to 434.3 bn kilowatt hours, the National Energy Bureau said. From January to Aug, China consumed 3.124 trillion kilowatt hours, up 11.9%

Weekly Newsletter 97 Info-Spectrum Bridging the Information Gap in Corporate Landscape from the same period a year earlier, it said in a statement posted on the National Development and Reform Committee's website. NASA launches twin satellites to map inner Moon NASA launched a USD 500 mn pair of washing-machine-sized satellites on a mission to map the Moon's inner core for the first time. NASA fuels rocket ahead of Moon launch bid NASA began fuelling a Delta II rocket that aims to launch a USD 500 mn pair of washing-machine-sized satellites on a mission to map the Moon''s inner core for the first time. Britain may recast its relationship with EU: Hague Britain may rethink its ties with the European Union, Foreign Secretary William Hague has indicated, as he described the creation of the euro zone without closer tax and spending rules "a giant mistake". 'China plans Long March-5 rocket launch in 2014' The Long March-5 rocket is scheduled to be put into service in 2014, said Liang Xiaohong, the deputy head of the China Aerospace Science and Technology Corporation (CASC) affiliated China Academy of Launch Vehicle Technology which designs and produces the rocket. 'Indo-US ties serve to advance peace in Asia & world' Obama conveyed this to new Indian Ambassador to the US, Nirupama Rao, at a ceremony at the White House last evening during which she presented her credentials. Powerful quake strikes Canada's Vancouver Island A 6.7-magnitude earthquake struck Vancouver Island on Canada's west coast, the US Geological Survey said, but no tsunami warning was issued. ECB's Chief Economist resigns; European mkts plunge Stark had repeatedly spoken against ECB's controversial bond buying programme favoured by its president Jean-Claude Trichet, arguing that it will increase the risk of inflation in the 17-nation euro zone. 6.0-magnitude earthquake strikes off Vanuatu: USGS A shallow 6.0-magnitude earthquake hit off the coast of the South Pacific island of Vanuatu, the US Geological Survey said, but there was no tsunami warning issued. Strong signs of slowdown in India, China: OECD India, China and most of the developed world, including the US, are witnessing strong signs of economic slowdown, according to a Paris-based think-tank OECD. GCC countries to spend USD 100 bn on rail networks A modern rail network is set to connect countries in the Arabian peninsula over the next decade, with Gulf Cooperation Council committing over USD 100 bn to the project. China to spend USD 46.89 bn for Tibet development "The projects, aimed at achieving rapid development in Tibet will cost 330.5 bn yuan in total," said Hao Peng, executive vice chairman of Tibet's regional government, at an internal meeting. 375-mn-year-old fish fossil discovered in Arctic Scientists have discovered fossilised remains of a large predatory fish with a fearsome mouth which they believe prowled North American waterways some 375 mn years ago.

Weekly Newsletter 98 Info-Spectrum Bridging the Information Gap in Corporate Landscape

GLOBAL BUSINESS Samsung Card to sell a stake in Samsung Everland South Korea's Samsung Card said it will sell a 20.64% stake in unlisted affiliate Samsung Everland, valued at around KRW1.34 trn ($1.25 bn), in order to meet regulatory requirements. It is seeking banks to handle the deal. Samsung Card currently owns 25.6% of Samsung Everland and is planning to name lead managers for the deal soon, Samsung Card said in a statement. "We're looking at various options, including a block deal and an initial public offering," Samsung Card said. A time for the sale has yet to be decided. The company is required by a South Korean law to reduce its stake in Samsung Everland--the de facto holding company for Samsung Group--to below 5% by end-April next year. China's Amazon Eyes $5 Bn U.S. IPO China's answer to Amazon.com is targeting a U.S. initial public offering of up to $5 bn next year, despite U.S. investor wariness toward Chinese firms. Alaska Airlines Faces Fine The Federal Aviation Administration said it has proposed a $590,000 civil penalty against Alaska Airlines for allegedly operating a Boeing Co. 737-400 on more than 2,100 flights when the plane wasn't in compliance with regulations. Alaska Airlines is a unit of Alaska Air Group Inc. of Seattle. Google Paid $125 Mn for Zagat Google Inc. paid around $125 mn to buy restaurant-reviews company Zagat Survey LLC, said a person familiar with the matter. The Internet giant announced the deal but didn't disclose the price it paid for the New York-based company. Suzuki to Cancel Alliance With