IN FOCUS July 08, 2011 Weekly Indicators “I would rather have a first-class manager running a second-rate business than a second- Indicators Current Last Week rate manager running a first-rate business.” - Reichert, Jack E. Sensex 18,858 18,763 China hikes rates for third time this year Nifty 5,661 5,627 China's central bank said Wednesday it will raise its benchmark deposit and lending Food Inflation 7.61% 7.78%

rates by 25 basis points, the third rate hike this year and its fifth rate increase in the Exchange Rates latest round of tightening, as the government continues its fight against high inflation. Currency Current Last Week The move comes despite recent fears of an economic slowdown in China, and shows US$1 Rs.44.3263 Rs.44.5855 the top priority for authorities remains cooling inflation pressures. China's consumer € 1 Rs. 63.6456 Rs. 64.8018 price index rose 5.5% in May from a year earlier, the fastest pace in nearly three JP¥ 100 Rs. 54.55 Rs. 55.33 years. The PBOC said in a statement it will raise the one-year yuan lending rate to £ 1 Rs. 70.7448 Rs. 71.7514 6.56% from 6.31%, and the one-year yuan deposit rate to 3.50% from 3.25%, effective Thursday. The PBOC also raised banks' required reserve ratio six times in Global Economic and Corporate News 2010 and six times so far this year. • Medtronic to Buy Salient, PEAK Surgical Medical-device maker Medtronic Inc. said that it Moody's cuts Portugal's credit rating over fears of bailout agreed to buy the remaining stakes in two surgical- Moody's Investors Service cut Portugal's credit rating to below investment grade on products companies for a total of about $585 million. concern the southern European country will need to follow Greece in seeking a second • ATCO to Buy Australian Gas Distributo for $1.1 Billion international bailout. The long-term government bond ratings were lowered to Ba2, or Canadian utilities company ATCO Ltd. said it signed junk, from Baa1, and the outlook is negative. Discussions to involve private investors an agreement to buy a natural gas distributor in in a new rescue plan for Greece make it more likely that the European Union will Western Australia from WestNet Infrastructure Group require the same preconditions in the case of Portugal, Moody's said. "That's very Ltd. for one billion Australian dollars. significant because not only does it affect current investors, but it is likely to • KB Financial to Sell Entire Stake discourage new private-sector lending going forward, and therefore reduce the KB Financial Group Inc., through its Kookmin Bank unit, is selling its entire 34.97 million in treasury likelihood that a country like Portugal will be able to regain access to the capital shares in a block trade that could raise up to markets at a sustainable cost," said Anthony Thomas, a senior analyst at Moody's. US$1.71 billion. Portugal is the second euro country rated non-investment grade by Moody's, joining • Apple Files ITC Complaint Against Samsung Greece, after winning a €78 billion ($136 billion) international bailout in May. Portugal Apple Inc. filed a complaint against Samsung Electronics Co. with the U.S. International Trade this year joined Ireland and Greece in turning to the EU and the International Commission, asking the agency to bar the U.S. Monetary Fund (IMF) for emergency funding after their budget deficits ballooned. importation of Samsung smartphones and tablet nd computers. IMD sees a lull from July 10 to 15 but expect normal rainfall in the 2 half • HTC to Buy U.S. Graphics Firm The monsoon has so far been normal or in excess in all the 4 regions of the country, Keen to expand overseas, HTC Corp. said it agreed to barring parts of & . It was the heaviest in northwest at 154% purchase S3 Graphics Inc., a U.S. graphics- of the long period average and the weakest in northeast at 93%. However, monsoon technology licensing company, for US$300 million to has entered in a weak phase on 1 July, as per IMD. It expects monsoon rains to be enhance HTC's multimedia capabilities. weak till Jul 15 but expect normal rainfall activity in the second half of July. Northern • Wal-Mart Donates $4 Million to Youth Program India is expected to continue to receive good rains. The southwest monsoon is crucial Wal-Mart Stores Inc. donated $4 million and pledged for kharif sowing, as most of the arable land in the country is rain-fed. For the overall to raise an additional $1 million for New York City's summer youth-employment program. Jun-Sep season, it expects rainfall to be 95% of the long period average. • Immucor Agrees to $1.97 Billion Buyout India Jun HSBC Composite PMI falls to 56.8 from 57.7 May Immucor Inc. agreed to be acquired by private- equity firm TPG Capital for about $1.97 billion in a India's headline HSBC Composite Purchasing Managers' Index fell to 56.8 in June from deal TPG hopes will help expand the global market 57.7 in May due to a slowdown in manufacturing sector activity. However, activity in for Immucor's blood-test products. the services sector was brisk. The Services PMI in June rose to 56.1 from 55.0 in the • Amazon Buys U.K. Online Bookseller previous month, while manufacturing PMI slipped to a nine-month low of 55.3 from Amazon.com Inc. agreed to buy U.K.-based online 57.5. The Composite PMI is the weighted average of manufacturing and services PMI. book retailer Book Depository International for an undisclosed sum. A PMI of over 50.0 indicates an expansion in activity. The growth in manufacturing • Volkswagen Takes Majority Stake in MAN output was hampered by fewer new orders, labour shortage and power cuts. Volkswagen AG took a major step toward forging a Congress government in Andhra in crisis as Telangana legislators quit European truck alliance that could take on the world's biggest truck makers—Daimler AG and Volvo The Congress government in plunged into a crisis after at least 25 AB—by obtaining a 55.9% voting stake and 53.7% of legislators of the ruling party from the Telangana region submitted their resignation the share capital in MAN SE through a low-ball offer. letters demanding a separate state. Besides the ruling Congress, 31 legislators of the • Australia Suspends Tiger Australia's Domestic principal opposition party, Telugu Desam, from Telangana also submitted their Flights resignation letters to Deputy Speaker Mallu Bhatti Vikramarka. Though resignation of Australia's aviation authority suspended low-cost carrier Tiger Airways Australia's domestic operations legislators from the region is aimed at mounting pressure on the United Progressive Saturday, saying the airline "poses a serious and Alliance government at the Centre to take a favourable decision on the formation of imminent risk to air safety." Telangana state, the latest development may impact the stability of the Congress government in the state. Of the 294 seats in the Andhra Pradesh Assembly, Congress Nishita Shah Parsekar has 155 seats, of which 53 are from the Telangana region. [email protected]

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, 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected] Info-Spectrum Bridging the Information Gap in Corporate Landscape

INDEX

1. Economy 03-09

2. Infrastructure 10-19

3. Sectors 20-50 A. IT & ITeS 20-22 B. Pharma & Healthcare 23-24 C. Telecom 25-27

D. Banking & Financial Services 28-32 E. Steel, Metals & Minerals 33-35 F. Auto & Auto Ancillaries 36-39 G. Miscellaneous 40-50 4. Global Economy & Business 51-57

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

ECONOMY ECONOMY: • Citi sees India's gross domestic product growth at 7.5-7.8% in Apr-Sep and at 8.2-8.5% in Oct-Mar. • India is likely to end 2011-12 (Apr-Mar) with fiscal deficit of 5.2% of gross domestic product, overshooting its target by Rs.600 bn, HDFC BANK said. • Finance Minister Pranab Mukherjee said management of high inflation depends "critically" on short- term policy measures to moderate demand. • European Central Bank has hiked refinance rate by 25 basis points to 1.50%. AGRICULTURE: • Experts and industry players demand major reforms in the way sugarcane prices are fixed and ethanol is produced. AGROCHEMICALS: • Murugappa Group is finalising a two-pronged strategy to consolidate its market share in India and expand its global footprint. The company will also integrate its pest management operations after Sabero Organics buy. TAXATION: • The sales tax department has unearthed a hawala racket with a turnover of Rs.65 bn, involving firms trading in ferrous metals and diamonds. COTTON: • The Directorate General of Foreign Trade has barred 178 companies from further export of cotton in the marketing year ending September. FERTILISER: • Indian Farmers Fertiliser Cooperative will try not to raise prices of di-ammonium phosphate this kharif season. SUGAR: • The sugar directorate has issued release orders for export of 10,528 tn sugar so far from the additional quantity allowed for overseas sale under open general licence, a senior government official said. • Indian Sugar Mills Association has reiterated its demand for phased deregulation of the sector by abolishing levy sugar obligation. GOVERNMENT: • Textile Minister Dayanidhi Maran has resigned on reports of alleged collusion with Malaysia's Maxis Communication. INVESTMENTS: • Singapore government's investment arm Temasek Holdings Pvt Ltd is eying investments in three or four Indian companies in the current financial year to March. Jun 25 primary article inflation down to 11.56% vs 11.84% India's primary articles inflation rate for the week ended Jun 25 fell to 11.56% from 11.84% in the previous week on a high base, but the primary article index rose 0.2%. Primary article inflation also fell as non-food articles inflation eased to 17.69% from 17.91%. Its index fell 0.4% to 179.6. The fall in non-food articles inflation was driven by lower prices of raw jute, which were down by 12%. While food articles inflation rate fell to a seven-week low of 7.61% from 7.78% in the previous week, the index for the segment was up 0.5% to 190.8. Prices of coffee (21%), mutton (6%), and vegetables (4%) rose in the week, while prices of ragi and tea eased by 3% and 2%, respectively. Fuel group inflation rate also fell to 12.67% from 12.98% a week ago. The fuel group index, however, rose 3.8% on week to 166.3 due to higher prices of kerosene (18%), liquefied petroleum gas (15%) and high-speed diesel (9%). Fuel group index had risen 4.09% in the same corresponding period year ago. Trade secy says Jun exports grew 46.4% on year, imports up 42.4% India's merchandise exports in June grew 46.4% on year to $29.2 bn, while imports rose 42.4% to $36.9 bn during the month, Commerce Secretary Rahul Khullar said. The country's trade deficit widened to $7.7 bn in

Weekly Newsletter 3 Info-Spectrum Bridging the Information Gap in Corporate Landscape

June. For the first quarter of 2011-12 financial year, trade deficit increased to $31.6 bn. "It is still not going to be easy," Khullar told reporters here on India's exports position. "News from the US and Europe markets are far from cheerful." Exports in Apr-Jun rose 45.7% on year to $79 bn, while imports grew 36.2% to $110.6 bn for the quarter. In Apr-Jun, growth in exports was aided by 94% growth in engineering goods, 60% growth in petroleum products, and a 19% growth in gems and jewellery. Growth in imports in Apr-Jun was driven by petroleum products (18%), gold and silver (200%), electronic goods (71%) and vegetable oil imports (55%), he said. Khullar also said he expected petroleum product imports this financial year to be around $120 bn-$130 bn. India Jun HSBC Composite PMI falls to 56.8 from 57.7 May India's headline HSBC Composite Purchasing Managers' Index fell to 56.8 in June from 57.7 in May due to a slowdown in manufacturing sector activity. However, activity in the services sector was brisk. The Services PMI in June rose to 56.1 from 55.0 in the previous month, while manufacturing PMI slipped to a nine-month low of 55.3 from 57.5. The Composite PMI is the weighted average of manufacturing and services PMI. A PMI of over 50.0 indicates an expansion in activity. The growth in manufacturing output was hampered by fewer new orders, labour shortage and power cuts. Mauritius investors' body supports India's stand on black money Mauritius-based Global Institutional Investors Forum has said the island nation fully supports India's fight against black money and money laundering and that it has put in place systems to prevent round tripping of frauds. The statement comes just days after Finance Minister Pranab Mukherjee said the government is negotiating changes in a tax treaty with Mauritius, the country which accounts for the maximum foreign investment in India. Around 42% of Foreign Direct Investment and about 40% of Foreign Institutional Investors' fund flows into India are routed through Mauritius. Global Institutional Investors said management companies in Mauritius are required to declare that no shares shall be issued to Indian residents against monies emanating from India. "Management companies in Mauritius are strictly regulated by the Financial Services Commission," it said. According to media reports, India has made a fresh request to Mauritius to re- work an over three-decade-old tax treaty that spares FIIs routing their investments through the island nation from paying capital gains tax on the sale of Indian shares. The Indian government has come under attack from the Supreme Court and civil society which claim there is little seriousness in tackling the issue of black money and the spate of corruption scandals have dented investor confidence. Congress government in Andhra in crisis as Telangana legislators quit The Congress government in Andhra Pradesh plunged into a crisis after at least 25 legislators of the ruling party from the Telangana region submitted their resignation letters demanding a separate state. Besides the ruling Congress, 31 legislators of the principal opposition party, Telugu Desam, from Telangana also submitted their resignation letters to Deputy Speaker Mallu Bhatti Vikramarka. Though resignation of legislators from the region is aimed at mounting pressure on the United Progressive Alliance government at the Centre to take a favourable decision on the formation of Telangana state, the latest development may impact the stability of the Congress government in the state. Of the 294 seats in the Andhra Pradesh Assembly, Congress has 155 seats, of which 53 are from the Telangana region. Congress' ally, the Praja Rajyam Party, has another 18 legislators. Together, the strength is at 173, which is well above the half-way mark of 147. But if all the 53 Congress legislators from the Telangana region go ahead with their plan and resign, it will bring down the number to 102, thus spelling trouble for the Congress government in the state. Reddy said all the legislators and Lok Sabha members from the region will resign by evening. The Congress party's 12 Lok Sabha members from the region are already in to submit their resignation letters to Speaker Meira Kumar. HR Khan assumes charge as RBI Deputy Governor Harun Rashid Khan assumed charge as the Deputy Governor of the Reserve Bank of India, filling up the vacancy that opened after Shyamala Gopinath demitted office on Jun 20. Khan, who has been appointed for a three-year term, will look after Central Security Cell, Department of External Investments and Operations, Department of Government and Bank Accounts, Department of Payment and Settlement Systems, Foreign Exchange Department, Internal Debt Management Department and Inspection Department. Prior to this posting, Khan was an executive director at the central bank looking after the Department of External Investments and Operations, Foreign Exchange Department, Internal Debt Management Department and Department of Government and Bank Accounts. In his 32-year stint at RBI, Khan has handled various departments and been also involved with various committees. He was chairman of the Internal Group of RBI on Rural Credit and Microfinance and based on the committee's recommendations, the RBI issued guidelines

Weekly Newsletter 4 Info-Spectrum Bridging the Information Gap in Corporate Landscape to expand the banking outreach through business correspondents for financial inclusion in the country. Deputy Governor Subir Gokarn has been given additional charge of the Financial Markets Department. Rasoya Proteins starts production at Buldhana unit Rasoya Proteins Ltd has started commercial production from its Solvent Extraction Unit of 1000 tons per day located at TalukaMalkapur. District Buldhana . This would help the Company to meet the ever increasing demand of Soya Edible oil especially of Western parts of Maharashtra where the Company's brand "Rasoya" has become extremely popular and well established in the market. Further the Company has informed that the project of Solvent Extraction and Edible oil Refinery in Buldhana District of Maharashtra has got the MEGA Project Status from the Government of Maharashtra. G Padmanabhan takes charge as executive director at RBI G. Padmanabhan took charge as the executive director of the Reserve Bank of India, and will handle the central bank's foreign exchange, payment and settlement systems, and information and technology departments. Before this, he was the chief general manager of the RBI's Department of Payment and Settlement Systems, a position he held since March 2005, the central bank said in a release. Padmanabhan is a postgraduate in economics from the University of Kerala. He also has a Masters in Business Administration from the Birmingham University in the UK. Minister Deora resigns ahead of Cabinet reshuffle Corporate Affairs Minister Murli Deora has submitted his resignation from the Union Cabinet ahead of a reshuffle expected soon. Deora handed his resignation to Congress party chief Sonia Gandhi last week and is learnt to have pushed for son Milind Deora's inclusion as minister of state in the council of ministers. Milind Deora is a second-time Member of Parliament from South Mumbai. The report also said the minister was piqued over the manner in which his successor S. Jaipal Reddy handled the media on the draft report of the Comptroller & Auditor General. The Comptroller & Auditor General had pointed out several violations in the execution of exploration contracts by the petroleum ministry between 2006 and 2008 when Deora was the petroleum minister. IMD sees monsoon revival by Jul 9; another lull likely after Jul 10 The southwest monsoon is likely to revive by Jul 9, Ajit Tyagi, director general, India Meteorological Department told. After Jul 10, there will be another period of lull in monsoon, he said, adding that normal rainfall activity is expected in the second half of the month. The monsoon had entered a weak phase on Jul 1 after having covered most of the country, barring parts of Rajasthan and Gujarat. The northern limit of monsoon is currently passing through Porbandar and Ahmedabad in Gujarat, and Udaipur, Ajmer, Pilani, and Ganganagar in Rajasthan. Rainfall has so far been normal or in excess in all the four regions of the country. It was the heaviest in northwest India at 154% of the long period average and the weakest in northeast at 93%. Tyagi said northern India will continue to receive good rains. The southwest monsoon is crucial for kharif sowing, as most of the arable land in the country is rain-fed. IMD expects monsoon rains to be weak till Jul 15. For the overall Jun-Sep season, it expects rainfall to be 95% of the long period average. Official says govt sets Aug levy sugar quota at 222,000 tn The government has set the levy sugar sale quota for August at 222,000 tn, higher than July's 212,000 tn, a food ministry official said. The government decides the quantum of sugar that each mill supplies to fair-price shops every month at a subsidised price. Under the levy obligation, it is mandatory for mills to give 10% of their total sugar output at subsidised rates to state agencies for distribution to fair-price shops under the targeted public distribution scheme. Mills currently sell levy sugar to state agencies at an average price of Rs.18.47 a kg. Consumers pay only Rs.13.50 per kg for sugar at fair-price shops, with the remainder being borne by the government as subsidy. Oil minister optimistic of resolving oil payment issue with Iran Oil Minister S. Jaipal Reddy said he was optimistic of resolving the crude oil payment issue with Iran. "There is a problem, we are sorting it out. We are optimistic about finding the solution and ensuring uninterrupted supply of oil," Reddy told reporters. In December, the Reserve Bank of India had said trade transactions with Iran must be settled outside the Asian Clearing Union, a regional payment mechanism that allows companies to skirt US and European restrictions on doing business with the Islamic nation. Iran is a key crude oil supplier to India, which sources a chunk of its requirement from overseas.

Weekly Newsletter 5 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Indian companies raise US$ 2.65 billion through ECBs, FCCBs in May 2011 Indian companies have raised US$ 2.65 bn through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) in May 2011, reporting an increase of US$ 590 mn, or 28.65, over US$ 2.06 bn in April 2011, according to data released by the Reserve Bank of India (RBI). Approximately US$ 1.49 bn was raised by 70 companies through the automatic route, with around US$ 1.15 bn raised through the approval route, which requires case-by-case clearance from RBI. Pharmaceutical and medication delivery company Hospira Inc raised US$ 250 mn through ECBs for importing equipment. Whereas, engineering, construction and services conglomerate ERA Infra Engineering Ltd raised US$ 220 mn through FCCBs for overseas acquisition through the automatic route. Tata Teleservices Ltd and Tata Teleservices (Maharashtra) Ltd have raised US$ 400 mn and US$ 350 mn, respectively via the approval route, through ECBs, to refinance the 3G spectrum fee loan. Idea Cellular Ltd, which is a part of the Aditya Birla group, has raised US$ 120 mn through ECBs. Under the automatic route, Indian companies are allowed to raise up to US$ 500 mn through ECBs in a financial year. Trade secy says govt may decide on wheat, rice exports next week India may decide on food grain exports as early as next week when the Empowered Group of Ministers on food is likely scheduled to meet. India had banned export of wheat in 2007 and rice in 2008 following a flare-up in domestic prices. Overflowing granaries due to good harvest over the past three years, however, have made the government rethink its export policy. Grain stocks with Food Corp of India's warehouses swelled to a record 65.6 mn tn at the beginning of June, up from 59.3 mn in the previous month. The country's current storage capacity is 62-63 mn tn. Govt allocates 158,461 tn cotton for export to 227 applicants The government has allocated 158,461 tn of cotton for exports to 227 applicants out of the total quota of 170,000 tn or 1 mn bales for the year ending September, according to the data on the Directorate General of Foreign Trade published late Wednesday. The highest export allocation of 1,601.40 tn has been allocated to a number of applicants that includes Olam Agro India, LMJ International, Cargill India, Alok Industries Ltd, Glencore Grain, and Louis Dreyfus Commodities India Pvt Ltd among others. The highest export allocation of 1,601.40 tn has been to a number of applicants including Olam Agro India, LMJ International, Cargill India, Alok Industries Ltd, Glencore Grain, and Louis Dreyfus Commodities India Pvt Ltd. The export allocation of 11,539 tn is sequestered from the total of 170,000 tn following the interim high court orders, the notification specified. Last month, a group of ministers had allowed exports of 1 mn bales of 170 kg each but had stipulated that only exporters with an established track record over the past two marketing years could apply. Traders, who fail to ship out the allocated quantity within the deadline of Sep 15, will be fined up to five times of the goods' value and barred in case the government allows further exports, the notice said. The stringent rules came after there was a scramble for licences in November when the Centre had allowed 5.5 mn bales of cotton exports for 2010-11 (Oct-Sep) marketing season. The scrutiny of documents and consequent issue of registration certificates by regional DGFT commences 1000 IST today and will close on Jul 15 at 1500 IST. India has stepped up exports amid an estimated bumper output of 31.2 mln bales for the year that ended June, while rival exporting nations--US, Pakistan, and China--face crop shortages. In 2009-10, the country had produced 29.5 mln bales of the commodity. Cotton prices in the country have tumbled to around 38,000 rupees a candy (1 candy = 356 kg) from a high of around 62,000 rupees in March. IFC to invest $2.7 mn in Jain Irrigation's non-banking finance arm International Finance Corp, the private sector investment arm of the World Bank, said it will invest $2.7 mn in Sustainable Agro-Commercial Finance Ltd, a non-banking finance company subsidiary of Jain Irrigation Systems Ltd. Sustainable Agro-Commercial Finance will provide loans to small-scale farmers to help them install micro-irrigation systems and improve productivity. The initiative is expected to benefit more than 600,000 farmers in the next five years with limited access to credit, IFC said in a release. "IFC's support will help promote inclusive growth in the agriculture sector and lead to increased growth for the small farmer in India," said Anil Jain, managing director, Jain Irrigation Systems. The loans by Sustainable Agro- Commercial Finance will also help promote water harvesting and storage solutions for farmers. IFC is already an existing investor in the Jalgaon-based Jain Irrigation Systems. Since 2007, it has provided loans and equity totalling to around $75 mn to the company, primarily for financing its capital expenditure plans. The company not only makes drip and irrigation systems but also piping products, plastic sheets and is a major player in the processed fruits and dehydrated onions segment. Jain Irrigation's board had approved the plan to set up a non-banking finance company in late January. The proposal, however, had met with scepticism

Weekly Newsletter 6 Info-Spectrum Bridging the Information Gap in Corporate Landscape from investors with its stock receiving a major hammering. For IFC, the $2.7 mln investment in Sustainable Agro-Commercial Finance is its nineteenth deal so far since Jan 1. JVL Agro to up capacity at Rajasthan mustard seed unit JVL Agro Industries Ltd has informed that the company has started the work on expanding capacity at its mustard seed crushing plant in Rajasthan because it cannot meet its growing demand of mustard oil in the Central and Eastern India and want to be ready with enhanced capacity before the next season of mustard seed arrival. Defence Secy Kumar tipped to be new chief vigilance commissioner Defence Secretary Pradeep Kumar is likely to be the new Chief Vigilance Commissioner. Reappointment process of PSU heads made simpler The process of reappointment of a PSU head or a board level executive has been made simpler, cutting delays in the vital appointments of the state-owned firms. RBI allows companies to refinance overseas convertible bonds The Reserve Bank of India decided to allow Indian companies to refinance their overseas convertible bonds under the automatic approval route to help them tide over redemption pressures. calls off sale process for five sugar mills Uttar Pradesh has called off sale process for five closed sugar mills owned by Uttar Pradesh State Sugar Corp Ltd as it could not find any buyers. Retail sugar prices unlikely to surge due to exports: ISMA Sugar prices in retail markets are unlikely to surge due to an additional export of five lakh tonnes of the sweetener, an industry body ISMA has said. Inflows double on year to $4.66 bn in May; up 77% in Apr-May India received foreign direct investments worth $4.664 bn in May, more than double the $2.2000 bl a year ago. In Apr-May, dollar inflows into the country through this route rose 77% from a year ago to $7.785 bn, the government said. Citi sees India Apr-Sep GDP growth 7.5-7.8%, Oct-Mar at 8.2-8.5% The current moderation in India's economic indicators, including the recently-released Purchasing Managers' Index, is "a soft patch", but growth may pick up in Oct-Mar to 8.2-8.5%, global financial conglomerate Citi said in a research report. Investors ready to purchase land in WB :Ficci The Federation of Indian Chambers of Commerce and Industry (Ficci) said investors were ready to purchase land to set up industries in . AP govt requests Centre to set up Fab unit in state Andhra Pradesh government has approached the Centre, requesting it to set up one of its two proposed Fab units in the city. Bring petroleum products under VAT: Industry body to Centre The Chamber of Small Industry Associations (COSIA) demanded imposition on value-added tax (VAT) on petroleum products. Ambiguous tax treaties may hit FDI inflows, says Ruia Leading industrialist and Essar Group Chairman Shashi Ruia has warned of an adverse impact on FDI inflows in India if its taxation laws with various countries remain "ambiguous". 'India has an attractive business climate for the US' India and the United States remain "vital" markets for each other, a top official here has said, refuting reports that American investment in India has dropped. Federal Bank-UAE-based exchange ink pact India’s Federal Bank has signed a strategic new partnership with a leading UAE-based exchange house with an aim to help Indian expatriate workers to send money back home.

