Sep 02, 2011 IN FOCUS "If you want to make peace, you don't talk to your friends. You talk to your enemies." Weekly Indicators Indicators Current Last Week – Dayan, Moshe. Sensex 16,821 15,849 India Apr-Jun GDP growth slides to 7.7% vs 8.8% yr ago Nifty 5,040 4,748 India's gross domestic product growth slowed down to 7.7% during Apr-Jun 2011, Food Inflation 10.05% 9.80% compared with 8.8% a year ago, the Central Statistics Office said today. The growth number of Apr-Jun 2010-11 was scaled down to 8.8% from 9.3% factoring in the new Exchange Rates base of the Index of Industrial Production. Since April, the government has been Currency Current Last Week releasing the IIP series with a new base year of 2004-05. The new series has up to US$1 Rs.45.8965 Rs.46.0528 600 items, 200 more than the earlier one. In the quarter ended March this year, GDP € 1 Rs. 65.4075 Rs. 66.4788 growth was 7.8%. GDP in the reported quarter was primarily driven by robust growth JP¥ 100 Rs. 59.76 Rs. 59.73 in the services and farm sectors. Service sector output was strong at 10.0%, £ 1 Rs. 74.3133 Rs. 75.1996 compared with the year ago high base of 10.4%. Agricultural sector growth was up at 3.9%, as against 2.4% a year ago. However, industrial growth was dismal at 5.1%, Global Economic and Corporate News compared with 9.1% a year ago. Manufacturing grew at 7.2%, compared with 10.6% • Clean Energy Fuels Gets $150 Million last year while the construction sector growth was just 1.2% vs 7.7% year ago. Investments Clean Energy Fuels Corp. has picked up $150 million India’s Forex reserves rise $1.6 bn in new investments, as a trio of firms including India's foreign exchange reserves increased $1.6 bn to $318 bn during the week Singapore's sovereign-wealth fund seek to participate in the growing natural-gas-vehicle ended August 19, largely on account of valuation changes. Foreign currency assets, market. which predominantly include dollars, yen and euro, among others, increased by $1.6 • Hyundai Motor workers approve 2011 wage bn. Other components like special drawing rights (SDR) - currency with the terms International Monetary Fund - rose $19 mn while reserves with IMF rose $12 mn. The South Korean auto maker Hyundai Motor Co. said it value of gold in reserves, however, did not rise during the week. had sealed the wage deal for the year without going on strike for three straight years as its unionized Auto giants go on reverse gear in August workers voted to accept pay terms offered by the Hit by rising fuel costs and higher interest rates, car sales continued to slide for the 3rd company. consecutive month, with no clear sign of recovery in the Sept-October festive season. • Airlines ground 1,600 flights ahead of Irene The top 3 carmakers Maruti Suzuki, Hyundai Motor and Tata Motors reported decline in U.S. airlines began cancelling weekend flights, nearly nd 1,600 so far, to avoid any lengthy delays due to sales for 2 month in a row during August while all other carmakers as well as two- Hurricane Irene. wheeler makers posted sales gains. Maruti Suzuki’s domestic sales fell 17 per cent to • FDA approves Pfizer lung cancer drug Xalkori 77,086 cars in August 2011 against 92,674 in year ago period. “The disruption in The U.S. Food and Drug Administration approved production at Manesar in end August adversely impacted sales numbers during the Pfizer Inc.'s drug Xalkori on a shortened schedule, month,” the company said in a statement. It lost about 2,400 units (Rs 120 crore) due handing the pharmaceutical giant a new win as it races to replace expiring patents. The drug maker to labour troubles in last week of August. Hyundai’s local sales were lower by seven called Xalkori capsules the first-ever approved per cent at 26,677 cars (28,601 units in August 2010). Tata Motors sold 34 per cent therapy for anaplastic lymphoma kinase in patients less, 16,829 cars, against 25,212 in year-ago period. Nonetheless, Maruti and with locally advanced or metastatic nonsmall-cell Hyundai’s exports soared registering 14,356 units (19 per cent) and 24,353 units (11 lung cancer. per cent) respectively against year-ago period. Honda Siel Cars sold 25 per cent more • Dynamic Offshore to offer up to $400 mln in IPO at 6,907 units in August 2011 against 5,518 in August 2010. It’s breadwinner City Dynamic Offshore Resources Inc. filed plans to offer sedan regained dominance in mid-sized segment outselling all other cars with 5,819 up to $400 million of common stock in an initial units (4,251 units in August 2010). Mahindra & Mahindra sold 14 per cent more cars public offering, as the independent exploration and at 15,664 units against 13,796 in year-ago period buoyed by Verito that notched up production company aims to raise funds to repay debt and for general corporate purposes. 1,710 units. Volkswagen continued momentum with sales rising 72 per cent at 6,091 • Qatar Holding buys 2% of Energias de Portugal units (3,531 in August 2010) while Toyota Kirloskar Motor’s sales soared 84 per cent Energias de Portugal SA (EDP.LB), which is set to be to 11,693 units (6,361), selling 2,710 and 2,824 units of Etios and Etios Liva, fully privatized by the government, said Qatar respectively, last month. Hero MotoCorp, which officially unveiled its new brand Holding LLC has bought a 2% stake in the identity last month, sold 503,654 units last month against 424,617 in year-ago period. Portuguese energy company. At a current share price of EUR2.16, the stake cost Qatar EUR159.4 million. Spain GDP growth slows in Q2, IMF approves $450 mn funding for Iceland • Shikoku Electric restarts thermal power Spain's economic growth slowed in the second quarter as the euro zone's fourth- generator largest economy suffered the effects of softening export growth and a tumble in Shikoku Electric Power Co. (9507.TO) said it has domestic demand, and economists warned of further weakness ahead. Data released restarted operation of the No. 1 thermal power generation unit at its Sakaide plant in Kagawa by Spain's statistics institute INE showed that Spain's gross domestic product rose by Prefecture, which had been suspended since Aug. 18 0.2% on the quarter, and by 0.7% on the year. The INE also revised up its first- due to a malfunction, Kyodo news reported. quarter growth estimates by a tenth of a percentage point, to 0.4% on the quarter • Cathay Pacific to launch premium economy and 0.9% on the year. The second-quarter numbers were in line with a preliminary cabins reading from the INE this month and indicate that Spain's economic growth needs to Cathay Pacific Airways Ltd. (0293.HK) Chief Executive John Slosar said the Hong Kong-based accelerate again in the second half of the year to reach the government's target of carrier plans to launch premium economy cabins on 1.3% expansion in 2011. Meanwhile, The International Monetary Fund said it had its long-haul flights beginning in the second quarter approved a final round of $450 mn in funding to Iceland as part of a program first put of next year. in place during the financial crisis. The fund said in a news release that its board had completed its sixth and final review of Iceland's economic performance. Completion of Nishita Shah Parsekar the review allowed the IMF to provide the funding, which brings the total provided to [email protected] Iceland through the arrangement to $2.25 bn. Please refer to important disclosures at the end of the report For Private Circulation Only. Sushil Financial Services Private Limited Member : BSEL, SEBI Regn.No. INB/F010982338 | NSEIL, SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected] Info-Spectrum Bridging the Information Gap in Corporate Landscape

INDEX

1. India’s Data Watch 03-07

2. Economy 08-11

3. Infrastructure 12-18 4. Sectors 19-41 A. IT & ITeS 19-20 B. Pharma & Healthcare 21-22 C. Telecom 23 D. Banking & Financial Services 24-29

E. Steel, Metals & Minerals 30-32 F. Auto & Auto Ancillaries 33-37 G. Miscellaneous 38-41 5. IPO Watch 42

6. Mergers & Accquistion 43

7. Ratings 44-46

8. Global Economy & Business 47-50

A. Global Economy 47-48 B. Global Business 49-50

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INDIA’S DATA WATCH India Apr-Jun GDP growth slides to 7.7% vs 8.8% year ago India's gross domestic product growth slowed down to 7.7% during Apr-Jun, the first quarter of the current financial year, compared with 8.8% a year ago, the Central Statistics Office said. The growth number of Apr- Jun 2010-11 was scaled down to 8.8% from 9.3% factoring in the new base of the Index of Industrial Production. Since April, the government has been releasing the IIP series with a new base year of 2004-05. The new series has up to 600 items, 200 more than the earlier one. In the quarter ended March this year, GDP growth was 7.8%. GDP in the reported quarter was primarily driven by robust growth in the services and farm sectors. Service sector output was strong at 10.0%, compared with the year ago high base of 10.4%. Agricultural sector growth was up at 3.9%, as against 2.4% a year ago. However, industrial growth was dismal at 5.1%, compared with 9.1% a year ago. Manufacturing grew at 7.2%, compared with 10.6% last year. Mining sector growth stood at 1.8% vs 7.4% a year ago. Construction sector growth was 1.2% vs 7.7% a year ago. The following table details the growth figures, in per cent, of real GDP and its composition, for the first quarter of 2011-12 and first and fourth quarter of 2010-11: Apr-Jun Jan-Mar Apr-Jun Sector 2011-12 2010-11 2010-11 Agriculture 3.9 7.5 2.4 Mining 1.8 1.7 7.4 Manufacturing 7.2 5.5 10.6 Power & Gas 7.9 7.8 5.5 Construction 1.2 8.2 7.7 Hotel & Communication 12.8 9.3 12.1 Financial Services 9.1 9.0 9.8 Other services 5.6 7.0 8.2 GDP at factor cost 7.7 7.8 8.8

The following table details the GDP growth (in per cent) in recent years: Year Growth rate 2009-10* 8.0 2008-09 6.7 2007-08 9.2 2006-07 9.7 2005-06 9.5 * - Revised estimate

India Apr-Jul fiscal gap tops 50% of FY12 Budget aim India's fiscal deficit widened to Rs.2.287 trn in Apr-Jul, the first four months of the current financial year, topping 50% of the Budgeted fiscal deficit target for 2011-12, data released by the Controller General of Accounts showed. In Apr-Jul, the fiscal gap was up a whopping 151% on year because of a sharp fall in receipts. The Apr-Jul fiscal deficit accounts for 55.4% of the 2011-12 (Apr-Mar) Budget estimate of Rs.4.128 trn, or 4.6% of the gross domestic product. Receipts have been down this year in the absence of the windfall spectrum allocation revenue to the tune of Rs.1.06 trn received last year. In the first four months of the year, receipts showed a 39% on year fall to Rs.1.464 trn. Non-tax revenue slumped 81.6% to Rs.230.77 bn. Meanwhile, government's expenditure also showed a marginal rise of 13% on year to Rs.3.752 trn vs Rs.30327 trn. The rise in spending and a fall in receipts widened the revenue deficit to Rs.1.949 trn vs Rs.500.75 bn, up 289%. In July, the government's fiscal deficit rose 30% to Rs.661.00 bn, compared with Rs.507.19 bn. India Jul receipts stood at Rs.478 bns vs Rs.397.73 bn year ago. India Jul spending stood at Rs.1.139 trn vs Rs.904.92 bn year ago.

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The CGA detailed the government's fiscal deficit, receipts, and expenditure for July and Apr-Jul as follows (in bn rupees): July 2011 June 2011 July 2010 Y-o-Y change Revenue Receipt 462.35 622.04 387.14 19.4% Net tax revenue 353.79 555.96 288.27 22.7% Non-tax revenue 108.56 66.08 98.87 9.8% Recovery of loans 16.13 8.24 9.79 64.8% Other revenue 0.00 0.00 0.80 -100.0% Total Receipts 478.48 630.28 397.73 20.3% Non-plan expenditure 864.04 557.03 687.52 25.7% Plan expenditure 275.44 392.52 217.40 26.7% Total expenditure 1139.48 949.55 904.90 25.9% Fiscal deficit 661.00 319.27 507.19 30.3% Revenue deficit 602.99 245.52 394.98 52.7%

Apr-Jul Budget % of actuals of Apr-Jul Y-o-Y 2011- estimates Budget Estimates 2010-11 change 12 2011-12 2011-12 Revenue receipt 1,371.55 2,385.24 (-)42.5% 7,898.92 17.4 Net tax revenue 1,140.78 1,128.21 1.1% 6,644.57 17.2 Non-tax revenue 230.77 1,257.03 (-)81.6% 1,254.35 18.4 Recovery of loans 81.12 21.03 285.7% 150.20 54.0 Other revenue 11.45 11.58 (-) 1.1% 400.00 2.9 Total receipts 1,464.12 2,417.85 (-)39.4% 8,449.12 17.3 Non-plan expenditure 2,634.97 2,229.00 18.2% 8,161.82 32.3 Plan expenditure 1,116.68 1,098.00 1.7% 4,415.47 25.3 Total expenditure 3,751.65 3,327.00 12.8% 12,577.29 29.8 Fiscal deficit 2,287.53 909.15 151.6% 4,128.17 55.4 Revenue deficit 1,949.20 500.75 289.3% 3,072.70 63.4 Note: Revenue receipts include the central government's (about 70%) share in total tax collections and non- tax revenue such as dividend receipts from state-run companies and interest receipts on loans to state governments and others. Plan expenditure relates to expenditure incurred on schemes and projects executed under India's five-year plans. All other expenditures are clubbed under the non-plan head. Salaries and wages to government staff, interest payment and defence spending are some of the main items in this category.

India Jul CPI-IW inflation 8.43% vs 8.62% Jun India's annual inflation rate based on the Consumer Price Index for Industrial Workers for July fell to 8.43% from 8.62% a month ago, the Labour Bureau said. CPI-IW inflation rate for July was 11.25% a year ago. The inflation rate based on CPI-IW food index for July fell to 6.25% from 6.91% a month ago, the bureau said. In July, the index for CPI-IW increased to 193 from 189 a month ago. The inflation rate based on CPI-IW is lower than the one based on the Wholesale Price Index. The headline inflation rate based on WPI was at 9.22% in July. The government calculates CPI separately for industrial workers, agricultural labourers and rural labourers. In July, the inflation rate based on CPI for agricultural labourers and rural workers fell to 9.03% each from 9.32% and 9.14% respectively in June.

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The point-to-point annual inflation rates, based on CPI for industrial workers, are as follows: CPI-IW Point-to-point Inflation (%) Month 2011-12 2010-11 2009-10 2008-09 2007-08 Apr 9.41 13.33 8.70 7.81 6.67 May 8.72 13.91 8.63 7.75 6.61 Jun 8.62 13.73 9.29 7.69 5.69 Jul 8.43 11.25 11.89 8.33 6.45 Aug 9.88 11.72 9.02 7.26 Sep 9.82 11.64 9.77 6.40 Oct 9.70 11.49 10.45 5.51 Nov 8.33 13.51 10.45 5.51 Dec 9.47 14.97 9.70 5.51 Jan 9.30 16.22 10.45 5.51 Feb 8.82 14.86 9.63 5.47 Mar 8.82 14.86 8.03 7.87

India’s Aug 20 primary articles inflation at 14-wk high of 12.9% India's primary articles inflation rate for the week ended Aug 20 jumped to a 14-week high of 12.93% from 12.40% a week ago because of a rise in prices of food articles. Primary articles index rose 1.21% on week to 200.9 from 198.5. Food articles inflation inched back into double digits after a gap of 18 weeks to 10.05% vs 9.80% a week ago as prices of vegetables surged nearly 12%. Onion prices were up the steepest 12.34% on week, followed by a 5% rise in poultry chicken prices. Food articles index was up 1.2% to 195.0 from 192.7. Meanwhile, non-food articles inflation eased marginally to 17.19% compared with 17.80% a week ago because of a high base effect. The index for the group remained unchanged on week at 181.3. Under non- food items, prices of fibres rose 3.19% during the week. Fuel group inflation rate for the week ended Aug 20 was slightly down at 12.55% from 13.13% the previous week due to lower prices of light diesel oil (3%), aviation turbine fuel (2%) and naphtha (2%) and furnace oil (1%). Price of of bitumen, however, was up 1%. The index for fuel group declined by 0.2% to 166.8 from 167.2. The headline inflation rate based on the Wholesale Price Index for the month of July was 9.22%, against 9.44% in the previous month. In its First Quarter Review of Monetary Policy for 2011-12 (Apr-Mar) last month, the Reserve Bank of India had scaled up its March-end inflation projection to 7% from 6%. Below are the provisional levels, week-on-week and year-on-year changes, in per cent, in the indices of key commodity groups: Aug 20 wk-on-wk Yr-on-Yr Commodity groups Weight 2011 % change % change I. PRIMARY ARTICLES 20.12 200.9 1.21 12.93 Food articles 14.34 195.0 1.19 10.05 Cereals 3.37 178.1 0.34 4.64 Rice 1.79 173.2 0.29 4.40 Wheat 1.12 170.0 0.12 (-)2.52 Pulses 0.72 193.4 0.83 (-)4.16 Vegetables 1.74 206.2 11.64 15.78 Potatoes 0.20 154.1 2.87 13.31 Onions 0.18 258.6 12.34 57.01 Fruits 2.11 182.0 (-)3.96 21.58 Milk 3.24 193.0 (-)0.21 9.22 Egg, Meat & Fish 2.41 213.3 1.81 12.62