Volkswagen Suzuki Motor Corp. said that it has decided to cancel its alliance with Volkswagen AG, as talks between the two companies on how to join forces have come to a dead end. The decision on the dissolution of their partnership comes a day after Volkswagen served notice of an alleged infringement relating to the supply of diesel engines to Suzuki produced by another manufacturer, without naming the other manufacturer. Malaysian Airline, union talks continue on AirAsia Malaysian Airline System Bhd. (3786.KU) said it will continue to hold talks with employee unions over the collaborative agreement it signed with low-cost airline AirAsia Bhd. (5099.KU) last month. Salamander Energy buys block offshore Thailand Asia-focused oil and gas company Salamander Energy PLC (SMDR.LN) said it has acquired an offshore block in the Gulf of Thailand from Mitsui Oil Exploration Co. Ltd. Salamander said it will become the operator and 100% owner of the block, while Mitsui will retain certain commercial options in the case of a future discovery. Salamander didn't provide further detail about the commercial options. United Energy Group is seeking acquisitions United Energy Group Ltd. (0467.HK), an investment company focused on upstream energy assets, said it is seeking opportunities to acquire oil and gas assets in the Middle East, North and South America and Australia, as part of its strategy to boost production abroad. Air France-KLM to decide Sept. 15 on plane order The board of Air France-KLM (AF.FR) will decide Sept. 15 on a major new order to renew its fleet of medium- sized airliners, the Franco-Dutch airline's chief executive Pierre-Henri Gourgeon said. Scotiabank to buy 19.99% of Bank of Guangzhou Bank of Nova Scotia, also known as Scotiabank, said it is buying a 19.99% stake in state-owned Chinese lender Bank of Guangzhou for about C$719 mn (US$727.1 mn). Moody's further junks Beazer's credit rating Moody's Investors Service pushed its credit rating on homebuilder Beazer Homes USA Inc. deeper into junk territory, pointing to continued pressure from a dismal housing industry and concerns about the company's cash levels. The downgrade to Caa2 from Caa1 keeps the company in highly speculative territory. The ratings outlook remains stable. BAE buys back 1.8 mn shares BAE Systems PLC (BA.LN) announced that it has purchased 1,822,000 of its ordinary shares on the London Stock Exchange from UBS Investment Bank.

Weekly Newsletter 99 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Dillard's credit rating lifted but remains 'junk' Moody's Investors Service lifted its junk-level credit ratings on Dillard's Inc. by a notch, citing rising sales and operating income as well a favorable opinion of the department-store operator's credit metrics. The ratings firm now rates at Dillard's at B1, leaving it four notches into junk territory. The outlook is stable. TriWest pay $10 mn to settle false claims TriWest Healthcare Alliance Corp. agreed to pay $10 mn to resolve allegations that the Arizona-based contractor filed false inflated claims to the U.S. military's Tricare medical benefit plan between 2004 and 2010, the Justice Department said. TriWest was accused of failing to pass on negotiated discounts with service providers to the program, which covers mns of military members, retirees and their families. Freescale Semi credit junk-level despite upgrade Moody's Investors Service raised Freescale Semiconductor Inc.'s junk-level rating one notch as it expects the chips maker's initial public offering proceeds to reduce financial leverage and improve liquidity. Moody's said it raised Freescale's corporate family rating to B2, or five steps below investment grade, from B3. The outlook is stable. NWS Holdings to raise stake in China road operator NWS Holdings Ltd. (NWSGY, 0659.HK) said its wholly-owned unit Moscan Developments Ltd. agreed to acquire a larger stake in a company that operates the Hangzhou Ring Road from a London-based hedge fund, the Children's Investment Master Fund, for US$280 mn. Broadcom to Pay $3.7 Bn to Acquire NetLogic Microsystems Broadcom Corp. announced its biggest-ever acquisition, a $3.7 bn deal for NetLogic Microsystems Inc. that is designed to sharply boost Broadcom's position in chips for networking equipment. Cnooc Takes Role in Spills ConocoPhillips's state-controlled local partner in a Chinese offshore oil project signaled a more active public role as the U.S. oil company grapples with the environmental, economic and political consequences of recent spills in the area. Pimco Buys More Treasurys Bill Gross, manager of Pacific Investment Management Co.'s Total Return Fund, increased his Treasury holdings, according to data released