Weekly Newsletter 7 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Govt streamlines FDI proposals' filing for approval Investors seeking government approval for Foreign Direct Investment (FDI) will now have to obtain electronically generated unique number from the concerned authorities before filing requests with the Foreign Investment Promotion Board. Strengthen visitors' data collection in airports: FinMin With a view to tighten vigilance on suspicious international visitors, the Finance Ministry has directed Airport authorities to ensure passenger information remains readily available for law enforcement agencies. Bihar and Delhi seek cash under Food Security Act Citing the diversion of foodgrains meant for public distribution, Bihar and Delhi have urged the centre to provide cash instead of foodgrains for beneficiaries under the proposed National Food Security Act. 'Release grains from central stocks to check inflation' Eminent economist Bimal Jalan said the Centre should release more wheat and rice into the open market from its "large stocks", a move that will help in taming food inflation. India-Malaysia FTA: Agri-products get protection Import of sensitive agri-products like palm oil, coffee, black tea and pepper from Malaysia will remain subject to high duty despite India operationalising free trade agreement (FTA) with the South East nation. GM crops save billion kilograms of CO2 gas emissions Genetically modified crops have saved around 18 bn kg of CO2 gas emissions, which is equivalent to removing 8 mn cars from the road, a fact that reveals importance of the newer plant technology in mitigating climate change. Area under horticulture crops crosses 6% in The area under horticulture crops in Haryana has reached about 6.34% of the cropped area in the state as a result of the steps taken by the government to motivate farmers to grow horticulture crops in place of traditional ones. Gujarat Govt expands area under organic farming Availing a key horticulture promotion scheme of the government, Gujarat has made the most of it by substantially expanding its area under organic farming. Apple growing farm in Arunachal in bad shape The Horticulture Farm at Shergaon in West Kameng district, which is popularly known as the ''Apple Bowl'' of Arunachal, is in dire straits and needs immediate attention by the government for survival. Govt panel moots phased rollout of direct cash subsidy transfer A government task force, in its interim report submitted, has proposed direct transfer of cash subsidy to people below poverty line for fertiliser, cooking gas, and kerosene purchases in three phases. RBI Subbarao says inconsistent data a challenge for policymaking Defending the Reserve Bank of India that has received flak over its inflation projections, Governor D. Subbarao said that frequent revisions and inconsistencies in economic data posed a challenge to the central bank's policymaking. Telangana bandh peaceful, 11 more legislators resign Normal life was completely thrown out of gear in the 10 districts of Telangana region in Andhra Pradesh, being the first day of the two-day bandh called by the supporters of the separate state. DGFT debars 178 cos from allocation of cotton for exports The Directorate General of Foreign Trade has debarred 178 companies from further exports of cotton in the current marketing year ending September, according to a recent notice on its . Govt panel submits report on direct transfer of cash subsidy A task force headed by Unique Identification Authority of India Chairman Nandan Nilekani submitted an interim report to Finance Minister Pranab Mukherjee on direct transfer of cash subsidy to people below poverty line for fertiliser, cooking gas, and kerosene.

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

Business activities affected in Telangana due to bandh Economic activities in Telangana took a big hit on the first day of the two-day bandh called by various political parties demanding formation of separate state comprising the region in Andhra Pradesh. Govt to come out with negative list of service tax The government will come out with a draft ''negative list'' for service tax in two weeks, meaning services which are not mentioned in it would be taxed under the proposed GST regime. Area under organic farming rises to 4.4mn hactare Area under organic farming has grown many-fold in six years to 2009-10 in India on the back of thrust given to the chemical-free mode of cultivation. SC admits Bajaj Hindusthan petition on levy sugar The Supreme Court admitted the petition filed by country's leading sugar producer Bajaj Hindusthan challenging the validity of an act mandating that the Centre will not take into account the price fixed by states while fixing the price of levy sugar. World food prices up 1% in Jun, close to Feb's high Global food prices rose by 1% during June compared with the previous month due to surge in sugar prices and is slightly lower than the all time high witnessed in February this year, UN body FAO said. Tax refunds pull down direct tax collection by 17% Driven by a hefty increase in tax refunds which more than doubled in the first quarter of the current fiscal, net direct tax collections dropped by almost 17% during the same period to Rs.57,268 crore. Tea output rises by 5% in May, exports up slightly India's tea production rose by 5% to 76.17 mn kg during May, 2011, from 72.62 mn kg in the same month last year, owing to higher output in Assam and West Bengal, according to Tea Board data. BLACK MONEY: The Supreme Court has instituted a special investigation team to probe into illicit funds hidden abroad after it slammed the government for its failure to take steps to bring back black money. CABINET NOD: The Cabinet is likely to approve disinvestment of government's 5% equity in Bharat Heavy Electricals Ltd next week. The Cabinet is also likely to soon approve a revival package for eight closed fertilizer units owned by Fertiliser Corp of India and Hindustan Fertiliser Corp Ltd. COROMANDEL INTERNATIONAL: Has signed a pact with Qatar Fertiliser Co to import 277,000 tn urea annually from Qatar.

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

INFRASTRUCTURE INFRATRUCTURE: • Finance Minister Mukherjee's move to quintuple foreign institutional investment limit in Indian infrastructure bonds to accelerate the construction of roads and ports has failed to take off as global investors fret over the plethora of strings attached to them. • The National Highways Authority of India has shortlisted 114 highway construction companies and developers in the annual technical qualification initiated by the body in March this year. • Prime Minster Singh is expected to review progress of key infrastructure sectors like power and coal. ENERGY: • Iran will not cut oil supplies to India despite warnings to refiners over their failure to pay for several months. • The coal ministry has warned Arcelor Mittal India Ltd, GVK Power (Govindwal Sahib) Ltd and DCM SHRIRAM CONSOLIDATED to expedite development of the allocated blocks or face action. • The government is planning to cap sale of subsidised cooking gas cylinders to each household in a phased manner. • International Coal Ventures Pvt Ltd's plans to acquire 24% stake in Singapore-based MEC Coal may face hurdles. • The petroleum ministry and private firms, faced with charges linked to favouritism and unfair gains in oil and gas exploration by the Comptroller and Auditor General, are due to present their case next week. • French energy major Areva has offered partnership stakes to state-run Nuclear Power Corp of India in its uranium producing mines abroad. POWER: • The environment ministry has exempted solar thermal power projects from green clearance requirements . • Power generation companies have expressed their inability to honour contracts bagged under tariff- based competitive bidding unless they are insulated from increase in fuel prices. • Jaypee Group's Rs.70 bn Karcham Wangtoo hydro power project in Himachal Pradesh is expected to be operational by Aug 15, much ahead of schedule. • Two West Bengal government-owned power utilities have decided to stop paying the state Rs.9.60 bn a year in taxes collected from consumers and a vendor after the newly-elected Trinamool Congress government blocked their proposal to raise tariffs to offset an increase in coal prices. SHIPPING: • Securing contracts to build warships has emerged as an option for local shipyards to sail through a global downturn in the industry. • Shipping companies face the prospect of a 20% increase in cost of operations as the price of bunker oil touched a high last week. • Talks between the shipping ministry and workers union at the Jawaharlal Nehru Port Trust, Mumbai, remained inconclusive on Thursday. HEAVY ENGINEERING: • Indian companies could lose business worth $2 bn due to Iran payment row. AVIATION: • State-carrier Air India has sent the government a bill of Rs.12.22 bn for VVIP flights. • India's plan to develop and modernise airports in 35 cities other than the four metros has hit a roadblock even as domestic airlines continue to buy more aircraft. • Boeing Co has said airlines in India are expected to place aircraft orders worth $150 bn by 2031. RAILWAYS: • With projects stuck due to paucity of funds and other reasons, the Union Budget for 2012-13 may not see any new railway projects.

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

REAL ESTATE: • Tata Housing Development Co has forayed overseas with an 850,000 sq ft residential-cum- commercial, public-private-partnership project in Maldives. • High-end residential property prices are heading for a 20-25% fall mainly in Mumbai and Delhi- National Capital Region. • JSW STEEL's owner Sajjan Jindal has bought a sprawling sea-facing, three-storey bungalow on Nepean Sea Road in Mumbai for Rs.4 bn. • is believed to have got over a dozen bids for its seven-storey building, Gulita, at Worli sea face. • The Supreme Court has upheld the Allahabad High Court's verdict quashing acquisition of land in Greater Noida and has asked Greater Noida Industrial Development Authority to hand over 156 ha to villagers and farmers. • Countrywide, 480,000 residential units are likely to face execution delays during 2011-2013. • Mumbai property registration dips in June, the steepest decline this year. • The Income Tax department has started re-opening cases pertaining to the sale of sites in Special Economic Zones by developers. • The Reserve Bank of India has asked banks to go slow on lending to commercial real estate projects on fears of an asset price bubble. PETROCHEMICALS: • Haldia Petrochemicals will save Rs.3.5 bn as the government has waived duty on naphtha. OIL AND GAS: • Comptroller and Auditor General of India may finalise in a couple of months the report on expenditures of three private oil explorers, including and CAIRN INDIA, for developing oil and gas blocks. • Oil marketing companies have got a cash subsidy of Rs.70 bn to cover losses incurred in Jan-Mar. Another Rs.130 bn will be released in two tranches on Jul 12 and Jul 19. India Jun power generation 70.79 bln kWh, up 8.2% on yr India's electricity generation rose 8.2% on year in June to 70.79 bn kWh, the Central Electricity Authority said. Electricity generation had risen 3.8% a year ago and 10.3% in May. The power generation in June is 5.6% lower than 75.01 bn kWh produced a month ago. Thermal power generation in June grew 5.0% on year to 55.93 bn kWh. Nuclear power generation grew 40.1% to 2.51 bn kWh, while hydel power rose 22.4% on year to 11.95 bn kWh in June. India imported 0.41 bn kWh power from Bhutan in June, down 31.5% on year, the authority said. The plant load factor of the thermal and nuclear power units in the country was 73.4% and 72.8%, respectively in June. Electricity in Apr-Jun, the first quarter of 2011-12, rose 8.3% to 217.23 bn kWh. India is targeting electricity generation of 855.00 bn kWh in the current financial year started April, up 5.4% from 811.14 bn kWh last year. Govt offers credit to 5 nations to boost exports of infra projects In a bid to boost exports, the government has offered $100 mn credit each to Bangladesh, Afghanistan, Sri Lanka, Maldives, and Bhutan for infrastructure projects to be executed by Indian companies in those countries, a government official said. In April, the commerce ministry had launched a long-term buyers' credit scheme under the National Export Insurance Account to boost infrastructure-related exports to developing countries. The scheme financed by the Export Import Bank of India and Export Credit Guarantee Corp involves providing credit to foreign buyers of Indian projects. Sovereign governments and government- owned entities are eligible to get credit under the scheme. Some Indian companies have already evinced interest in setting up infrastructure facilities in the five countries, the official said. The first project under this credit facility is a drinking water supply project in Sri Lanka being executed by Chennai-based VA Tech Wabag Ltd, the official said. Another project in the works currently involves wind power company Suzlon Ltd's plan to set up wind energy farms in Maldives. The credit under the scheme could be in the form of long-term bonds, and the rate of interest charged by India will be fixed for a period of five years, the official said.

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

NRL first PSU refinery to adopt online monitoring system State-run Numaligarh Refinery Ltd (NRL) has joined the league of premier refineries worldwide after it inaugurated an online monitoring and diagnostic system of its hydrocracker unit. NRL, situated in Assam’s Golaghat district, is the the first public sector refinery in the country to adopt this advanced monitoring system. The online monitoring and diagnostic system for reliability enhancement of ‘make-up gas compressors’ and ‘off-gas compressors’ of the hydrocracker unit was inaugurated by Managing Director Dipak Chakravarty. This system has been designed and supplied by Germany-based Prognost Systems in collaboration with Burckhardt Compression (I) Pvt. Ltd. This facility was expected to increase productivity, safety, unplanned outages and in the long run maintenance cost of the compressors which are the main equipment in running of a refinery, it added. Also, costly turnaround jobs could be avoided from now onwards since the condition of critical compressor components like rider rings, piston rings, piston rods and valves will be known well in advance. This would also cut down the likelihood of catastrophic failures of critical equipments which lead to negative ramifications in the context of the overall refinery operations. “The condition monitoring and diagnostic tool is an add-on facility that improves compressor reliability, adds to its value which is very important in today’s competitive scenario and stringent competitive market scenario,” the statement said. JSPL keen to set up captive port in south Orissa After committing investments on a new six million-tonne-per-annum (mtpa) steel plant, a captive power plant and a coal-to-liquid project in Orissa, Jindal Steel & Power Ltd (JSPL) has evinced interest on setting up a captive port in Ganjam district. It involves a capital cost of Rs.1,424 crore, while the operational cost of running the port would be Rs.152 crore per annum. The first phase is scheduled to be operational by 2017. The location is 30 km south of the existing Gopalpur port and 18 km from Berhampur. JSPL made a presentation to the state commerce and transport department on the proposed port at the mouth of the Bahuda river, a perennial ore. The port does not require acquisition of farm land and there are no issues involved with nesting of the endangered Olive Ridley turtles in the area. HDFC invests 135cr in Total Environment SPV HDFC Asset Management Company has invested Rs.135 crore in a special purpose vehicle (SPV) floated by Bangalore-based luxury housing developer Total Environment Building Systems. The SPV --Total Environment Habitat -- will use the money to acquire 18 acres in Whitefield, Bangalore, for a residential project. Total Environment has put in the balance Rs.15 crore required to complete the land acquisition. The project is an 800-apartment complex, with each flat measuring 2,000-3,000 sft and starting at Rs 1 crore. The SPV will be absorbed into the parent company after the project is complete, Sagar said. Jindal Saw redeems all outstanding 0.75% FCCBs Jindal Saw Limited has made full and final payment towards : (1) redemption of all 0.75% Foreign Currency Convertible Bonds (FCCBs) outstanding as on the date of redemption, i.e., June 30, 2011; and. (2) All premium and interest due on such FCCBs as per Offering Circular dated May 30, 2006. Consequently, the FCCBs have been fully extinguished upon such payment. Further the Company is taking steps to complete the process of delisting the aforesaid FCCBs from Singapore Stock Exchange upon their extinguishment. ARSS Infrastructure gets 246-mln-rupee road project order ARSS Infrastructure Projects Ltd has received an order worth Rs.246 mn from the Odisha government for construction of roads in the state, the company said in a regulatory filing. The Bhubaneswar-based company did not provide the details of the order. ARSS Infrastructure Projects focuses on infrastructure construction segment including highways, buildings and railways. Govt appoints PK Bajpai as director finance of BHEL The government has appointed P.K. Bajpai as the director (finance) of Bharat Heavy Electricals Ltd. Bajpai was earlier heading the navratna company's financial services division as executive director and took charge of his new post from Jul 1. The post was earlier held by C.S. Verma, who became the chairman and managing director of Ltd last year. NCC gets construction orders worth 8.15 bln rupees NCC Ltd, erstwhile Nagarjuna Construction Co Ltd, said it has received several construction orders totalling Rs.8.15 bn. The Hyderabad-based company has received a Rs.2.15-bn-order, to be completed in 36 months, from Rail Vikas Nigam Ltd. NCC has also got a Rs.1.59-bn-order from City and Industrial Development Corp of Maharashtra Ltd to build an elevated viaduct road in 24 months. Another order, worth Rs.1.19 bn, NCC

Weekly Newsletter 12 Info-Spectrum Bridging the Information Gap in Corporate Landscape received from the Bangalore Development Authority for construction, within 15 months, of a flyover and underpass roads. NCC has also got other orders totalling Rs.3.2 bn. Punj Lloyd seeks shareholders' nod to manufacture equipment Punj Lloyd Ltd sought the shareholders' approval to expand into manufacturing, assembly and repair of general and special-purpose equipment for diverse sectors including agriculture. Currently, Punj Lloyd provides integrated design, engineering, procurement, construction and project management services in the energy and infrastructure sectors. The diversified engineering group said there were opportunities in manufacturing and repair of components and parts for the railway industry, internal combustion engines, components for the power sector generation equipment and other railroad equipments. Punj Lloyd said the proposed activities can "conveniently and advantageously" be combined and carried out with the existing operations of the company. Tata Power ties up coal supply for 1,050 MW Maithon project Tata Power Co Ltd has tied up coal supplies for the 1,050 MW Maithon power project in Dhanbad, , and the first unit achieved full load generation recently. Maithon Power Ltd has signed a fuel supply agreement with Bharat Coking Coal Ltd, a subsidiary of Ltd. The project, which will have two units of 525 MW each, is being undertaken by a 74:26 joint venture between Tata Power and Damodar Valley Corp. Besides supplying power to Damodar Valley Corp, the Maithon project will export electricity to the power-deficit northern states for which power purchase agreements have been signed. Birla Surya to set up silicon wafers unit Birla Surya Ltd, part of the Yash Birla Group is investing Rs.5,400 crore (US$ 1.2 bn) over the next five years to set up an integrated facility for fabrication of multi-crystalline silicon wafers and processing of solar photovoltaic cells. The company has acquired land for for the first phase at in Maharashtra. In the first phase, manufacturing facilities for 60 MWp of multi-crystalline solar photovoltaic cells and fabrication of 125 MWp multi-crystalline silicon wafers using solar grade silicon (SGS) would be set up with an outlay of Rs.1,493 crore. The project would be funded through a mix of equity and debt. The company has tied up for long-term debt to the extent of Rs.970.50 crore. Asia Pacific Capital will invest $15 mn as private equity in the project. Commercial production of Phase I is expected to commence by December 2011. Jorethang HEP on schedule 96 MW Jorethang Hydro Electric Power project (Jorethang HEP) on the Rangit River near Jorethang town in south/west district of Sikkim is progressing well and is scheduled to be commissioned in June 2012. Rs.625 crore project is being implemented by DANS Energy Pvt. Ltd (DEPL) on BOOT basis. DEPL is promoted by Energy Innovations Limited, Sew Infrastructure Limited and DANS Energy Consulting Private Limited. The entire debt portion of Rs.468.8 cr has already been tied up. The balance Rs.156.3 cr is to be contributed in form of equity capital to be brought in by the promoters. All the necessary approvals/clearances have been received for the project. A total cost of Rs.309.33 cr has already been incurred on the project till March 31, 2011. The Power Purchase Agreement for the sale of power from the project has not been signed yet. However, it is expected to be signed six months before COD as per the conditions of the sanction. ICTL receives 69% RoW IVRCL Chengapalli Tollway Ltd. (ICTL) has been able to get possession of 69% of the Right of Way for its road project in Tamilnadu/Kerala border. ICTL, a Special Purpose Vehicle promoted by IVRCL Ltd., through its subsidiary IVRCL Assets & Holdings Ltd, is implementing 4/6 laning of the road in Chengapalli– Coimbatore–Walayar section from Km 102.03 to Km 144.74 (42.70 kms) and Km 170.94 to Km 183.06 (12.12 Kms) of NH-47 in Tamilnadu (Total length: 54.83 km) on Design, Build, Finance, Operate and Transfer (DBFOT) –Toll basis for a concession period of 27 years. The project is estimated to cost Rs.1123 crore and is being financed at a debt-equity mix of 2.44:1. The financial closure for the project was concluded in November, 2010. The project is scheduled for completion in March 2013. Janki Corp yet to stabilize pellet plant Rajasthan based Janki Corp has not yet been able to stabilize its 6,00,000 MT pellet plant setup at Sidiginamola village, Bellary District, Karnataka. Although the pellet plant was commissioned in the month of September, 2010 with delay of six months, there was a major break down during October 2010. According to reports available the pellet plant is yet to stabilize taking the overall delay to 15 months as of June 2011 from the original schedule of its commencement. However, the company has completed the project of Waste Heat Recovery Boiler (WHRB) based power plant of 15 MW within the scheduled time. The company had

Weekly Newsletter 13 Info-Spectrum Bridging the Information Gap in Corporate Landscape originally envisaged a total project cost of Rs.230.88 crore for both power and pellet plant. However, the project has already seen cost overrun of more than Rs 20%. SpiceJet to begin regional ops Aug; get Bombardier delivery this month Budget carrier SpiceJet Ltd would begin its regional operations sometime in August after it takes delivery of first of its Bombardier turboprop planes later this month. The country's largest low-cost carrier plans to connect Tier II and Tier III cities to the metros through its proposed regional services. The airline has bought up to 30 Q400 NextGen turboprop aircraft from Canada's Bombardier, valued at $900 mn, for the proposed regional services. Cities other than India's major metropolitan areas are ripe for frequency levels that smaller aircraft can offer, the airline said. The -based carrier currently uses only Boeing 737 aircraft. SpiceJet plans to induct 50 new aircraft by 2013 to take its fleet size to 75. Apart from the Bombardier Q400 turboprops, the airline has also placed orders for Boeing 737-800 planes and would add 13 new aircraft in 2011. Varia Engineering Works to install India’s first 6-stand rolling mill India's first 6-stand continuous cold rolling mill for stainless steel that promises a ten-fold increase in production will be set in Ahmedabad. Similar mills have been installed in developed countries. Varia Engineering Works, an Ahmedabad-based rolling mills manufacturing company, expects its stainless steel manufacturing capacity to rise up to 2 lakh tonne from the present 18,000 tonne per annum, once the new mills becomes operational. The company is engaged in manufacturing of rolling mills, heavy duty gear box and ancillary items for 40 years and has diversified into stainless steel manufacturing. "We are setting up self fabricated plant at Kerala GIDC near Ahmedabad with investment of Rs.150 crore, which will start production this month. In India, reversible mills are in use where one needs to pass sheets multiple times, a process which is time-consuming. We have developed the six-stand continuous mill, which is used in some developed countries," said Varia Engineering Works director Himanshu Varia. Stainless steel manufacturing sees 3% wastage, but continuous cold rolling mills would bring it down to 2%, he added. Bombay HC rejects steel cos' plea for gas supply from KG-D6 block The Bombay High Court rejected the petitions filed by steelmakers Ltd and Ispat Industries Ltd against the petroleum ministry and Reliance Industries Ltd for cutting gas supplies from D6 Block in offshore Krishna-Godavari Basin. The steel companies had moved the high court after the ministry, towards the end of March, directed Reliance Industries to first supply gas from its D6 Block to the priority sectors such as fertiliser and power. The ministry's directive came after gas production from the block fell to below 50 mn standard cubic metres per day from around 61 mscmd earlier. Following the ministry's directive, Reliance halted supplies to non-priority sectors including steelmakers, forcing companies such as Welspun Maxsteel, Ispat Industries, and to move court. While Welspun Maxsteel and Ispat Industries moved the Bombay High Court, Essar Steel separately filed a petition in the Delhi High Court. Two Kingfisher promoters pledge entire 52.85% stake in company Two promoters of Kingfisher Airlines Ltd, United Breweries (Holdings) Ltd and Kingfisher Finvest India Ltd, have pledged their entire 52.85% holding in the company, according to regulatory filing on the exchanges. On June 16, United Breweries pledged an additional 113.21 mn shares, while Kingfisher Finvest pledged 2.33 mn more shares of the airline. The fresh pledge takes the total number of pledge shares by the two promoter entities to 263 mn shares, which constitutes their entire shareholding in the company. As on Jun 3, the promoters of Kingfisher Airlines held 58.61% stake in company. "The equity shares were pledged pursuant to requirements prescribed under the debt recast package entered into by Kingfisher Airlines Ltd with certain of its lenders," the airline said in a filing. In November last year, the board had approved a restructuring plan to convert debt worth Rs.13.55 bn from lenders into equity. In addition, the country's second largest airline by market share converted debt of up to Rs.6.48 bn from promoters into share capital. IIFCL CMD says sought govt OK to raise Rs.100-bn-tax-free bonds India Infrastructure Finance Corp Ltd has sought government's approval to raise Rs.100 bn via tax-free infrastructure bonds. Out of this, we will raise Rs.40 bn this year, and the remaining Rs.60 bn we will raise next year," he said. IIFCL hopes to launch the first tranche of Rs.40-bn-tax-free bonds by Jan-Mar, Goel said adding that the interest income from these bonds will be tax-free for the said tenure. In addition, IIFCL will also raise retail bonds of 10-year and 15-year tenures post September worth Rs.10 bn, he said. IFC plans to invest $2 mn in Chennai ATM maker Vortex Engineering International Finance Corp, the private sector investment arm of the World Bank, plans to invest up to $2 mn in Vortex Engineering Pvt Ltd, a Chennai-based company that develops and installs low cost automated