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Non-food articles 4.26 181.3 0.00 17.19 Fibres 0.88 219.7 3.19 37.66 Oilseeds 1.78 160.8 (-)0.12 15.43 Minerals 1.52 310.8 3.05 24.42 II. FUEL & POWER 14.91 166.8 (-)0.24 12.55 Liquefied petroleum gas 0.91 147.7 0.00 14.58 Petrol 1.09 172.4 0.00 23.23 High speed diesel 4.67 167.8 0.00 9.32

India Jul exports rise 82% on year; imports up 51.5% India's merchandise exports grew 82% on year in July to $29.34 bn, while imports grew 51.5% during the month to $40.42 bn, the commerce and industry ministry said. This is the third straight month that exports have grown over 40% on year. Exports during Apr-Jul, the first four months of the financial year to March, posted a growth of 54% on year to $108.35 bn, while imports during the period rose 40% on year to $151.04 bn, the ministry said in a release. India's trade deficit widened to $11.08 bn in July from $10.54 bn a year ago. Oil imports in July were up 37% on year to $11.44 bn, while non-oil imports rose by 58% to $28.98 bn. India Apr-Jul trade deficit stood at $42.69 bn vs $37.52 bn yr ago. The following table details trade data for July (in bn dollar): Jul 2011 Jun 2011 Jul 2010 Y-o-Y % change Exports 29.344 29.213 16.141 81.79 Imports 40.425 36.872 26.681 51.52 Oil imports 11.445 10.180 8.353 37.02 Non-oil imports 28.980 26.692 18.327 58.13 Trade deficit 11.081 7.659 10.539 5.14

Monthly data for financial year 2011-12 and previous year (in bn dollar): Exports Y-o-Y Imports Y-o-Y Trade Deficit change change 11-12 10-11 11-12 10-11 11-12 10-11 % % Apr 23.849* 17.742 34.42 32.834* 28.770 14.13 8.985* 11.027 May 25.941* 16.531 56.93 40.907* 26.549 54.08 14.966* 10.019 Jun 29.213* 19.948 46.45 36.872* 25.883 42.46 7.659* 5.934 Jul 29.344* 16.141 81.79 40.425* 26.681 51.52 11.081* 10.539 Aug 16.644* 29.679* 13.035* Sep 18.023* 27.141* 9.118* Oct 17.960* 27.689* 9.729* Nov 18.895* 27.796* 8.901* Dec 22.500* 25.130* 2.630* Jan 20.605* 28.587* 7.981* Feb 23.597* 31.701* 8.104* Mar 29.135* 34.743* 5.608* * Provisional The ministry releases revised data after a gap of a year.

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India Jun 1-Aug 30 rainfall 709.6 mm, 100% of long period average The southwest monsoon rainfall in the country was marginally above the long period average in the season so far at 709.6 mm, the India Meteorological Department said. The cumulative rainfall during Jun 1-Aug 30 was 100.4% of the long period average of 706.7 mm. The rainfall has so far been reasonably well- distributed, with 32 of the 36 meteorological subdivisions getting normal or excess rainfall, the weather department said. The cumulative rainfall is currently above the met department's prediction thanks to better-than-expected rains in August. As on today, the monsoon rainfall in August was 110% of the long period average, compared with the weather department's prediction of 94%. The IMD has predicted the Jun- Sep monsoon rains at 95% of the long period average. Thanks to the better-than-predicted rains, kharif sowing in most crops--including rice, sugarcane and oilseeds--are higher on year. However, sowing is lagging in pulses and coarse cereals due to below normal rains in July. Rainfall in July was 14% below normal at 247.2 mm.

INDIA DATA CALENDAR Sep 02 WMA and forex reserves as on Aug 25, by RBI Sep 02-09 Major port traffic in August, by Indian Ports Association Sep 02-09 Power generation for Aug, by Central Electricity Authority Sep 05-09 Foreign tourist arrivals in Aug, by tourism ministry Sep 05-10 Automobile sales data for August, by SIAM Sep 05 Services PMI and composite PMI for August, by HSBC Sep 09 Bank deposits and credit as on Aug 26, by RBI Sep 12 Index of Industrial Production for July, by CSO Sep 14 WPI inflation for Aug, by commerce and industry ministry Sep 15-20 GSM mobile subscribers data for Aug, by COAI Sep 19-23 Cement production, despatches in August, by CMA Sep 20 CPI for rural, urban areas and combined for August, by CSO Sep 20 CPI for rural and farm labourers for August, by Labour Ministry Sep 20-25 Crude, refinery output for Aug, from petroleum ministry Sep 30 Balance of payments for Apr-Jun, by RBI Sep 30 Core sector growth for August, by commerce ministry Sep 30 CPI for Industrial Workers for August, by Labour Bureau Sep 30 Government finances for Aug, Apr-Aug, by CGA Sources: Government of India, Reserve Bank of India, Securities and Exchange Board of India, stock exchanges, and various industry and trade bodies.

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ECONOMY ECONOMY: • India's headline inflation will fall to 6%, as per a report by Goldman Sachs. • India's Apr-Jul fiscal gap rose a steep 151% on-year to Rs.2.287 trn, topping 50% of the budgeted fiscal deficit target for 2011-12, because of a sharp fall in receipts. • According to a government source, July core sector growth is seen at 7.5-8.0%, as against 5.2% in June. • Planning Commission Deputy Chairman Montek Singh Ahluwalia said aiming for annual average growth rate of 9% in the next five years. MONSOON: • India Meteorological Department expects rainfall to be slightly above normal in the week to Sep 2 due to north-south oscillation of the monsoon trough. SUGAR: • DCM SHRIRAM CONSOLIDATED sees India's sugar output in the marketing season starting October at 26 mn tn, with estimated surplus of 9 mn tn. TAX: • The West Bengal government has hiked value-added tax on tobacco products to up to 30% and excise duty on Indian-made foreign liquor to up to 50%. GOVERNMENT: • Finance Minister Pranab Mukherjee said government has no plan to publish white paper on black money. • Cabinet approves Nuclear Safety Regulatory Authority Bill. INFLATION: • India July Consumer Price Index inflation for industrial workers falls to 8.43% from 8.62% in June. PENSION: • Parliament's Standing Committee on Finance has said foreign direct investment in the pension sector should be capped at 26%. India, South Africa set $15-bn bilateral trade target by 2014 India and South Africa on Aug 29 decided to increase two-way trade between both countries to $15 bn by 2014 from $10.64 bn while concluding the India-South Africa CEOs Forum. This was the second meeting of the forum. The first one was held in Johannesburg last year, where five sector-specific working groups were created to ensure seamless trade and business transaction between both countries. “Today we took up the recommendations of the five sectoral groups. All the core areas were touched upon. We are on course but together we will be exploring what further steps are required. We have already reached bilateral trade worth $10 bn in 2010, which was our target for 2012. This year we have already reached $7 bn, and so we have revised the target to $15 bn by 2014,” Minister of Commerce & Industry and Textiles Anand Sharma told reporters after the meeting, here. The forum is headed by Ratan Tata from India and Patrice Motsepe from South Africa. The minister said both sides would also be holding bilateral meetings to have a Preferential Trade Agreement (PTA) with the South Africa Customs Union (SACU) comprising Botswana, Lesotho, Namibia, South Africa, and Swaziland. Under a PTA, both countries will reduce their tariffs on a particular number of products from the level they maintain with countries that are not members to the agreement. However, unlike Free Trade Agreements (FTA), PTA does not slash or eliminate duties from a large number of tariff lines. “Relationship with India had been growing enormously. Indian companies are among our largest investors in South Africa. South African companies are also finding a growing role in the Indian market,” said South African trade minister Rob Davies. Parliament approves resolution on Anna's 3 demands under Lokpal Finally succumbing to the mood of a nation, stirred by social activist Anna Hazare, both Houses of Parliament thumped their desks and approved the "sense of the house" resolution to set up a strong and effective Lokpal. The Parliament's adopted the resolution to include, without a vote, the three provisions desired by Anna in the Lokpal Bill. The provisions are a citizens' charter, bringing lower bureaucracy under Lokpal and establishment of a Lokayukta in every state. "This house discussed various issues related to setting up a

Weekly Newsletter 8 Info-Spectrum Bridging the Information Gap in Corporate Landscape strong and effective Lokpal. This House agrees in principle on following issues - (i) Citizen Charter, (ii) lower bureaucracy under Lokpal through an appropriate mechanism, and (iii) establishment of Lokayukta in the States; And further resolves to forward the proceedings of the House to the Standing Committee on Law and Justice while finalising its report," Finance Minister Pranab Mukherjee read out the resolution. Constitutional experts were of the opinion that since this was a resolution and not legislation, it could be adopted without a voice vote. Anna had insisted on a voice vote. In the end, the thumping of desks was enough to persuade Anna, fasting at the national capital's Ramlila ground for the last 12 days for a strong anti-graft Lokpal, to break it. He will do so at 1000 IST Sunday. Anna ends nearly 300-hour fast; says poll reforms now on agenda Anti-corruption crusader Anna Hazare broke his fast on the 13th day at the Ramlila Maidan here. Anna, who began fasting on Aug 16 pressing for a strong anti-graft legislation, accepted water and honey from two five-year-old girls after Parliament in-principle agreed to include his three conditions in the Lokpal Bill. Late Aug 27, Parliament approved the "sense of the house" resolution to include three provisions desired by Anna in the Lokpal Bill - a citizens' charter, bringing lower bureaucracy under the Lokpal and establishment of a Lokayukta in every state. Addressing a mammoth national flag-waving crowd, Anna thanked the people for a non-violent movement and said it was a victory of the nation. The 74-year old activist said the fight against corruption will continue. "I have only deferred my fast but not abandoned it. We have only won half the battle and we need electoral reforms next. We have to strive for the right to recall and reject Members of Parliament," he said. Anna was later taken to Gurgaon's Medanta Medicity hospital where he will recuperate for two-three days. He lost 7.5 kg over the last 12 days. Forex reserves rise $1.6 bn India's foreign exchange reserves increased $1.6 bn to $318 bn during the week ended August 19, largely on account of valuation changes. Foreign currency assets, which predominantly include dollars, yen and euro, among others, increased by $1.6 bn. Other components like special drawing rights (SDR) - currency with the International Monetary Fund - rose $19 mn while reserves with IMF rose $12 mn. The value of gold in reserves, however, did not rise during the week. Spurred by an increase in time deposits and currency with the public, money supply for the fortnight ended August 12 rose Rs.25,744 crore to Rs.68,23,852 crore, as per the updated money-supply figures released by the Reserve Bank of India. Demand deposits with banks reduced by 3.2%, or Rs.20,552 crore, during the period. On a year-on-year basis, total money supply, which includes bank deposits and cash in the economy, rose 17.3%, or Rs.10,04,586 crore. Despite rising interest rates, bank advances picked up in the fortnight ended August 12. However, deposit growth slowed down. Data released by the Reserve Bank of India shows that banks mobilised only 10,440 crore of deposits while it gave Rs.43,657 crore in advances. On a year-on-year basis, data show that advances have grown 20.3% while deposits have risen 17%. For the current financial year, the central bank has projected 19% growth in loans and 18% on deposits. Indian tourist spend in Australia to top A$1b in 2011 With a steady growth of tourists down under, Tourism Australia said that the inbound spend by Indian visitors during their stay is likely to top one bn Australian dollars during 2011 up from 844 mn last year. “We have done a study and found that the investment numbers are going up as the number of days an Indian tourist or businessman stays in Australia is also going up. We see the traffic also going up by about 10% at least during the year,” Mr Nishant Kashikar, Manager, Tourism Australia in India, said. Speaking to Business Line at Tourism Australia India Travel Mission 2011 being held at the Hyderabad International Convention Centre (HICC), Mr Kashikar said: “There has been focus on growing the number of visitors to Australia, be it for tourist visits, business or meetings and conventions. We have trained Indian travel and tourist partners to provide all facilities, including Visa guidance and assistance. “All these will translate into bigger numbers. The tourist traffic has grown by over 10 per cent last year and we expect to repeat this during the year. One of the issues for a traveller is the distance and time to reach the destination. But given the advantages we offer, they would like to consider visiting Australia.” Tourism Australia is engaged in talks with Qantas, Singapore Airlines, Cathay Pacific, Malaysian Airlines, Emirates, Air Asia to make attractive offers for Indian tourists. “We believe, these initiatives will help us attract more tourists. In fact, some of the travel operators and hospitality chains are keen to attract Indian high net worth individuals offering them customised packages,” he said. India’s Aug 20 primary articles inflation at 14-wk high of 12.9% India's primary articles inflation rate for the week ended Aug 20 jumped to a 14-week high of 12.93% from 12.40% a week ago because of a rise in prices of food articles. Primary articles index rose 1.21% on week to

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

200.9 from 198.5. Food articles inflation inched back into double digits after a gap of 18 weeks to 10.05% vs 9.80% a week ago as prices of vegetables surged nearly 12%. Onion prices were up the steepest 12.34% on week, followed by a 5% rise in poultry chicken prices. Food articles index was up 1.2% to 195.0 from 192.7. Meanwhile, non-food articles inflation eased marginally to 17.19% compared with 17.80% a week ago because of a high base effect. The index for the group remained unchanged on week at 181.3. Under non- food items, prices of fibres rose 3.19% during the week. Fuel group inflation rate for the week ended Aug 20 was slightly down at 12.55% from 13.13% the previous week due to lower prices of light diesel oil (3%), aviation turbine fuel (2%) and naphtha (2%) and furnace oil (1%). Price of of bitumen, however, was up 1%. The index for fuel group declined by 0.2% to 166.8 from 167.2. The headline inflation rate based on the Wholesale Price Index for the month of July was 9.22%, against 9.44% in the previous month. In its First Quarter Review of Monetary Policy for 2011-12 (Apr-Mar) last month, the Reserve Bank of India had scaled up its March-end inflation projection to 7% from 6%. DCM Shriram Consolidated sees India '11-12 sugar output 26 mn tn India's sugar output in the new marketing season starting October is seen at 26 mn tn with an estimated surplus of 9 mn tn. With an estimated 9-mn-tn sugar surplus, India can export up to 4 mn tn of the sweetener. The rest of the quantity can be maintained as buffer stock, he said. In the current marketing year ending September, the country is likely to produce 24.2 mn tn sugar, and has so far allowed export of 2.6 mn tn. The meet organised by the Confederation of Indian Industry stressed on the need to decontrol the industry. "Rationalisation of sugar prices, both levy and non-levy, would provide a boost to the sector, in terms of cane production and investment in mill capacity, and bring considerable benefit to the consumer in terms of price stability," said Rajshree Pathy, managing director, Rajshree Sugars & Chemicals Ltd. Pathy said the government should consider sugar decontrol in order to "salvage" the industry and warned that domestic prices could rise to as high as Rs.100-200 a kg, as mills may shut shop if realisations remain below the production costs. Sugar currently fetches Rs.28.00-30.00 a kg in the wholesale markets, with an average production cost of Rs.27.50. Last month, prices had fallen to as low as Rs.25 a kg. LT Foods gets order to export fresh garlic to Canada Indian rice producer and exporter LT Foods Ltd has got an order to export fresh garlic to Canadian food retailer Loblaw Companies Ltd. Nature Bio Foods Ltd, a subsidiary of LT Foods, received the order for special bold type garlic from Loblaw, Canada's largest food retail chain. It is the first time an Indian company will export the commodity to Canada. The garlic is cultivated in the Mandsaur region of Madhya Pradesh through contract agreement with farmers, LT Foods, which also sells Daawat brand of rice, said. ICAR plans on GPS tech for giving farm-related info The country's premier agri-research body ICAR is working on a scheme to increase agricultural productivity by providing exact information to farmers on the type of crops they should grow, fertiliser and water requirements through the use of GPS technology. Auto, realty to lead fall in volume growth in H2: Fitch Fitch Ratings has said volume growth of domestic corporates, particularly in the auto, construction and realty sectors, will slow down in the second half due to the tight monetary and high inflationary situation. 'Govt may face hurdles in achieving FY'12 borrowing target' The government could face difficulties in managing its borrowing programme for the current fiscal amid the prevailing tight liquidity conditions as banks hold a higher proportion of government securities, the RBI said. Opportunity to free system of corruption: Biz leaders With the nation's focus on corruption as highlighted by Anna Hazare, business leaders see an opportunity for cleaning up the system by openness and abolition of red tape which generates corruption. Inflation to fall to 6% by March 2012: Goldman Sachs Global banking and research giant Goldman Sachs has said India's headline inflation will fall to 6% by March 2012 due to weakening of demand. Milk prices may up more in festive season: Assocham Prices of milk and its products are expected to go up further during the ensuing festive season due to supply concerns amid rise in demand, Assocham said in a study.