on the firm's website. GE Will Bulk Up German Business GE plans to announce its full German management team, an expansion of facilities including its Munich- based research center, and a German marketing campaign, as the U.S. conglomerate tries to gain traction in the world's fourth-largest economy. Ford Outlines New Small Engine Ford Motor Co., which for decades has pushed the boundaries of big engines to power its sport-utility vehicles and pickup trucks, said it will equip three of its European models with a new three-cylinder engine. BHP Billiton to put employment deal to miners BHP Billiton Ltd. said that it will ask workers at its metallurgical coal mines in Australia to vote on a new employment agreement at the end of the month after negotiations with unions failed to achieve a breakthrough. Charter Int'l agrees to 1.53B-pound Colfax bid Colfax Corp., the U.S.-based supplier of pumps and valves, announced that it has reached agreement on the terms of an offer for engineering firm Charter International PLC for GBP1.53 bn, in a cash-and-share deal, which the Charter board intends to recommend to its shareholders. FriendFinder to pay up to $65M for BDM Global Online dating company FriendFinder Networks Inc. plans to pay up to $65 mn to acquire BDM Global Ventures Ltd. in a move that will give it ownership of BDM's JigoCity deals site. Broadcom buying NetLogic for about $3.7 bn Broadcom Corp. agreed to pay about $3.7 bn to acquire NetLogic Microsystems Inc., a deal Broadcom said better positions it to meet growing demand for integrated, end-to-end communications and processing platforms.

Weekly Newsletter 100 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Coca-Cola Enterprises clears new $1B buyback Coca-Cola Enterprises Inc.'s board approved a new $1 bn stock repurchase program to begin once it completes the current buyback. QR Energy to pay $557M for oil, gas properties QR Energy LP agreed to pay $557 mn in a cash-and-unit transaction to acquire oil and natural- gas properties from Quantum Resources Funds, a deal that more than doubles the company's production capacity and reserves. SocGen CEO downplays potential Moody's duwngrade Societe Generale SA (GLE.FR) Chief Executive Frederic Oudea downplayed the potential impact of a credit ratings downgrade by Moody's Investors Service, as he sought to reassure investors about the strength of France's second-largest listed bank. Marks & Spencer planning £600 mn store update Marks & Spencer Group PLC (MKS.LN) laid out detailed plans for its previously announced GBP600 mn U.K. store improvement budget, as Chief Executive Marc Bolland moves to finesse the changes started by his predecessor, Stuart Rose. IIF warns G-20 about curbing commodity derivatives The Institute of International Finance urged Group of 20 nations not to impose regulatory constraints on trading in commodity market derivatives, warning they could hurt liquidity and distort markets. Moody's upgrades Corning Moody's Investors Service upgraded Corning Inc. by a notch, on expectations that potentially slower growth in its large display business should lower capital spending needs and lead to stronger free cash flow. The credit-ratings company raised the ratings to A3--four notches above junk territory--with a stable outlook. M&F Worldwide to go private in $482 mn deal M&F Worldwide Corp. agreed to be acquired by privately held MacAndrews & Forbes Holdings Inc. at an increased price that values the company at $482.5 mn. Under the definitive agreement, McAndrews will pay $25 an M&F share, a 47% premium to the closing price before MacAndrews announced its an earlier bid for the company. The companies expect to close the deal during the fourth quarter. Moody's downgrades Gentiva, keeps on watch Moody's Investors Service downgraded Gentiva Health Services Inc. a notch deeper into junk and plans to keep reviewing it for another cut, as costly regulations and Medicare reimbursement cuts damped the firm's expectations for the home-health provider. Peru's miners to invest $50 bn in expansion Mining companies in Peru are planning to invest $50 bn in new mines and expansion projects, the government said. The Mines and Energy Ministry had previously forecast that projects in the country's key mining sector would require investments of about $42 bn this decade. The majority of the investments are for copper and gold projects. National Express expands in U.S. with $200M deal Transport operator National Express Group PLC (NEX.LN) signalled its expansion in the student transportation market in the U.S. with the $200 mn purchase of Petermann Partners Inc., America's fifth- largest operator of school buses. Peugeot-Citroen to Step Up Cost Cuts French car maker PSA Peugeot-Citroen plans to step up cost reductions amid an uncertain outlook for the automotive industry, and is in a stronger financial position than in 2008 before the previous crash, its chief executive said. Toyota to Boost Indonesian Output Toyota Motor Corp. said it would crank up production in Indonesia by more than 60% in a move to maintain its dominant position in Southeast Asia's largest economy. Japan's largest auto maker said that it will invest around $340 mn to build a new factory which will lift its capacity to 180,000 vehicles a year in Indonesia by the middle of 2013, from about 110,000 vehicles.