Weekly Newsletter 14 Info-Spectrum Bridging the Information Gap in Corporate Landscape teller machines across rural and semi-urban areas. According to information on IFC's website, the investment will support Vortex Engineering in buildings relationships in the financial sector and in developing global best practices in technology-led banking services. Some of the major investors of Vortex include Oasis Fund, venture capital fund VenturEast and microfinance-focused fund Aavishkaar. Oil min OKs Reliance Ind-BP deal; cabinet to take it up Thu The Ministry of Petroleum and Natural Gas has given primary clearance to Reliance Industries Ltd's $7.2 bn deal with London-based BP Plc and has now forwarded the agreement to the Cabinet Committee on Economic Affairs for a final approval, an oil ministry source said. "The oil ministry has unequivocally recommended (the deal) for clearance," the source said. "It (the deal) may be taken up soon...on Thursday." The ministry has circulated a note on the deal to finance ministry, law ministry and the home ministry, and the agreement will be considered on its own merits, he said. "It's a big ticket deal," the source said. "Technically my ministry may have the competence to approve, but since it is a big deal we would like the Cabinet to take a decision on it." Under the deal, the Reliance Industries will sell a 30% stake in some of its hydrocarbon blocks to BP. Tata Housing announces overseas foray with Maldives project Tata Housing Development Co Ltd announced its overseas foray with an 850,000-sq-ft residential-cum- commercial project in Maldives on public-private-partnership basis. Tata Housing has formed a special purpose vehicle, called Apex Realty, in partnership with Maldives-based SG18 Developers Pvt Ltd to execute this project. SG18 will hold 65% stake in the project and Tata Housing the remaining 35%. The project is spread over four plots for which Apex Realty has a 50-year lease from the Maldives government, and will include 350 residential apartments, 150,000-sq-ft of commercial space and 50 premium villas admeasuring 20,000 sq ft each. Of the 350 apartments, which will be developed in the first phase of the project, 80% will be given out to government-nominated buyers at lower costs. Apex Realty will sell the remaining 20% in free market. Tata Housing estimates an investment of Rs.8.5-9.0 bn in the project, which will be executed over the next three years. On funding, Mr Banerjee said it would be through internal accruals and debt. SpiceJet appoints R Neelakantan as CFO Spicejet Ltd has informed BSE that Mr. R Neelakantan, Vice President Finance has been elevated to the post of the Chief Financial Officer (CFO) of the Company with immediate effect. Ms. Seema Chandra has since resigned as the Chief Financial Officer of the Company. Nicco Corp to sell majority stake in EPC unit post divestment Nicco Corp Ltd has decided to hive off its engineering, procurement and construction division into a separate company and divest a majority stake in the new entity to Gujarat-based Oriental Manufacturers Pvt Ltd. The EPC division caters to large customers in oil and gas, nuclear power, and steel sectors. The Kolkata-based Nicco Corp and Oriental Manufacturers have entered into a definitive agreement on the deal, but the notification does not disclose any financial details. As part of the deal, Nicco Corp will transfer all of its EPC division's ongoing and in-line projects and employees to the new company. "NCL (Nicco Corp) in turn will utilise its freed resources to increase its focus on developing its core business of speciality cable manufacturing...," it said. Man Infraconstruction gets order worth Rs.1 bn Man Infraconstruction Ltd has received a civil and structural construction order worth Rs.1 bn from Viraj Profiles Ltd. The company that undertakes buildings, ports and roads projects, will construct a section rolling mill for Viraj Profiles in Boisar. Viraj Profiles manufactures and exports various grades of stainless steel products and has various divisions in Tarapur Industrial Area, Boisar. Source says ONGC's GS-15 marginal field to go on stream by Jul-end Finally, after a delay of five years, Oil and Natural Gas Corp Ltd will start production from its GS-15 marginal field off the Andhra Pradesh coast by the end of the month. A litigation with a foreign contractor over non- payment of dues had put a spanner in the works of Oil and Natural Gas Corp's plan to develop the field. Oil and (natural) gas production from GS-15 field is expected to commence from end July 2011. Initial production from GS-15 will be around 2,000 barrels of crude oil per day and 200,000 cu mtr of natural gas daily. Chenab Valley Power Projects will construct power projects Chenab Valley Power Projects Ltd, a joint venture company of J&K Power Development Corporation and NHPC, will construct three power projects with a generation capacity of 2,100 mw in J&K over the next six

Weekly Newsletter 15 Info-Spectrum Bridging the Information Gap in Corporate Landscape years. The projects, Pakaldul (1,000 mw), Kwar (520 mw) and Kiru (600 mw), will be constructed at a cost of around Rs.15,000 crore. Work on the Pakaldul project is likely to be taken up early next year. Karma Energy plans to set up a power project Karma Energy Ltd, a subsidiary of Weizmann Ltd, is planning to set up a 60- mw power project at Dhule, Maharashtra, with an investment of around Rs.240 crore. The project is expected to be operational by 2013. The company's first 3.5-mw hydel project coming up at Bhatot in Chamba district of Himachal Pradesh will be commissioned next month. Essar Ports to raise up to $500 mn Essar Ports Ltd has informed that the Board of Directors of the Company at its meeting held on July 04, 2011, inter-alia, has approved issuance of Foreign Currency Convertible Bonds / Global Depository Receipts / American Depository Receipts / Optionally Compulsorily Convertible Bonds / any other instruments convertible into shares of the Company upto an amount of US$ 500 mn. The Company will seek the enabling approval of the members at the ensuing Annual General Meeting for the aforesaid issue. IFC to give $15 mln loan for Bhilwara Energy wind farm project International Finance Corp, the private sector investment arm of the World Bank, will give a loan of up to $15 mln to fund a 51 MW wind farm project in Satara district of Maharashtra to be developed by Bhilwara Energy Ltd. The wind farm will be built under an engineering, procurement and construction contract with ReGen Powertech, a company that designs and manufactures gearless wind turbine generators. IFC also holds a 5.24% stake in Bhilwara Energy, which it acquired last year. Surana Ind arm Surana Power plans fund raising, may list Surana Industries Ltd (SIL) announces that Surana Power Limited, its wholly owned Subsidiary company, has been authorized by SIL to investigate financing options to progress the completion of its Power Projects. It is intended that Surana Power Ltd will investigate a number of financing options, including, but not limited to, raising equity capital by way of a listing on an appropriate Stock Exchange. Further details will be released by SIL in due course. Indiabulls Real's Elphinstone Mills project gets anti-pollution OK Indiabulls Real Estate Ltd has received clearance from the Maharashtra Pollution Control Board for the three commercial towers of its Finance Centre project at the Elphinstone Mills compound in central Mumbai. KNR Constructions gets Rs.5.8 bn road order from Sadbhav Engg KNR Constructions has secured a Rs.5.8 bn order for upgradation and maintenance of two stretches of the National Highway-26B that run between and Maharashtra. Leeway Logistics gets Rs.150 mn private equity investment Leeway Logistics Ltd has got Rs.150 mn private equity investment from Rajasthan Venture Capital Fund. BHEL NBFC: BHEL's plan to float a non-banking finance company has been delayed as the board of the public sector company has asked consultancy firm CRISIL to incorporate some changes before finalising the contours of the NBFC proposal. Power buys 5.87% more in Motwane Manufacturing Nagpur Power & Industries Ltd has further acquired equity shares of, The Motwane Manufacturing Private Limited (Subsidiary Company) for Rs.2.21 Crores in the month of June 2011. The Companys shareholding in The Motwane Manufacturing Company Private Limited has increased from 50.41% to 56.28%. Haryana Power Utilities to buy power by banking For the first time, Haryana Power Utilities have tied up to buy power through banking and return banking arrangements of over 1,000 megawatt. NHPC plans to raise Rs 20 billion in current fiscal Country''s largest hydro power producer NHPC plans to raise about Rs.20 bn in the current fiscal, mostly from the domestic market. Punjab to increase floor area ratio of industrial plots Punjab government decided to expand the possibility of extending Floor Area Ratio (FAR) of industrial plots from existing 1:1 to 1:2. CBI wants Oil Min to appoint expert to help in Reliance case

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

The CBI may ask Oil Ministry to appoint an expert to assist it in understanding transactions surrounding Reliance Industries'' crown jewel KG-D6 fields, where the company has shown a phenomenal increase in cost of producing gas. Biogas can gain importance in view of rising LPG prices: PAU In view of escalating Liquid Petroleum Gas (LPG) costs, biogas can gain importance, according to PAU experts. HIGHWAY BID: National Highways Authority of India has selected 101 firms, including L&T Infrastructure Development Projects, IL&FS Transportation Networks, , Lanco Infratech and Punj Lloyd, to submit financial bids for projects put up for bidding till Dec 31. STAKE SALE: Heramec Ltd plans to sell half of its stake in the six onshore hydrocarbon blocks it co-owns in India with Gujarat State Petroleum Corp Ltd to Calgary-based Stealth Ventures Ltd. Essar Ports to replace Assam Co in BSE-500 Index from Jul 11 Essar Ports Ltd will be included in the BSE 500 Index from Jul 11 in place of Assam Company (India) Ltd, the said in a release. Govt may give 802 cr to AI for operation of 3 aircraft With the decision on infusing Rs.1,200 cr as equity in Air India expected soon, Indian govt may consider giving the airline a little over Rs.800 crore additionally as dues. Goa granted additional point of call for Oman carriers Goa has been granted an additional point of call for airlines from Oman during the bilateral air services consultations held with that country, Goa NRI Commissioner Eduardo Faleiro said. AI has not signed MOU with govt for meeting targets The Department of Public Enterprises (DPE), under Heavy Industry Minister Praful Patel, has complained to the Cabinet Secretariat that the debt-ridden Air India has been getting away without signing the target- setting MoUs with the government. About 6000 people to be affected by SC land order About 6,000 people who had booked flats in residential complexes being built by realty firms like Amrapali at Greater Noida, will be affected by the Supreme Court''s order asking the state government to return land to their original owners. Finally Dreamliner to be delivered to Air India this year The first ultra long-haul Boeing 787 Dreamliner would be delivered to Air India this year. But before that, the aircraft would land at the IGI Airport here on a test flight. MP govt announces subsidies for power consumers Madhya Pradesh government has decided to give a subsidy totalling Rs.1,776 crore on the tariff fixed by the Electricity Regulatory Commission this fiscal to provide relief to power consumers in some categories. No chit fund fraud at Pearls, says CEO Jyoti Narayan Reacting to media reports of a chit fund fraud allegedly perpetrated at the company, PACL India Ltd (Pearls) Group CEO Jyoti Narayan today said the firm is a real estate developer and never indulged in any type of chit fund business to make money double or triple. Gujarat Pipavav in land lease pact for tankage unit Gujarat Pipavav Port Ltd has informed that the Company has entered into an Agreement with IMC Ltd wherein they intend to take on lease 100,000 sq mtrs, of land to develop the tankage facility at Pipavav Port. Oil Ministry blocks Cairn's Bhagyam oil field plans In fresh confrontation, the Oil Ministry has blocked Cairn India''s plans to begin crude oil production from the Bhagyam oilfield, the second biggest find in the prolific Rajasthan block. Man Infraconstruction gets two orders worth Rs.950 mn Man Infraconstruction Ltd has received two orders totalling Rs.950 mn. The orders are for civil and structural work at residential towers, one at Borivali in Mumbai, and the other at Nagpur. The Mumbai order has been awarded by Park View Developers, and for Nagpur,by Goldbricks Infrastructure Pvt Ltd.

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

ARSS Infrastructure gets order worth Rs.211.8 mn ARSS Infrastructure Projects Ltd has informed that the Company has been awarded with a new work order from the Office of the Executive Engineer, Kalahandi, R&B Division, Bhawanipatna, Kalahandi, Odisha on July 07, 2011 for Improvement of Bhwanipatna - Rayagada Road from 0/0 to 26/0 K.M for an amount aggregating Rs.211.8 mn. COMBAT VEHICLES: Ashok Leyland, Larsen & Toubro, Bharat Forge, and Mahindra & Mahindra are among those who have bid for a $10-bn defence ministry contract to supply combat vehicles for the Indian Army. CAIRN INDIA: • Minority shareholders of the company may legally challenge the stringent conditions set by the Indian government to approve Vedanta's acquisition of the company's stake in its Indian JV with OIL AND NATURAL GAS CORP. • The oil ministry has blocked the company's plans to begin crude oil production from the Bhagyam oilfield in the Rajasthan block. OIL AND NATURAL GAS CORP: • Chairman A.K. Hazarika has said clarity on subsidy sharing before the company's follow-on public issue will sent out a positive signal to the market. • Is in the process of exiting the South Karnpura block in Jharkhand and filing product sharing contract for four on which it has found gas in viable quantities this year. SREI INFRASTRUCTURE: • Is looking to dilute 10-20% in roads business. • Is exploring the possibility of converting its 500-acre special economic zone in West Bengal into an industrial park. ORIENT GREEN POWER: • To add 60 MW of biomass capacity in four months. • Has synchronised its 10 MW biomass power plant near Pollachi with the grid. RELIANCE INDUSTRIES: • Is pushing for speedy approvals to the deal with BP and has cited BP's entry into India as a "major boost to the energy security of the country." • The petroleum ministry is likely to add a key condition for approving the company's proposed deal with BP that the latter does not get to export gas from the company's Indian oilfields. • Has suffered the repeated ignominy of being left kicking the dirt since January, when a cabinet reshuffle saw Jaipal Reddy replace Murli Deora in the ministry of petroleum and natural gas. • The petroleum ministry has prepared a note detailing an Rs.80 bn financial benefit to the government from usage of the company's KG-D6 gas by the fertiliser sector alone. • Is looking for buyers for its gas transportation and marketing company, Reliance Gas Transportation Infrastructure. • Has written to Directorate General of Hydrocarbons committing it will immediately start drilling three wells at its D6 basin. • Oil ministry has cleared the company's $7.2-bn deal with BP, forwarded it to the Cabinet Committee on Economic Affairs for final approval. • Mukesh Ambani plans to sell a non-controlling stake in Reliance Gas Transportation Infrastructure to bring aboard a partner that brings skills and value. • Reliance Industries, under attack from the Directorate General of Hydrocarbons for not meeting drilling commitments for its flagship D6 block, has written to DGH committing it will immediately start drilling three wells. • Has sought "suitable opportunity" to respond to a report of the CAG that indicates it received undue favours from the oil ministry.

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

KINGFISHER AIRLINES: • The Airports Authority of India has encashed a bank guarantee of Rs.1 bn of the company after it failed to clear airport charges to the tune of Rs.2.50 bn. RELIANCE INFRASTRUCTURE: • Has started a pilot project under which real estate developers and builders can apply for power connections online. • Has sought clarification from the Maharashtra government and Maharashtra State Road Development Corp on issues including viability gap funding for a proposed coastal road in Mumbai. • Is revamping its senior management team. EIMCO ELECON: To sell surface drilling machine operations for Rs.165 mn. NTPC: Is awaiting the transfer of the supercritical 1,600 MW Katwa power plant by the West Bengal government before it can take measures to implement the project. SOBHA DEVELOPERS: Has increased its stake in its residential construction special purpose vehicle to 59.5%. BHARAT HEAVY ELECTRICALS: The Cabinet is likely to approve disinvestment of 5% of government's stake in the company next week. GTL INFRASTRUCTURE: Viom Networks may merge with the company through a share swap. GUJARAT PIPAVAV PORT: Plans to seek fresh terms from existing lenders for term loans of Rs.7.65 bn. GUJARAT STATE PETROLEUM CORP: Operator Heramec plans to sell half its stake in the six onshore hydrocarbon blocks it co-owns in India with the company to Calgary-based Stealth Ventures. POWER GRID CORP: Is in the race to build transmission lines for TATA POWER's ultra mega power plant in . SURANA INDUSTRIES: Arm Surana Power plans to raise funds, may consider listing. : Has raised Rs.40.84 bn debt for its 1,320 MW power plant at Tiroda in Maharashtra. GMR INFRASTRUCTURE: Arm GMR Airports Holding has raised Rs.5.85 bn by issuing compulsorily convertible preference shares to five investors. LANCO INFRATECH: Australia's Perdaman Industries has moved court against the company, seeking to restraint it from mortgaging Griffin Coal in future. TEXMACO RAIL & ENGINEERING: Is close to firming up multiple joint ventures with foreign partners for manufacturing railway-related products and infrastructure within the next six months. GREAT EAST: Great Eastern Energy Corp plans to invest Rs.25 bn in West Bengal in the next five to six years after having already invested Rs.10 bn on coal methane-based compressed natural gas projects. ADANI POWER: Board has approved merger of Growmore Trade and Investment with the company. The company may issue 16,615 ADANI POWER shares for every 10,000 Growmore shares. ENGINEERS INDIA: Is setting itself ambitious targets to crack overseas markets. PENINSULA LAND: Will jointly develop a 300-acre plot in Thane with an unknown land aggregation firm. PUNJ LLOYD: Has withdrawn plans to provide additional financial support to UK's Simon Carves. The company may ink a pact to buy some of its assets and contracts.

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

IT & ITeS INFORMATION TECHNOLOGY: • Top IT companies are expected to report sequential revenue growth of 4-6% in dollar-term for Apr- Jun. • Reliance ADA Group-promoted social networking and blogging site BigAdda is planning to close its social networking business, and be repositioned as an e-commerce portal. • The government will shortly impose hefty penalties on business process outsourcing firms that compromise on data privacy of individual customers. • Publisher Mcmillan Group plans to sell its Indian technology solutions and business process outsourcing firm MPS. • Capgemini has acquired Italian IT services provider, Aive, at an enterprise value of 42.9 mn euros. • The West Bengal government has reached out to Narayana Murthy to head its IT initiatives. • Indian software companies are spending large sums in hiring professional help to win friends and influence people in their biggest market US. Two major shrholders sell stake in Redington via block deals Two of Redington (India) Ltd's major shareholders, Taiwan's Synnex Corp and Singapore-based Kewalram Chanrai Group trimmed their respective stakes in the company through block deals. Standard Chartered Private Equity bought 12% of the company from two shareholders for around $98 mn. Srinivasan said the two shareholders sold their stake, as it was the management's decision that no shareholder should have over 26% stake in the company. Post the block deals, Synnex and Kewalram Chanrai Group now have around 23% stake each in the company, Srinivasan said. Blue Star Infotech in pact with QuilkTech for business solutions Software solutions provider Blue Star Infotech Ltd has entered into a partnership with NASDAQ-listed QuilkTech to offer business intelligence solutions in India. "BSIL will deliver solutions based on QuilkTech's business discovery platform, QuilkView. Through this partnership, QuilkTech will gain access to BSIL's BI implementation experience and presence in the domestic mid-market space," Blue Star Infotech said in a release. Polaris gets order for core-banking solution from Sri Lankan Co Polaris Software Lab Ltd has received an order from Sri Lankan financial institution Citizens Development Business Finance Plc to implement its core banking software, Intellect. The Bengaluru-based company did not reveal the financial details of the order. Polaris said the core banking software will be deployed by its local partner Millennium Information Technologies Pvt Ltd, which is owned by the London stock exchange group. Intellect software will help Citizens Development Business Finance to integrate a range of banking operations including loans, deposits, general ledger, operational accounts, securitisation, loan origination and management information system. By Dec, Huawei will come calling with 4G tech China-headquartered Huawei Technologies is planning to offer its 4G solutions to support broadband operators in India by December 2011. The company is in talks with Indian operators such as Mukesh Ambani-owned Reliance Industries Ltd (RIL) for rolling out Long-Term Evolution (4G) solutions. A 4G system provides IP-based mobile broadband solutions to laptops, computers, wireless modems, smartphones and other mobile devices. Huawei is working on LTE solutions since 2005. Mr Ying Weimen, President of GSM, UMT and LTE network at Huawei, said: “We are bullish on our entry in India which will be by December 2011. We expect full fledged roll out of LTE network by 2012.” Huawei's foray into LTE broadband solutions and 4G technologies indicate its shift toward new verticals in the fast growing telecom sector in the country. Environment Ministry's nod must to import 2nd hand computers The Economic Times Concerned over dumping of e-waste like used computers in the country, the Revenue Department asked customs officials to ensure that no such goods are imported without a nod from the Environment Ministry. The direction comes after the Central Board of Excise and Customs (CBEC) assumed significance in wake of reports that e-wastes such as used computers, cathode ray tube, random access memory and electrical and electronic assemblies are being dumped in a big way into the country thereby posing serious threat to environment.

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

ETA Technopark 2nd Phase nearing completion The second phase of ETA Technopark’s IT/ITES SEZ is expected to be completed by September 2011. The first phase was completed in February 2008. The Information Technology (IT) / Information Technology enabled Services (ITES) Special Economic Zone is located on the Old Mahabalipuram Road in Chennai. In the first phase 0.62 mn sq ft was built and additional 0.58 mn sq ft will be added in the second phase. As per the original schedule, however, built-up area of 4.16 mn square feet was planned which was later on scaled down. The company plans to undertake further expansion in a phased manner depending upon the demand for office space in the SEZ. The Phase I area has been leased to HCL Technologies Limited (HCL) and for the second phase too the company has signed a letter of agreement with HCL. Aptech to expand overseas business Learning solutions company, Aptech Ltd has identified 100 cities in emerging markets for its overseas foray as it plans to shore up its international business from 35% of total retail business to 50% by 2015, said CEO and managing director Ninad Karpe. The Mumbai-based company wants to enter all markets which have a population of more than one million people in Asia, Africa and Latin America. At present, the retail business accounts for 75% of Aptech's total revenues of Rs.190 crore, which includes the subsidiaries. "The emerging markets which we have identified have a huge gap between formal education and employability, an area which we want to plug. The scope exists much beyond IT and multimedia training," said Karpe. Aptech is changing its business model to become a global career education company in the long run. "Whatever new course we may start, it will be devised in a way that there is requirement for it beyond India , in emerging markets like Vietnam and Nigeria. We are looking at multiple options like alliances for our overseas expansion," said Karpe. Helios & Matheson buys back FCCBs worth $1.4 mn Helios And Matheson Information Technology Limited has informed that the company has bought back FCCBs of nominal value of US$ 1.40 mn at 25% discount as per the guidelines and requisite approvals received from the Reserve Bank of India. The bonds that have been bought back have since been cancelled and extinguished. After cancellation of US$ 1.40 mn bonds, the total outstanding value of the bonds now stand reduced to US$ 15.60 mn. sets up software testing centre for Microsoft Tech Mahindra Ltd has set up a software testing centre for Microsoft Corp at the latter's facility in Bengaluru. The centre will test and qualify video encoders used for deploying internet protocol television solutions on Microsoft Mediaroom-based platforms, Tech Mahindra today said in a release without giving financials details. "Encoders from...across the globe will be tested and qualified (at this centre) against the conformance parameters set by Microsoft for the Mediaroom platform," the release said. AP govt seeks Centre's help to revive Fab City Business Standard Chief minister N Kiran Kumar Reddy has requested the Union IT ministry to locate one of the proposed semiconductor fab facilities in Andhra Pradesh. Saksoft acquires Synetairos Technologies Information management company Saksoft acquired consulting services firm Synetairos Technologies Ltd for an undisclosed amount. NIIT ties up with IBM to offer professional courses NIIT Ltd has tied up with global technology major IBM to offer professional courses to those interested in working in the information technology industry Logitech plans to enter tier 2 and tier 3 cities in India Logitech said that India is an important market for the company and it has plans to foray into the tier 2 and tier 3 cities in the country this year. TATA CONSULTANCY SERVICES: • Chairman Ratan Tata said the company has not got any notice from the income tax department on alleged body shopping. • Is looking to expand operations in Latin America, West Asia and Asia. Plans capex of Rs.23 bn in the current financial year. • NIIT ties up with IBM to offer professional courses

Weekly Newsletter 21 Info-Spectrum Bridging the Information Gap in Corporate Landscape

• NIIT Ltd has tied up with global technology major IBM to offer professional courses to those interested in working in the information technology industry, the Indian company said in a release. The news pushed up NIIT shares to their intraday high of 57.95 rupees on the National Stock Exchange. At 1347 IST, the stock was up 3.5% at 56.90 rupees. Under the tie-up, NIIT will offer students projects based on operational requirements of organisations to help them gain industry- ready skills, the company said. NIIT said IBM experts would design the projects and evaluate the completed projects of the students. • Promoter Tata Sons has pledged 4.4 mn more shares of the company on Jun 29. KLG SYSTEL: May opt for corporate debt restructuring due to deteriorating financial health, said banking sources. SATYAM COMPUTERS: Is likely to sign a big global deal with Formula 1 at the Indian Grand Prix scheduled on Oct 30. SONATA SOFTWARE: Sees aggressive US foray boosting its prospects. : Is betting big on Cloud computing, analytics and mobility to deliver a big push to its business in the next three years. GEMINI COMMUNICATION: The company's board will take a decision on proposed buyback of shares on Jul 18. SATYAM COMPUTER: The Supreme Court has directed the Central Board of Direct Taxes to wait for two weeks before enforcing an order to pass on a Rs.6.16 bn tax demand against the company.