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

Insecticides India to invest Rs.70 crore on expansion Insecticides India Ltd plans to invest about Rs.70 crore over the next two years on expansion, including setting up a new plant in Rajasthan, a top company official said. 'Global, domestic factors may effect economy till Dec' Global economic uncertainties and domestic issues like continuous tightening of monetary policy by RBI are likely to "adversely" impact the Indian economy until December, a survey said. B'desh rules out inking transit agreement with India "No transit agreement will be signed during the visit. Pranab says India needs to be alert in response to global events India must be alert to the recent developments in the global economy, including the US sovereign rating downgrade by Standard & Poor's, and accordingly take policy decisions, Finance Minister Pranab Mukherjee said. M&M mops up only 0.11% in open offer for 20% more of EPC Industries Mahindra & Mahindra Ltd mopped up only 0.11% or 19,800 shares in EPC Industrie Ltd through its open offer that proposed to buy 20% additional stake in the agricultural products company. LT FOODS: Has got an order to export fresh garlic to Canadian food retailer Loblaw Companies. EID PARRY INDIA: Has upped stake in arm Sadashiva Sugars to 99.77% from 76%.

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

INFRASTRUCTURE INFRASTRUCTURE: • Government plans to draw in Life Insurance Corp in infrastructure project financing. • Mharashtra Government has planned a project costing Rs.866.47 bn for connectivity between the proposed Navi Mumbai international airport and Mumbai. • Jawaharlal Nehru Port Trust plans to award a Rs.22.60-bn, 43 km road project by November • India's core infrastructure industry grew 7.8% in July vs 5.7% a year ago, and by 5.8% during Apr- Jul vs 6.5% a year ago. POWER: • Delhi Electricity Regulatory Commission hikes tariff by 21.77% with effect from Sep 1. • The government is expected to commission hydro-power capacity of 6,120 MW in the Eleventh Five- year Plan period, lower than the target of 8,237 MW. • The government will build 3,530 MW of clean-power projects worth Rs.300 bn 2011-12 (Apr-Mar). • The government has extended the deadline for submitting "request for qualification" documents for the proposed 4,000-MW ultra mega power project in Chhattisgarh to Dec 5 from Sep 5 earlier. • Government is finalising a standard bid document to award power distribution franchises. OIL: • Oil minister Jaipal Reddy says state-owned fuel retailers may post a Rs.1.21-trn revenue loss on selling subsidised fuel. • India expected to get its first consignment of crude oil in the second quarter of 2012-13 from the Carabobo-1 block in Venezuela, developed by a consortium led by OIL AND NATURAL GAS CORP. • State-owned oil marketing companies' daily revenue loss on sale of subsidised fuel is seen at Rs.2.28 bn during the fortnight starting Sep 1. • India's oil imports during July stood at $11.44 bn, up 37% on year. AVIATION: • Domestic airlines seek nod for equity investment by foreign airlines but government not considering proposal at the moment. • Aviation ministry has sought Rs.65 bn to bail out Air India. • Tata Sons and Tata Industries are working out deals with international companies for business jets, helicopters, aircraft management services. PORTS: • Tariffs for ports likely to be determined on the basis of their efficiency rather than the current practice of determining them on a cost-plus basis, a move that will give impetus to foreign trade. SHIPPING: • Government has awarded Jawaharlal Nehru Port Trust's fourth terminal to a consortium of Port of Singapore and ABG Ports for 51% revenue over 30 years. AMET Cruises plans luxury cruises from Gujarat A night at sea on a luxury cruise liner or a trip across the Arabian Sea to Dubai could soon become a reality with the Chennai-based AMET Cruises planning to begin their services from destinations in Gujarat from next year. AMET which is planning to launch its services from Kochi in the first week of October is offering packages that will cost as less as Rs.4,500 per night for an individual. "A similar trip on a foreign cruise liner in South-east Asia will cost at least Rs.75,000," says Rajesh Ramchandran, vice-chairman of the company which is eyeing Porbandar as a destination in Gujarat to begin their services in the state. "We will begin our talks with the Gujarat Maritime Board in September-October in this regard. We plan to begin by offering a night-long cruise on the high seas. The other possible routes from Gujarat could be to Mumbai or Dubai," said P Bharathi, CEO of the firm while addressing mediapersons in Ahmedabad. AMET Cruises is a sister concern of AMET University which into maritime training. "Currently there is not a single port in Gujarat which has a dedicated berth for cruise vessels. To begin our services, we will need a dedicated terminal that is equipped with facilities for passengers," Mr Bharathi said adding that the company was not looking at private ports that have high tariff. AMET is spending Rs 15 lakh for a single call made at the Kochi port. "We

Weekly Newsletter 12 Info-Spectrum Bridging the Information Gap in Corporate Landscape are getting a 50% rebate from the Kochi port and we will also be getting some rebate from Chennai," says Bharathi while adding that Chennai, Kochi, Goa and Mumbai are the only ports equipped to handle cruise liners in India. Currently, AMET Majesty, a 35-year-old ship bought for Rs.100 crore, can carry 750 passengers, 200 crew members and 210 trainee cadets. From October, the cruise liner will sail thrice a week from Kochi. It will initially sail to destinations like Lakshwadeep and Maldvies. JNPT gets govt approval to set up SEZ The Jawaharlal Nehru Port Trust (JNPT) has received the government’s approval to set up a special economic zone (SEZ) at its facility near here. Its chairman, L Radhakrishnan, said, “We have earmarked 3,000 acres for the project. And, the first phase of 750 acres has got the final clearance from the government.” JNPT would spend around Rs.4,000 crore to develop the first phase. He said JNPT would start the work soon to take advantage of benefits offered by the government. “We also want to avail facilities available to us for SEZs in terms of taxation, which will probably may not continue beyond March 2012. So, we will be quickly doing some of the developments ourselves, based on the engineering, procurement and construction project,” he said. The trust is yet to find a way to finance the project. He said, “We will be going for sectors that will give us more income.” According to him, this would help JNPT take up dredging and other infrastructure development activities. JNPT is looking to give preference to the processing industry, which will add to container volumes at the port. The trust has got the government’s approval to set up a fifth terminal at the port. The terminal, which will have a capacity of 8-10 mn cubic metre, is likely to cost JNPT Rs.20,000 crore. JNPT expects by the time the fourth terminal is ready, it will be in a position to invite bids for the fifth terminal. The project will come up in Nhava. It has requested the City and Industrial Development Corporation of Maharashtra for 500 hectares of land for the terminal. JNPT is also planning to spend around Rs 1,500 crore on dredging. In the first phase, it plans to dredge 60 million cubic metres with an investment of Rs 1,350 crore. It is looking to finance the first-phase development by issuing Rs 1,500- crore infrastructure bonds, which are tax-free and earmarked for the port sector. To finance the second- phase development, it may go for a soft loan from an external aid agency, issue infrastructure bonds if these are available, or an annuity model — where it will ask a private player to do the work and pay it annuity for 10-20 years, depending on the contract. Though JNPT is yet to get the government nod for the dredging project, it has issued tenders to save time. Mega plan for Navi Mumbai airport connectivity Estimated cost of close to Rs.90,000 crore, under PPP; discussion on regarding route options; financing yet to be gone into in detail. The Maharashtra government has prepared a comprehensive project, costing Rs.86,647 crore, for efficient connectivity between the proposed Navi Mumbai international airport and Mumbai. The plan includes construction of metro rail and mono rail lines, rail overbridges, extension of existing railway lines and flyovers. Apart from government agencies, Union and state, the government expects the private sector to also be involved in implementation. As much as 44% of the proposed investment is expected to come from the private sector. The airport’s first phase is scheduled for launch by 2015. The City and Industrial Development Corporation (Cidco) would issue the first stage of bids for the airport in September. The plan comes in the wake of a study by LEA Associates, commissioned to study the regional transport network. It estimated 80,000 passengers would travel to or from the airport daily by 2031. In addition, at least 100,000 others would travel to the airport and its vicinity for work. It predicted 85% of passengers would go in cars or taxis and the rest by bus or a mass transit system by 2021. By 2031, the number of passengers using taxis or cars would be 55% and the rest though buses or mass transit. The study lists several ways to enhance connectivity to the airport. This includes bus services from key junctions, a rail line between CST and Mankhurd, a Mankhurd-Panvel metro line and a trans-harbour Sewri-Nhava Sheva sea link, with bus services and a metro. A new 40-km Andheri-Mankhurd metro line to link the existing Mumbai airport to Navi Mumbai airport has also been recommended in the study. However, state officials are learnt to have expressed reservations on this plan, as the Versova-Andheri-Ghatkopar metro is being built. The plan is being revised to connect Ghatkopar-Mankhurd, a government official said. India to add 3,500 MW of renewable power during the current fiscal India will be adding about 3,500 MW of renewable power during the current fiscal. which would entail a capital investment of about 29,000 crore, Renewable Energy Minister Farooq Abdullah said. "It is envisaged that a power generation capacity of around 3400 MW (grid-interactive) and 130 MW (off-grid / captive) from various renewable energy sources, mainly wind, solar, biomass and small hydro, will be added in the country during the current financial year 2011-12", Abdullah added in the Parliamentary question hour. While half of the capital investment would be towards wind energy, investments in solar power are expected to be about

Weekly Newsletter 13 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Rs.9,000 crore. Other renewable sources like small hydro power and bio-power would have investments of about Rs.3,000 crore and Rs.2,500 respectively. Additional investment of about Rs.1,000 cr. is envisaged in deployment of decentralized renewable energy systems/ devices like biogas plants, solar water heating systems and SPV lighting systems in remote villages/ hamlets. The Minister also said that the government is taking measures to facilitate participation of private sector in setting up renewable projects. These include Generation Based Incentives Scheme for wind power and solar power to attract private investment by Independent Power Producers and incentives like capital subsidy and concession on excise duty. The government has also created a contingency fund for solar power projects if state utilities fail to make payments. Govt extends bid date for Chhattisgarh ultra mega power project The government today extended the deadline for submitting "request for qualification" documents for the proposed 4,000-MW ultra mega power project in Chhattisgarh to Dec 5 from Sep 5 earlier. The responses would be opened on Dec 5 at 1500 IST, Power Finance Corp said in a newspaper advertisement. Surguja is fifth in the series of ultra-mega power projects planned by the government. The government has already allotted four such projects, of which Reliance Power has got three at Sasan, Krishnapatnam and Tilaiya, while Tata Power has been awarded the Mundra project in Gujarat. These projects are likely to add to the government's capacity addition programme in the 12th Five-Year Plan, starting April 2012. The environment ministry has raised objections over the Chhattisgarh project saying the proposed plant falls in a no-go area, which means there can be no developmental activity in the area by razing forest cover. Carlyle Group invests $26 m in Value & Budget Housing Global alternative asset manager The Carlyle Group has invested $26 mn into Value & Budget Housing Corporation (VBHC), a pioneer in the construction and development of affordable entry level housing in India. The capital, which will be used to fund the building of these new homes, comes from FCG IX, a part of Carlyle Asia Growth Partners IV (CAGP IV), a $1.04 billion sector-agnostic growth capital fund. Existing investors in VBHC have also committed additional capital alongside Carlyle, a press statement said. VBHC is setting up an expansive network of integrated housing projects nationwide that will apply the latest industrial engineering and construction technology to improve the construction process, according to a press statement. VBHC aims to bring value to home-buyers by maximising their financial options, lowering maintenance costs and ensuring sustainable living through renewable energy and water & waste management. Brahmaputra Infraproject to mull raising funds Sep 5 Brahmaputra Infraproject Ltd has informed that a meeting of the Board of Directors of the Company will be held on September 05, 2011, inter alia, to consider, discuss & approve the following: 1. Audited Balance Sheet for the year ended March 31, 2011. 2. Declaration of Dividend at the rate of 5% per equity share for the year ended March 31, 2011. 3. Increase in the Authorised Capital of the Company. 4.Raising of funds in the Company by way of further issue of equity shares on the preferential basis. 5. Fixing the date, time & venue for the 19th Annual General Meeting of the Company. 6. Fixing the period of Book Closure. RPP Infra ties up funds for phase 1 of Rs.15-bn Gabon order RPP Infra Projects Ltd has received funding of Rs.1.7 bn from pan-African banking group Ecobank Transnational for phase I of its Rs.15-bn order to build 10,000 houses over 36 months in the Republic of Gabon. Under phase I of the design, build, finance, and transfer project, the company will construct 1,500 houses across 70 ha at an estimated cost of Rs.2 bn. RPP Infra Projects had got the order from the west African country of Gabon in March. The company said it also expects to close funding talks with BDEAC Bank, who has given an in-principle approval, in a month. The government of Gabon has also offered the company tax incentives and duty free import of machinery, tools, construction materials and plant, the release said. As on Aug 1 RPP Infra's total order book stood at around Rs.21.5 bn, executable over 36 months, the release said. Reliance Industries' KG-D6 gas output declines in July Natural gas output from the Reliance Industries Ltd-operated D6 block in the Krishna Godavari has continued to decline averaging just around 46.46 mscmd in July, according to Niko Resources Ltd. In Apr-Jun, the gas production in the marquee asset of Reliance Industries had averaged around 48.6 mscmd. "Declines are expected to continue until workovers are completed and/or additional wells are tied-in," Niko, the Canadian company that holds a 10% participatory interest in the block, warned further in a release posted on its website. Reliance Industries holds 60%, while the company sold 30% stake in the block to hydrocarbons

Weekly Newsletter 14 Info-Spectrum Bridging the Information Gap in Corporate Landscape giant BP Plc earlier this year. Reliance Industries has been struggling to contain the decline in output in the D6 block. After peaking at 60 mscmd a year ago, the output from the block has been consistently declining due to, what the company terms as, "unexpected changes in reservoir behaviour." The estimated peak natural gas production rate envisaged was 80 mscmd. IDFC says in talks with DLF for "a business proposal" With reference to news item appearing in leading financial daily titled "DLF in talks with IDFC to sell its Noida IT park stake", Infrastructure Development Finance Company Ltd has clarified to BSE that as a part of IDFC's normal business, the Company does evaluate opportunities for loan and investments in Infrastructure Projects from time to time. In line with its normal business, IDFC is in talks with DLF for a business proposal, which may or may not lead to any deal as aforesaid. Fidelity cuts stake in Indiabulls Real Estate to 5.76% from 6.04% Fidelity International Ltd and its affiliate FMR LLC, which is also known as Fidelity Investments, have further reduced their stake in Indiabulls Real Estate Ltd to 5.76% from 6.04%, Indiabulls Real Estate said in a regulatory filing. Fidelity International and its affiliate sold 1.13 mn shares of Indiabulls Real Estate for Rs.91.33 mn at an average price of Rs.80.5 in the open market, the notice said. Fidelity has brought down its holding in the real estate company from 10.12% in the last 10 days through several open market transactions. BGR Energy unit gets Rs.4.4-bn order from Nuclear Power Corp BGR Energy Systems Ltd's electrical projects division has bagged a Rs.4.4-bn order from Nuclear Power Corp of India, a release from BGR Energy said. The order is for supply, erection, testing, and commissioning of electrical systems for two nuclear power plants situated at Kota in Rajasthan and Kakrapara in Gujarat. BGR Energy has projected completion of the contracts between Sep 2015 and Mar 2016. Govt says PFC sought nod for raising $1 bn via overseas loans Power Finance Corp has approached the Reserve Bank of India for an in-principle approval to raise $1 bn through external commercial borrowings, Minister of State for Power K.C. Venugopal said in a written reply in the Rajya Sabha. The proceeds of the external commercial borrowing would be utilised for funding power projects, including the ultra mega power projects. Venugopal also said Rural Electrification Corp intends to mobilise more than $1 bn through external commercial borrowings during 2011-12 (Apr-Mar). The money will be utilised to fund infrastructure projects in the power sector, he said. Rural Electrification Corp has so far received approval for raising $750 mn through external commercial borrowings. Tata BP Solar commissions 1 MW photovoltaic plant in Odisha Tata BP Solar India Ltd, a joint venture between Tata Power Co Ltd and BP Solar, has commissioned a 1 MW photovoltaic plant in Odisha, a company release said. The plant has been built under the Jawaharlal Nehru National Solar Mission. Tata BP Solar is the engineering, procurement and construction contractor for the photovoltaic plant, which is owned and developed by Cuttack-based S.N. Mohanty. The plant, spread over five acres, will feed power into the Orissa State Electricity Board grid under a 25-year power purchase agreement. DLF says Noida IT park JV exploring stake sale option The media had reports that DLF Limited. is in talks with IDFC to sell its Noida IT Park stake. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company. DLF Limited has vide its letter inter-alia stated, "The asset (IT Park, Noida) is held in a joint venture company through a wholly-owned subsidiary of the Company. The subsidiary is exploring various strategic options including the sale of its holding in the joint venture company. As and when at transaction is consummated, the Stock exchanges shall be informed as per the listing guidelines." SAAG RR Infra to issue 4.15 mn conv preference shares SAAG RR Infra Ltd has informed that the Board of Directors of the Company at its meeting held on August 26, 2011, inter alia, has approved the issue of up to a maximum of 41,51,000, Non-cumulative compulsorily Convertible Preference Shares (CCPs) to SAAG Mauritius Ltd. (Promoter Group) on preferential basis at a price not less than the price calculated in accordance with Chapter VII of the SEBI (ICDR) Regulations, 2009. The Relevant Date for the preferential issue has been fixed as on August 27, 2011.