Weekly Newsletter 101 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Verizon to Push $50 Unlimited Prepaid Plan Verizon Wireless will introduce a new unlimited prepaid plan nationally this week, taking on rivals Sprint Nextel Corp. and MetroPCS Communications Inc. as they continue to add customers seeking contract-free service. Ford, UAW Extend Labor Contract Ford Motor Co. and the United Auto Workers union said they extended their existing contract past to allow negotiations on a new agreement to continue. Dell Sets $5 Bn Buyback Dell Inc.'s board approved a plan for the computer maker to buy back up to $5 bn in stock, or about 19% of the company's current market value, in addition to the $2.16 bn remaining from a prior authorization. 'Big Data' Firm Raises $84 Mn Data-analytics company Opera Solutions LLC is set to announce its first-ever investment round, an $84 mn cash injection expected to value the New York company at around $500 mn, according to people familiar with the matter. Asset manager Artisan Partners plans $250M IPO Artisan Partners Asset Management Inc. planned to sell up to an estimated $250 mn of common stock in an initial public offering. The independent asset-management company, founded in 1994, provides a broad range of equity investment strategies. It had $63.65 bn in assets under management as of June 30. Nintendo to release four Mario-related 3DS titles Nintendo Co. said it will release four new Mario-related games for its 3DS handheld game console, as well as many of its own new titles as well as those from third-party software makers--the latest attempt to revitalize the appeal of the struggling new game machine. Goldman Sachs may buy Indonesian brokerage: WSJ Goldman Sachs Group Inc. is in talks to buy Indonesian brokerage Tiga Pilar Sekuritas, a person familiar with the situation said. The deal would allow Goldman Sachs to get a brokerage license in the country, which it doesn't currently have. National Express expands in U.S. with $200M deal Transport operator National Express Group PLC (NEX.LN) signalled its expansion in the student transportation market in the U.S. with the $200 mn purchase of Petermann Partners Inc., America's fifth- largest operator of school buses. Alstom gets 150M-euro pact with Malaysia firm French engineering group Alstom SA (ALO.FR) said it signed a 11-year Long Term Service Agreement worth approximately EUR150 mn, with Teknik Janakuasa Sdn. Bhd., wholly owned O&M subsidiary company of Malakoff Corporation Berhad, Malaysia's largest independent power producer. Abbott deals build late-stage drug pipeline Abbott Laboratories' drug-discovery arm is focusing on fewer diseases, but it has more promising drug candidates than in recent years partly because of acquisitions and license deals, a top executive said. Fitch lowers McGraw-Hill credit rating Fitch Ratings trimmed its rating on McGraw-Hill Cos., citing concerns about the company's financial policy a day after it announced plans to split its markets and education businesses into two public companies. Mitsui, Russian steel firm to ink joint venture Mitsui & Co. (8031.TO) said it has signed an agreement with major Russian steelmaker OAO Severstal to set up a joint venture engaged in processing steel and selling steel products for automobiles, Kyodo News reported. The joint venture will set up a facility near St. Petersburg, where Toyota Motor Corp., Ford Motor Co. and other global automakers have plants, the major Japanese trading house said. Moody's lifts outlook on Reynolds American Moody's Investors Service boosted its outlook on Reynolds American Inc. to positive from stable, saying it expects the tobacco company to continue to grow profits despite fundamental weaknesses in the U.S. cigarette market. The credit ratings firm also affirmed Reynold American's Baa3 rating, preserving its position on the last rung of investment-grade territory. Moody's said the rating could get an upgrade if the company sustains strong credit metrics and successfully manages litigation and regulatory challenges.