Weekly Newsletter 22 Info-Spectrum Bridging the Information Gap in Corporate Landscape

PHARMA & HEALTHCARE PHARMACEUTICALS: • Many Indian companies are upbeat about entry in US markets after the US Food and Drugs Administration did not find any major issues during its recent inspections in the country. • An inter-ministerial group has suggested that foreign direct investment cap in existing pharma ventures be lowered to 49% from 100%. Lupin gets US FDA nod to sell hypertension drug Novartis' Lotrel Lupin Ltd has received US Food and Drug Administration's final nod to sell its generic combination drug of amlodipine besylate and benazepril hydrochloride in the world's largest drug market, according to the US regulator's website. The drug, generic version of Novartis' Lotrel, is used in the treatment of high blood pressure. The Mumbai-based drug maker has got the US approval to sell the drug in capsule forms in seven different combination strengths of 5-mg/40-mg, 10-mg/40-mg, 2.5-mg/10-mg, 5-mg/10-mg, 5-mg/20-mg and 10-mg/20-mg, the regulator said in a notification. According to a health data, Novartis' Lotrel had sales of $290 mn during the 12-month period ended March. Opto Circuits' arm in distribution pact with Japanese Co Omron Opto Circuits (India) Ltd's group company Cardiac Science Corp has signed an exclusive distribution agreement with Japan-based Omron Healthcare Co Ltd to distribute its emergency life saving product, the automated external defibrillator, in Japan. Automated external defibrillators are used to deliver an electrical current to the heart to restore heartbeat after a cardiac arrest. The first sales of the medical equipment are expected to come in August, Opto Circuits said in a release. The Bengaluru-based company said Japan is the world's second largest market for automated external defibrillators with 65,000 units sold annually. Opto Circuits had acquired US-based Cardiac Science Corp in December 2010. The company said this distribution agreement marks Cardiac Science's re-entry in the Japan market. Omron Healthcare markets and distributes medical, home healthcare and wellness products in Japan. Desun Hospital to invest Rs.340 cr to expand network Desun Hospital and Heart Institute is planning to invest Rs.340 crore for expansion of its network in the country. Of the total, Rs.120 crore will be invested for expansion in Kolkata and another Rs.220 crore for setting up hospitals at Siliguri in West Bengal and at Bhubaneswar in Orissa. Desun will add another 400 beds to its existing 300 bed facility at Kolkata by 2012. The company has already acquired two acre land for setting up a 300-bed hospital at Siliguri. Besides, it has identified land for a 300-bed hospital in Bhubaneswar. Both the hospitals ars expected to be operational by 2013. Opto Circuits transfers 3 US cos to arm Opto Cardiac Opto Circuits (India) Ltd has informed that the Company, for the purpose of cost effectiveness and operational efficiency, has taken restructuring initiative and transferred the investments of three of its US Subsidiaries, Cardiac Science Corporation, Criticare Systems Inc., and Unetixs Vascular Inc., into Opto Cardiac Care Ltd, a Wholly Owned Subsidiary of Opto Circuits (India) Ltd. Further, the Company has also transferred the investments of its subsidiaries, Eurocor Gmbh, and N.S.Remedies Private Ltd, into Opto Eurocor Healthcare Ltd, a Wholly Owned Subsidiary of Opto Circuits (India) Ltd. US FDA warning to Cadila Health Zyfine unit for mfg norm violation The US Food and Drug Administration has issued a warning letter to drug maker Cadila Healthcare Ltd for violating manufacturing norms at its Zyfine unit in Ahmedabad, Gujarat. According to the letter posted on US FDA's website, the regulator has identified "significant violations" of good manufacturing practices for finished products during its inspection of the Zyfine plant between Jan 17 and Feb 3. The US FDA has now sought a response from the Ahmedabad-based drug maker within 15 days on the corrective steps taken regarding the violations. If the company fails to satisfy US FDA with its corrective action report, the regulator may also not approve new product applications from the firm. It added that FDA may also not allow shipment of drugs from the Zyfine unit if Cadila fails to correct the violations. Lupin launches additional strengths of generic Lotrel capsules Lupin Ltd's US subsidiary Lupin Pharmaceutical Inc has received approval from the US FDA for two more strengths of generic Lotrel capsules prescribed in treatment of hypertension. Commercial shipment of the product has started. The company received the approval for 5mg/40mg and 10mg/40mg strengths of Amlodipine/Benazepril combination capsules, the generic version of Novartis' Lotrel capsules. Lupin, quoting

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

IMS Health data, said, the two strengths of generic Lotrel had sales of around $290 mn for 12 months ended March. Ranbaxy recalls unexpired stock of acne drug Sotret 20 mg from UK Ranbaxy Laboratories Ltd's UK arm is recalling all unexpired stock of its generic drug isotretinoin 20 mg following the European Commission's temporary suspension of the company's marketing authorisation for the drug, the UK Medicines and Healthcare products Regulatory Agency said. This is due to a potential issue with bioequivalence in comparison with the originator product," the European regulator said in a notification. The drug, used in treatment of acne and skin-infections, is sold by Ranbaxy under the Sotret brand. Last year, the company recalled a batch of Gabapentin 100 mg capsules in Europe, after the regulator there found that the patient information leaflet hadn't been updated to include safety warnings initiated by the European Medicines Agency. It had also recalled batches of Mirtazapine 15 mg and 45 mg tablets and unexpired stock of Sertraline 50 mg and 100 mg tablets on the same grounds. Dr Reddy's Lab launches generic Lotrel capsules in US market Dr Reddy's Laboratories Ltd launched in the US market two more strengths of Novartis' Lotrel capsules' generic version, following the US Food and Drug Administration's approval, the company said in a regulatory filing. Dr Reddy's Laboratories launched the 5mg/40mg and 10mg/40mg strengths of amlodipine/benazepril combination capsules, the generic version of Novartis' Lotrel capsules, used to treat hypertension. Lotrel had sales of around $290 mn in 2010-11 (Apr-Mar), the company said quoting IMS Health data. Dr Reddy's had earlier launched the Lotrel generic in the US in 2.5mg/10mg, 5mg/20mg, and 10mg/20mg strengths, after it settled a patent infringement suit with Novartis for the drug, the company said. Glenmark settles lawsuit with Daiichi, Genzyme over diabetes drug Glenmark Pharmaceuticals Ltd, along with subsidiaries Glenmark Generics Ltd and Glenmark Generics Inc, has settled a patent litigation with Daiichi Sankyo Inc and Genzyme Corp over the launch of generic colesevelam hydrochloride used for treating diabetes and high cholesterol in the US market. Lyla Labs' Ankleshwar unit sealed over recovery of dues Lyka Labs Ltd has informed that Company's factory at Ankleshwar is sealed, without following due procedure of law, by the Mamlatdar of Ankleshwar for alleged recovery of dues towards DPEA., under DPCO 1979. This has happened despite the matter being Sub Judice before the Hon'ble Gujarat High Court. The hearing is on in the matter in the Hon'ble Gujarat High Court and the Company hope the matter will be resolved soon. Fortis Healthcare appoints Aditya Vij as its CEO Fortis Healthcare (India) has appointed former head of General Motors India, Aditya Vij as the Chief Executive Officer (CEO) of the company with effect from July 5. KDL Biotech approaches BIFR KDL Biotech Limited had made a reference to the Board for Industrial and Financial Reconstruction (BIFR) under Section 15(1) of the Sick Industrial Companies (Special provisions) Act, 1985. The reference has been registered in BIFR as Case No.35/2011. Neuland to raise up to Rs.120 mn via rights issue Neuland Laboratories Ltd has informed that the Board of Directors of the Company at its meeting held on July 07, 2011, inter alia, has accorded consent to a Rights Issue of Equity Shares not exceeding Rs.120 mn. Further the Board at this meeting also constituted a Board Committee called the Rights Issue Committee to finalise the Rights ratio, issue price, record date and all other procedural modalities relating to the proposed Rights Issue. JB Chemicals gets shareholders' nod to sell OTC biz JB Chemicals & Pharmaceuticals today said its shareholders have approved the sale of its over-the-counter business in Russia and CIS countries to Johnson & Johnson subsidiary Cilag GmbH for a consideration of Rs.938.51 crore. SMS PHARMACEUTICALS: Has started operations at a unit in its plant in Andhra Pradesh after temporary nod from pollution control board. AMRUTANJAN HEALTH CARE: Is diversifying into personal care. DR REDDY'S LABORATORIES: The US health regulator has imposed an import ban on products made at the company's Mexican plant. VIVIMED LABS: Has set up arms in Mauritius, Spain and the UK.

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

TELECOM TELECOM: • Essar Group has sold its entire 33% stake in Vodafone Essar to Vodafone for $4.58 bn. • Telecom Regulatory Authority of India will send teams to check how mobile operators deal with number porting requests. • Bharat Sanchar Nigam is taking steps to formalise the ownership of real estate assets transferred during its inception by the telecom department. • TRAI has directed all mobile phone service providers to mention in advertisements the cities and states in which third-generation service is available. • The department of telecommunications plans to offer incentives which may include some subsidy, to service providers for increasing mobile coverage in rural areas. • Mobile entertainment and content provider Nazara Technologies has partnered Micromax for embedded games. • British Telecom will invest 78 mn pound sterling over a year in Asia and hire more than 150 people over three years. • Vodaphone's minority partner in India, Analjit Singh, may take over as the chairman of the group's Indian operations after the exit of Essar from the venture. • Bharat Sanchar Nigam is mulling a revival in the fortunes of seven of its manufacturing facilities through tie-ups with private telecom players. • The Central Bureau of Investigation has told Supreme Court that it is investigating Textiles Minister Dayanidhi Maran in the 2G scam. • The CBI has told the Supreme Court that during his tenure as telecom minister, Dayanidhi Maran delayed award of 2G spectrum license to Aircel for nearly two years. • The CBI has complained to the Supreme Court that Corporate Affairs Minister Murli Deora's department attempted to "pre-empt investigations" into the Essar-Loop association case. • A government panel on Wednesday deferred the decision on Vodafone's plea to buy 5.48% in its joint venture firm Vodafone-Essar for about Rs.27 bn. • Telecom Regulatory Authority of India said 2 mn subscribers requested to change their operators under mobile number portability scheme in May. • Government has asked Research In Motion to provide the country's intelligence agencies by Aug 15 the interception keys to enable real-time tracking of its popular BlackBerry messenger and corporate email services in readable format. Tulip Tele gets bids for 30% of co's share in Bengaluru data centre Tulip Telecom Ltd has got bids from potential suitors for 30% of the company's stake in its Bengaluru data centre, sources familiar with the development told. The bids have come. The company is yet to enter into a binding agreement with any bidder. The process should take two months, a source said. Tulip Telecom had acquired the Bengaluru data centre facility, SADA IT Parks Pvt Ltd, for Rs.2.30 bn in January. It will spend another Rs.6.70 bn over the next three years in the unit. The first phase of the Bangalore data centre is likely to start operations by August. Debt, internal accruals and the share sale will help Tulip fund the data centre. The 900,000 sq ft Bengaluru data centre will be capable of executing bulk orders, Chief Executive Officer Sanjay Jain had said at the time of its acquisition. Head says BSNL likely to float 15 mn GSM line tender in 2 weeks Three-years after it invited bids for equipment for its services based on global system for mobile communications, state-owned Bharat Sanchar Nigam Ltd is likely to float tender for 15-mn GSM lines in two weeks. Last month, Upadhyay had said the telecom services provider was looking at ways to procure equipment and emergency procurement was one of the options that the company was evaluating. The tender will be based on vendor-financing model. BSNL casual, contract workers to observe pan-India protest day Thu Over 100,000 casual and contract workers of state-owned telecom services provider Bharat Sanchar Nigam Ltd will observe an "All India Protest Day" on Jul 7, to protest non-payment of minimum wage and non- implementation of social security measures like employee provident fund. "After sustained struggle, BSNL

Weekly Newsletter 25 Info-Spectrum Bridging the Information Gap in Corporate Landscape management has issued orders on payment of minimum wage etc, but they are not being implemented at field level," said a press release by BSNL Casual & Contract Workers Federation. The workers have also organised a march to BSNL corporate office here on Aug 11. Samsung Galaxy SII reaches 3 mn global sales "This milestone reflects the continued strong support from our carrier partners around the world who have chosen the GALAXY S II as their flagship Android device," Samsung Mobile Communications Business President and Head JK Shin said in a statement. Sterlite Tech bid lowest in BSNL's 3.2-mn-line broadband tender Sterlite Technologies Ltd has emerged the lowest bidder for a 3.22-mn-line broadband tender floated by state-owned telecom services provider Bharat Sanchar Nigam Ltd last year, a source told. Of the seven bids that the company had received for the tender, ZTE Corp was the second lowest bidder, the source said. Other participants in the tender included Alcatel Lucent, Teracom Ltd and UT Starcom-ITI. The financial bids for the tender that was floated in September last year were opened on Apr 27. Subsequently, the tender evaluation committee had submitted its report and a final decision on the tender is expected next week, the source said. ITI head says SBI-led panel for Rs.23.8 bn support to revive co A panel of banks headed by the Stake Bank of India has recommended infusing Rs.23.80 bn into ITI Ltd for revival of the state-owned telecom equipment manufacturer, Chairman and Managing Director K.L. Dhingra said. SBI has come out with a Draft Rehabilitation Scheme and placed it before the BIFR (Board for Industrial and Financial Reconstruction). The telecom ministry wants to examine the proposals. The report was submitted to the department of telecom 45-60 days ago, and a final report on the same is expected by the end of August. The funds, if approved, will be utilised to upgrade the company's six manufacturing plants that have been rendered obsolete with the emergence of new technologies, and intense competition from the private sector players. Bharti cuts free content period for some direct-to-home svc packs With India's direct-to-home services sector coming under pressure to raise prices of set-top boxes, Airtel digital TV has taken the alternate route of cutting down the time period for free content that the company offers as part of its initial packages. The company has not raised prices of set top boxes but reduced the free content time in the southern part of the country to three months from five months previously, while for the rest of the states it cut the period by a month to two months. "In south, it (package) is now 1,590 rupees for three months and rest of India is 1,690 rupees for two months," Puri said. The decision to restructure the packages was taken earlier in the week, he added. offers variable cost direct-to-home service packages to customers. MTNL invites bids from banks for Rs.15 bn, 7-year loan State-owned telecom operator Mahanagar Telephone Nigam Ltd has invited bids from banks for a seven-year secured loan of Rs.15 bn with a floating interest rate. The loan will be raised in tranches as per the requirement within the discretion of MTNL without any penalty. The loan would come with a three-year moratorium on principal repayment with interest payment on monthly basis followed by repayment of loan quarterly. The last date for banks to submit their sealed quotations has been set as Jul 12. Kavveri Tele develops satellite receivers for research institute Kavveri Telecom Products Ltd has designed and developed satellite receivers for aircraft navigation for Bengaluru-based Raman Research Institute. The company did not detail the value of the receivers. Kavveri Telecom manufactures wireless telecommunication products for telecom, defence and space industry. Eyeing growth, Bharti Airtel restructures India, South Asia ops Bharti Airtel Ltd announced restructuring of its Indian and South Asian operations aimed at "driving greater business and functional synergies, providing a common interface to customers, and creating a de-layered and more agile organisation." The new organisation structure, which will come into effect from Aug 1, will have two Customer Business Units that will focus on business-to-customer and business-to-business segments. TDSAT orders release of GSM spectrum for Delhi circle In a boost to Tata Telservices, the Telecom tribunal TDSAT allowed the plea of the service provider and directed the Department of Telecom to immediately release the GSM spectrum for the Delhi circle on priority basis.

Weekly Newsletter 26 Info-Spectrum Bridging the Information Gap in Corporate Landscape

MTS expands footprint to eight more locations in Karnataka Telecom brand MTS announced the expansion of its high speed mobile broadband service, MBlaze, to eight more towns in Karnataka. Sibal to meet telecom users to look into grievances Amid growing consumers dissatisfaction, Telecom Minister Kapil Sibal will hold the first round table with consumer user groups to look into their grievances in issues like pesky calls, hidden costs in tariffs and ineffective redressal system, among others. Telecom appellate body stays Rs.2.5 bn penalty on Idea Cellular The Telecom Disputes Settlement and Appellate Tribunal restrained the Department of Telecom from enforcing a Rs.2.5 bn penalty on Idea Cellular Ltd for holding overlapping licences in five circles, a press release from the telecom company said. Idea faces Rs.50 crore fine by DoT for hiding data in a circle The Department of Telecom may slap Rs.50 crore penalty on Aditya Birla group firm Idea Cellular for violation of licence agreement by allegedly suppressing actual subscriber/customer database in Andhra Pradesh circle. 2G case: Loss of Rs.30,984 crore due to govt policy Former Telecom Secretary Siddharth Behura, presently in jail in connection with the 2G scam, told the Delhi High Court that the "so called" gigantic loss of Rs.30,984 crore to the state in spectrum allocation was caused due to the government policy and not because of the alleged acts of the accused. Arun Seth appointed Chairman of Alcatel-Lucent India Telecom equipment maker Alcatel-Lucent today announced the appointment of Arun Seth as the Chairman of its India operations. India adds 13.35 million new mobile users in May Telecom operators added 13.35 mn mobile subscribers in May 2011, taking the total number of telephone users in the country to 874.68 mn, sectoral regulator Trai said. DTH LICENSING: Government is planning to review and modify licensing conditions for direct-to-home operators after law enforcement agencies and the home and defence ministries raised security concerns. ITI: Is looking to invest over Rs.23.80 bn to restart its manufacturing units and diversify into other businesses. IDEA CELLULAR: • The Delhi High Court has fined the company Rs.10 mn for not providing correct information on the merger of Spice Communications. • The company may lose mobile permits in Punjab and Karnataka as the Delhi High Court refused transfer of six such permits from Spice Communications, a company Idea acquired in 2008. KAVVERI TELECOM PRODUCTS: Plans to raise up to Rs.750 mn through a qualified institutional placement of shares. TATA COMMUNICATIONS: The Supreme Court allows part sale of the 773 acres land in Maharashtra that belongs to the company, erstwhile VSNL, by the government TATA TELESERVICES (MAHARASHTRA): The company, along with parent Tata Teleservices, has raised $750 mn through external commercial borrowings in May. IDEA CELLULAR: Around Rs.14.60 bn of the company are stuck as part of its litigation with the Department with Telecommunications over the merger with Spice Communications.

Weekly Newsletter 27 Info-Spectrum Bridging the Information Gap in Corporate Landscape

BANKING & FINANCIAL SERVICES BANKING: • Major public sector banks, including , PUNJAB NATIONAL BANK and BANK OF BARODA, are likely to raise lending rates making home, auto and commercial loans expensive. • Finance Minister Mukherjee will hold a review meeting with heads of state-owned banks and financial institutions Friday in the light of rising interest rates and concerns of a slowdown. • The RBI has fined Citibank Rs.2.5 mn after a probe into a fraud at the bank's Gurgaon branch revealed violation of anti-money laundering norms. • Indian banks are confident of achieving loan growth targets in the current financial year to March riding on demand from individuals and small and medium-sized firms, even as they acknowledge the first signs of slower economic growth. • The Reserve Bank of India has reiterated that banks' investments in liquid schemes of mutual funds should remain capped at 10% of their net worth as on Mar 31 of the previous year. The banks have to comply with this requirement within six months. • The RBI issued draft norms that a bank's stake in companies other than its subsidiaries must not exceed 10% of its paid-up capital or the company's capital. • Foreign banks, including Barclays, HSBC, Standard Chartered and Citibank charge interest rates as high as 30-50%, mainly on consumer loans, as against microfinance lenders that face a possible cap on lending rates. S&P says Indian banks' bad loans to fall FY12, inflation key risk Non-performing assets, which had been a concern for Indian banks in 2010-11 (Apr-Mar), are likely to start declining in the current fiscal owing to good economic growth and limited loan concentration compared with their peers in other Asian economies, rating agency Standard & Poor's said in a report. This is because the Indian central bank allowed banks to restructure loans at the peak of the financial crisis without classifying them as non performing. In the aftermath of the global financial crisis, the Reserve Bank of India had allowed banks to restructure their loans as a counter cyclical measure besides cutting key policy rates drastically. The average non-performing loan ratio of banks was around 2.6% in 2010-11. However, the recent surge in real estate prices in certain pockets of the country continues to pose a credit risk to banks' loan portfolio. According to the latest disaggregated credit data from the RBI, banks' loans to commercial real estate grew nearly 20% in May as against just 1.2% the previous year. Housing loans grew 17% in May. Overall, Indian banks' credit portfolio may remain strong and asset quality may improve. Moreover, persistently high inflation, evolving risk management practices, and rising competition will remain key challenges for the banking system. Headline inflation has so far remained above the RBI's comfort levels and its end-March projection of 6.0% with an upward bias. In May, the wholesale price index based inflation was 9.06%. The high inflation has been eating into companies' earnings and therefore could pose a risk to banks' corporate loan portfolio. Nevertheless, the overall outlook for Indian banks is stable for the current fiscal year. S&P has rated 12 banks, of which three banks have weak standalone credit profiles owing to weak profitability, the report said. IDBI Bank, Indian Overseas Bank, and Syndicate banks are rated BB+ as against their peers who are rated BBB-. "This reflects their weak profitability and asset quality compared with peers," the report said. The outlook on the rating of all the banks is stable. The pressures on Indian banks' capital could ease in the current financial year owing to fund infusion done by the government in the past fiscal years and the proposed infusion of 60 bln rupees earmarked for 2011-12 in the Union Budget, the report said. The government infused 31 bln rupees into public sector banks in 2008-09 and 2009-10, and a whopping 201 bln rupees in 2010-11. StanChart India declines comment on head Swaroop's likely transfer Standard Chartered Bank India has refused to comment on speculation surrounding Neeraj Swaroop's vacating the India chief executive position to takeover as the regional chief executive for South East Asia. It's pure speculation, a representative of the bank said. "We will not comment on speculation." Media reports over the weekend had indicated that Swaroop, who currently holds the position of regional chief executive for India and South Asia, was likely to replace Ray Ferguson as the chief executive for South East Asia. Dhanlaxmi Bank forays into gold retailing, launches 24-carat coins Dhanlaxmi Bank has forayed into the gold retailing business by launching 24-carat gold coins in denominations of 5 and 10 gm across its various branches. The gold coins will have a purity of 99.99% and