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

Tirupati Sarjan to issue 12 mn convertible warrants Tirupati Sarjan Ltd has informed that the Board of Directors of the Company at its meeting held on August 24, 2011, has decided the following: 1. The Dividend of 50 paise per share has been recommended (i.e. on 24004000 shares amounting to Rs.1, 20, 02, 000/-) 2. To issue 1, 20, 00, 000/- Convertible Warrants (maximum) at price to be determined as per SEBI guideline considering relevant date as September 28, 2011. Hindujas to turn energy arm into investing co Hinduja Group's Hinduja Energy India will be converted into an investing company. The group plans to bring in Rs.4 bn foreign direct investment from its entities registered in Mauritius into the power company. CAG censures PFC initial share sale process Government auditor CAG has criticised state-owned PFC for fixing lower price band for the Rs.1,000 crore IPO in 2007, and said the subsidiaries of the issue's lead managers made about Rs.11 crore profit by selling the company's shares soon after the listing. 'Indian realty sector to face tough time in next 12 months' With the US and European debt crisis affecting sentiments across the world, the Indian real estate sector is likely to see a gloomy phase in the next 12 months and developers would face liquidity crunch, low sales and pressure on margins, consultant Jones Lang LaSalle said. CVC to reopen Sudhir Vasudeva's case for ONGC chairman's post Following some fresh complaints, the Prime Minister's Office returned Sudhir Vasudeva's file, for the post of ONGC chairman, to the Central Vigilance Commission for further investigations. The PMO has refused to give a clean chit to Vasudeva on the appointment following corruption charges. The case had earlier received clean chit from the CVC and Petroleum Minister S. Jaipal Reddy. INTERVIEW: Lanco may get Griffin coal Oct-Nov to test for self-use Even as it fights a court battle in Australia over its Griffin Coal mine in that country, Lanco Infratech Ltd is working on plans to export that coal for the first time for captive use in its power plant in India, according to J.S. Kumar, the company's chief financial officer. INTERVIEW: Bajaj Electricals to focus on closing EPC orders FY12 Bajaj Electricals Ltd will focus on recovering 'retention' money stuck in various completed engineering, procurement and construction projects, Chairman and Managing Director Shekhar Bajaj said in an interview. INTERVIEW: Director says to make Punj Lloyd a holding co in 5-7 yrs Punj Lloyd Ltd is looking to metamorphose into a holding company, comprising listed and unlisted entities, in five to seven years if things move as per plan, Luv Chhabra, director (corporate affairs) at the engineering, procurement and construction company, said. SLanka plans 'undersea' power grid link with India SLanka is planning to set up a power grid connection between the island nation and India which is facing growing need for electricity, SL High Commissioner to India has said Five nuclear energy parks to be set up: AEC Chairman The Centre has given its nod for setting up five nuclear energy parks each with a generation capacity of 10,000 MW, Atomic Energy Commission Chairman Srikumar Banerjee said. SJVN declares Rs.330.93 crore dividend for FY 2011 State-run power utility Sutlej Jal Vidyut Nigam (SJVN) has declared a dividend of Rs.330.93 crore for the 2010-11 financial year. Oil India mulls diversification into city gas distribution State-run Navaratna oil explorer Oil India is chalking out an expansion and diversification strategy that could also include an entry into the city gas distribution space. ONGC may start production from KG basin next month State-owned Oil and Natural Gas Corp (ONGC) is likely to start oil and gas production from Krishna-Godavari basin field GS-15, off the Andhra coast, next month.

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

ONGC likely to launch follow-on offer Sep 20; file papers by Sep 8 The much-delayed follow-on public offering of state-owned Oil and Natural Gas Corp Ltd is now expected to be open Sep 20-23, an official familiar with the development told. OIL AND NATURAL GAS CORP: • After nearly four-and-a-half years, the company replaced RELIANCE INDUSTRIES as the top Indian company by market capitalization on Aug 26. • Central Vigilance Commission, on government's orders, will reopen case on Sudhir Vasudeva's selection as the next Chief of the company • Is likely to start oil and gas production from Krishna Godavari basin field GS15 next month. • The company's follow-on public offer is likely to hit the market on Sep 20 and road shows will begin on Sep 5. • Will write back Rs.15 bn in 2011-12 (Apr-Mar) as royalty paid to CAIRN INDIA for production from Rajasthan blocks. • The company's follow-on public offer is likely to hit market on Sep 20 or Sep 27. RELIANCE INDUSTRIES: • Niko Resources said output at KG-D6 block will continue to decline until workovers are completed or additional wells are tied up. • US Energy Information Administration has cut undiscovered shale gas estimate by 80%. Reliance bought stake in 3 US shale gas projects and invested $2 bn in them. • Has completed the $7.2 bn deal to sell 30% in 21 hydrocarbon blocks to UK-based company BP. • Has tied up with Siemens to pursue opportunities in the homeland security business. SPICEJET: • Board approves preferential issue of 35.98 mn shares to promoter Kalanithi Maran. • Buys thirty Q400 Bombardier aircraft to expand network to cities like Bhopal, Indore, Mangalore and Tirupati from Sep 21 DLF: • Is in talks with Infrastructure Development Finance Company to sell entire 70% stake in DLF IT Park Noida. • Competition Commission of India says DLF violated law in eight more cases. GVK POWER & INFRASTRUCTURE: • To get loans worth $1.2 bn to buy Australia-based Hancock Prospecting's mines. • May raise debt to fund the $2.2 bn acquisition of two coal mines from Australian company Hancock Prospecting. POWER FINANCE CORP: • Has approached the RBI for an in-principle approval to raise $1 bn through external commercial borrowings. • Will restart process of awarding ultra mega power projects in Odisha and Tamil Nadu. SHREYAS SHIPPING & LOGISTICS: Aims to more than treble sales in three years as it expands its logistics business and reduces dependence on charting out vessels. ULTRATECH CEMENT: Made "undue profits" in three financial years by creating artificial scarcity of cement, Serious Fraud Investigation Office has said. INDIAN OIL CORP: Has requested the oil ministry to shift to monthly payment of subsidy rather than quarterly due to rising foreign exchange debt. RODIUM REALTY: Plans to issue 2.16 mn shares on rights basis in the ratio of two shares for every three held to its existing shareholders. BGR ENERGY SYSTEMS: The company's electrical projects division has won a Rs.4.4-bn-rupee order from Nuclear Power Corp of India. INDRAPRASTHA GAS: Has raised price of piped natural gas in Delhi and National Capital Region by over 3 rupees per cu mtr.

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

NTPC: Signed a joint venture with Indian Railways to invest Rs.77 bn to set up a 1320 MW power plant in West Bengal PUNJ LLOYD: Looking to convert into a holding company, comprising listed and unlisted companies, in 5-7 years RELIANCE POWER: Plans to invest Rs.80 bn to set up 500 MW solar power plants in Rajasthan over next three years. POWER GRID CORP: To invest Rs.13.66 bn for projects in Madhya Pradesh and Chhattisgarh. SUZLON ENERGY: Plans to invest $1.4 bn to develop a 600 MW wind farm in South Australia. LARSEN & TOUBRO: Head A.M. Naik sees difficult times ahead for co on sluggish demand. SJVN: Will spend Rs.300 bn to increase its installed capacity to 6,000 MW by 2019-20. BHARAT HEAVY ELECTRICALS: Cabinet panel approves 5% stake sale in co. OIL INDIA: Is finalizing plans to enter the city gas distribution business. ATLANTA: Plans to raise Rs.7 bn debt for a 117 km road project.

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

IT & ITeS INFORMATION TECHNOLOGY: • US companies could cut their information technology spends owing to US' credit downgrade and a bearish stock market. • The Indian information technology sector would grow only 12-13% this year, iGate & Patni Chief Executive Officer Phaneesh Murthy said. PC sales in India may rise to 12.71 mn in 2012 In India, 25 people have one personal computer A study by market intelligence firm CyberMedia Research points out that with nearly 10 mn unit sales in 2010, the combined installed base of desktop and notebook personal computers in India is estimated to have crossed 52 mn units as of December 31, 2010. The personal computer (PC) market in India is expected to register sales of 12.71 mn units in 2012, 14 % higher than the estimated 11.15 mn units during the current year, said a study. The current installed base of personal computers translates into one computer for every 25 Indians, doubling the per capita PC availability in just four years. It may be recalled that at the end of 2006 there was approximately one computer for every 50 Indians, it added. "The future growth of the India PC market will be driven by adoption of new form factors such as LED monitors in the commercial desktop space, netbooks, ultra lightweight notebooks and tablet computers in the portable space,” stated Anirban Banerjee, associate vice president, Research and Advisory Services, CyberMedia Research. "These four form factors--desktops, ultra lightweight notebooks, netbooks and tablet computers--will co-exist, leveraging on the increase in reach and penetration of mobile broadband data services, content and 'apps', " Anirban further added. The first tablet computer was launched in India in November 2010. Since then, the market saw a slew of launches from both MNC and Indian players. While models like Cisco's Cius and RIM’s Blackberry Playbook tablets are focused on the enterprise user segment, the Samsung Galaxy Tab and Reliance 3G Tab are focused on the consumer segment. (Reliance 3G Tab manufactured by ZTE, retails at Rs. 12,999 per unit). CyberMedia Research expects tablets to become the new battleground as major MNC and India vendors and operators race to capture a share of this emerging market. "As telecom carriers started offering 3G services in India since early 2011, the enhanced connect speeds are expected to boost usage of data services by subscribers. For tablets to become a common man's device, the data usage tariffs for 3G services need to be brought down even further.” Anirban stated. New range priced between Rs.26,000 and Rs.66,780 LG intros 3D laptops in India Buoyed over the market opportunities in tablet segment, the company is also working to foray into this category by 2012. Apparently lagging in laptop segment, LG Electronics has come up with a bang with new products. The electronics major announced its new range of notebooks that include 3D technology as well as all-in-one PC and said it will enter the tablet market in 2012. The company has reaffirmed its commitment in the consumers segment and is treading the path cautiously. LG is eyeing to sell 20,000 notebooks by the end of this calendar year, while it has planned 80,000 units for 2012. LG, with its comprehensive launch of 13 SKUs, seems confident and is looking to grab at least 3 % market share in the consumer segment by 2012 and to be among the top five brands by 2015. The company is consolidating its position in home, education and gaming categories. Sanjoy Bhattacharya, product group marketing head at LG India, said they are focusing on design and technology leadership. “Our products are 50 % slimmer than that of our competitors,” he said. The company is optimistic about its 3D offering and said that they are the world’s first in 3D FPR notebook. “Our laptops are DLNA certified which is first in the industry,” Bhattacharya added. The electronics major also informed that All-in-One market is growing in India and the company will take a leap ahead. LG also offers a warranty in more than 85 cities and has close to 150 authorized service centers in India. The new range is priced between Rs.26,000 and Rs.66,780. Targets Rs. 1,000 cr revenue by 2012. HTC launches EVO 3D smartphone in India Based on Google's Android Gingerbread 2.3 operating system, this new device, priced at Rs.35,990, comes with Qualcomm Snapdragon S3 processor with 1.2 GHz dual core. HTC has launched its HTC EVO 3D, the first glasses-free 3D smartphone with QHD, here at Qualcomm’s IndiaON 2011 event. Based on Google's Android Gingerbread 2.3 operating system, this new device comes with powerful Qualcomm Snapdragon S3 processor with 1.2 GHz dual core. “We are confident that the new HTC EVO 3D will set a benchmark for 3D viewing and our consumers will make best use of this offering,” said Faisal Siddiqui, country head, HTC India. The company said it has carved a niche in smartphone segment and this is part of its process of

Weekly Newsletter 19 Info-Spectrum Bridging the Information Gap in Corporate Landscape launching many innovative devices in the country. “This new device adds a new dimension to the smartphone era. HTC EVO 3D device is equipped with Snapdragon processor that enables outstanding features in it,” said Sandeep Sibal, country manager and VP (business development) at Qualcomm India and South Asia. Sibal said they are closely working with HTC to bring industry-firsts devices in the country. Priced at Rs.35,990, this device features 1.3 megapixel front-facing camera for video chat, 3G mobile hotspot capability, 4GB internal memory, integrated GPS, stereo Bluetooth and Wi-Fi 802.11b/g/n beside others. MapmyIndia launches CarPad with Qualcomm In the event MapmyIndia has announced the launch of CarPad, a 7-inch capacitive display device with 3G for cars. Powered with Qualcomm Snapdragon S1 processor, this device has rich application experience and has GPS navigation interface. Rakesh Verma, MD of MapmyIndia, said this would revolutionize the way people travel in cars. “This strategic collaboration with Qualcomm for CarPad is the first big step in our endeavor to converge cars, consumers and connectivity in India and introduce ground-breaking connected services inside the car,” Verma added. Avneesh Agrawal, SVP of Qualcomm and president, Qualcomm India and South Asia, added, “Combining fast processing capabilities, 3G connectivity, rich multimedia and GPS engine of the Snapdragon processor, the CarPad brings fully optimized in-car navigation and entertainment experience.” Canon aims to revive inkjet sales in India from October Japanese digital imaging firm Canon has said it is witnessing a decline in inkjet printer sales in the domestic market, in line with falling personal computer sales, but it hopes to reverse the trend in October through household sales. With PC market saturating, the function of inkjets is also diminishing and so are their sales. Declining PC market is threatening this segment now, but using inkjet multifunction and new products, we will try to increase sales again from the fourth quarter (beginning October), Canon India president and chief executive Kensaku Konishi, said. Canon will promote sales of inkjet printers to household users through its exclusive retail showroom, Canon Image Square. At the moment, our market share of inkjet printers is around 15%. We will try to acquire 20% by the end of this year, Konishi added. Canon also plans to corner a bigger slice of the market for laser printers and copier machines this year. Dynacons Systems OKs raising up to Rs.120 mn Dynacons Systems & Solutions Ltd has informed that the Board of Directors of the Company at its meeting held on August 29, 2011, inter alia, has decided the following matters: 1. Consolidation of Face value of Equity shares of the Company from Re. 1 to Rs.10, subject to approval of the Members of the Company in the ensuing Annual General Meeting. 2. Issue of Equity Shares and Warrants on a Rights basis to the Members of the Company for an aggregate amount not exceeding Rs.12 crores subject to approval of the members of the Company in the ensuing Annual General Meeting. Amkette eyes 25% share of wireless IT peripherals mkt Indian IT peripherals-maker Amkette has set a target to capture a 25 % share of the wireless peripheral market in the country by this fiscal-end. WIPRO: Has re-worked its performance-based compensation package plan for middle and senior-level executives in order to bring down attrition. DYNACONS SYSTEMS & SOLUTIONS: The company's board has approved raising up to Rs.120 mn via a rights share issue.