Weekly Newsletter 102 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Volvo mulls making cars in U.S. to trim forex risk Volvo is considering setting up a production facility in the U.S. to make automobiles that could include a sports utility vehicle model, as a way to create a natural hedge against its exposure to the U.S. dollar, the Swedish car maker's chief executive said. CIT Plans to Accept Online Deposits CIT Group Inc. plans to begin accepting online deposits in the next two months as it looks to diversify its funding sources for commercial loans, Chairman and Chief Executive John Thain said. Nissan's Infiniti To Share Mercedes Platform Nissan Motor Co. Chief Executive Carlos Ghosn said the company's Infiniti brand will start producing a new compact car based on Daimler AG Mercedes-Benz technology in 2014, part of a wider effort to extend Nissan's cooperation with the German auto maker. Siemens Postpones Osram IPO Industrial conglomerate Siemens AG said Wednesday it is postponing the planned initial public offering of its Osram lighting unit due to the recent stock market turmoil. Rolls-Royce wins Cochin Shipyard contract Rolls-Royce Holdings PLC (RR.LN), a global power systems company, said Wednesday it has won a contract from India's Cochin Shipyard to supply 60 water jets for a new fleet of 20 Fast Patrol Vessels for the Indian Coast Guard. Mitie gets outsourcing contract from Diageo Mitie Group PLC (MTO.LN), a strategic outsourcing and energy services company, said that it has been awarded a three plus two year contract with the world's leading premium drinks business, Diageo PLC (DGE.LN). EDF gets 1B-euro generator pact from Areva: report French state-controlled power group Electricite de France SA (EDF.FR) is to sign a contract with French state-controlled nuclear engineering firm Areva SA (AREVA.FR), worth around EUR1 bn, for 32 steam generators, French daily Le Figaro reports Wednesday without citing sources. BP buys remaining 50% in Brazilian biofuel company BP PLC (BP.LN), the oil giant, announced that it has agreed to increase its share in Brazilian biofuel company Tropical BioEnergia S.A. to 100%, by acquiring the remaining 50% of the company from its current joint venture partners for a total cash consideration of approximately $71 mn. Alcoa, Chinese power producer move closer to pact Aluminum producer Alcoa Inc. said it signed a letter of intent to form a joint venture with state-owned China Power Investment Corp. that will focus on producing high-end fabricated aluminum products in China. Johnson Controls to invest $100 mn in China plant Johnson Controls Inc. said it will invest $100 mn to build a start-stop vehicle battery plant in China, a move the automobile battery producer said reflects increasing global demand for environmentally-friendly technology. Callidus software signs contract with Pfizer Callidus Software Inc. reached an agreement with Pfizer Inc. allowing the pharmaceutical giant to extend its use of the company's cloud-based sales platform. The agreement was signed in the third quarter. Further terms were not disclosed. Renault, VW plan $1.2B Brazil expansion: report France's Renault SA (RNO.FR) and Germany's Volkswagen AG (VOW.XE) are planning to expand their Brazilian manufacturing operations, at a combined cost of at least 2 bn Brazilian reais ($1.2 bn), the Brazilian newspaper Valor Economico reported.

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