Weekly Newsletter 28 Info-Spectrum Bridging the Information Gap in Corporate Landscape will carry Assay certification, signifying highest purity of gold as per international standards. The launch of gold retailing is part of the bank's overall strategy to be a leading provider of end-to-end investment products and services across all verticals. The entry into gold retailing marks the second phase of the bank's bullion business. In June, the bank had launched 24-carat gold bars weighing one kg. SBI opens 21 new branches, 101 new ATMs and 400 green channel counters Spreading its wings further and taking financial inclusion deeper into the state, the State Bank of India opened 21 new branches. Besides, it also opened 101 new ATMs and 400 green channel counters. Chief General Manager, SBI, Abhay Kumar Singh said that of the new branches 13 are in semi urban and rural areas emphasizing the banks reach across metros to small villages. SBI also opened its 700th customer service point in unbanked villages under the financial inclusion plan of the government. Singh said that the bank already has 1,600 branches in UP and hundreds of villages have been covered through business correspondents and facilitators. Abhay K Singh said that SBI has started Green Channel Counters where customers can withdraw and transfer funds upto Rs.40,000 by just swiping their ATM card without filing any form. The facility would be available in 400 branches to begin with and would be helpful to businessmen and senior citizens. RBI penalises Citibank following Gurgaon branch fraud probe The Reserve Bank of India imposed a Rs.2.5 mn penalty on Citibank N.A. after it found that know-your- customer and anti-money laundering norms had been violated following a probe into its Gurgaon branch fraud. The failure in following the KYC/AML guidelines while opening accounts led to the perpetration of a fraud at its Gurgaon branch. On May 6, Citibank had replied to RBI's Apr 21 show cause notice and also provided oral evidence on Jun 7, but after considering these submissions the central bank decided that the violations were substantiated and warranted imposition of a penalty. The RBI launched a probe after Shivraj Puri, then an executive at Citibank's Gurgaon branch, allegedly defrauded customers to the tune of Rs.3 bn, by luring them to invest in a high-return deposit scheme, that he claimed was being offered by the foreign bank. The fraud was exposed after a customer enquired about the scheme with Citibank, which resulted in the arrest of Puri and his accomplices. Allahabad Bank eyes pact with brokerage for online trading ops Allahabad Bank is looking to tie-up with a brokerage to offer online trading platform to its customers by September-end. Allahabad Bank would prefer brokerages that were not under a bank or did not have a direct association with a bank. The lender is set to issue a request for proposal seeking partners for the online trading platform today. Nayak said that so far the bank had not held formal discussions with any brokerages, but was confident of offering the platform to customers within the Jul-Sep quarter. Banks look to offer customers equity trading services, which provides a boost to their demat accounts and also provides additional fee income. IDBI Bank buys 10% stake in Universal Commodity Exchange IDBI Bank has acquired 10% stake in upcoming commodity exchange Universal Commodity Exchange for Rs.100 mn. The idea behind acquiring equity is to push agriculture loans through this venture. IDBI Bank is already a promoter in the National Stock Exchange and its new venture--the UCX--is likely to begin trading in September. Ketan Sheth is the primary promoter of UCX with 40% stake. UCX has got an in-principle approval from Forward Markets Commission to launch commodity futures trading. World Bank OKs $1-bn-loan for India's rural livelihood mission Multilateral funding agency World Bank approved a loan of $1 bn to India for strengthening its newly- launched National Rural Livelihoods Mission. The loan will support specific additional investments in Bihar, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh, and West Bengal. "(These states) have the highest number of absolute poor and account for almost 85% of India's rural poor," it said. The project will invest in building people's institutions such as self help groups at village, cluster, block and district levels. It will also invest in financial literacy and income generating activities such as purchase of livestock, seeds among others. The loan from the World Bank has a five-year grace period and a maturity of 25 years. Source says Canara Bank to seek shareholder OK to tap equity market FY12 Canara Bank is set to seek shareholder approval to tap equity markets for raising funds in 2011-12 (Apr- Mar). The bank is keeping all options for the fund raising open. "The board is in the process of firming up its plans for the equity market issue this year," the official said. "The issue will ensure that government shareholding remains well above the 51% level." The government currently holds 67.72% stake in Canara

Weekly Newsletter 29 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Bank. Following its qualified institutional placement in March, the bank's equity capital stood at Rs.4.43 bn with a capital adequacy ratio of 15.38%. "We want to have shareholder approval as an enabler for the equity issue, so that it can be executed at short notice within the year," the official said. The capital raising plan is to meet expected fund requirements in the future, and also to prepare for Basel-III guidelines. Dhanlaxmi Bank's planned preferential share allotment cancelled Dhanlaxmi Bank's planned fund raising through preferential share allotment has been cancelled after one of the proposed investors, Customers Bancorp Inc, declined to subscribe to the issue citing regulatory limits, the bank said in a notice to stock exchanges. Following this, other proposed investors also declined to invest in the issue. As per the Securities and Exchange Board of India's norms, a preferential share allotment must be completed within 15 days of getting approval from shareholders. On May 25, the bank had said it would raise around Rs.2.90 bn through preferential allotment of 20.75 mn shares to investors at Rs.140 per share. The bank got approval from its shareholders for the allotment on Jun 22. The bank will have to take a fresh approval from shareholders to raise funds through preferential share allotment. Will seek govt's nod for rights issue this month: SBI State Bank of India (SBI) will seek the government''s nod to raise Rs.20,000 crore through the rights issue within this month, the bank''s chairman Pratip Chaudhuri said. Source says govt appoints DS Kalha as Punjab & Sind Bank chairman The government appointed D.S. Kalha as Punjab & Sind Bank's chairman and managing director, a source said. Kalha is an Indian Administrative Service officer of the Punjab cadre. Source says Oriental Bank Apr-Jun NIM seen 2.84% vs 2.98% Jan-Mar Oriental Bank of Commerce's Apr-Jun net interest margin is likely to ease to 2.84% from 2.98% a quarter ago due to pressure from rising cost of funds. Banks' RBI repo borrowing falls on inflows; seen rising later in week Banks borrowed a mere Rs.313.55 bn at the Reserve Bank of India's repo auction, despite it being the beginning of the reporting fortnight, due to the recent inflows. Punjab & Sind Bank seeks Rs.9.9 bn infusion from government Punjab & Sind Bank has informed that, in view of capital planning and expected growth in business, the Bank has requested the for infusion of additional equity capital of Rs.9.9 bn by way of preferential allotment. Major PSU banks likely to raise lending rate soon Major public sector banks, including State Bank of India, Punjab National Bank and Bank of Baroda, are likely to soon raise lending rates making home, auto and commercial loans expensive. HP identifies 532 villages for extending banking facilities Himachal Government has identified 532 villages with more than 1000 populations for extending banking facilities under second phase of Financial inclusion Plan 2013, State Chief Secretary RajwantSandhu said. LVB issues Visa Debit Gold Card for premier customers Lakshmi Vilas Bank (LVB) has introduced Visa Debit Gold Card for its premier customers, in addition to the classic card presently being issued by the bank. Dena Bank head Rawal says may not cut FY12 credit growth target Dena Bank is unlikely to cut the credit growth target for 2011-12 (Apr-Mar) as loan offtake is expected to pick up during the second half of the financial year. World Bank OKs $200 mn loan to strengthen Kerala local bodies Multilateral funding agency World Bank approved a loan of $200 mn to Kerala for strengthening gram panchayats and municipalities in Kerala. RBI reiterates banks to cap investments in liquid mutual funds The Reserve Bank of India in a notification reiterated its stand, earlier made in the May 3 monetary policy statement, on banks' investments in liquid schemes of mutual funds remaining capped at 10% of their net worth as on Mar 31 of the previous year.

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

Banking services hit by bandh in Telangana Banking and financial activities have come to a standstill in the Telangana region due to the two-day bandh call given by various political parties of Telangana. Punjab & Sind Bank pays Rs.36.61 cr dividend to govt State-owned Punjab & Sind Bank today paid Rs 36.61 crore dividend to the government for the financial year 2010-2011. SIDBI offers 9.84% yield on 12-13 month FDs The Small Industries Development Bank of India (SIDBI) said it now offers general investors and bulk depositors an annualised yield of 9.84% on its fixed deposit scheme with a duration of 12-13 months. Syndicate Bank ups Base Rate, BPLR by 25 bps Syndicate Bank has informed that the Base Rate and BPLR of the Bank stands revised from 10.00% to 10.25% and 14.25% to 14.50%, respectively, effective from July 05, 2011. State Bank of Travancore ups BPLR, Base Rate by 25 bps State Bank of Travancore has decided to change the Base Rate (BR) & Benchmark Prime Lending Rate (BPLR) as under with effect from July 05, 2011. 1. Base Rate (BR) - Existing Rate: 9.50% - Revised Rate (Effective from July 05, 2011): 9.75% 2. Benchmark Prime Lending Rate (BPLR): - Existing Rate: 14.25% - Revised Rate (Effective from July 05, 2011): 14.50%. Karnataka Bk ups Base Rate 25 bps to 10.5%; BPLR, deposit rate unch Karnataka Bank raised its Base Rate by 25 basis points to 10.50% but has left deposit rates and the Benchmark Prime Lending Rate unchanged. "We had to fix a final formula for Base Rate computation by Jun 30, and as per this formula, our Base Rate was coming to 10.50%. Dhanlaxmi Bank hikes Base Rate, BPLR by 25bps Dhanlaxmi Bank hiked the Base Rate and Benchmark Prime Lending Rate by 25 basis points. The Base Rate and the BPLR now stand at 10.25% and 19.25%, respectively. Several banks have hiked their lending rates after the Reserve Bank of India raised the Repo Rate by 25 bps on Jun 16. SBI to hike Base Rate by 25 bps to 9.50% State Bank of India has revised the Base Rate upwards by 25 bps from 9.25% p.a. to 9.50% p.a. effective from July 11, 2011. It has revised the Benchmark Prime Lending Rate upwards by 25 bps from 14.00% p.a. to 14.25% p.a. effective from July 11, 2011. ICICI BANK: • Chairman Kamath said there is a need for regulators to signal that interest rates have peaked and inflation is being tamed. • Will increase Base Rate, Benchmark Prime Lending Rate and floating reference rate by 25 basis points. • Chairman K.V. Kamath has said interest rates have nearly peaked and there is no "real slowdown". He added innovation will not stop at the bank but there will not be aggressive and frequent product launches. INDIAN OVERSEAS BANK: • Has hiked its benchmark prime lending rate by 25 basis points to 14.50%. • Plans to set up an information technology subsidiary by tying up with an IT company. HDFC BANK: • Shareholders have approved five-for-one stock split. • Does not see any pressure on margin and credit demand. STATE BANK OF INDIA: • Is hopeful the government will approve its proposed 200-bln-rupee rights issue of shares in the current financial year. • Is taking a tough stance on loan defaulters who can pay, but won't. PUNJAB & SIND BANK: Has hiked its Base Rate and Benchmark Prime Lending Rate by 25 bps each to 10.50% and 14.75%, respectively.

Weekly Newsletter 31 Info-Spectrum Bridging the Information Gap in Corporate Landscape

VIJAYA BANK: Has hiked benchmark prime lending rate by 25 basis points to 14.50%. INDUSIND BANK: MD and Chief Executive Officer Romesh Sobti has said the bank will build scale of operation without sacrificing on profitability. YES BANK: Has received approval from shareholders to raise up to $500 mn through qualified institutional placement of shares or private placement of overseas equity instruments. : Has hiked Base Rate by 25 basis points to 9.75%. PUNJAB NATIONAL BANK: Is awaiting the Canadian central bank's nod to enter the country.

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

STEEL, METALS & MINERALS METALS AND MINING: • Arcelor Mittal has started acquiring land in Karnataka to set up a steel mill with 3 mn tn per annum capacity. • Companies linked to close relatives of a controversial former senior bureaucrat have cornered the lion's share of licences in the country's first attempt at exploring valuable minerals under the sea. • Mines ministry has decided to rework some clauses in the draft amendment to the Mines and Minerals (Development and Regulation) Act, but will retain the profit sharing clause. • Three Indian companies--, Aditya Birla Group's Essel Mining and the RPG Group-- have been shortlisted for final round discussions to buy a strategic stake in Australian coal mining firm, MetroCoal. • A group of ministers formed to approve the draft mining Bill has agreed to earmark 100% of the royalty paid by major mineral mining companies to compensate people displaced by such projects. CEMENT : • Supreme Court has allowed French cement giant Lafarge to mine limestone in Meghalaya. • Cement manufacturers' expansion plans, estimated at Rs.130 bn, have been deferred, while no new clinker capacities have been ordered since April.

India Apr-Jun finished steel production up 7%, consumption up 2% India's total finished steel production rose 6.8% on year in Apr-Jun to 19.44 mn tn, according to steel ministry data. Finished steel production for sale rose 8.2% on year to 17.11 mn tn, the ministry said. Finished steel exports in Apr-Jun rose 71.8% to 1.07 mn tn, while imports fell 52.0% to 1.33 mn tn. Real consumption of steel rose 1.5% to 16.39 mn tn in Apr-Jun, while apparent consumption fell 1.6% on year to 17.23 mn tn. Jindal Steel arm starts iron ore export from South Bolivia mine Jindal Steel Bolivia, an arm of Ltd, has started export of iron ore from the El-Mutun mines at Puerto Aguirre in South Bolivia. This is the first time that Jindal Steel is exporting iron ore to other countries. JSB will be exporting iron ore mainly to China, Middle East (West Asia), European and South American countries. Media reports said the company expects to garner around Rs.7.65 bn from sale of iron ore from the Bolivian mine in the current financial year to March. Jindal Steel Bolivia holds development rights for 20 bn tn iron ore of El-Mutun mines for 40 years. The company also has rights to set up an integrated 1.7 mn tn per annum steel plant, a 5 mn tn per annum sponge iron and a 10 mn tn per annum iron ore pellet plant in Bolivia at an investment of $2.1 bn. The company is starting construction of a 2.52- mn-tn sponge iron plant. It has acquired land for the project and the natural gas supply and other infrastructure facilities have been committed by government of Bolivia as per its contract with JSB. Kanoria Chem plans foray into diversified business ops With reference to news item appearing in leading financial daily titled "Kanoria Chemicals to enter renewable energy biz", Kanoria Chemicals & Industries Ltd has clarified to BSE that post divestment of Company's Chloro Chemicals business, the Company is contemplating foray into diversified business segments as also Company's current businesses. The article therefore is correct to the extent of Company's intentions of getting into various businesses as mentioned in the same. However, as these are at very initial stage, the Company is not in a position to confirm and quantify the details of capacities and costs involved. HDFC invokes pledge on 4.69 mn shares of Andhra Cements Housing Development Finance Corp Ltd has acquired 3.21% additional stake in Andhra Cements Ltd by invoking the pledge on over 4.69 mn shares, the Hyderabad-based company said in a regulatory filing. Jaiprakash Associates Jun cement despatches up 3% at 1.37 mn tn Jaiprakash Associates Ltd's cement despatches rose 3% on year in June to 1.37 mn tn. The company's cement despatches during Apr-Jun, the first quarter of the the current financial year, were 4.17 mn tn, 7% higher from the corresponding quarter last year.

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

Hind Zinc ups zinc price by Rs.3,200/tn, lead by Rs.2,200 on 4 July Hindustan Zinc Ltd raised zinc prices by Rs.3,200 per tn to Rs.121,400. The company also increased lead prices by Rs.2,200 per tn to Rs.135,000. The Vedanta group company aligns its product prices in line with the trend on the London Metal Exchange. Hindustan Zinc raises zinc, lead price by Rs.700/tn each on 7 July Hindustan Zinc Ltd raised zinc and lead price by Rs.700 per tn each to Rs.122,100 and Rs.135,700, respectively. The Vedanta group company aligns its product prices in line with the trend on the London Metal Exchange. Hindustan Copper hikes copper cathode prices by Rs.5,186/tn Hindustan Copper Ltd has raised prices of cut copper cathode by Rs.5,186 a tn to Rs.442,684. It also raised prices of full copper cathode by a similar quantum to Rs.441,184 a tn. The new prices came into effect Jul 1, and are exclusive of taxes and other levies. The state-owned company aligns its product prices in line with the trend on the London Metal Exchange. Steel Strips plans to raise $16 mn via stake sale at Rs.595/share Steel Strips Wheels Ltd is planning to raise $16 mn by selling stake in the company by December. The stake sale is likely at around Rs.595 a share. As on Mar 31, promoters held 50.78% stake in the company. Garg said the company would utilise the funds for expansion, and for building a new unit. In December, South Korea's GS Global Corp had acquired 2.5% stake in Steel Strips Wheels for Rs.224 mn. declared best bidder for revival of INCAB Tata Steel has been identified as best bidder and promoter for revival of ailing cable manufacturer INCAB Industries (IIL) by the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). UltraTech says Jun cement despatches 3.22 mn tn, up 2% on year UltraTech Cements Ltd despatched 3.22 mn tn cement in June, up 2% on year, a company release said. JSW to topple SAIL as the largest domestic steel maker JSW Steel is all set to become the country''s largest steel maker, dislodging state-run SAIL, with the commissioning of 3.2 mn tonnes blast furnace at its Vijayanagar plant in Karnataka by mid-July. Mineral production down in April, coal output dips 32% Production of almost all minerals declined in April compared to a month ago led by over 32% dip in coal output. Dealers say cement makers Mon cut prices Rs.5/50 kg in Mumbai Cement companies reduced product prices by Rs.5 per 50 kg bag in Mumbai on Monday, on low demand as construction activity slows down during monsoon. Prices of premium cement brands is now around Rs.270 a bag, while that of other brands is Rs.255-260, dealers said. Dealers expect cement prices to correct further in coming weeks as demand is likely to weaken more as monsoon picks up pace. However, firm demand is supporting prices in Gujarat, dealers said. Prices in the state were last cut at the end of June. Mahindra Ugine starts ops at stampings unit Mahindra Ugine Steel Company Limited has informed the Exchange that the manufacturing unit of Stampings division of the Company located at Pantnagar, Uttarakhand, has commenced its commercial operations. Environ minister against Gujarat Mineral's Chhattisgarh coal mine Union Environment Minister Jairam Ramesh said, in a release posted on the ministry's website, that he was against giving forest clearance to Gujarat Mineral Development Corp Ltd's Morga-II coal block in Chhattisgarh as it was situated in the bio-diversity rich area of the Hasdeo-Arand forests and comes under the so-called "no-go" area. MMTC floats tender to import 600,000 tn coal for NTPC-SAIL JV co MMTC Ltd floated a tender to import 600,000 tn coal on behalf of NTPC-SAIL Power Co Pvt Ltd, the company said in a notice posted on its website. Work at the Posco site resumes after 10 days Work at the proposed site for Posco's controversial Rs.52,000-crore steel project in Orissa''s Jagatsinghpur district resumed after remaining stalled since June 26.

Weekly Newsletter 34 Info-Spectrum Bridging the Information Gap in Corporate Landscape

SC lifts ban on Lafarge's limestone mining ops in Meghalaya Welcoming the decision of the Supreme Court allowing it to mine limestone in Meghalaya, French cement giant Lafarge said it would resume its operation on the basis of the details of the judgement delivered. Varun Ind finds rare earth deposits in 10 Madagascar blocks Varun Industries Ltd has discovered Ilmenite and other rare earth deposits in 10 blocks in the Indian Ocean island of Madagascar with potential reserves of around 267 mn tn. Varun Industries said that the heavy mineral reserves include 221 mn tn of Ilmenite, 9.2 mn tn of monazite, and 18.4 mn tn of zircon. JSW Steel Apr-Jun crude steel output 1.71 mln tn, up 9% on year JSW Steel Ltd's Apr-Jun crude steel production grew 9% from a year ago to 1.71 mn tn, including 30,000 tn crude steel produced during the trial run for expansion project. JSW Steel's Apr-Jun output of flat steel products rose 9% to 1.19 mn tn and of long steel production was up 12% to 350,000 tn, from a year ago. BHUSHAN POWER AND STEEL: The union coal ministry has threatened to de-allocate the coal block in Odisha's Sundergarh district due to inordinate delay by the company to develop the block. MOIL: • Has received at least eight proposals to acquire a small-sized mine overseas. • Has said its two proposed ferro alloy plants with STEEL AUTHORITY OF INDIA and will be ready by Jun-Jul 2013. COAL INDIA: • Is set to register an average annual growth rate of 4.3% for the current Five-Year Plan period ending Mar 2012. • Workers of the company have threatened to go on strike protesting a delay in wage increases. KESORAM INDUSTRIES: • Has put its cement expansion on hold in the wake of oversupply in the industry. • Has embarked on organisational restructuring of its tyre division. NATIONAL ALUMINIUM CO: • Said it may cut output by as much as 10% in the ongoing financial year on coal shortage. • Orissa Government has decided to ask the company to spend Rs.100 mn a year towards periphery development activities in order to avail itself of the bauxite reserve in Koraput district. • Appears close to winning a second bauxite mine in Odisha after more than a decade-long race with its private sector competitors. SANTOWIN CORP: Has started gold exploration operations at its mines in Ghana. TATA STEEL: Apr-Jun sales volume grew 14% on year to 1.59 mn tn. MONNET ISPAT: Coal ministry has warned the company against inordinate delay in developing its Utkal-B2 coal block in Odisha. GUJARAT MINERAL DEVELOPMENT CORP: Environment Minister Jairam Ramesh is against giving forest clearance to the company's Morga-II coal block in Chhattisgarh. STEEL AUTHORITY OF INDIA: The government is exploring options to revive the company's Jagdishpur unit in Uttar Pradesh after the petroleum ministry rejected a request for allocating gas to it. JINDAL STEEL AND POWER: Has managed to get 4.66% in Australian coal miner Rocklands Richfields after extending the open offer deadline twice.

Weekly Newsletter 35 Info-Spectrum Bridging the Information Gap in Corporate Landscape

AUTO & AUTO ANCILLARIES AUTOMOBILES: • Indian auto industry is targeting growth of 12-15% in the currentfinancial year, Society of Indian Automobile Manufacturers said. • With rising interest rates and fuel prices hitting consumer sentiment,automobile manufacturers are betting on new launches, diesel models anddiscounts to increase sales. • Jaguar Land Rover rolled out the first vehicle of the Range Rover Evoque model from the company's Halewood manufacturing plant in the UK. • Hyundai Motor Co has joined other Japanese carmakers to oppose a prospective duty cut on cars imported from Europe as part of the Indo-EU trade agreement negotiation. • Mahindra & company, Mahindra Two Wheelers, will re-launch its 110 cc bike Stallio later this year. • Hero Motorcorp to focus on markets such as Latin America, Africa and South East Asia taking its first step towards emerging as a global player after splitting with Honda. • German car-maker Audi reports 100% rise in sales for first half of the calendar year 2011. • Fiat India has undergone a restructuring of its board with two directors leaving, three joining and another three getting extra responsibilities. • US-based auto parts maker Dana Holding Corp has acquired the commercial vehicle axle business of Axles India for $13 mn SIAM to lower growth forecast after June data In the backdrop of a slowdown in auto sales, thanks to the recent spurt in fuel prices and mounting interest rates, the Society of Indian Automobile Manufacturers (SIAM) is set to lower sales growth forecast for 2011- 12. In his first admission that SIAM’s growth projection for the financial year could be unachievable, president of the apex body Pawan Goenka told FE that a meeting would be convened this month to come up with a new growth forecast for the fiscal. He said a final announcement would be made once SIAM tabulates the June auto sales data. Earlier this month, the country’s top three carmakers — , Hyundai Motor and Tata Motors — that account for over 60% of the cars sold in the country, reported a combined 4.3% drop in sales for June. As per Siam’s growth forecast for 2011-12, passenger cars sales were set to grow at 16-18%, which clearly looks impossible to achieve now. The factors such as interest rates and fuel costs were causing some moderation in sales. Earlier this fiscal, SIAM had indicated that negative macro economic concerns could put a spoke in the wheels in the country’s booming automotive sector. This prompted SIAM to reduce its growth forecast for passenger car sales to 16-18% from almost 30% sales growth in the previous fiscal. Truck sales up 8% in Q1, rentals rise 5-6% in June Amid slowdown forecast for the commercial vehicle sector in the current financial year, the truck (5-49 tonnes category) sales have reported a single digit growth of about 8% in the first quarter of current financial year, with 10.5% growth in sales during June this year. Meanwhile, the truck rentals were up 5-6% on trunk routes following the diesel price hike on June 24. Undeterred by slackness in manufacturing sector, rising vehicle, tyre, auto finance cost, motor insurance premium and truck crew salaries, June 2011 truck sales registered a decent growth of 10.5% as large fleet expansion and aggressive entry of non-fleet owning transporters in truck buying mode helps double digit increase in truck sales, pointed out a report of IFTRT (Indian Foundation of Transport Research and Training). Sales of commercial vehicles went up 7.8% at 74,324 units during April-June 2011 when compared with 68,956 units in the same period previous fiscal. During June this year, volumes went up 10.5% at 27,062 units as against 24,481 units in May 2010. Interestingly, sales have also grown on month-on-month basis during the first quarter of this fiscal. June numbers were up when compared with volumes of April and May at 22,932 units and 24,330 units respectively. The truck sales had remained relatively buoyant during June this year since the truck operators and transport firms have been very confident of passing on the diesel price hike to the consignors/consignees. It could be seen that while diesel price went up by Rs 3 per litre on June 24, with a weighted impact on then prevailing freight charges being 3.6%, but truckers have increased rentals on trunk routes by 5-6% and in turn the weighted impact of diesel price hike on truck hire charges to the retail parcel booking firms was mere 1.75-2%. However, instantaneously, they have jacked up retail freight rates by 4- 5% in the past couple of weeks. This only confirms that goods transport operators are increasing their