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

PHARMA & HEALTHCARE Venus Pharma arm gets OK to mkt anti-cancer docetaxel in Portugal Venus Pharma GmbH, a wholly owned subsidiary of Venus Remedies, has received market authorisation to launch its anti-cancer drug, docetaxel, in Portugal by 2011 end, the company said in a notice to the exchange. The company has also filed a patent for this product as docetaxel was initially developed by Sanofi-Aventis and marketed under the brand name "Taxotere". The recent expiry of the patent in major European countries has enhanced prospects for Venus to market docetaxel and capture the $1.6-bln European market for the anti-cancer product, the company said. The company is looking at making it a 10- mln euro product by 2014. Currently, Venus is marketing docetaxel under the brand name Doxol in Africa, Asia, Commonwealth countries and South America. The company also markets other products in the oncology segment such as Paclitaxel, Gemcitabine, Oxaliplatin, Irinotecan, and Topotecan in Europe. Panacea Biotec says WHO officials to audit co's Delhi plant Sep 6-8 Representatives of the World Health Organization are scheduled to visit Panacea Biotec's New Delhi unit during Sep 6-8 to conduct an audit, Joint Managing Director Rajesh Jain said. This comes in the wake of World Health Organization delisting Panacea's three key vaccines from its pre-qualification list in August after it spotted deficiencies in quality management system of the company's manufacturing unit in Delhi. Consequently, the WHO had asked Panacea to put on hold shipments of the three vaccines until a final decision was taken, Jain said. He said the company was negotiating with the WHO through the country's drug regulator, Drug Controller General of India, and was likely to soon restart supplies to the world health body. Nova Medical partners Omzest Group to chart W. Asia footprint Bangalore-based Nova Medical Centers has announced its expansion into West Asia. For the expansion, Nova and the Omzest Group have created a 51:49 venture. Omzest is a diversified group in the Sultanate of Oman led by chairman and founder, Dr Omar Zawawi, special advisor to Sultan Qaboos bin Said. Through this partnership, Nova and Omzest will set up ambulatory surgery centres in Dubai, Muscat, Abu Dhabi and Riyadh. Omzest will invest in Nova's Indian operations and acquire a 10% equity stake in Nova. Mr Suresh Soni, chairman and CEO, Nova Medical Centers, described the tie-up as a landmark in the company's journey to achieve a global footprint in the healthcare delivery space. “Nova's operating model is designed for rapid scale. We have aggressive expansion plans, both nationally and globally”, he added. Fortis Healthcare to add 4 hospitals; expand beds capacity by 570 Fortis Healthcare (India) Ltd announced the launch of four hospitals, which will expand the company's beds capacity by 570 to 10,270. In a release, the company said it is setting up a 375-bed tertiary care hospital in Marathalli in Bengaluru, a multi-speciality 100-bed hospital in Bilaspur in Punjab, a 50-bed cardiac care unit in Asansol in West Bengal, and a 45-bed facility in Kochi in Kerala. The hospitals in Kochi and Bilaspur will become operational in 2012, and in Bengaluru by 2013, Fortis said. The company did not say when the Asansol hospital would become operational. Amar Remedies to issue NCDs with detachable conv warrant Amar Remedies Ltd has informed that the Board of Directors of the Company at its meeting held on August 26, 2011, inter alia, has transacted the following business; 1. Recommends Dividend @ 10% (Rs.1 per shares) on fully paid Equity shares of Rs.10 each of the company for the financial year ended Jun 30, 2011. The dividend warrants will be despatched on October 25, 2011. 2. To Issue Non-Convertiable Debentures (NCDs) with detachable Convertiable Warrants upto Rs.200.00 Cr. Ajanta Pharma gets US FDA OK for new schizophrenia drug Risperidone Ajanta Pharma Ltd has received US Food and Drug Administration's approval for its new drug application for Risperidone, according to the information available on the regulator's website. The company has got approval to sell the drug in six different strengths--0.25 mg, 0.5 mg, 1 mg, 2 mg, 3 mg and 4 mg in tablet form--in the US, the regulator said. The drug is used to treat schizophrenia. Wockhardt plans to launch up to 15 drugs by March Drug firm Wockhardt plans to launch 12-15 products in the US market this fiscal and also increase its reach in the European market. Sushrut Adler to open manufacturing unit in Pune Orthopaedic solutions provider Sushrut Adler Group said it will open a new facility at Pune by this fiscal-end, which will help it expand its manufacturing capacity.

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

WOCKHARDT: Says SUN PHARMACEUTICAL INDUSTRIES has violated foreign exchange norms while possessing foreign currency convertible bonds issued by the company. FORTIS HEALTHCARE (INDIA): Has announced the launch of four hospitals, which will expand the company's bed capacity by 570 to 10,270. ELDER HEALTH CARE: To enter Sri Lanka by launching personal health care products next month. Eyeing partners in Europe for expansion. LUPIN: Has got US Food and Drug Administration approval to market Tramadol Hydrochloride extended release tablets in the country. APOLLO HOSPITALS: To invest at least Rs.1.25 bn in its proposed new Bangladesh project in the next two years. DR REDDY'S LABORATORIES: Has launched allergy drug generic Allegra D24 in the US.

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

TELECOM TELECOM: • The Department of Telecommunications has rejected Bharat Sanchar Nigam's proposal to reduce its workforce by 21,000. • The government said telecom companies have a total outstanding of Rs.5.87 bn as dues for licence fee and spectrum charges. Minister says exit norms for cos to be part of new telecom policy The exit norms for telecommunication service providers may be detailed in October as a part of the new telecom policy, Telecom Minister Kapil Sibal said today. "The telecom policy will be put in place in 2011, so all the ingredients of the telecom policy, including the exit policy, would be put in place," Sibal said on the sidelines of curtain raiser ceremony of India Telecom 2011 summit. Under the current norms, there is no exit policy for a telecom operator who might want to surrender spectrum. Without divulging the modalities of the exit policy, Sibal said, "I am not going to give any details till the policy is put in place, because I don't think it is fair to communicate things that are in the process of being finalised." The minister also said the telecom department was in the process of formulating a Cabinet note for sale of land held by Videsh Sanchar Nigam Ltd, now known as Tata Communications Ltd. While refusing to give a timeline by when the note will be sent to the Union Cabinet, Sibal said, "I think the Cabinet note is being prepared." The government had sold majority stake in VSNL to the Tata Group in 2002, but the deal did not include transfer of 773.13 acres owned by the company. The Telecom Commission had earlier this month given its nod to sell surplus land assets and approved hiving them off into a special purpose vehicle. Positive CBI tones in 2G spectrum trial lifts RCom, Unitech shares The Central Bureau of Investigation's statement on the 2G spectrum case today in a special court lifted shares of Unitech Ltd and Reliance Communications Ltd. At Delhi's Patiala court, the CBI said there was no money trail found in Unitech's case relating to the 2G spectrum case. Unitech Chairman Sanjay Chandra has been in judicial custody for his alleged involvement in conspiracy in the case. According to a report prepared by the Comptroller and Auditor General of India, the 2G scam has led to a presumptive loss of 1.76 trln rupees. Also, in a relief to Anil Ambani-promoted Reliance ADA Group officials, CBI said it wasn't sure if any employee of the group companies had direct links with the 2G scam. MTNL gives 67.6-mn-rupee contract to Tata Comm, Vodafone Essar State-owned telecom service provider Mahanagar Telephone Nigam Ltd has awarded a Rs.67.56 mn contract to Tata Communications Ltd and Vodafone Essar South Ltd to carry its international call traffic. According to the contract, the two companies will carry international calls originating from MTNL's Delhi network to other global destinations. The completion time of the contract, awarded in July, has been set for Sep 30, according to a notice on MTNL's website. The notice did not specify the distribution of work or revenue between the two private players. Attorney General endorses CAG's stance on Unitech subsidiary Attorney General GE Vahanati has endorsed the Comptroller and Auditor General of India's views that Adonis Properties, a subsidiary of Unitech Wireless, was not eligible for getting mobile licences for six regions. BSNL plan for VRS rejected, DoT wants 100,000 out The DoT has rejected BSNL's proposal to reduce its workforce by just 21,000. The DoT has said the number is too low and that BSNL needs to reduce its workforce by about 100,000, as suggested by Sam Pitroda. MAHANAGAR TELEPHONE NIGAM: Awarded Vodafone Essar South and TATA COMMUNICATIONS a contract to carry international call traffic from its Delhi network. RELIANCE COMMUNICATIONS: Income Tax Appellate Tribunal has ruled the company's Rs.30 mn payment to an Israeli company for software as not taxable in India. TATA TELESERVICES MAHARASHTRA: Lost 2.7 mn or 3.1% subscribers in July and wireless subscriber base fell from 91 mn in June to 88.3 mn in July.

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

BANKING & FINANCIAL SERVICES BANKING: • The Securities and Exchange Board of India has allowed foreign institutional investors to invest in infrastructure bonds of non-banking finance companies categorised as infrastructure finance companies. • Reserve Bank of India may suggest provisioning and reserve requirement rules for non banking finance companies, narrowing the gap between them and banks. • Government sanctions Rs.20 bn capital infusion in select public sector banks. • The RBI has proposed aggregate foreign ownership in a new bank will be capped at 49% for the first five years of the bank getting a licence. • The RBI has proposed a new bank must have initial minimum paid-up capital of Rs.5 bn. • The RBI is not in favour of granting new bank licences to companies or entities with significant exposure to real estate, construction, and broking. FINANCIAL SERVICES: • Promoters of non-banking finance companies that are eligible for bank licences will have to set up a separate banking entity if some or all of the NBFC's activities cannot be undertaken by banks departmentally. Banks, UIDAI to deploy 14 lakh micro-ATMs The Unique Identification Authority of India (UIDAI) is working with the Indian Banks' Association to create a network of 14 lakh micro ATMs across the country. While the banks will authorize the transaction, the authentication will be done by UIDAI by biometric association with its database. The UIDAI is also considering giving unbanked citizens the option to receive a pre-paid payment card issued by banks which can be used for channeling payments from government schemes, including National Rural Employment Guarantee Act. "The plan is to have at least two micro-ATMs in every village, which means that there will have to be at least 14 lakh of them," said A P Singh, deputy director-general, UIDAI, while speaking at a Prepaid International Forum event. He said that every UIDAI registrant is presently given the option to open a bank account. "We plan to give them the additional option to receive a payment card which can be used for electronic transactions," he said. According to Singh, the cards could be used for transactions in Aadhaar- enabled micro ATMs. The micro-ATMs will be more like point-of-sales terminals which will read cards and communicate with the bank's core banking system and the Aadhaar biometric database. The micro-ATMs, which are to be deployed by banks, will be manned by business correspondents appointed by banks. These business correspondents will act as mini bank branches by accepting deposits, enabling withdrawals, fund transfer from Aadhaar-to-Aadhaar accounts and providing statement of transactions. The connectivity will be provided by the Aadhaar-enabled payment system (AEPS) – a new electronic payment network jointly promoted by the National Payment Corporation of India with the UIDAI. Over 60 banks have registered to be part of this network. Basic transactions permissible over these accounts include cash deposit, cash withdrawal, balance enquiry, and inter-bank money transfer. This system also envisages creation of an Aadhaar-enabled payment bridge which would facilitate direct disbursement of government benefits to the beneficiary by credit to their bank accounts using Aadhaar. SBH opens first NRI branch in Vizag State Bank of Hyderabad has made impressive strides in recent years and has recorded growth of nearly 50% in just two years, from Rs.1,06,128 crore to Rs.1,53,348 crore, according to Mr Bhagavantha Rao, new Managing Director. Mr Rao, after inaugurating the new NRI branch near Nehru Bazar, the first in Vizag and only the second in the State said that during the past one year, the business growth was 19.35%. Deposits increased by 17.86% to Rs.93,363 crore and advances by 21.53% to Rs.65,605 crore. The business per branch increased to Rs.119 crore from Rs.109 crore and per employee from Rs.9.88 crore to Rs.11.71 crore. The bank had earned a profit of Rs.283.94 crore in the first quarter which was 41.1% than during the corresponding period last year. The interest income had increased by 30.24% to Rs.814.95 crore over last year. The operating profit grew to Rs.771 crore up to July this year as compared with Rs.631.83 crore last year and the capital adequacy ratio stood at a healthy 12.71% as on June, he said. Mr. Bhagavantha Rao said the SBH was planning to open 150 new branches this year, with around 80 coming up in unbanked areas. A total of 18 branches would be opened in the coastal districts of Andhra Pradesh. The bank would recruit 4,000 officers and clerical staff this year. In replying to a query, he said there was a 10% drop in

Weekly Newsletter 24 Info-Spectrum Bridging the Information Gap in Corporate Landscape home loan applicants but the quantum did not drop which perhaps indicated that the cost per unit had increased. Last year, the Vizag zone disbursed Rs.150 crore in home loans. StanChart says lack of urgency on reforms to hit medium-term growth Standard Chartered Bank said the Indian government's inability to get key economic bills cleared in the ongoing session of Parliament could hurt India's growth prospects in the medium-term. "Lack of urgency on reforms could worsen supply bottlenecks and damage medium-term growth potential," the bank said in a report. For the ongoing Monsoon Session of Parliament, the government had earmarked key legislations, including the National Food Security Bill, Benami Transactions (Prohibition) Bill, Mines and Minerals (Development and Regulation) Bill, Land Acquisition, Rehabilitation and Resettlement Bill, and indeed, the introduction of the anti-graft Lokpal Bill. However, Parliament has been witnessing relentless disruptions largely due to protests against corruption and very little business has been conducted. The session is slated to end on Sep 8. With little time on its hands, the government will now focus on getting the routine business cleared in Parliament. To achieve GDP growth rate of 9.0-9.5% targeted under the 12th Five Year Plan (2012-17), these reforms need to be fast-tracked, the bank said. There is lack of consensus between the central government and the states on the implementation of the proposed key indirect tax reform, Goods and Services Tax, while the Parliament Standing Committee is yet to give its report on the Direct Taxes Code, which has a launch timeline of April. "The current challenging economic environment would have been the right backdrop to push through ambitious reforms, but political consensus and resolve are sorely lacking," Standard Chartered Bank said. However, even as there has been little movement on the economic reform front, amid intense pressure from activists led by Anna Hazare, Parliament adopted a resolution on a stronger Lokpal to combat corruption, which has been a major impediment to growth. New Bank Norms: RBI against licences to realty cos, brokerages (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) The Reserve Bank of India is not in favour of granting new banking licences to companies or entities having significant exposure to real estate, construction, and capital market broking. The central bank said the "business culture" of companies in realty and capital markets, apart from being inherently riskier, is also "quite misaligned" with a banking model. "It will therefore be necessary to ensure that any entity/group undertaking such activities on a significant scale is not considered for a bank licence," RBI said in the draft guidelines on granting new licences for banks in the private sector. According to the central bank, there will be real risks of the same business approach getting transmitted to the banks if entities in these sectors are given bank licence and it will be difficult to address the concern only through regulations. The RBI further said that post the global economic crisis, there have been concerted moves globally to separate banking from proprietary trading. "More importantly, in India, past experience with brokers on the boards of banks has not been satisfactory," it added. "Accordingly, entities/groups that have significant (10% or more) income or assets or both from/in such activities, including real estate, construction and broking activities taken together in the last three years, shall not be eligible to promote banks." Further, the banking sector regulator favours banking licence for only those promoter groups that have diversified ownership, sound credentials and integrity, and have a successful track record for at least 10 years in running their businesses. New licences will be given only to those entities in the private sector that are owned and controlled by Indians. According to the draft norms, applicants for new banking licences will have to disclose group companies along with key business activities. The RBI said it may seek feedback on applicants from other regulators and enforcement and investigative agencies. New Bank Norms: Minimum capital for new bank proposed at Rs.5 bn (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) The Reserve Bank of India proposed that a new bank must have an initial minimum paid-up capital of Rs.5 bn. The central bank released draft guidelines for new bank licenses to private companies and has invited feedback on the norms by Oct 31. It added that the actual capital infused would depend on the promoters' business plan. RBI said that 40% of the new bank's paid-up capital must be held by a non-operative holding company, with a lock-in of at least five years from the date of licensing. If the shareholding of the non- operative holding company exceeds the threshold, it should be brought down to 40% within the first two years from the date of licensing. In an event where the new bank raises further capital in the first five years, the non-operative holding company must continue to hold 40% of the bank's enhanced capital for first five years. "Capital, other than the holding by NOHC (non-operative holding company), could be raised through

Weekly Newsletter 25 Info-Spectrum Bridging the Information Gap in Corporate Landscape public or private placements," the release said. The company's shareholding in bank's paid-up capital must be lowered to 20% within the first 10 years and to 15% within the first 12 years. Thereafter, company's share in the new bank's capital must be maintained at 15%. New Bank Norms: NBFC to set up bank if ineligible to convert into bank (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) Promoters of non-banking finance companies, which are eligible for bank licences, will have to set up a separate banking entity if some or all of the NBFC's activities cannot be undertaken by banks departmentally, the Reserve Bank of India said. However, if all the activities of the NBFC can be undertaken by banks, the NBFC will have to be converted into a bank, the RBI said. First, promoters of NBFCs will have to set up a non-operative holding company, regardless of whether they are promoting a new bank or converting the existing company to a bank. The new bank will be allowed to takeover and convert existing branches of the NBFC into bank branches only in Tier III to Tier VI centres, the RBI said. To convert Tier I and Tier II centres into bank branches, banks will have to seek prior approval of the RBI. In addition, banks will have to follow the existing norms which are applicable to opening domestic banks' branches in these centres. The bank will have to maintain at least 25% of its branches in un-banked rural centres, the RBI said. New Bank Norms: Final guidelines after banking law amendments (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) Final guidelines for licences to new banks in the private sector will be issued once the Banking Regulation Act, 1949 is amended, the Reserve Bank of India said today. "The final guidelines will be issued and the process of inviting applications for setting up of new banks in the private sector will be initiated only after the Banking Regulation Act is amended," the RBI said in a press release today. Today, the central bank released the second draft guidelines for new bank licences from the private sector that stipulate an initial minimum paid-up capital of Rs.5 bn, foreign shareholding of not more than 49%, and a track record of 10 years. RBI had released the first draft in August last year. Amendments to the Banking Regulation Act, 1949 would empower the central bank to supersede the board of directors to protect the interest of depositors. It will mandate approval from the RBI for acquiring 5% or more share capital in a banking company to "fit and proper" persons. An amendment to the banking regulation law could further facilitate the RBI's consolidated supervision of a bank. The Banking Laws (Amendment) Bill, 2011 was introduced in the Lok Sabha in March. New Bank Norms: Foreign shareholding in new bks cannot exceed 49% (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) The Reserve Bank of India proposed that aggregate foreign ownership in a new bank will be capped at 49% for the first five years of that bank getting a license to operate. A single foreign entity, directly or as part of a group, can't hold more than 5% in a new bank, the RBI proposed today in its draft guidelines for issue of licenses to a private entity to start a bank. However, after the expiry of five years from the date of licensing of the bank, the foreign shareholding pattern would be as per the extant policy, the RBI said. As per the current norms, foreign shareholding in private sector banks is allowed up to a ceiling of 74% of the paid-up capital. The RBI said investments such as foreign direct investment, foreign portfolio investment, and investments by overseas Indians will be considered as foreign shareholding. The RBI will issue final guidelines after the government amendments the current Banking Regulation Act, it said. New Bank Norms: Holding co to have minimum 50% independent directors (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) At least half the board of the non-operative holding company that would set up a new bank must comprise independent directors to ensure sound corporate governance, the Reserve Bank of India said. Also, the draft guidelines for new bank licences for private players proposed that all financial services activities being carried out by other entities of the holding company should now come under the new bank. For greater corporate governance, RBI said it would supervise the bank and the holding company on a consolidated basis, and would seek all necessary information from the relevant group on a prompt basis. The new bank's ownership and the management, in addition to being professionally run, should also be "separate and

Weekly Newsletter 26 Info-Spectrum Bridging the Information Gap in Corporate Landscape distinct" in the promoter group that controls the holding company, it said. The source of the promoter groups' equity in the holding company must also be transparent and verifiable. New Bank Norms: Exposure to any promoter entity not to exceed 10% (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) New banks' exposure to any entity in their promoter group must not exceed 10% of the paid-up capital and the reserve of the bank, the Reserve Bank of India said. This is to ensure new banks maintain an arm's length relationship with their promoters, the central bank said. Total exposure of a new bank to all the entities in its promoter group should not exceed 20% of the bank's paid-up capital, the RBI said. Shareholding of any single entity other than the non-operative holding company in the bank cannot be more than 10% of the paid-up capital of the bank; shareholding of 5% or more will be subject to an approval from the RBI. The non-operative holding company cannot set up a new financial services entity for at least three years from the date of licensing, the RBI said. The central bank said new banks must maintain minimum capital adequacy ratio of 12% for three years after starting operations. The banks must use core banking solutions. Existing priority sector lending targets and sub-targets for domestic banks will apply to new banks, too, the RBI said. In line with the thrust on financial inclusion, new banks must open at least 25% of their branches in unbanked rural areas, and use modern infrastructure facilities in offices to provide cost-effective customer services. The banks must also have customer grievances cells to handle customer complaints, the RBI said. To widen their shareholding structure, new banks will have to list their shares on the exchanges within two years of grant of licence, the central bank said. An existing non-banking finance company, if eligible for a bank licence, can either promote a new bank or convert into a bank depending on its activities. In both cases, the promoters will first have to set up a non-operating holding company, the RBI said. New Bank Norms: RBI says licence can't be had for the asking (Part of a series of stories on the draft guidelines for new bank licences in the private sector, issued by the Reserve Bank of India) The Reserve Bank of India today cautioned that applicants may not get licences to start a bank even if they satisfy the eligibility conditions. Banking being a highly leveraged business, licences shall be issued on selective basis to eligible entities that have an impeccable track record and who are likely to conform to the best international and domestic standards of customer service and efficiency, the RBI said. The RBI said a new bank would need to have strength and efficiency to work profitably in a highly competitive environment. The central bank said it will first do a prima facie eligibility screening of an applicant on the minimum criteria prescribed. A high-level advisory committee of eminent personalities from the banking, finance and other sectors will then vet the application, and will make recommendations to the central bank. Following this, the RBI will give an in-principle approval to an applicant, which will lapse automatically after a year. All applications with their relevant details will be ut up on the RBI website to ensure transparency in the process, the RBI said. If anything adverse is noticed by the central bank, it may impose additional conditions and can also withdraw the in-principle approval, if necessary. The RBI has kept out companies, which are substantially and exclusively involved in real estate and broking businesses, from applying for banking licences. At least 50% of the board of directors of a holding company that wants to start a bank must be independent of the promoter or promoter group companies and their business associates. RBI panel may suggest reserve, provisioning norms for NBFCs A panel constituted by the Reserve Bank of India may recommend provisioning and reserve requirement rules for non-banking finance companies that will narrow the gap between these lenders and banks. "In terms of risk management, there will be movement closer to that of banks," a person familiar with the group's deliberations told the newspaper. For the first time in more than a decade, the central bank had in May formed the panel under former deputy governor Usha Thorat to address issues relating to non-banking finance companies. According to the report, finance companies, with few restrictions, are seen as creating risk to the system since they borrow from banks. Any seize-up in lending due to a crisis similar to the 2008 meltdown may put even the banks at risk. The recommendations by the committee, therefore, will address these issues. Some of the proposals could crimp the profitability of finance companies, it said. SBI head says govt committed to launching bank's rights issue State Bank of India Chairman Pratip Chaudhuri reiterated that the government was committed to the bank's rights issue, which is expected to be launched in the second half of the current financial year. SBI has sought approval for a rights share issue of Rs.200 bn, and the government will have to subscribe to around

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

Rs.120 bn of the issue if it wants to maintain its shareholding in the bank at over 59%. Chaudhuri also added there was no need for a retail bond issue this year as the bank had adequate Tier-II capital. As of Jun 30, SBI's capital adequacy ratio was 11.6%. Of this, Tier-I capital was 7.6%, against the 8% minimum desired by the government. The bank also aims to achieve a credit growth target of 16-19% in the current financial year and plans to open 600-800 branches. The Reserve Bank of India has set a credit growth target of 18% for the industry for the current financial year. "SBI is not looking at launching infrastructure debt funds at the moment," he said. RBI move to help cash flow in emergencies To ensure that ATMs do not run dry during a banking strike or during a natural calamity, RBI has said that it will open a cash window during such events. To avail of cash, banks will have to authorize RBI in the form of a standing instruction to debit their current accounts with RBI for handing over the cash to the outsourced cash handling agency appointed by them. RBI will allow one bank to withdraw a maximum of Rs.10 crore, but if additional cash is required a bank may approach RBI more than once in a day. Explicit Fin to mull issue of shares on pref basis Sep 3 Explicit Finance Ltd has informed that a meeting of the Board of Directors of the Company will be held on September 03, 2011, inter alia, to consider and transact the following business : 1. To consider and approve the Audited Annual accounts for the year ended March 31, 2011. 2. To fix up Book Closure Date. 3. To fix date, time and venue for Annual General Meeting. 4. To issue of equity shares / convertible warrants on preferential basis to Promoters and/or to others. 5. To increase Authorized Share Capital of the Company. Sat Industries board OKs Rs.1.5 bn fund raising Sat Industries Ltd has informed that the Board of Directors of the Company at its meeting held August 27, 2011, inter alia, has took the following decisions: 1.To raise the find by way of issue of ADR/GDR/FCCB/QIP/OCD/ equity shares to the extent of Rs.150 crores subject to all approvals, sanctions, permissions, conditions etc. as may be applicable. 2. To increase the authorized share capital of the Company. 3. To make foray into real estate and infrastructure activities. New Bank Norms: WRAP: RBI in no rush to dish out bank licences The Reserve Bank of India released the draft guidelines for issuing new bank licences, which clearly indicated the central bank is in no tearing hurry to throw open the gates for corporate India to get into banking. New Bank Norms: RBI puts 20% cap on loans to promoter entities The Reserve Bank of India proposed that a new bank, if set up by a promoter entity that has more than 40% of its income from non-financial services, will not be allowed to lend more than 20% of its paid-up capital to other companies of the group. New Bank Norms: RBI panel looks to reduce arbitrage between bank, NBFC regulations The Reserve Bank of India's working group studying issues and concerns in the non-banking finance sector has sought to reduce regulatory arbitrage between NBFCs and banks. 'Branch expansion unlikely to help banks mop up deposits' Indian banks branch expansion drive, which has almost reached pre-crisis levels, will not help ramp up deposit mobilisation, as deposits and loans will continue to be concentrated in urban markets, according to an industry study. SBI may defer planned rights issue as govt agrees to infuse Rs.30 bn The finance ministry has agreed to infuse about Rs.30 bn into State Bank of India to meet the bank's immediate capital needs. SBI is now likely to defer its proposed rights issue to later in the year or even next fiscal. Govt sanction Rs.2000 crore capital infusion for few banks The government has decided to sanction Rs.2,000 crore to some public sector banks as part of its recapitalisation drive. Allahaband Bank mulling branches in 4 Asian cities State-run Allahabad Bank is mulling an entry into four Asian cities by opening overseas branches, with a view to increase its international footprint, a top official said.

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RBI to issue guidelines for Basel III implementation The RBI has said Indian banks will adhere to the globally agreed timeline for implementation of Basel III norms and guidelines in this regard will be issued in the near future. INFRASTRUCTURE DEVELOPMENT FINANCE CORP: • To raise Rs.1 bn through bonds maturing in one year and one day at 9.60%. • Fidelity Investments and affiliate FMR LLC have cut stake in IDFC to 3.01% from 3.14%. STATE BANK OF INDIA: Finance ministry has agreed to directly infuse Rs.30 bn in the bank to help meet its immediate capital needs. BANK OF INDIA: Has raised $200 mn through three-year syndicated loan for expansion of overseas business.

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

STEEL, METALS & MINERALS STEEL: • Stainless steel manufacturers JSW STAINLESS, VISA STEEL are looking to cut production due to rising raw material costs. COAL: • State-owned Central Coalfields plans to raise production to 4 mn tn per annum by 2013, from the current 1.5 mn tn per annum. • Government has proposed setting up a coal exchange to buy or sell coal with the option for spot and futures transactions. MINING: • The Supreme Court, on Aug 26, extended its mining ban to two more districts of Karnataka--Tumkur and Chitradurga. Steel ministry not in favour of banning or capping iron ore export The steel ministry is not in favour of banning iron ore exports but it feels appropriate fiscal measures are needed to conserve the natural resource. "...Conservation of iron ore resources of the country should be achieved not by banning or capping the export of iron ore but by taking recourse to appropriate fiscal measures," Steel Minister Beni Prasad Verma said in the Lok Sabha in reply to a query. India produced 208.11 mn tn iron ore during 2010-11 (Apr-Mar), of which 97.66 mn tn was exported. Iron ore exports fell 16.8% on year in 2010-11, as key producing state Karnataka put restrictions on transporting the mineral ore in July last year. Last week, the Supreme Court extended ban on iron mining to Tumkur and Chitradurga districts of Karnataka in addition to Bellary. Karnataka accounts for a quarter of India's iron ore exports. The minister said production of iron ore in the country was around double the consumption level, and therefore it was sufficient to meet the domestic steel sector's current requirements. "There is adequate availability of iron ore for private sector steel majors," Verma said. "As regards iron ore supply to the public sector undertakings, it is mentioned that Steel Authority of India Ltd has its own captive iron ore mines, which cater to its full requirement of iron ore." The ore requirements of Rashtriya Ispat Nigam Ltd and KIOCL Ltd are being fulfilled by state-owned miner NMDC Ltd, he said. Tata Steel plans new tube units to tap oil and gas, construction Tata Steel Ltd proposes new tube units to tap the growing demand from oil and gas, and construction sectors. “We will be adding capacity in the hollow sections for construction applications through a new unit in Kalinganagar and another unit for oil and gas applications,” said Mr Rajiv Mangal, Executive In-Charge, Tubes Division at Tata Steel. The company may invest about Rs.400 crore to set up a 3 lakh tonnes a year unit in Kalinganagar. It is scouting for a location in the coastal area to locate the unit that will cater to oil and gas. “Oil and gas being voluminous in nature, the new unit will be on the coast side,” Mr Mangal said. The Tubes Division has a current capacity of 4 lakh tonnes a year, accounting for a tenth of Tata Steel's flat product output of 4 mn tonnes a year. Tata Steel is expanding its flat products output to 12 mtpa by 2015- 16 through new capacity addition. “We want to be 10% of Tata Steel's flat products and have internally set a target of one mn tonnes by 2015,” Mr Mangal said. The Tubes Division, a profit centre, registered a turnover of Rs.1,900 crore in 2010-11, accounting for about 7% of Tata Steel's India turnover. “We expect to grow to Rs.2,200 crore this fiscal,” he added. Tata Steel currently manufactures a bulk of its tube products in Jamshedpur and partly in Kolkata and two other locations. The Tubes Division, which also manufactures structurals, pipes, precision tubes used in automotive and power sector, registered a 6% growth in output in 2010-11 at 3.7 lakh tonnes. JSW Steel FY12 output could fall to 6.6 mn tn vs guided 8.5 mn tn JSW Steel Ltd is expected to see a fall in steel production for 2011-12 (Apr-Mar) to 6.6 mn tn against the management's guidance of 8.5 mn tn due to the ban on iron ore mining in the districts of Tumkur and Chitradurga, brokerage Motilal Oswal Securities said in a note to investors. The Supreme Court on Friday extended its ban on mining iron ore to two more districts in Karnataka --Tumkur and Chitradurga. JSW Steel's production will be affected as the company could face a 25% cut in iron ore supplies due to the ban, the brokerage said. JSW Steel could either procure iron ore from other states to maintain production but will see costs rise, or shut one of its furnaces which could impact volume, the brokerage said.