Weekly Newsletter 36 Info-Spectrum Bridging the Information Gap in Corporate Landscape revenues and passing on various input cost increases rather conveniently and earning better margins, noted IFTRT report. Two-wheeler makers ride high in June Demand for two-wheelers from the stable of six of the eight domestic mobike manufacturers rose 16% in June to over 880,000 units, compared to 761,000 units in June 2010. Analysts said the recent rise in petrol prices have propelled buyers to move to fuel-efficient two-wheelers. Hero Honda, the country's biggest two- wheeler maker, recorded total sales of 512,224 units to dealers in June — up 20% from 426,454 units in the year-ago period. TVS Motors, the country's third biggest two-wheeler maker, posted a growth of 11% to 155,296 units during the reporting month, compared to 139,905 units in June, last year. Demand for TVS Motor's automatic range of scooters, including the Scooty and Wego grew 21% to 44,281 units, while motorcycles grew to 69,859 units. Honda Motorcycle and Scooter India, the fourth biggest two-wheeler manufacturer in India, continued to be plagued with problems of production constraints but demand remained robust. The company posted a growth of 2% in total sales (including exports) at 148,937 units during June, against 145,973 units in the same month last year. India Yamaha Motors, the subsidiary company of Yamaha Motor Company, Japan, meanwhile, witnessed an increase of 29% in the reporting month at 27,263 units, against 21,157 units in the same period last year. Mahindra Two Wheeler also saw a growth of 16% in sales of scooters at 11,748 units, compared to 10,017 units last year. The company sells four models of scooters. June sales up 16% on yr; Apr-Jun sales highest in a qtr Bajaj Auto Ltd sold 16% more vehicles in June than a year ago, and 2% more month-on-month. The - based company sold 366,657 vehicles in June, up from 315,422 sold last year and 358,849 sold in May. During the Apr-Jun quarter, the company sold 1.09 mn vehicles, the highest ever in a quarter for the company. The company exported 427,364 units during the quarter, up 32% on year. Bajaj Auto's motorcycle sales in June rose 14% on year to 322,827 units. In May, the company had sold 317,989 units. In the commercial vehicle segment, Bajaj Auto sold 43,830 units in June, up 34% on year. In June, exports were up 25% at 142,124 vehicles against 114,024 year ago. Bajaj’s June motorcycle sales up 14% The country’s second largest two-wheeler maker Bajaj Auto reported its highest ever motorcycle sales for the month of June at 3,22,827 units last month, registering a jump of 14.15%. The company had sold 2,82,808 units in the corresponding month last year. BAL recorded its highest ever exports for June at 1,42,124 units compared with 1,14,024 units in June 2010, a growth of 24.64%. The company also witnessed its best figures for June in the three-wheeler segment during last month at 43,830 units as against 32,614 units in the same month last year, registering a jump of 34.39%. Total vehicle sales of the company in last month stood at 3,66,657 units compared with 3,15,422 units in the same period a year ago, a growth of 16.24%. Ashok Leyland says to raise product prices by up to 2.5% this mo Ashok Leyland Ltd would raise product prices by up to 2.5% this month as raw material prices continue to spiral. Ashok Leyland had last raised prices by up to 2.2% in April to mitigate the effects of high raw material prices and meet new emission norms. The decision to raise prices comes despite benchmark steel and aluminium prices declining by 4.2% during Apr-Jun. Dasari also said the company expects sales to revive in the current quarter as demand from the southern Indian markets picks up. "Our sales suffered mainly on weak demand from the southern markets where we have a dominant market share," he said. The country's second largest commercial vehicle maker saw its June quarter sales falling 10% over the same period last year. Toyota hopes Etios, Liva will fetch 5% market share Toyota plans to expand production capacity at Bidadi plant in Karnataka as it expects to double its sales volumes during the year. Launching hatchback Liva in Hyderabad, the automotive major said it hopes to garner a market share of about 5% of the country's automotive market. “The company, which sold about 74,000 units in 2010, is expecting to sell more than 1,40,000 units during 2011. The growth in number will be largely driven by volumes from the Etios sedan and Liva hatch,” Mr Sailesh Shetty, Vice-President, Toyota Kirloskar Motor, said. Addressing a press conference here, he said: “The company plans to increase the localisation content to 70-80%, which will play a bigger role in the company's overall business plans. We are also at an advanced stage of evaluating the introduction of diesel option for the Etios range of sedan and the Liva. The market seems to be craving for diesel options.” The General Manager, Marketing, Toyota Kirloskar,

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

Mr R.K. Ramesh, said that the company has managed to garner a share of about 21% in the petrol sedan market in the country after the lunch of Etios. Toyota is planning campaigns to support the launch of Liva and sees online medium playing a bigger role after television commercials. In partnership with its brand ambassador and musician A.R. Rahman, the carmaker has developed a television commercial and a video campaign. “Social media is playing a much larger role in the current context, especially as youth have high purchasing power and aspirations. In a market that has about 11 hatchbacks competing, most of the prospects research on the Internet before taking a decision.,” he said Skoda plans five new models in two years To increase its presence in India, Czech auto major Skoda is set to launch five products in the country over the next two years. While a refurbished Laura would hit the roads some time next month, a premium mid- sized sedan, Rapid, would arrive by the end of the year. Also on the cards are smaller versions of sports utility vehicle (SUV) Yeti, in both petrol and diesel variants, and a small car tagged between Rs.3 lakh and Rs.5 lakh. “At the moment, with the Fabia, Laura, Superb and Yeti — the mid segment vehicles — we cover 30% of the passenger vehicles market in the country. We are now looking at adding on to our product line- up to gain between 4 and 6% share here over the next few years,” said Thomas Kuehl, member of board in charge of sales and marketing, Skoda Auto India. The Rapid, which has been developed on the Vento platform, will also have both petrol and diesel variants. Our entry-level sedan would do the same and we are expecting to top sales in the segment once the product is introduced by the end of the year,” Kuehl added. Skoda is additionally drawing up a blueprint for an intensive foray into the SUV category. “We have over 25% share in the D segment with the Superb, 16.5% share in the segment that has the Laura. We are working on increasing our presence in the SUV category,” Kuehl said. The company is also working on a small car for the Indian market, which it expects to launch in 2013. Skoda sold 22,969 units in the last financial year, registering 31.24% annual growth. GM to invest up to Rs 600 cr General Motors India (GMI) has planned an additional Rs.600 crore investment for manufacturing sedans at its Talegaon unit. The company also plans to double car and engine plant capacities to three lakh units per annum. GMI has so far invested Rs.1,800 crore in the unit, which has the capacity to manufacture 1.4 lakh cars and 1.6 lakh petrol and diesel engines per annum at present. The total investment is expected to increase to Rs.2,200 crore over the next two years. GMI manufactures the Chevrolet Beat and Spark at the Talegaon unit. GMI has an another unit at Halol, Gujarat which has capacity of 85,000 cars per annum. Halol plant is being expanded at a cost of Rs.700 crore. Once completed, the plant capacity will increase to over one lakh units. Halol unit is being converted into global manufacturing hub for light commercial vehicles (LCVs). M&M raises tractor prices by 6,000 rupees/unit on high input costs Mahindra & Mahindra Ltd raised tractor prices by an average Rs.6,000 per unit in June due to high input costs. The company had earlier raised tractor prices by 3% in the last week of February in a bid to offset the pressure on margins. Increasing interest rates are a cause of concern as farmers depend on loans from financial agencies to purchase tractors. He said that while many non-banking financial companies provide loans for farm equipment, the interest rates are high. The company's domestic tractor sales in June were at 21,552 units, up 40% on year. The tractor sales of the company were higher during the month due to early rains and positive outlook for monsoon this year. Another reason that has led to higher demand for tractors is the shortage in availability of farm labour, which is leading to higher mechanisation. Force Motors to launch sport utility vehicle in a month Force Motors Ltd plans to launch sport utility vehicle 'Force One' within a month and aims to sell 4,000 units in a year. This is the Pune-based commercial vehicle maker's entry into the passenger vehicle segment. Force Motors has invested Rs.1.5 bn in developing the sport utility vehicle, including a manufacturing unit at Pitampur. The unit has an installed capacity of 12,000 units. Ashok Leyland Jun total sales fall 4.6% on yr to 8,009 units Ashok Leyland Ltd reported a 4.6% on-year fall in total commercial vehicle sales in June at 8,009 units. Jaguar Land Rover starts production of Evoque from UK's Halewood Jaguar Land Rover rolled out the first vehicle of the Range Rover Evoque model from the company's Halewood manufacturing plant in the UK.

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

TRW Automotive sells half its Rane Engine stake to Enam Shares TRW Automotive J.V. Llc, a US-based auto components manufacturer, sold half of its 9.78% stake in Rane Engine Valve Ltd to Enam Shares and Securities Pvt Ltd through block deals on Jun 30. CAR SCRAPPAGE: The government is exploring a car scrappage scheme on the lines of the cash-for- clunkers model adopted in US, Japan and some European countries. The heavy industries and public enterprises ministry has set up a pilot project in Chennai which is working out the modalities of the scheme. Mahindra launches Gio Compact Cab in Hyderabad Mahindra and Mahindra Ltd launched Gio Compact Cab, dubbed as the next generation passenger four- wheeler. Hyundai Motors mulls legal action over 'Delhi Belly' Hyundai Motor India Ltd (HMIL) is considering legal action against Aamir Khan''s latest film, ''Delhi Belly'', for allegedly depicting one of the company''s cars in a derogatory manner. Workers-management deadlock ends at Omaxe Auto The three-month-long deadlock between workers and management of Omaxe Auto Limited, situated in the Dharuhera Industrial area on the Delhi- National Highway, came to an end after intervention of the Haryana government. Bajaj Fin to raise Rs.2 bn via 2-yr bond Ltd will raise Rs.2 bn through two-year bonds. The non-banking finance company, earlier known as Bajaj Auto Finance, will offer a coupon of 10.20%, payable annually. The bond issue had opened last week and these bonds are rated AA+/Stable by CRISIL. MAHINDRA & MAHINDRA: The company will soon launch India's first indigenous aircraft prototype, developed at a cost of $11.2 bn. HERO HONDA: • Will make a 'few' more launches including that of its first ever scooter in the next financial year starting Apr 1. • Hero Honda is increasing its scooter manufacturing capacity to produce 2,300 units a day from the earlier 1,500 scooters a day. The company, however, has no plans to launch a second scooter model after Pleasure anytime soon. HERO HONDA MOTORS: Is intensifying its research and development programme. The company is scouting for a technology partner across the globe and may look at acquisitions for the same. Sold 512,244 vehicles in May, up 20% on year. TATA MOTORS: • May use a common engine for its future vehicles at its British arm, JaguarLand Rover, thereby improving economies of scale. • Is planning to launch 300 new dedicated sales outlets for small car Nano in 2011-12 to tap the non- urban demand. • Tata Motors plans to launch a cheaper version of its crossover model Aria this month. The new two- wheel-drive version is expected to be priced at around Rs.1.1 mn. • Will start building an auto assembly plant in South Africa in July. TVS MOTOR CO: Is keen to invest in a manufacturing facility in West Bengal but is yet to send a formal communication to the state government. TATA FIAT: Fiat India has restructured its board, with two directors leaving, three joining and another three getting extra responsibilities. The changes at the joint venture between Fiat SpA and Tata Motors are seen as a prelude to a planned restructuring of its operations. HERO EXPORT: Hero Motor, formerly Hero Honda, will soon begin exporting vehicles to Latin America, Africa and South-East Asia as these are high volumes and commuter driven markets. BAJAJ AUTO: Is targeting monthly sales of 420,000 motorbikes and three wheelers by October as against 370,000 units a month now.

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

MISCELLANEOUS RETAIL: • The retail subsidiary of Reliance Industries is set for a top-level churn for the second time in two years. • A decision on allowing foreign direct investment in multi-brand retail is likely to be taken before the monsoon session of the Parliament. • Kumar Mangalam Birla is mulling a value unlocking move in his privately held group company Madura Fashion & Lifestyle after private equity funds approached with stake buy offers. • Kishore Biyani may completely exit Future Capital Holdings, the financial services arm of the Future Group. • Jewellery stores chain Joyalukkas India is set to add another 300,000 sq ft retail space in different cities over the next two years. • Future Group is set to replace its eZone stores with a new format. • Future Group plans to open 25-30 Big Bazaar outlets by June 2012, and will invest Rs.3 bn for the same. CONSUMER GOODS: • Chennai-based Cholayil, makers of Medimix soaps, has acquired Kerala's Krishna Thulasi brand of soaps, shampoo and face gel. • Cadbury India has agreed to revalue the offer price for its proposed share buy back and share all relevant financial information with a court-appointed valuer. • Samsonite is eyeing sales of Rs.15 bn rupees by 2013 and plans to add 25 stores every year mainly in tier I and II cities. • Samsonite India is re-jigging its footwear pricing strategy by having a separate sub-brand with price points below Rs.3,000 to make its brand of shoes more affordable for the Indian market. • Milk and milk products brand Amul plans to cater to Indian tastes overseas. REGULATORY: • The Securities and Exchange Board of India is considering changes in rules for disclosure of pledging of shares. • In the draft Land Acquisition (Amendment) Bill prepared by the government, it has stuck to the 70- 30 formula on land acquisition that mandates a private company to buy 70% land for its projects. • The corporate affairs ministry has proposed investment companies be barred from having more than two tiers of subsidiaries. • The Securities and Exchange Board of India has disposed of a Brokers Regulations violation case against Tata Securities Ltd on payment of Rs.500,000 as consent fee. CORPORATE: • The RBI has allowed Indian companies to refinance their overseas convertible bonds under the automatic route. • India received foreign direct investments of $4.664 bn in May, more than double the $2.200 bn a year ago. • Rising input prices, higher interest rates and limited ability to pass on higher costs to end-users appear to be pushing mid-size Indian companies into corporate debt restructuring. • Corporate India to report profit growth in "lower teens" for Apr-Jun. INSURANCE: • The Central Bureau of Investigation has absolved former Life Insurance Corp of India Chairman T.S. Vijayan of corruption charges. • The regulator has scrapped the minimum three-year profitability clause for life insurers to float initial public offerings. ELECTRONICS:

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

• Air-conditioner and refrigerator sales have either fallen or stayed flat this season due to a weak summer, higher prices and rising food and fuel costs. MICRO FINANCE: • Industry lobby group Sa-Dhan has asked all firms to deal "fairly" with debtors and avoid coercion to collect dues. • The finance ministry has released a draft of the microfinance bill, which seeks power for the RBI to appoint sector ombudsmen and inspect books of microfinance companies at any time. TELEVISION: • Sun Network Chief Operating Officer Hansraj Saxena arrested by the Chennai police in connection with a Rs.9 mn fraud case. MARKETING: • Australia's Roy Morgan Research is trying to introduce single-source surveys in India. PRIVATE EQUITY: • Global private equity deal activity gained momentum in Apr-Jun with 37.4% on year rise in value of transactions to $75.6 bn. TRADE: • India's foreign direct investment from Mauritius, Cyprus and other sources, declined by 25% in 2010-11. ASSET MANAGEMENT: • Joint Managing Director of National Stock Exchange Chitra Ramakrishna, and ING Vysya Bank's Managing Director Shailendra Bhandari are frontrunners for the post of chairman at UTI Asset Management Co. ENTERTAINMENT: • Actor Shah Rukh Khan acquires 26% stake in the Indian franchise of KidZania as Comcraft Group scouts for a significant minority investor to add value to the project. HOSPITALITY: • UK's hospitality firm Whitbread will invest Rs.5.35 bn in India by 2020 to fund its hotel business. PENSION: • A government committee has proposed bringing in the postal department, telecom companies, pension fund managers, fast moving consumer goods companies and third party corporate agents to sell pension products. ADVERTISING: • JWT, a global advertising network, will acquire majority stake in Hyderabad-based Mindset Advertising for an undisclosed sum. EXCHANGES: • United Stock Exchange, currently only offering currency futures trading, is planning to enter equities and interest rate futures. FINANCE: • A finance ministry official said the prevailing high yields in government bonds are "highly unacceptable" and the government is serious about using different options to bring the yields down. • Finance Minister Pranab Mukherjee will today meet heads of public sector lenders and financial institutions to review annual performance. MUTUAL FUNDS: • RBI Deputy Governor Subir Gokarn says mutual funds must complement the role of primary dealers in encouraging retail investment in government bonds. PRIVATE EQUITY: • Investments by private equity firms in Indian companies in Apr-Jun grew nearly 47% from a year ago to $2.91 bn.

Weekly Newsletter 41 Info-Spectrum Bridging the Information Gap in Corporate Landscape

• US-based private equity giant Blackstone Group will invest Rs.1.5 bn in banking technology services provider FINO.

PE investment in Jan-June up 52% Private equity (PE) investments in India stood at $6,141 mn in value terms in the first six months this year, while the number of deals rose by 33% to 195. According to data compiled by Chennai-based Venture Intelligence, the rise in the value of the deals so far this year was 52%, compared with the $4,036 mn raised in the year-ago period. Major investments so far this year include the $828-mn investment by GIC and Bain Capital investment in Hero Investments in March, The $375-mn investment by iGate in Apax Partners in January and the $500-mn investment by Apollo Management in Welspun Group in June. Other major deals were Morgan Stanley's $200-mn investment in Isolux Corsan India and the investment of $200 mn by a consortium of investors that included Goldman Sachs, Ashmore, Baer Capital and Everstone, in Indostar Capital Finance. Investors recovering from the global financial crisis was a major cause of the rise in investments, said Amit Chander, partner and head (healthcare, pharma and education), Baring Private Equity Partners India. The market for initial public offerings was unattractive in the last six months. So, companies have started looking at PE investments, Chander said. Sectors catering to the domestic market seem more attractive compared to exports markets, he said. Gujarat to invest Rs.635 cr in tourism The Gujarat government will invest Rs.635 crore for infrastructure development and tourism promotion over the next three years, according to Mr Vipul Mittra, Secretary, Tourism and Civil Aviation, Gujarat. Mr Mittra said that the tourism budget was enhanced to Rs.200 crore this year to enhance the tourism potentials of the state and bring Gujarat on the international tourism map. After the Gujarat government started its aggressive promotion of tourism, with Amitabh Bachchan in tow, tourism officials claim that the tourist arrivals to Gujarat increased by at least by 20 to 30% after riveting television promos featuring the legend were released last year. Schneider Electric enters Kerala market with new products Schneider Electric India has announced the launch of its switches, sockets and distribution systems for the home and small and medium business (SMB) market segments in the State. The retail initiative kicked off with the launch of ZENcelo and Vivace range of switches and the NeoBreak distribution systems in Kochi. This will be followed by similar launches in Thiruvananthapuram and Kozhikode, a company spokesperson said. This represents Schneider Electric's formal entry into the retail sector covering the home and SMB market segments, and is part of a national retail rollout that will be completed by 2012. Schneider is introducing, for the first time in the State, a hand-held device that will make ordering faster and simpler, leading to better inventory management and optimal use of warehousing space. Sun TV examining compliant against Sun Pictures' COO Sun TV Network Ltd has informed BSE as under : "This has reference to the news item that Mr. Hansraj Saxena, Chief Operating Officer, Sun Pictures has been taken into custody by the Chennai City Police on a complaint lodged by an individual for non-refund by Mr. Hansraj Saxena of alleged losses incurred by the said individual to the tune of Rs.82.53 lakhs towards distribution of the film "Theeradha Vilayattu Piliai". The Company is examining the complaint and FIR filed against Mr. Hansraj Saxena and is taking necessary legal recourse as may be required." Sarda Plywood allots convertible warrants on pref basis Sarda Plywood Industries Ltd has informed that the Share-Cum-Investment-Cum-Shareholders / Investors Grievance Committee of the Company, duly authorized by the Board, has at its meeting held on July 04, 2011 allotted 4, 35, 000 Convertible Warrants carrying an option / entitlement to subscribe to and be allotted equivalent number of Equity Shares of Rs.10/- each of the Company for cash at an issue price of Rs.34.36 per share to M/s. Abhinandan Fintex Private Ltd , a promoter group Company on preferential basis on the terms and conditions contained in the special resolution passed by the Members of the Company under Section 81 (1A) of the Companies Act, 1956. The Stock Exchange has granted its 'In - Principle' approval for the allotment of above Warrants vide its letter dated June 29, 2011. NEXT Retail set to double number of stores by year-end As part of its expansion strategy, NEXT Retail, the electronics retail arm of Videocon Ltd, opened a store in West Delhi. With a total of 609 stores across India, the company is targeting 1,000 outlets by the end of the year. Chief executive Sunil Mehta said, “We are coming up with seven more stores in Delhi, Mumbai,

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

Chennai and Bangalore in the next one month”. NEXT Retail, India’s largest electronic retail chain, is targeting a Rs. 4,000 crore turnover in the next three years, up from the current Rs.1,500 crore. The store has already covered more than 300 districts in the country and plans to raise the number to 626. Prime Focus appoints merchant bankers for fund raising With reference to increase in volume, Prime Focus Ltd has clarified to BSE that the Company is not aware of any events, information, etc. that have a bearing on volume of the Company shares. Further the Company has clarified that Company is exploring various possibilities of raising funds through private equity institutional investment / strategic investment / listing of foreign subsidiary Company (ies) and has appointed Merchant Bankers for exploring and advising on various alternative for raising funds. Page Industries in pact to make, market Speedo brand Page Industries Ltd has entered into an exclusive licensing agreement with Speedo International Ltd for the manufacture and distribution of Speedo brand swim wear, water shorts, apparel, equipment and footwear with effect from July 01, 2011. Essel Propack completes expansion at Goa Laminated tubes manufacturer, Essel Propack has commissioned its new expanded line at its unit at Kundaim in Goa. The company has doubled its annual capacity to 1.5 bn tubes with an investment of Rs.40 crore. Essel Propack Managing Director Ashok Goel said "The new installed capacity is fast ramping up", the company said, adding that it expects full utilisation by August 2011. The company has planned further expansion to ramp up capacity to 2 bn tubes per annum. Essel Propack manufactures laminated tubes for FMCG clients including Colgate, Hindustan Unilever, Cosme Pharma, Ranbaxy, ITC, Zandu Pharma and Encube Ethicals. The company has nine facilities at Murbad, Vasind & Wada in Maharashtra, Baddi in Himachal Pradesh, Kundain in Goa, Silvassa in Gujarat, and three speciality tubes plants in Pondicherry, Cuddalore in Tamil Nadu and Uttarakhand in India and 23 plants overseas. Marriott hotel at Kurla to be ready by November 350-rooms 5-star luxury deluxe hotel at LBS Marg, Kurla, Mumbai being built by Gracework Realty & Leisure Pvt. Ltd is expected to be ready by November this year. GRLPL a Special Purpose Vehicle (SPV) promoted by Phoenix Hospitality Pvt. Ltd. (PHPL) (77.33%) and Realtors Pvt. Limited (HBS) (22.67%). PHPL is a wholly owned subsidiary of Phoenix Mills Limited (PML), a company promoted by Atul Ruia. GRPL has entered into an operating agreement with the Marriott Group for the marketing-cum management of the hotel under ‘Marriott brand. Marriott hotel is being built on a 3.64-acre land with a proposed built-up area of 604,570 sq. ft. The total project cost is estimated to be Rs.341.20 crore which is proposed to be financed at Debt Equity ratio of 1.33:1. Radisson Plaza project may be delayed ‘Radisson Plaza Hotel’ 5-Star hotel project at LBS Marg, Vikhroli , in Mumbai may not be completed on time due to change in scope of project work. In 2010 Rajesh Business & Leisure Hotels Private Ltd (RBHL), the promoter of the project, received additional FSI, hence it decided to revise the scope of the project. This led to increase in total number of rooms from 300 to 374 and increase in the project cost from Rs.316 crore to Rs.374 crore. As per the original schedule the project was to be completed by August 2012. However, this deadline unlikely to be met. RBHL, a special purpose vehicle set up in 2005, is promoted by the Rajesh Builders Group, which is a real-estate company and has developed over 4.5 million sq ft of property in the western and central suburbs of Mumbai. RBHL has entered into the management agreement with Carlson Hotels Worldwide for the management of the company. \ RBI allows cos to refinance overseas convertible bonds The Reserve Bank of India decided to allow Indian companies to refinance their overseas convertible bonds under the automatic approval route to help them tide over redemption pressures, a central bank notification said. Companies can issue bonds to refinance their foreign currency convertible bonds within six months to maturity of the existing paper, the RBI said. The value of the bonds issued for refinancing must not exceed the outstanding redemption value of the existing convertible bonds, the RBI said. Bonds issued for refinancing existing overseas debt will be within the $500 mn limit available under the automatic approval route. Apart from allowing refinancing under the automatic route, the central bank said it will consider allowing companies to restructure their existing overseas convertible bond issues under the approval route. Such restructuring will be allowed only if companies don't change the conversion price, the RBI said. Refinancing of bonds with a value of more than $500 mn will be considered under the approval route, the RBI said.