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

Sesa Goa halts mining ops at Chitradurga mine following SC ban Sesa Goa Ltd has stopped the mining activities at Chitradurga in Karnataka with immediate effect after the Supreme Court on Aug 26 extended its mining ban in that district and Tumkur. Currently, the annual permitted capacity of the Chitradurga mine is 6 mn tn and the company expects this ban to adversely affect its performance. The Supreme Court order follows a report by an apex court-appointed Centrally Empowered Committee that said the level of environmental damage caused by mining in the two districts was in no way less than that in Bellary. Steel cos likely to increase product prices in Sep Domestic steel companies are likely to increase product prices in September due to rise in input costs. "The prices are most likely to go up next month. The quantum will be known only by next week or so," the newspaper said, quoting Essar Steel Executive Director Vikram Amin. Domestic steel companies have not raised prices since May. The rise in steel demand in China is also likely to put upward pressure on prices. Sesa Goa FY12 ore deliveries may fall 4 mn tn on SC mining ban Sesa Goa Ltd's wet iron ore deliveries in 2011-12 (Apr-Mar) is expected to fall to 17 mn tn from an earlier estimated 21 mn tn due to the ban on iron ore mining in Chitradurga and Tumkur districts in Karnataka, Motilal Oswal Securities said in a note to investors today. The brokerage cut Sesa Goa's 2011-12 (Apr-Mar) earnings per share estimates to 41.6 rupees, down by 9% and has maintained its "Buy" rating for the company's shares. Jharkhand High Court to hear Coal India mining ban case The Jharkhand High Court is scheduled to hear on Aug 30 a petition filed by Coal India Ltd challenging the Jharkhand State Pollution Control Board's order to suspend operations at its 22 mines, a senior official with the state-owned company said. Coal India, on Aug 25, got a stay on the closure order from the high court and operations at the 22 mines in Jharia region continue uninterrupted, the official said. The state pollution control board had ordered closure of the mines on Aug 23 for allegedly operating without necessary environmental clearances. The 22 mines together produce 40,000 tn per day of coal. Birla Corp suspends ops at Chanderia unit on HC mining ban Birla Corporation Ltd has suspended mining at its Chanderia cement plant, following the Rajasthan High Court's order to stop mining in the mining leases in a radius of 10 kms from the Chittorgarh Fort. The company has suspended mining of limestone at its 2.5-mn-tn annual capacity cement plant in Chanderia. Birla Corp is taking necessary legal measures for revocation of the High Court's order. The company said that the current limestone inventory at the plant would be sufficient to maintain production for six-seven days. Govt calls merchant bankers' bids to advise on Rashtriya Ispat IPO The government has invited bids from merchant bankers to advise it on the proposed initial public offer of state-owned Rashtriya Ispat Nigam Ltd. The proposals are to be submitted on September 6 by 1530 IST, the department said. The government will appoint up to five book-running lead managers for the issue. The government is looking at divesting 10% stake in the company. It plans to raise Rs.400 bn from divestments in the current financial year. CCL to double output to 4 mn tonnes per annum At a time when mining companies are facing difficulties in land acquisition and getting clearances from the environment ministry, state-owned Central Coalfields (CCL) plans to expand its operations to meet the increasing demand for coal in the country. Birla Corp suspends ops at Chanderia unit on HC mining ban Birla Corporation Ltd has suspended mining at its Chanderia cement plant, following the Rajasthan High Court's order to stop mining in the mining leases in a radius of 10 kms from the Chittorgarh Fort, the company informed the exchanges in a notice. Karnataka steel industry reeling under mining ban Reeling under raw material shortages and the extension of a mining ban, the multi-bn dollar Karnataka steel industry is in the doldrums due to continuing uncertainty over iron ore supply to their plants. Tata Steel Europe may need more restructuring With demand for steel having weakened in developed markets, Tata Steel says it will consider further restructuring at its European units if need arose.

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

Sesa Goa halts mining ops at Chitradurga mine following SC ban Sesa Goa Ltd has stopped the mining activities at Chitradurga in Karnataka with immediate effect after the Supreme Court extended its mining ban in that district and Tumkur. COAL INDIA: • High Court has ordered status quo on the closure of 22 operational mines of arm Bharat Coking Coal until Aug 30 for violation of green norms. • The Jharkhand High Court will today hear a petition filed by the company challenging the Jharkhand State Pollution Control Board's order to suspend operations at 22 of its mines. • Plans to invest 420 bn rupees over next few years as its projects get environmental clearances. • Aims to hike output by 5% in the current fiscal. • Coal ministry has informed parliament that COAL INDIA did not supply the entire quantity of coal contracted to NTPC and NALCO for Apr-Jun. TATA STEEL: • Would look at further portfolio restructuring at its European units if markets in the UK soften. • Plans to set up 4 bn rupee plant in Odisha for manufacturing oil and gas applications. BIRLA CORP: Suspends mining at its Chanderia plant following the Rajasthan High Court's order to stop mining in the mining leases in a radius of 10 km from the Chittorgarh Fort. SESA GOA: Has halted operations at its Chitradurga mine in Karnataka following the Supreme Court's ban on mining in the district. STEEL AUTHORITY OF INDIA: Has dropped plans to set up stainless steel plant in Salem, Tamil Nadu. ORISSA MINERALS DEVELOPMENT COMPANY: Plans to start operations in all its six iron ore mines by the end of FY12. ADITYA ISPAT: To raise funds via equity, warrant issue.

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AUTO & AUTO ANCILLARIES AUTOMOBILES: • French company PSA Pugeot-Citroen will set up a Rs.40 bn plant near the Tata Nano plant in Sanand, Gujarat. • All carmakers except MARUTI SUZUKI, TATA MOTORS and Hyundai Motor India showed a growth in demand for passenger vehicles in August over last year. All carmakers, except top three, report growth in August sales All carmakers showed a growth in demand for passenger vehicles in August with the exception of Maruti Suzuki, Tata Motors and Hyundai Motor India whose productions were hit due to varied reasons. While Maruti Suzuki reported a third straight month of year-on-year drop in sales, Tata Motors' fell for the fourth consecutive month. Maruti Suzuki sold 91,442 vehicles in the month, down almost 13% from the same month last year, as disruption in production at the company's Manesar plant in end-August adversely impacted sales during the month. The company's June sales had also been impacted due to a 13-day strike at its Manesar plant followed by a production realignment and introduction of the new Swift that brought down output in July. Tata Motors said its passenger vehicle sales suffered in August as it had to halt production at its Sanand plant to align inventory build-up and also or some maintenance activities. The country's largest auto company sold 16,829 passenger vehicles in August, down almost 33% from the same month last year. While Indigo model sales fell by about 4% in August, it was a 24% drop in Indigo sales that hurt Tata Motors. Utility vehicles sales rose 15% on year in the month. Hyundai's August sales were almost at the same level of the corresponding month last year with just a 1% growth. Arvind Saxena, director for marketing and sales at Hyundai Motor India, said, "The market continues to be tough and there are no signs of recovery in the immediate future. The rising fuel prices and interest rates have been instrumental in this sluggish market trend." Incidentally, barring the top three carmakers, most other manufacturers reported a healthy growth in August sales. Honda Siel said its sales in the month rose 25% on year. Similarly, Volkswagen said its sales grew 72% on year, while Ford reported a 9% growth in August sales. Mahindra & Mahindra said its passenger vehicles sales in the month increased 14% on year. General Motors India, too, reported a 14% growth in August sales and Toyota said its sales went up by as much as 84% in the month. Demand for commercial vehicles and two-wheelers remained buoyant in August with all manufacturers reporting a healthy growth. Tata Motors said its domestic commercial vehicles sales in the month rose 21% on year while Eicher said its despatches in August grew 30% from the same month last year. In the two- wheeler segment, Hero MotoCorp reported a 19% growth in August sales and TVS Motor said its sales grew 14% on year in the month. Honda Motorcycle and Scooter India said its sales grew 21% on year in August while India Yamaha Motor reported a 32% rise in August sales. Suzuki Motorcycle India said its sales rose 39% on year. Peugeot Citroen to invest Rs.40 bn in car plant in Gujarat French automaker PSA Peugeot Citroen said it would invest Rs.40 bn to build a new factory in Gujarat that would have an initial capacity to make 170,000 vehicles a year. "Additionally, an engine and gearbox plant, using the latest and most advanced power train technologies, which the Group is reputed for, will help constitute a fully-fledged modern industrial automotive facility," Peugeot Citroen announced on its website. It said the first locally-produced Peugeot car is expected in 2014 but did not mention anything about the proposed models. "We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020," the website quoted Philippe Varin, chairman of the managing board of PSA Peugeot Citroen, as saying. The company also said it would participate in the Delhi Auto Expo in January. Gujarat is fast emerging as the latest auto-manufacturing hub after Tamil Nadu, Maharashtra and Pantnagar. Recently, Ford Motor said it would invest 40 bn rupees in a new vehicle assembly and engine manufacturing facility at Sanand in Gujarat to churn out nearly a quarter of a mn cars every year. Ford already operates a vehicle and engine unit in Chennai. India's top carmaker Maruti Suzuki, too, has evinced interest in setting up a one-mn-unit-per-year vehicle assembly plant in the state. Maruti Suzuki already operates two plants in Haryana and is building another two there. After being forced out of Singur in West Bengal, Tata Motors took refuge in Gujarat for its Nano factory. The company's plants are otherwise largely concentrated in Maharshtra with one factory being in Uttarakhand. General Motors and local commercial vehicle maker Asia Motor Works already operate factories in Gujarat. Incidentally, for Peugeot, this would be its second coming to India. The French automaker had a joint venture tie-up with Premier Auto, which was called off in the late 1990s. The joint venture used to manufacture the Premier Padmini cars.

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

Mahindra & Mahindra to launch new SUV XUV-500 by December Mahindra & Mahindra Ltd will launch its much-awaited global sports utility vehicle--XUV 500--by December, Pavan Goenka, president - automotive and farm equipment sector, said. "We will simultaneously launch XUV 500 (in India and) in South Africa under the same brand name," he said. The new product will be positioned between Mahindra & Mahindra's Scorpio and Toyota's Fortuner. "(This new) category at that price point won't be that large (in terms of volume) and that would be a challenge...the product will be positioned above Scorpio," Rajesh Jejurikar, chief executive - automotive division, said. It is the gap between the Scorpio and the Fortuner that M&M plans to fill in the utility vehicles market in the country, he said. In terms of price, there is a significant gap between the two products, which is somewhat filled by Tata Motors Ltd's Aria and the recently-launched Force One from Force Motors Ltd. The base price for a Scorpio ex-showroom Mumbai is Rs.800,734, and the highest price point for the range is Rs.1.06 mn, while Toyota's Fortuner is priced at Rs.2.1 mn ex-showroom Mumbai. Tata Motor's Aria is priced between Rs.1.2 mn and Rs.1.6 mn, while the Safari is priced between Rs.810,208 and Rs.1.3 mn, ex-showroom Mumbai. Force One is priced around Rs.1.06 mn. Tata Motors is looking to launch a new Safari, but is yet to finalise a date for the same. Other vehicles in the utility vehicles segment, such as Mitsubishi Outlander and Honda's CR-V are priced above Rs.2.2 mn. The XUV 500 will be manufactured at M&M's Chakan unit near Pune. Tata Motors total vehicle sales in Aug dn 3% on yr to 64,078 units Tata Motors Ltd's total sales in August dropped 3% from a year ago to 64,078 vehicles as demand for its passenger vehicle models remains weak. Passenger vehicle sales fell 33% on year to 16,829 vehicles. Passenger vehicle sales in August suffered mainly due to low production of the Nano and tepid demand for the Indigo range of vehicles. "Production at Tata Motors' Sanand plant has resumed after a temporary suspension for about a fortnight. This was done for maintenance and to rationalise and align inventory," the company said in a statement. The company despatched 1,202 units of the Nano in August. While Indica sales dropped by 4% on year, it was a 24% on-year decline in Indigo models that hurt Tata Motors in August. Sales of multi-utility vehicles comprising Sumo, Safari and Aria models rose 15% on year in August to 3,321 units. The company's joint venture with Fiat India Automobiles Ltd sold 1,069 Fiat cars in the month, down from 1,812 units a year ago. The company's domestic commercial vehicle sales in August grew 21% on year to 43,045 vehicles. Growth in this segment was driven by sales of light commercial vehicles, which rose 27% to 26,344 units. Tata Motors sold 16,701 medium and heavy commercial vehicles in the month, up 12% on year. The automaker said its exports in August fell 18% on year to 4,204 vehicles. Maruti Aug total sales slip 3rd month in a row; down 13% on yr Maruti Suzuki India Ltd today reported a third successive monthly decline in sales in August as production of the Swift, SX4 and A-Star models were hampered due to labour unrest at its Manesar factory. The country's top carmaker sold 91,442 vehicles in the month, down almost 13% from the same month last year. "The disruption in production at the company's Manesar plant in end-August adversely impacted the sales numbers during the month," the company said in a statement. August total sales were, however, better than those in July when the company had sold 75,300 vehicles. Production has been impacted at the Manesar factory since Aug 29 after the company insisted workers sign a "good conduct" bond before being allowed to enter the premises. Since then, the company has been able to restore some assembly operations with the help of factory supervisors and 200 temporary contract workers. The Manesar factory makes 1,200 cars a day with about 1,600 employees, of which 950 are permanent workers and the rest contractual. The company's August domestic sales fell 17% on year to 77,086 vehicles, while exports rose 18.5% on year to 14,356 units. During the month, sales of compact cars fell 27% on year, mini sales slid 18%, and super compact (Dzire) sales slipped 7%. The company has re-classified its models into new segments following the Society of Indian Automobile Manufacturers' switch to a new format. While the Swift, Estilo and Ritz models now come under the "compact vehicles" classification, M800, A-Star, Alto, and WagonR models come in the "mini" car classification. Dzire has been named a "super compact", SX4 "mid-size" and the Kizashi "executive". Gypsy and Grand Vitara models now fall under the "utility vehicles" category, while Omni and Eeco are classified as "vans". In August, the company sold only 8 units of its Kizashi sedan that was launched in February. Maruti sold 1,290 units of utility vehicles Gypsy and Grand Vitara, and 12,500 units of vans in the month. M&M Aug total sales, excluding tractors, 37,684 units, up 30% on yr Mahindra & Mahindra Ltd's total sales, excluding tractors, in August rose 30.4% on year to 37,684 vehicles, the company said in a statement. However, total sales fell about 5% sequentially. Domestic sales in August rose 31% on year to 35,756 units during the month, while exports rose over 18% to 1,928 units. Sales of

Weekly Newsletter 34 Info-Spectrum Bridging the Information Gap in Corporate Landscape passenger vehicles, which include utility vehicles and Verito sedan, rose 13.5% on year to 15,664 units, with the Verito sedan accounting for 1,710 units. In August, the company sold 6,394 three-wheelers, up 26% from 5,074 units sold a year ago. It also sold 12,563 units of four-wheel pick-ups, which include the Gio and Maximo brands, against 7,533 units sold a year ago. M&M's joint venture to manufacture commercial vehicles with US-based Navistar Inc sold 1,135 units in August as against 872 a year ago. Total tractor sales in August stood at 16,003 units, up 19% from 13,436 units sold in the corresponding month last year. Maruti 2nd Manesar plant to begin operations in next two days Maruti Suzuki India Ltd today said it would begin operations at its second Manesar factory in the next two days, almost six months ahead of schedule. "Maruti Suzuki may commence operations at its second Manesar plant in a day or two," the company said in a statement. Initially, the company had planned to begin production at the new unit from Jan-Mar 2012, but had later advanced it to October this year. The new unit is the first of the two new plants Maruti Suzuki is building at Manesar, which will have a total combined capacity to make 500,000 cars a year. Maruti Suzuki currently has a capacity to manufacture 1.3 mn vehicles at its two plants at Manesar and Gurgaon. The third Manesar unit is likely to begin production by the end of next year. "Since the company is short of manpower at this stage, starting operations at this second plant will be a shot in the arm for the company," Maruti Suzuki said. Production at Maruti Suzuki's existing Manesar factory has of late suffered due to recurrent labour problems. The company has had to halt production thrice in the last three months due to labour unrest. Even now, workers at the Manesar plant are protesting the company's insistence that they sign a "good conduct" bond without which Maruti Suzuki won't let them enter the premises. The country's top carmaker has, however, been able to restore some operations at the Manesar plant by recruiting 300 fresh workers on contract. It has also deployed about 50 engineers from the company's Gurgaon plant and around 290 supervisors at the Manesar plant. Maruti begins some ops at Manesar plant; hires 200 temporary staff Maruti Suzuki India Ltd restarted some operations at its Manesar plant, deploying factory supervisors and some engineers from its Gurgaon plant. "The Manesar plant has about 290 supervisors. In addition, around 50 diploma engineers from the company's Gurgaon plant were also deputed," the company said in a statement. There has been no production at the facility since Monday morning after the company barred workers from entering the factory without signing a "Good Conduct Bond", which the labourers refused. "Early this afternoon, the company commenced operations in areas like weld shop, press shop and paint shop," it said. The company also said it has hired on contract basis 200 workers who are likely to join in the next two to three days. "The entire strength of manpower may be deputed in a single shift for effective execution of production activities," the company said. Maruti Suzuki makes 1,200 cars a day at its Manesar plant on a two-shift basis. The company said, 36 workers, who had already signed the "Good Conduct Bond", have been deployed in operations that began today, the company said. The company has till now suspended 16 workers and terminated services of 12 trainees from the Manesar plant on charges of sabotaging production and deliberately causing quality problems in the vehicles manufactured at the plant. SML Isuzu to rejig strategy as luxury bus demand falls Commercial vehicle and parts maker SML Isuzu (formerly Swaraj Mazda) is revamping its business strategy in the bus segment and has decided to shift its focus from making air-conditioned luxury buses to low cost wide-body buses. The shift in the strategy comes on the back of modest demand for ultra luxury buses and new trends in passenger transportation segment. A couple of years ago, along with capacity ramp up plans for its goods vehicles, the company had also embarked on an expansion to foray into the manufacture of air- conditioned luxury buses and coaches targeted at the tourism industry and long distance inter-city travel. Following this, the company had also launched two air-conditioned buses on Isuzu platform and one on Mazda chassis. However, with marginal growth in the ultra luxury bus segment, the company felt it would be difficult to penetrate deeper into the premium bus market and restricted its spend to bare minimum. Of the planned investment of Rs.18 crore part of the money raised through right issue last year for the luxury bus foray, it has spent only about Rs.3.2 crore, according to the company’s latest annual report. Meanwhile, the Rs.904-crore company has decided to shift its focus to the low-cost bus segment due to new trends in the passenger transportation segment. It has reworked its expansion strategy to foray into manufacture of all sheet metal low-cost wide body buses. These buses having a seating capacity for 37-42 passengers are at present under development with technology from a Chinese firm – Zhong-Tong Bus Company, in different wheelbase versions and overall length between 9.4 to 10.8 metres. Following this revamped strategy, the company plans to spend its unutilised fund of Rs.1,478 crore for tweaking equipment, plant, machinery and manufacturing operations to suit the wide body bus production at its Nawanshahar manufacturing unit in