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

Bharatiya Global sets issue price band Rs.75-82/share Bharatiya Global Infomedia Ltd has set its 6.72-mn-share initial public offering in the price band of Rs.75-82 a share with a face value of Rs.10, the technology company said in a newspaper advertisement. The issue, comprising 42.42% of the Delhi-based company's post-issue paid-up capital, will remain open for subscription between Jul 11 and Jul 14. Of the issue proceeds, the company will use around Rs.319 mn to set up an office in Noida, relocate its Mumbai branch, increase investment in its information technology division, and upgrade its digital post production studio. Bharatiya Global Infomedia will also spend around Rs.66 mn on expansion of its research and development technology centre, Rs.50.5 mn towards working capital requirements, and around Rs.27 mn to repay bank loans. The company's shares will be listed on the Bombay Stock Exchange and the National Stock Exchange. Rating agency CARE has assigned grade II to the issue, indicating below average fundamentals. Almondz Global Securities Ltd is the book running lead manager to the issue while Karvy Computershare Pvt Ltd is the registrar. HUL to seek shrholder OK to transfer export unit assets Hindustan Unilever Ltd has informed that by an Order pronounced on June 23, 2011, the Hon'ble High Court of Judicature at Bombay has directed that a meeting of the Equity Shareholders of the Applicant Company ("Hindustan Unilever Limited") will be held on July 28, 2011 at 2.00 p.m. at Birla Matushri Sabhagar, 19, Marine Lines, Mumbai - 400 020 for the purpose of considering and if thought fit, approving with or without modification(s), the Scheme of Arrangement proposed to be made between Hindustan Unilever Limited, the Applicant / Transferor Company, Unilever India Exports Limited, Transferee Company and their respective Shareholders and Creditors for the transfer of certain assets, liabilities and properties of FMCG Exports Business Division of Hindustan Unilever Limited to Unilever India Exports Limited. CNI Research in pact with US-based ISI Emerging Markets CNI Research Ltd has entered into a tie up with US based content distributor ISI EMERGING Markets Ltd. The Company is already partnering with Thomson Reuters, Capital IQ, Dow Jones, Blue Matrix and The capital market corn, providing reliable research globally on the Indian mid and small cap segment companies. These tie ups have already made CNI Research a trusted name across the globe amongst FII's. The Company is also in talks to provide its research to other global players which will make the research done by the Company accessible to more and more investors across the world. With the launch of SME very shortly, the management of the Company believes that the demand for research in small cap and mid cap companies will rise and the Company being the oldest and foremost player in this segment will definitely benefit from having the early movers advantage. CONCOR MD says rail min yet to decide on divestment in co via FPO The railway ministry is yet to decide on further divesting its stake in Container Corp of India Ltd through a proposed follow-on public offer, Anil Kumar Gupta, company's managing director, said. Gupta said the railways ministry currently holds 63% stake in the company. According to reports, the government may look at diluting its stake in the state-owned logistics company. On asked whether CONCOR has received any indication from the government on divestment, Gupta said, "They have written to the ministry and it is for the ministry to respond. Ministry will call up for discussion and we will make our view known." MMTC plans to enter coal, non-ferrous metal mining in South Africa MMTC Ltd plans to enter into a long-term agreement with a South African mining major to work in the areas of coal and non-ferrous metals, a senior MMTC official told. "The MoU (memorandum of understanding to that effect) will be signed very soon, mostly in July," the official said. The official did not give further details about the proposed pact, but confirmed MMTC and the company will work together "in the areas of coal and non-ferrous metals." In January, MMTC had opened an office in Johannesburg to exploit business opportunities in diamonds, gold and silver. The state-owned company is one of the most diverse trading companies in India, with interests in minerals, fertilisers, precious metals, coal, metals, farm goods. The company is also the country's largest bullion importer. Saregama, Timbre Media to jointly launch radio service in India Saregama India Ltd has bought 10% stake in Timbre Media Pvt Ltd, which holds the license for the brand WorldSpace radio in India, the former said. The two companies will jointly launch a customised radio service across three platforms--mobile, internet and direct-to-home--in six to eight weeks. The content will initially be from Saregama's in-house music library, R. Madhusudhan, vice president-digital, said at a press conference. Timbre Media will provide backend infrastructure for the service, including new studio facilities and will assist with other technical aspects.

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

Firstsource Solutions appoints Subramaniam as deputy MD, CFO Business process outsourcing firm Firstsource Solutions Ltd has appointed one of its founding manager, Rajesh Subramaniam, as deputy managing director and chief financial officer as the incumbent Global CFO Carl Saldanha's term comes to an end on Aug 1, a company release said. PVR buys out JP Morgan, India Advantage Fund from group firm Multiplex operator PVR Ltd said it had bought out JP Morgan Mauritius Holdings and India Advantage Fund’s stake in PVR Pictures, its group firm, for an undisclosed amount, as it looks to focus on cinema exhibition while going slow on production. The company has acquired a 40% stake held by JP Morgan Mauritius Holding and ICICI Venture India Advantage Fund in equal proportion. “PVR has decided to focus aggressively on the cinema exhibition business and go slow on the production business for the next couple of years. So, the company wanted to have 100% control over PVR Pictures and keep it as a wholly- owned subsidiary,” said PVR Chief Financial Officer Nitin Sood. Sood decline to specify the size of the deal but informed, “We have used a large part of cash lying with the company to fund this deal.” Amul top Indian brand in Asia: Survey The Campaign magazine, published from Hong Kong and Singapore, has ranked Amul as the No. 1 Indian brand in its list of Top 1000 Brands of Asia for the third consecutive year. Amul is also ranked the No.1 dairy brand, ahead of leading food and dairy brands of the Asian region, including Dutch Lady, Dumex and Magnolia. Overall, the magazine has ranked Amul as the 89th best brand in its ranking of the top 1,000 brands of Asia, based on a consumer survey conducted in Australia, China, India, Japan, Korea, Hong Kong, Malaysia, Singapore, Taiwan and Thailand, said Mr Jayen S. Mehta, General Manager (Planning and Marketing), Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul brand and markets products under the brand name. Bird Group JV with Dusit Thani Group of Thailand Bird Hospitality Services (BHS), the hospitality arm of Bird Group, which recently acquired the Royal Park Hotel in London, is developing five luxury hotels in the country in a joint venture with Dusit Thani Group of Thailand. Dusit Bird Hotels will open its first hotel, Dusit Devarana, in New Delhi by the end of 2011. Other hotels are planned at Rishikesh, Jaipur and Goa. The company has earmarked US$ 450 mn for the hotel projects. Besides, the company has also entered into managing third-party properties and has signed a deal to manage a hotel in Goa, which is likely be operational by 2014. Karvy Group JV to acquire Bahrain Shares Registering Karvy Computershare Pvt Ltd, the securities registry joint venture between the Karvy Group and Computershare Ltd, has signed definitive agreement to acquire a majority stake in Bahrain Shares Registering Co WLL, the Karvy Group said in a release. Bahrain Shares Registering Co is the largest player in the securities registry business in Bahrain and over 90% of the listed companies in the country are its clients, according to the release. The stake buy is part of Karvy Computershare's strategy to expand into West Asia markets. Karvy Computershare provides registrar services to mutual funds and corporates in India. As per the release, the investor servicing entity caters to over 67 mn investors across India. ECE Ind to buyback up to 875,000 shares at up to Rs.145 each Electrical equipment maker ECE Industries plans to buy back up to 875,000 shares, representing 8.42% stake at a price not exceeding Rs.145.00 per share, an advertisement in Business Standard newspaper said. The buyback price is at 15% premium to Tuesday's closing price of 126.05 rupees. Tuesday, shares of ECE Industries ended up 2.7% on the National Stock Exchange. The company said it plans to spend up to Rs.126.87 mn on the buyback of shares and will fund the same via internal accruals. The advertisement did not disclose the dates for opening and closing of the offer. "The buyback is being proposed with a view to enhance overall shareholder value. The buyback would lead to reduction in outstanding number of equity shares and consequently increase in earnings per share," the advertisement said. Promoter offers Rs.14.75/share for 20% more in Circuit Systems Paresh N. Vasani, one of the promoters of Circuit Systems (India) Ltd, has made an open offer to minority shareholders for 20% additional stake, or 3.14 mn shares, at Rs.14.75 a share. The offer will remain open from Aug 26 to Sep 14, the company, which makes printed circuit boards, said in an advertisement in The

Weekly Newsletter 45 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Financial Express. The open offer was triggered after Vasani acquired 32.2% stake from two other promoters, taking his holding in the company to 49.07% from 16.87%. According to the Securities and Exchange Board of India norms, acquisition of 15% stake in a company by a promoter has to be followed by an open offer to minority shareholders for at least 20% more. Deutsche Securities Mauritius ups stake in India Infoline to 6.29% Deutsche Securities Mauritius Ltd has increased its stake in India Infoline Ltd by 2.26% to 6.29%, a regulatory filing on the National Stock Exchange said. Deutsche Securities Mauritius increased its stake by purchasing 6.5 mn shares of India Infoline from the open market, the filing said. PVR opens 4-screen multiplex at Udaipur, Rajasthan PVR Ltd has informed that the Company announce the opening of another prestigious Multiplex on July 06, 2011 at The Celebration Mall situated at Unit No. 04-02, Bhuwana (Phase-II Scheme), NH-O8, Opposite Divender Dham, Udaipur- 313 004 Rajasthan. This Multiplex is comprised of 4 screens, fitted with latest Sound and Projection System. The Multiplex has total seating capacity of 1,150 seats. With the opening of this Multiplex at The Celebration Mall the total screens count has gone upto 146 screens at 34 locations across 19 cities in 12 States and 1 Union Territory. The opening of this Multiplex is a part of PVRs organic growth strategy of pan India expansion and increasing its presence in major cities. Audiences in Udaipur will enjoy to a new cinematic wave that PVR theatres will offer. Prime Database says financial cos top fund raisers via bonds FY11 The financial sector raised Rs.1.36 trn or 71% of the total issuances in the corporate bond market in 2010- 11 (Apr-Mar) followed by the power sector that raised Rs.190.25 bn, according to Prime Database. Prime Database collates debt and equity issuance data in India. The total funds raised through corporate bonds in 2010-11 stood at Rs.1.92 trn as against Rs.1.89 trn in the previous financial year. According to Prime Database, the funds raised by financial institutions and banks, with a presence across the country, were up 7% on year at Rs.1.16 trn, while the mobilisation by the private sector grew 9% on year to Rs.600.39 bn. However, there was 44% fall in funds mobilised by state-owned companies in 2010-11 to Rs.124.50 bn compared with Rs.222.05 bn a year ago. State-owned organisation, along with financial institution's share in fund mobilisation through corporate bonds, fell to 69% in 2010-11, as against 71% in a year ago. IRDA scraps 3-yr profitability clause for life insurers' IPOs Insurance Regulatory and Development Authority has scrapped the minimum three-year profitability clause for life insurers to float initial public offerings, The Economic Times reported. The regulatory authority took the decision in a recent board meeting, the newspaper quoted two people familiar with the matter as saying. Under the current norms, companies that have a track record of three successive years' profit and have been in business for ten years, are allowed to list on the bourses. The decision to do away with the requirement follows lobbying by insurance firms that the absence of higher foreign investment and access to public funds could cripple their businesses, the report said. This would be a relief for a number of insurance companies such as ICICI Prudential, HDFC Life and Max New York Life, which have been in operation for 10 years but do not have a three-year profitability record. IPO norms for life insurance companies have been dragging on for years as IRDA debated on how to be in line with the requirements stipulated by the market regulator and also facilitate fund-raising by insurers, the report said. Moser Baer launches three storage memory device models Moser Baer Ltd has introduced three models of USB flash drives-- Ace, Nimble and Crescent--to cater to the growing demand for storage memory devices, a company release. "These lightweight USBs Drives will reduced the 'wait time' and will be available in various colours," the release said. "These USB Drives bring performance enhancements to the existing ubiquitous USB designs, while remaining compatible with the billions of USB enabled devices currently deployed in the market." The company expects to garner another 3-5% of the Indian USB storage device market through these new products within this month, the release said. Bajaj Corp's dividend post stock split at Rs.1.90/share Bajaj Corp Limited had informed that the Board of Directors of the Company at its meeting held on April 30, 2011 have recommended dividend on equity of the Company @ 190% (i.e. @ Rs.9.50 per equity share of the face value of Rs.5/- each) for the year 2010-11. Further the Company has now informed that post the sub-division, while there is no change in the rate of dividend being 190% as recommended by the Board of Directors of the Company, the amount of dividend stands revised to Rs.1.90 per share (post sub-division) of

Weekly Newsletter 46 Info-Spectrum Bridging the Information Gap in Corporate Landscape face value Re. 1/- each as against the amount of Rs.9.50 per share (pre sub-division) of face value Rs.5/- each. Rainbow Papers OKs setting up arms in US, UAE, Singapore Rainbow Papers Limited has informed that the Board of Directors of the company in their meeting held on July 07, 2011 have decided to set up a subsidiary company of Rainbow Papers Ltd. at United Arab Emirates (UAE), United States of America (USA), Singapore and other countries from time to time as and when, required for procurement of raw material, selling of finished goods and international trading. Rollatainers OKs raising up to Rs.20 mn Rollatainers Ltd has informed that the Board of Directors of the Company at its meeting held on July 07, 2011, inter alia, has transacted the following business: 1. Issue of up to 2,00,000 fully paid 10% Non convertible, Cumulative, Redeemable Preference shares of the face value of Rs. 100/- each aggregating to Rs.20 mn to WLD Investment Private Limited, the Promoter of the Company on Preferential basis subject to the approval of shareholders of the Company by means of Postal Ballot. 2. The Postal Ballot Notice as well as the Postal Ballot Form and Calendar of events proposing the aforesaid Resolution for obtaining the Consent of shareholders of the Company. The Company has appointed Ms. Lqneet Kaur, Practicing Company Secretary as the Scrutinizer to conduct the Postal Ballot Process in a fair and transparent manner. Nouveau Multimedia to mull demerger of ops Jul 15 Nouveau Multimedia Ltd has informed that a meeting of the Board of Directors of the Company will be held on July 15, 2011, inter alia, to consider and approve the scheme of demerger in order to provide necessary focus and flexibility to each division by separating it by way of demerger of the Company. This will further improve the perception of the Company among the general investors and other stakeholders of the Company. Shreeyash Ind gets Rs.20 mn order from Italy co Shreeyash Industries Ltd has informed that the Company have confirmed an order of 10,000 oxford shirts per month for 6 months from M/s Colombo Trade, Brescia, Italy. The first delivery will start in 3 months. The price negotiated is Euro 5.2, FOB any Indian port. The total order is for approximately Rs.20 mn. IDFC Mutual Fund's stake in Venky's falls to 3.19% from 4.54% IDFC Mutual Fund's stake in Venky's Ltd has declined to 3.19% from 4.54% after the fund house sold 126,140 shares of the company on Jun 30. The fund now holds 300,000 shares of the poultry products company. The shares were bought via IDFC Small & Midcap Equity Fund. Morgan Stanley sees Apr-Jun margin of cos in 8 of 10 sectors dn YoY The Apr-Jun margins of companies in eight of the 10 sectors covered by Morgan Stanley India are likely to contract from a year ago, the international brokerage said in a recent report. Network18 Media, staff trust pledge 26.6% shrs in IBN18 Broadcast IBN18 Broadcast Ltd has said Network18 Media & Investments Ltd and Network18 Group Senior Professional Welfare Trust have pledged 5.1 mn of their shares in the company between Jul 15 and Jul 21. Reliance Trends to double store count to 100 by March Reliance Trends, the apparel, luggage, and accessories format of Reliance Retail Ltd, plans to double store strength to 100 by March, Chief Executive Arun Sirdeshmukh said. NSE launches 91-day Treasury Bills interest rate futures The National Stock Exchange today launched 91-day treasury bills futures contracts. The instrument will enable market participants to hedge the risks posed by volatility in interest rates. BSE hopes to kickstart SME exchange Sept onwards The country''s premier bourse Bombay Stock Exchange is hopeful of launching its dedicated small-and- medium-enterprises (SME) exchange by September. Britannia reviewing product prices FMCG major Ltd said it is in the process of reviewing the pricing structure of its products in view of the sharp increase in input costs. Hotel group Marriott enters the Pink City The international hotel group Marriott Hotels & Resorts has opened a 365-room property in the Pink City. Govt lends support to toy industry to compete with China

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

Amidst "dumping" of consumer products by China, MSME Minister Virbhadra Singh assured all support to the Rs.6,000 crore Indian toy industry to compete with the neighbouring nation. Olympus eyeing 10% of the digital camera market Olympus, the newest entrant in the highly competitive digital imaging space, is targeting to gain a 10% market share in the first year of its operations in India by selling 3 lakh units of digital cameras. Mutual funds may face Sebi fury over casual voting Mutual funds may soon face some tough questions from market regulator Sebi regarding the exercise of their vote on key business proposals of the companies in whose shares they have put in investors'' money. Decision on multi-brand retail FDI likely in July A decision on contentious issue of allowing foreign direct investment in multi-brand retail is likely to be taken before the Monsoon session of Parliament, sources said. 'Online retail industry to reach Rs.7,000 crore by 2015' The market size of online retail industry in India is likely to touch Rs.7,000 crore by 2015 due to increasing internet penetration across the country, a survey today said. REC mulls investment in equities for higher returns State-run Rural Electrification Corporation is planning to invest in equities that could offer returns of up to 30%, as part of efforts to boost stakeholders' value. To become profitable by next fiscal: Reliance MediaWorks Film and entertainment firm Reliance MediaWorks today said it expects to become profitable from the first quarter of next financial year and is targeting a topline growth of up to 30% this fiscal. Micro-lender Ujjivan raises Rs.23 cr via pvt placement The Bangalore-based Ujjivan Financial Services, a microfinance institution (MFI) focusing on the urban poor, said it raised Rs.23 crore through a private placement. Sterling Holiday Resorts India appoints new MD Sterling Holiday Resorts India Ltd. announced the appointment of Ramesh Ramanathan as its new Managing Director. Rubber park and cement plants expected in Tripura Tripura Industrial Development Corporation (TIDC) said that a rubber park with an estimated investment of Rs.300 crore and two cements plants are expected to be set up in Tripura. Colour-producing microbes found in Kutch's Banni A biocolour-producing bacterial strain has been found in the soil of the arid Banni region of Kutch district, which may find application in the dye-making industry. Sun Pictures COO sent to two days police custody Chief Operating Officer of Kalanidhi Maran-owned Sun Pictures Hansraj Saxena, arrested in connection with a cheating case, was remanded in two days police custody by a court here. Rajiv Vaid appointed as COO Daiwa Capital Markets Mumbai: Investment bank Daiwa Capital Markets said it has appointed Rajiv Vaid as Chief Operating Officer (COO). Maha govt mulling to extend timings of star hotels The Maharashtra government is considering extending timings of the bar counters at star hotels especially to facilitate foreign tourists, a senior state excise official said. CA Tech India eyes 30% growth in service assurance CA Technologies India expects its service assurance business to grow by 30% year-on-year on the back of strong demand from sectors like telecom, government and BFSI, which are investing heavily on ensuring the services they offer meet pre-defined quality levels. Nihar Info Global gets Andhra website maintenance order Nihar Info Global Ltd has informed that the Company have received a Work Order from Andhra- Pradesh Industrial Infrastructure Corporation (APIIC), Hyderabad for maintenance of all of APIIC, Lotus Mail Server and Providing Onsite Support. Servalakshmi Paper ops hit by power plant break down

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

Servalakshmi Paper Limited has informed that due to a break down in the turbine supplied by siemens, the power plant and the paper production has been hit. It is estimated to take 3 to 4 weeks to resume production.

Acropetal Tech, Keltron get Rs.250-mn-UID order Acropetal Technologies Ltd, in partnership with Kerala Electronic Development Corp Ltd, has received a Rs.250 mn unique identification number enrolment order for 14 districts in Kerala, the company informed the Bombay Stock Exchange in a notice. The Bengaluru-based information technology service company is expected to complete the project by March. Chisel & Hammer to discuss expansion plan Mon Chisel & Hammer (Mobel) Ltd has informed that a meeting of the Board of Directors of the Company will be held on July 11, 2011, inter alia, to discuss the future expansion plans of the company and review of present operations. Rander Corp gets ISO 9001-2008 certificate Rander Corporation Ltd has informed BSE that the Company have recd. ISO 9001-2008 certificate. Cabinet approves MMTC plan to supply iron ore to POSCO till 2014 The Cabinet approved a proposal by MMTC Ltd for supplying iron ore to South Korean steel major POSCO for the next three years under a long-term agreement. The government also allowed the state-owned trading company to supply iron ore to Japanese steel mills till 2014. The long-term supply pacts entered into by MMTC with POSCO and steel mills in Japan had expired on Mar 31. HLL Lifecare signs pact with Petronet for LNG supply HLL Lifecare Limited, a miniratna Central public sector enterprise, has signed an MoU with Petronet LNG Ltd for long-term procurement of Liquefied Natural Gas (LNG) to power its factories. McNally Bharat gets Rs.279.9 mn order from Hindalco McNally Bharat Engineering Company Ltd has informed that the Company have received an order from Ltd (Unit: Mahan Aluminium) for Construction of Civil Foundation and Structural Steel Work of Pipe Rack for 6X 150 MW Captive Power Plant at Bargawan, Singrauli, Madhya Pradesh at price of Rs.279.9 mn. RELIANCE RETAIL: Reliance Retail has named Rob Cissell, former chief operating officer of Walmart China, as CEO. Shawn Gray, vice-president in-charge of store operations of the same company, will join the Mukesh Ambani firm as COO. PANTALOON FINANCE: Pantaloon Retail plans to sell its stake in the financial services arm Future Capital Holdings. Pantaloon has hired investment bank Morgan Stanley to find a buyer for its 54% equity in Future Capital Holdings, a non-banking finance company with assets worth Rs.30 bn. MMTC CONSOLIDATION: MMTC Ltd has dropped plans to buy overseas coal mines, commercial farming in Africa and generating electricity locally. The company would instead concentrate on its core businesses such as minerals, metals and general trading. HENKEL INDIA: Has posted an operating profit in less than two months after JYOTHY LABORATORIES bought the company. ITC: The company's paperboards and speciality papers division plans to expand manufacturing capacity by 100,000 tn per annum at an investment of 6 bln rupees. MAX INDIA: Promoter Maxopp has upped stake in the company from 5.40% to 7.35%. MIRZA INTERNATIONAL: Has started shoe-making operations at its Greater Noida unit, increasing the company's overall capacity. UNITED SPIRITS: Has bought additional 19.99% stake in Sovereign Distilleries, making it its subsidiary. BRITANNIA INDUSTRIES: Is mulling to look beyond just biscuits. KRISHNA VENTURES: Plans merger with NCCL Business Ventures. BCC FINANCE: Shareholders have approved 3-for-1 bonus share issue. CEAT: Last week raised prices by 2.0-2.5% across categories and expects margins to improve from Jul-Sep onwards due to fall in rubber prices.

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

CENTURY TEXTILES: Expansion plan to increase cement capacity is expected to be completed by Mar 2013. CONFIDENCE TRADING CO: The company's board has approved 4-for-1 bonus share issue. DMC EDUCATION: Plans to raise Rs.26.7 mn through issue of convertible debentures to DB CORP. HINDUSTAN UNILEVER: Seeks shareholders' approval to transfer certain assets, liabilities and properties of fast moving consumer goods exports business division of the company to Unilever India Exports. INDIAN HOTEL COMPANY: Its plan to construct a luxury hotel and convention centre at the Sea Rock site in Mumbai is facing environmental concerns. MIRC ELECTRONICS: To focus on strengthening its existing portfolio and entering newer geographies rather than launch newer ones as it plans to grow its revenues to around 45 bln rupees by 2013. INDO ASIAN FUSEGEAR: Plans buyback of shares, board to decide Saturday. ITC: Will invest $2 bn in hotel business. SKS MICROFINANCE: Auditors of the company have identified 400 cases of alleged cash embezzlement, fictitious loans and unauthorised advances given by some of the employees to borrowers. TITAN INDUSTRIES: Division Titan Watches plans to launch four-five collections of watches by March. STAKE SALE: US-based Hershey's and the Godrej Group have called off their joint venture in India following management differences in running the entity. Hershey's will sell its 51% stake to Godrej Consumer Products Ltd for an undisclosed amount. UNITECH RETAIL: Unitech Ltd is expanding its retail development business and plans to invest around Rs.20 bn over the next three years to develop about 2 mn sq ft of premium and luxury shopping malls. BSE EXCHANGE: The Bombay Stock Exchange, which is planning to launch an SME Exchange from September, will initially have at least five to ten companies listed on it. TRENT: Trent, the retail arm of the Tata Group, has shelved plans to open Topshop--stores of UK's Arcadia Group--in the country to focus on Spanish fashion brand Zara. The company had entered into a franchisee agreement with UK's largest privately-owned clothing retailer three years ago. JWT REACH: Global advertising network JWT, part of WPP Plc, has acquired a majority stake in Hyderabad- based Mindset Advertising Pvt Ltd, extending its reach to Andhra Pradesh. ALOK INDUSTRIES: Will mull merger with GRABAL ALOK IMPEX on Jul 29. JK PAPER: The company's board will mull rights issue of shares on Jul 15.

Weekly Newsletter 50 Info-Spectrum Bridging the Information Gap in Corporate Landscape

GLOBAL ECONOMY AND GLOBAL BUSINESS Bank of China Plans Second Headquarters in Shanghai Bank of China Ltd. plans to set up a second headquarters in Shanghai and has submitted the application to the regulators. St. Joe Subject of SEC Investigation St. Joe Co., a Florida property developer, said in regulatory filing on Friday that the company and its chairman, mutual-fund manager Bruce R. Berkowitz, are the subject of a formal investigation by the Securities and Exchange Commission. Samsung Drops One Lawsuit Against Apple to Focus on Others Samsung Electronics Co. voluntarily dropped one of its lawsuits against Apple Inc. as part of an effort to streamline legal proceedings. Samsung told the U.S. District Court in the Northern District of California that it would voluntarily drop a patent case there following a recommendation from the judge. Samsung Sees Tough Second Half for Components The Samsung Electronics Co. executive who will lead its newly merged component-manufacturing businesses said that the second half of the year is going to more difficult than the first. The two businesses—producing semiconductors and flat-panel displays—last year provided 70% of Samsung's operating profit, but both are experiencing difficulties, said Kwon Oh-hyun. The chief of Samsung's chip business, he was tapped to lead the combined unit, to be called its Device Solutions business. Singapore, Blackstone Square Off Over Japan Property Global Logistic Properties Ltd., majority owned by Singapore's sovereign-wealth fund, is in final negotiations to acquire a Japanese portfolio of real estate that could fetch up to ¥140 bn ($1.7 bn), making it the biggest property deal in Japan in two years, according to people familiar with the matter. Private-equity firm Blackstone Group's real-estate arm is also in final talks and is in close competition with GLP in a bid to acquire the assets, according to the people. LaSalle Investment Management is selling a portfolio of more than 20 industrial properties in Japan used for distribution and warehouses by companies. Tepco Resumes Cooling Plan at Fukushima Plant The operator of the crippled Fukushima Daiichi nuclear-power plant said that it has resumed the use of contaminated water to cool the reactor cores, a week after its first attempt was suspended due to leaks. Brazil Appears to Step Back From Carrefour Deal Brazil's government appeared to step back from a controversial plan to merge Brazil's biggest supermarket chain Pão de Açúcar and French retailer Carrefour SA, a deal fiercely opposed by the Brazilian company's existing partner and Carrefour rival, Casino. Spain Picks Banks to Coordinate Loterías IPO Spain's Finance Ministry has picked four investment banks to coordinate the blockbuster privatization of Spain's lottery company, Sociedad Estatal de Loterías y Apuestas del Estado SA, people familiar with the situation said. J.P. Morgan Chase Inc. and Goldman Sachs Group Inc., along with UBS AG and Credit Suisse Group will be in charge of selling between €6.5 bn ($9.44 bn) and €7.5 bn worth of shares in Loterías later this year, in an initial public offering that is set to become the biggest on record in Spain and one of the largest privatizations in Europe in the last decade. Exxon: Crude Leaked Into Yellowstone River Most of the oil pollution stemming from a leak at an Exxon Mobil Corp. pipeline is concentrated in a 10-mile area of the Yellowstone River near Billings, Mont., a company executive said Sunday. There is "very little soiling" of the river banks beyond the 10-mile mark, Gary Pruessing, president of Exxon Mobil Pipeline Co., said at a news conference telecast from Billings. The incident, originally reported Saturday, caused the temporary evacuation of some area residents. Local officials have said flooding has hampered the cleanup work, and that some of the leaked oil could reach the Missouri River, of which the Yellowstone is a tributary. The Texas energy giant estimated that between 750 and 1,000 barrels of crude oil leaked into the river; the pipeline was shut down six minutes after a loss of pressure was detected, Mr. Pruessing said. Exxon said ongoing air-quality tests haven't detected any danger to public health. No reports of damage to water quality in municipal water systems have been received, according to the company. There are no indications that oil is still leaking out of the line, Mr. Pruessing said.

Weekly Newsletter 51 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Providence Cashes In on Kabel Deutschland The news Friday from Kabel Deutschland Holding AG that Providence Equity Partners has sold its remaining 22% stake in the German cable company closes the book on what is certainly one of the more lucrative deals in private-equity history. The U.S. buyout firm made more than four times its money on the eight-year investment, or more than $3 bn, according to a person familiar with the matter. It is a noteworthy success, especially given how some of the deals done during the leveraged-buyout boom of the last decade have struggled. Korea to Examine Asset Quality of Savings Banks South Korea's financial authorities will look into the asset quality of savings banks in July and August to help the sector, which is heavily exposed to real-estate-related bad debt, land softly by providing tailored solutions, the authorities said Monday. In continued efforts to sort out viable solutions from the sector, the authorities will study asset quality and average capital adequacy ratios at 85 out of 98 savings banks operating in the nation, the Financial Services Commission and the Financial Supervisory Service said. Murchison Says Iron Ore Project Costs Soar Murchison Metals Ltd. said Monday that costs for the Oakajee iron ore export project, which it jointly manages with Japan's Mitsubishi Corp., have increased by more than a third to 5.94 bn Australian dollars (US$6.4 bn) and that the project's first ore won't be delivered until 2015. The Oakajee project, comprising a 45 mn-metric-ton-a-year port near Geraldton in Western Australia state. Nestlé Holds Talks to Buy Big Chinese Candy Maker Nestlé SA is in talks to buy Chinese candy maker Hsu Fu Chi International Ltd., according to a person familiar with the matter, in what would be one of the biggest foreign takeovers of a Chinese company. The talks between Nestlé and Hsu Fu are at a delicate stage and still have a number of hurdles to cross, the person said. Any deal for Hsu Fu, which has a market value of $2.6 bn, is weeks away, the person added. Asahi Expands Global Acquisitions Asahi Group Holdings Ltd. said Monday it has agreed to go ahead with two separate soft drinks M&A deals in Australia and New Zealand valued at a total of $309 mn, as part of the firm's drive to expand its global reach. Asahi announced its purchase of a key portion of P&N Beverages Australia Pty Ltd. and New Zealand's Charlie's Group Ltd., in a move that underscores the Japanese beverage company's increasing appetite for overseas M&A. Casino Steps Up Brazil Battle Groupe Casino Monday raised the prospect of legal action against rival Carrefour SA, intensifying the standoff between the two French retail giants after Carrefour's board approved a controversial plan to merge its Brazilian assets with Casino's Brazilian partner, Pão de Açúcar. "Carrefour and the members of its board of directors may be held liable in accepting, despite repeated warnings, a hostile transaction arising out of illegal negotiations," Casino said in a statement. Macquarie Struggles With Focus The road to reinvention for Macquarie Group Ltd., a one-time champion of debt-fueled infrastructure acquisitions, is proving a bumpy one. Since 2009, the Australian bank has spent at least US$2.4 bn buying assets in the U.S., Canada and Europe, building up its exposure to businesses such as stock trading, asset management and aircraft leasing. The new initiatives appear to have come at a cost. Macquarie has lost ground in some of its old core businesses. Hong Kong Investors To Pay Tax The Hong Kong government said individual shareholders of H-share stocks, or Hong Kong-listed companies incorporated in China, will be subject to a withholding tax of 10% on the companies' dividend payments. Pfizer Drug Tied to Heart Risks Pfizer Inc.'s smoking-cessation drug Chantix was linked to a 72% increase in risk of cardiovascular problems, including stroke and congestive heart failure, according to a new analysis of medical studies. Researchers looked at 14 clinical trials of the drug, involving 8,216 patients, and concluded that the medicine "was associated with a significantly increased risk of serious adverse cardiovascular events" compared with patients given a placebo.

Weekly Newsletter 52 Info-Spectrum Bridging the Information Gap in Corporate Landscape

New Blood-Thinner Receives FDA Approval The U.S. Food and Drug Administration approved a new drug to prevent blood clots that was co-developed by Johnson & Johnson and Bayer AG. The clearance of the anticoagulant Xarelto is the latest development in an emerging battle among major drug companies including Pfizer Inc. over what is expected to become a multibillion-dollar market for new blood thinners treating cardiovascular conditions, which may replace older drugs, including warfarin. Fox Says Hackers Hit Feed Fox News said hackers broke into one of its Twitter accounts early Monday morning, sending fake messages about President Barack Obama, the latest in a string of brazen attacks that have compromised government and corporate websites around the world. The early morning tweets, posted on the "Fox News Politics" Twitter feed, claimed that President Obama had been assassinated while campaigning in a restaurant in Iowa. Mitsubishi UFJ Takes 9.99% Stake In Lynas Japanese bank Mitsubishi UFJ Financial Group Inc. has taken a 9.99% stake in Australian rare earths developer Lynas Corp., according to a regulatory release Tuesday. Sharp to Send More Solar-Panel Production Overseas Sharp Corp. plans to localize more of its solar-panel production outside Japan as the strong yen makes exports too expensive while fast-growing Chinese makers create a global inventory glut. Pimco Wins in Bet on Inflation Pacific Investment Management Co. and Morgan Stanley recently played a high-stakes game of chicken over inflation. Pimco won. Bombardier to Lay Off U.K. Workers Canada's Bombardier Inc. plans to announce layoffs at its Derby, England, plant Tuesday, after losing a British railroad contract to Germany's Siemens AG. The plant, located about 120 miles north of London, employs 3,000 workers, or about 9% of Bombardier's global rail work force. The company called a meeting with those workers for Tuesday morning to unveil a "capacity review plan," a Bombardier spokesman, Marc Laforge, said. Rare-Earth Reserves Are Found on Pacific Ocean Floor Japanese explorers have found large deposits of rare-earth minerals on the floor of the Pacific Ocean, British journal Nature Geoscience reported. While the discovery has the potential to alter the dynamics of the global market for the metals, the difficulty of extracting the minerals from the sea floor present a big challenge. The Japanese team found deep-sea mud containing high concentrations of rare-earth elements and yttrium at numerous sites throughout the southeastern and north-central parts of the Pacific Ocean, the journal said in its online edition over the weekend. Cofco Unit Tightens Hold on Tully Sugar A takeover battle for Tully Sugar Ltd. appears to be over, with China's state-owned Cofco Corp. now holding a 61.25% beneficial interest, a figure that includes 6.9% formerly held by agribusiness Bunge Ltd., Keith De Lacy. Western Union Buys Travelex Unit for $974.6 Million Western Union Co. agreed to acquire the global business-payments division of Travelex Holdings Ltd. for £606 million ($974.6 million) in cash, as the payment-transfer company seeks to expand in the growing cross-border trade market. HSBC to Cut Jobs in France HSBC Holdings PLC said it plans to axe nearly 700 jobs in France as it looks to improve efficiency and accelerate growth in the country. Temasek Selling Stakes in Two Chinese Lenders Singapore state-investment firm Temasek Holdings Pte. Ltd. is seeking to raise up to US$3.67 billion by selling parts of its stakes in Chinese lenders Bank of China Ltd. and China Construction Bank Ltd., according to term sheets seen by Dow Jones Newswires on Tuesday.

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

Crédit Agricole CFO Quits French bank Crédit Agricole SA said Chief Financial Bertrand Badré is stepping down and will be succeeded by Bernard Delpit, the chief financial officer of France's La Poste mail service. National Oilwell to Buy Ameron for $772 Million National Oilwell Varco Inc. agreed to pay $772 million to acquire Ameron International Corp., a leading producer of fiberglass-composite pipe for transporting oil and chemicals. Bank of Montreal Repays M&I's TARP Debt The Treasury Department said it has recovered $1.7 billion in bailout money it invested in Marshall & Ilsley Corp., which is being acquired by Bank of Montreal. Songa Wins $2.5 Billion Rig Pact Norwegian oil-rig operator Songa Offshore SE said Tuesday it has been awarded a $2.5 billion contract to charter two new semisubmersible drilling rigs to Statoil for an initial eight years each. Bombardier to Cut Over 1,400 U.K. Jobs Transportation giant Bombardier Inc. on Tuesday said it planned to cut more than 1,400 jobs in the U.K. following the loss of a key British railroad contract last month, raising questions about the future of the country's last train manufacturer. Netflix to Enter Latin America Netflix Inc. said it will launch Internet streaming service in 43 countries in Latin America and the Caribbean later this year, the latest step in its world-wide expansion plans. Energy Transfer, Southern Set Deal Energy Transfer Equity LP upped its previous offer to acquire pipeline company Southern Union Co. in hopes of beating back a rival bidder and becoming the largest transporter of natural gas in the U.S. Energy Transfer's offer of $5.1 billion in cash and stock, valued at $40 a share and announced Tuesday, tops that of Southern suitor Williams Cos., which jumped into the fray last month with an offer valued at $5 billion, or $39 per share. Both suitors are willing to assume Southern's debt, totaling $3.7 billion. Novartis Drug Seeks Wider Use Novartis AG said Tuesday it will file its Afinitor drug for world-wide regulatory approval in breast cancer by year end on strong clinical-trial data, raising prospects the product will become a blockbuster and help the Swiss giant offset sales lost from drug-patent expirations. Twitter Seeks $7 Billion Valuation Even as Internet companies such as Zynga Inc. and Groupon Inc. file to go public, Twitter Inc. is taking a different route: It is continuing to tap private investors. The fast-growing Internet messaging service is currently in discussions to raise a new round of private financing, said people familiar with the matter. The round could yield hundreds of millions of dollars and value Twitter as high as $7 billion, one of these people said. It is unclear which investors are participating in the new round. 3i Shareholders Re-Elect CEO 3i Group PLC Chief Executive Michael Queen was re-elected with a comfortable majority at the company's annual general meeting Wednesday, despite shareholder concern over his growth plans for the buyout firm. Berkshire Is in Group Bidding on Citi Unit Warren Buffett's Berkshire Hathaway Inc. is part of a bidding group engaged in exclusive talks to buy the consumer-lending business formerly known as CitiFinancial from Citigroup Inc., said people familiar with the matter. Samsung Estimates Weaker Earnings Amid LCD Woes Samsung Electronics Co. said Thursday it estimates weaker second-quarter earnings, as its liquid crystal display business likely posted its second straight quarterly loss due to slumping demand for televisions and personal computers. Blackstone in Talks to Buy Kinetic Blackstone Group is in talks to buy Kinetic Concepts Inc., a wound-care and hospital bed provider, in a deal that could be worth about $5 billion, making it one of the largest leveraged buyouts since the financial crisis, according to a person close to the matter.

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

Disney's CEO Says Hulu Will Be Sold Walt Disney Co. Chief Executive Robert Iger said the owners of online video site Hulu LLC are "committed to selling" it. Paramount Looks to Animation Paramount Pictures is starting an animation division, firing the opening shot at partner DreamWorks Animation SKG Inc. as Hollywood studios place more bets on animated pictures. The studio, a unit of Viacom Inc., said Paramount Animation plans to spend up to $100 million to produce each film, releasing one animated title a year starting in 2014. Apple Readies New iPhone Apple Inc. is getting closer to launching its next iPhone, as it works to stay ahead of competition from smartphone rivals such as Samsung Electronics Co. Apple has ordered key components for a new iPhone it is aiming to launch by the end of September, said people familiar with the situation. These people said the new iPhone is expected to be similar to the current iPhone 4, but thinner and lighter with an improved eight- megapixel camera. Citigroup Aims to Boost China Outlets by 50% in 2011 Citigroup Inc. plans to increase its number of outlets in China by 50% this year, as the U.S. bank looks to capitalize on the opportunities presented by China's growing middle class. Temasek's Net More Than Doubles to $10.6 Billion Temasek Holdings Pte. Ltd. said Thursday its net profit in the year ended March 31 more than doubled on higher contributions from its portfolio companies, and the Singapore state-owned investment company said it remains optimistic about Asia and other growth economies. Net profit for the fiscal year rose to 13 billion Singapore dollars (US$10.59 billion) from S$4.6 billion in the previous year. Deutsche Bank in Talks to Sell BHF Deutsche Bank AG said Thursday it's in exclusive talks to sell its BHF-Bank unit to Brussels-based investment firm RHJ International, launching a second attempt to sell the business. Pfizer Weighs Options for Animal-Health, Nutrition Units Drug giant Pfizer Inc. said it is exploring strategic options including sales and spinoffs for its animal-health and nutrition units, but will hold onto its generic-drug and consumer health-care businesses—disappointing investors hoping for more aggressive divestitures. Apr-Jun global PE deal value $76 bln, highest since Lehman collapse Global private equity deal activity gained momentum in Apr-Jun with 37.4% on year rise in value of transactions to $75.6 bn, the highest quarterly figure since the collapse of Lehman Brothers in Sep 2008, according to data compiled by UK-based research firm Preqin. India-based PCM Strescon bags UAE rail contract Indian firm PCM Strescon Overseas Ventures Limited (PCM Strescon) has bagged a USD 10.89 bn (40 bn dirham) contract for the provision of railway sleepers at Etihad Rail, the developer and operator of the UAE''s national railway network. UK co reverts outsourced work from costly India A British company is bringing back its outsourced work to the UK after it realised that outsourcing it to India is no longer cheaper than doing the same work here. DBS applies to open four more branches in India Singapore's DBS Bank has applied to open four more branches in India as part of its ongoing expansion plans in the South Asian market. Gulf economies to benefit as oil windfall drives spending Arab Gulf economies are set to benefit from large government spending programmes and high oil prices in the second half of the year, despite concerns over political turmoil in the Middle East and Europe''s sovereign debt crisis, a senior bank official has said. Dubai property mkt moving towards recovery: report The Dubai property market is showing good signs of a recovery, with many neighbourhoods reporting the first increases in value since 2008, a new industry report has revealed.

Weekly Newsletter 55 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Chinese city becomes Etihad's 69th destination Abu Dhabi's Etihad Airways will launch services to Chengdu in South-West China from December 15, subject to government approval, making it the airline's 69th destination worldwide, it has been announced. Arcelor Mittal Orbit to be handed over in March A tower taller than the Statue of Liberty of New York, being built here by leading NRI steel magnate Lakshmi Mittal''s ArcelorMittal for the London Olympics, will be handed over to the authorities by March, 2012, well ahead of the Games. Dubai nod for USD 7.8 billion airports expansion plan Dubai Airports has given the green signal for a USD 7.8 bn (28.8 bn Arab Emirates dirham) airport and airspace expansion programme, which will boost capacity at Dubai International from 60 mn to 90 mn passengers per year by 2018. Bangladesh keen on Saudi investment in energy projects Bangladesh government officials have been travelling through Saudi Arabia trying to secure public and private investment in oil and gas, power and transportation projects, it has been reported. President Barack Obama defends US foreign aid "It''s important for people to know that foreign aid accounts for less than 2% of our budget. If you defined it just narrowly as the kind of foreign aid to help feed people and what we think of classically as foreign aid, it''s probably closer to one per cent," Obama said in response to a question during the first ever Twitter Town Hall at the White House yesterday. Gulf region to buy record no. of luxury cars this year The Gulf region has become a leading market for luxury cars and wealthy individuals are set to buy a record number of vehicles from the likes of BMW's Rolls-Royce, Fiat's Maserati and Porsche SE this year. Qatar to register 13% GDP growth in '11: report The Gulf state of Qatar is set to witness rapid economic expansion with 13% GDP growth this year, becoming the best performing economy in the Gulf Cooperation Council (GCC) region, a new report has revealed. Nigeria senate approves World Bank MD as minister Nigeria senate confirmed the appointment of Dr Ngozi Okonjo-Iweala, World Bank MD as a minister, after her name was given to it's upper legislative chamber for ratification. 'De-Stalinisation poses threat to Russian govt' A ''de-Stalinisation'' project prepared by the pro-Medvedev liberals in Russia could pose a threat to the sovereignty of the country, communist leader Gennady Zyuganov warned. Queen cost UK taxpayers less this financial year The cost to taxpayers of funding Queen Elizabeth''s spending has dropped by 1.8 mn pounds during 2010- 11, the Buckingham Palace said. Saudi economy to grow 7% in '11: Report Saudi Arabia is set to see economic growth of 7% this year, before slowing to 4.4% in 2012, according to a new report by QNB Capital. SArabia may close expat-run service stores: Report Thousands of small stores and service outlets run by guest workers in Saudi Arabia are facing the possibility of closure, as part of new regulations formulated by the Ministry of Labour, it has been reported. Law for women buyers boosts Kuwait realty demand A new legislation in Kuwait, which allows women to avail housing loans, has resulted in a sharp surge in demand for condominium apartments. Israel to allow immigration of Jews from NE India Some 1,700 Bnei Menashe have already immigrated to Israel, but the process was halted in 2007 after questions were raised on their "Jewishness". Qatar ranked above India, China in innovation index Qatar has been ranked 26th in the Global Innovation Index, securing the highest position in the Middle East ahead of even the world''s two largest emerging economies China (29) and India (62).

Weekly Newsletter 56 Info-Spectrum Bridging the Information Gap in Corporate Landscape

WB grants USD 43 mln to improve irrigation in Nepal The World Bank has granted USD 43 mn for the first phase of reconstruction of the century-old Rani Jamara Kulariya irrigation system in Nepal's Terai region. Nepal's dethroned king concerned over political crisis Gyanendra, who celebrated his 65th birthday, was greeted by hundreds of his supporters in the capital where he now lives like a private citizen. B'desh suggests joint approach on Brahmaputra water-sharing "We have been talking about joint sharing of water resources among countries of the region. I think there is now an understanding among all neighbours of the region to work together in this regard," Bangladesh Foreign Minister Dipu Moni told a group of Indian journalists here. India, B'desh ink pact on investment protection, promotion India and Bangladesh signed an agreement on investment protection and promotion according each other Most Favoured Nation status in investments. China seeks influence in Indian Ocean, says report "In the view of some analysts and observers, China is seeking to gain influence with the Sri Lankan government as part of a ''string of pearls'' naval strategy to develop port access in the northern reaches of the Indian Ocean," said the report by bi-partisan and Congressional Research Service. 'India, Russia can explore biz opportunities in nanotech' Despite increasing global competition, India and Russia have "a dynamic and growing defence relationship, not a waning one," Malhotra, who will present his credentials to President Dmitry Medvedev at a Kremlin ceremony on July 14, told the government daily ''Rossiiskaya Gazeta'' in an interview. Magnitude-7.8 earthquake shakes Kermadec Islands A powerful magnitude-7.8 earthquake rattled New Zealand's remote Kermadec Islands in the Pacific Ocean, the US Geological Survey reported. BOE Keeps Key Rate Unchanged The Bank of England's Monetary Policy Committee voted to keep its benchmark interest rate on hold for the 28th straight month Thursday, as fears about weakening economic growth continued to trump concerns about persistently high inflation.

Additional information with respect to any securities referred to herein will be available upon request. This report is prepared for the exclusive use of Sushil Group clients only and should not be reproduced, re-circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of Sushil Financial Services Private Limited. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. This report is to be used only by the original recipient to whom it is sent. This is for private circulation only and the said document does not constitute an offer to buy or sell any securities mentioned herein. While utmost care has been taken in preparing the above, we claim no responsibility for its accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the investors are requested to use the information contained herein at their own risk. This report has been prepared for information purposes only and is not a solicitation, or an offer, to buy or sell any security. It does not purport to be a complete description of the securities, markets or developments referred to in the material. The information, on which the report is based, has been obtained from sources, which we believe to be reliable, but we have not independently verified such information and we do not guarantee that it is accurate or complete. All expressions of opinion are subject to change without notice. Sushil Financial Services Private Limited and its connected companies, and their respective directors, officers and employees (to be collectively known as SFSPL), may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities. SFSPL may act upon or make use of information contained herein prior to the publication thereof. Nishita Shah Parsekar [email protected] Tel: + 91 22 4093 5092

Weekly Newsletter 57