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

Punjab. It hopes to complete this expansion by March 2013. During 2010-11, SML Isuzu sold 12,870 vehicles compared to 10,133 units in the previous year, with an increase in the market share to 13% from 12.2% in the previous year. The company operates in 5-12 tonnes GVW segment, which accounted for 99,500 units of total CV sales of 753,000 units in 2010-11. In the first quarter of present financial year, the company reported a growth rate of 13% in vehicle sales at 3,049 units compared to the previous year. Fresh labour trouble at Maruti; co may suspend output at Manesar Production at Maruti Suzuki India Ltd's Manesar plant is likely to be hampered again as fresh trouble brewed between the workers and the management. This would be the third production halt at the Manesar unit in as many months. "The management is not allowing any worker to go inside the plant," one of the shop floor employees of the company told. "They have even suspended 21 workers." The worker said the company had locked the plant since Aug 28 night. "When the workers came in for the first shift at 0700 IST, they found the gates locked," the worker said. A company spokesperson confirmed the fresh trouble and said, "Production is likely to be impacted today." He said 10 workers had been suspended and another five dismissed on charges of deliberately causing quality loss to products. "They (workers) were given two months' time to sign a good conduct bond, which they refused to do. Some workers even began sabotaging production and causing loss of quality," he said. India's top carmaker Maruti Suzuki makes about 1,200 cars per day including the SX4 sedan, A-Star and Swift hatchbacks at the Manesar plant. In Jun, around 800 workers went on a 13-day strike at the Manesar plant, crippling production and causing revenue loss of almost $90 mn in lost production. Workers were then demanding recognition of a new union specific to the plant. Maruti Suzuki, which sells nearly half of its cars in India, saw sales fall almost 9% on year in June due to low production. Production at Manesar was again hampered for a few hours on Jul 28 after the company initiated disciplinary actions. Nissan starts production of mid-size sedan Sunny Nissan Motor India has started the production of its second India-built car (after Micra) and its fifth model in the country — the Sunny mid-size sedan — at its plant near Chennai. To be available at its dealers from Oct this year, the Sunny is being manufactured with 85% local parts, which will help the Japanese carmaker price it more competitively. Initially available with only a petrol engine, it is expected to compete with models such as the Honda City, Volkswagen Vento and Hyundai Verna. Mr Kou Kimura, CEO and MD of Renault-Nissan Alliance India said, “Today's start of production of Sunny reinstates Nissan's commitment to India and is the second of many other local products to come. It highlights the high-performance level of our plant, which is producing its second model in less than 15 months”. Built on the Micra's V platform, the sedan is expected to help Nissan garner high volumes. TVS Motor Aug total sales up 14% on year; motorcycles up 17% TVS Motor Co Ltd sold 194,898 vehicles in August, up 14.15% from the same month a year ago, the company said in a statement. Total two-wheeler sales for the month also rose 14% on year to 190,184 vehicles. While motorcycle sales during the month grew 17% on year, scooter sales rose 28%. The company said it sold 77,726 motorcycles and 52,253 scooters in August. Sequentially, motorcycle and scooter sales were up 11% and 6% respectively. Three-wheeler sales during August were 4,714 units compared with 3,626 sold last year. The Chennai-based company exported 29,984 vehicles in August, up 48% from 20,245 units it sold in the overseas market a year ago. Hero MotoCorp Aug total sales 503,654 vehicles, up 18.6% on year Hero MotoCorp Ltd, formerly Hero Honda Motors Ltd, said it despatched 503,654 vehicles from its factories in August, up 18.6% from the same month last year. The company had sold 491,036 vehicles in July. "The August sales performance has set the pace for the exciting festive season ahead of us as we look to ride our present buoyancy," Senior Vice-President, Marketing and Sales, Anil Dua, said in a statement. The company's total sales from April to August have topped 2.5 mn units, up 21% over the corresponding period in 2010. Eicher Trucks and Buses Aug total sales 3,642 units, up 30% on yr Eicher Trucks and Buses, a unit of VE Commercial Vehicles Ltd, said the company sold 3,642 vehicles in August, up 30% from the corresponding month a year ago. August sales were, however, 12.3% lower than July sales. The company's exports during the month were at 235 units against 225 units a year ago. The company's export order book remains strong, Eicher said in a release. Eicher is India's third largest manufacturer of trucks and buses after Tata Motors Ltd and Ashok Leyland Ltd. VE Commercial Vehicles is a joint venture between Eicher Motors and Sweden's Volvo.

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

Kinetic Engg to invest Rs.110 mn in Kinetic Motor Co Kinetic Engineering Ltd has informed that members of the Company by way of Postal Ballot have passed the resolution according the approval to invest in the shares of Kinetic Motor Company Limited, a sum not exceeding Rs.11 crore, with requisite majority. No sign of Maruti Suzuki labour trouble resolving anytime soon Maruti Suzuki India Ltd does not see an immediate solution to the fresh spate of labour problems that has halted all production at its troubled Manesar manufacturing plant since Aug 29 morning. With workers refusing to accede to the company's "Good Conduct Bond" and Maruti Suzuki management declining to engage into any negotiations, there is little hope that production at Manesar is going to resume even on Aug 30. Production at Maruti Suzuki's other facility at Gurgaon remained normal. This is the third production stoppage at the Manesar unit in as many months due to labour problems. Maruti Suzuki to launch 15-20 new models in next 5 years Maruti Suzuki India Ltd is planning to launch 15-20 new models in the next five years. About 70-80% of the new models will be in the small car segment. The new models being planned include a sub-4 mtr Swift Dzire, a mutli-purpose vehicle and a new version of Alto. The company is planning to invest Rs.10-15 bn on product development, and research and development. Suzuki Motor Corp has decided to merge its R&D in Japan with its Indian subsidiary. TVS eyes new markets for assembly plants TVS & Sons, the holding company of TVS group, will enter Turkey, Thailand and Nigeria to set up either distribution centres or assembly plants to boost TVS Motor's two-wheeler sales. Hyundai Motor boss gives USD 462 mn to charity South Korean auto giant Hyundai Motor said its Chairman Chung Mong-koo has donated USD 462 mn to charity as part of a pledge he made in 2006 while being investigated for corruption and breach of trust. MARUTI SUZUKI: • Source says company may temporarily suspend operations at Manesar plant. Company has suspended 21 workers at the plant. • Company plans to launch 15-20 new vehicles over the next five years and will continue focussing on low cost vehicles. • Expects sales to grow merely 6-7% in 2011-12 (Apr-Mar), as against 25% in 2010-11 (Apr-Mar). • Partly restarts operations at its Manesar plant; hires 300 temporary staff. • Has said it will begin production at its second factory in Manesar in the next two days. • Is exploring setting up a manufacturing plant in Gujarat. HERO MOTOCORP: • Is planning to set up a manufacturing plant in Gujarat. • Sold 503,654 units in August versus 424,617 units a year ago. TVS MOTOR CO: Holding company TVS & Sons to set up either distribution centres or assembly plants in Turkey, Thailand, and Nigeria to boost two-wheeler sales. TATA MOTORS: Has hired State Bank of India to help it borrow $500 mn in a term loan to meet its general corporate expenses. BAJAJ AUTO: Has started assembling two and three wheelers for the African market in Tanzania. MAHINDRA & MAHINDRA: Will set up an Rs.18 bn automobile plant in Cheyyar in Tamil Nadu. KINETIC ENGINEERING: To invest Rs.110 mn in Kinetic Motor Co. FORCE MOTORS: Is exploring setting up a plant in Gujarat.

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

MISCELLANEOUS CONGLOMERATE: • Hinduja Group looks to convert its energy arm Hinduja Energy India into an investing company; plans to bring Rs.4-bn foreign direct investment into the arm. • The search for Ratan Tata's successor has come down to two or three candidates, and there is growing consensus that an internal candidate will be chosen. • Chairman Ratan Tata says Tata Sons planning to raise holding in group companies. ACCOUNTING: • Institute of Chartered Accountants of India will come out with a new code of ethics for chartered accountants. FAST MOVING CONSUMER GOODS: • Value added tax on cigarettes in West Bengal is set to increase to 30% from the current 13.5%. MEDIA: • The government plans to separately tax film production and distribution. TEXTILE: • Fabindia has invited private equity investors to invest in the company and also buy 8% stake held by Wolfensohn Capital Partners. FINANCIAL SERVICES: • Promoters of non-banking finance companies that are eligible for bank licences will have to set up a separate banking entity if some or all of the NBFC's activities cannot be undertaken by banks departmentally. FOREIGN DIRECT INVESTMENT: • Government said it cleared 123 foreign direct investment proposals totalling Rs.197.11 bn until Aug 23. REGULATORY: • The RBI has revised existing guidelines for authorisation of primary dealers with effect from Aug 30. Lighting Science ties up with Dixon to enter India Dixon Technologies India Pvt Ltd, an electronic manufacturing services provider, is setting up a Rs.50 crore facility in Noida to manufacture Lighting Science Group's (LSG) LED lighting solutions for the India market. As part of an exclusive tie-up with the American firm, Dixon will also distribute and sell the LSG lighting products in India. The partnership would help LSG gain a foothold in the Indian LED market, which is set to grow to Rs.2000 crore by 2015. “Our partnership with LSG will make LED technology available for large scale implementation in the Indian market. We expect to be a market leader in two years,” said Mr Sunil Vachani, Chairman and Managing Director, Dixon Technologies. The new facility is expected to be operational by January 2012. The partnership will initially target the street lighting and institutional segments and will eventually focus on the domestic lighting. LSG has already developed six specific LED products for the Indian market. LSG officials claimed that their lighting products produce more light for less energy than any other similar products currently available in India. “As India undergoes an infrastructure transformation in the next few years, the country has an unprecedented opportunity to leapfrog the rest of the world by becoming an early, large-scale adopter of LED technology,” Mr Fred Maxik, Chief Technology Officer, LSG said. Dixon contract manufactures a range of products such as televisions, DVD players, mobile phones and set-top- boxes for customers including LG, Toshiba, Philips and Dish TV among others. The company had a turnover of Rs.1,000 crore in 2009-10. Omega Ag-Seeds to issue 60-mn-rupee equity shares Omega Ag-Seeds Punjab Ltd has informed that a meeting of the Board of Directors of the Company will be held on September 02, 2011, inter alia, to consider following matters; 1. To increase the Authorised Share Capital of the company from 5 Crores to 25 Crores. 2. To consider issue of further equity shares and/or any securities linked to, convertible into or exchangeable for equity shares for on aggregate amount not exceeding Rs.6 Crores, subject to the approval of the members of the Company and to authorize Management committee of Board of Directors to take decisions in this regard. 3. To consider and approve the Balance Sheet and the Profit and Loss Account for the year 2010-11 and the reports of directors and

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

Auditor's thereon. 4. To consider / note the status of Directors under section 274 (1) (g). 5. To consider and take note of the directors to retire by rotation at Annual General meeting. 6. To fix date; time and venue of the ensuing Annual General Meeting. 7. To consider the Appointment of Auditor's and the payment of remuneration to them, to be proposed for members' consideration. 8. To take note of the draft Auditor's report. 9. To consider the draft Directors' Report and to authorize Issuance thereof. 10. To approve / note the closure of the Register of Members and the Share Transfer Books for purpose of the Annual General Meeting. 11. To consider the draft Notice of the Annual General Meeting and to authorize issuance thereof. CRISIL sees Gold Index as benchmark for gold based financial pdts Rising investment demand for gold in India has seen various new products being offered recently. Among these, gold exchange-traded funds have been the most popular and successful. However, many fund houses have been calculating fund values on their own, in absence of an established benchmark. CRISIL's Gold Index, launched, may fill this vacuum. "Gold Index will address a lot of inconsistencies (in respect of evaluation) in the market and will give an opportunity to (stake holders) use it as benchmark for evaluating the performance of various gold products," said Tarun Bhatia, director-capital markets, CRISIL Research. The index will be a public index and any body can use it, he said. Since the global credit crisis in 2008, gold has been outperforming the equity markets consistently. The precious metal gave an annualised return of 22.91% between Aug 2008 and Jul 2011, compared with 9.3% by S&P CNX Nifty, the equity market index of National Stock Exchange. India currently has 11 gold ETFs and three gold fund-of-funds and CRISIL is hopeful that funds will use its index as a benchmark to evaluate the performance their products. The CRISIL Gold Index will be based on the landed price of 10 gm gold in Mumbai, with Jan 2, 2007 as a base date, Bhatia said. The daily index values will be available on the company's website. Bengal ups tax on tobacco products, Indian-made foreign liquor The West Bengal government hiked value-added tax on tobacco products and excise duty on Indian-made foreign liquor in the state. Presenting the state's tax proposals for financial year 2011-12 (Apr-Mar), Finance Minister Amit Mitra said the excise duty on Indian-made foreign liquors has been raised to 50% from 37% earlier for products that come without a maximum retail price. In case of Indian-made foreign liquors with a maximum retail price marked on the packaging, the excise duty will be charged at 27% as against 23% earlier. The value-added tax on cigarettes and other tobacco products has been put under Schedule D, which attracts a levy of up to 30%. The previous levy on cigarettes and tobacco products was at 13.5%. Tata group cos aim 20-50% emission reduction in 10-30 years Tata group companies are aiming a 20-50% emission reduction in 10-30 years. The group, which began carbon footprint measurement of group companies in 2008, will bring all its 76 companies under the GHG Protocol Corporate Accounting and Reporting Standard, an emission calculating methodology, this year, the report said. According to the report, group companies like Tata Steel, Tata Power, Tata Chemicals and Tata Motors have set different emission reduction targets. While Tata Steel has taken up ultra-low carbon dioxide steel making project and aims to achieve 50% reduction in carbon emissions by 2050, Tata Chemical has set a target of 20% reduction in green house gas emissions by 2020, the report said. Bodal Chem sells Vadodara plant for Rs.6.4 bn to Kiri Dyes Bodal Chemicals Ltd has sold off its single super phosphate plant at Padra, Vadodara for Rs.6.4 bn to Kiri Dyes and Chemicals Ltd and expects to close the transaction by September. The company is also considering issuing bonus shares at its board meeting, the release said. Bodal Chemicals plans to use the sale procees to repay debt and pursue diversification opportunities. "The company will become a zero debt company after the repayment of existing debts and still plenty of cash will be available with the company," the press release quoted Suresh Patel, chairman and managing director of the company, as saying. Blue Circle Services to mull 10-for-1 stock split Sep 5 Blue Circle Services Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 5, 2011, to consider the following agenda: 1. Split/Sub-division of Equity Shares of the Company of the face value of Rs.10 each to the face value of Re.1 each. 2. To alter Capital Clause of Memorandum of Association & Articles of Association to give effect of split In face value of Equity Shares. 3. To consider mode of taking approval of Members of Company (whether to Call EGM or take approval through Postal Ballot Rules, 2009) and to finalize such date for approval of Members for above agenda. Maximaa Systems to mull stock split, pref issue Sep 5 Maximaa Systems Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 05, 2011, inter alia, to consider the following items: 1. Preferential Issue of Equity

Weekly Newsletter 39 Info-Spectrum Bridging the Information Gap in Corporate Landscape shares. 2. Sub division of Face Value of Equity Shares of the Company. 3. Alteration in Memorandum and Article of Association of the Company. 4. Approving Notice and fixing day, date, time and venue of Annual General Meeting for the F.Y. 2010-2011. Shekhawati Poly Yarn to mull pref issue of shares Shekhawati Poly Yarn Ltd has informed that a meeting of the Board of Directors of the Company will be held on August 31, 2011, inter alia, to consider the following business: 1. To consider the Issuance of Equity Shares on Preferential basis. 2. To consider the Increase of Authorized Capital of the Company. 3. To consider the Draft of Revised Notice of the Annual General Meeting and fix dale, day time and Place for the Annual General Meeting. RBI says exchange houses can receive remittances from Malaysia Non-resident exchange houses will be allowed to receive inward remittances in their vostro accounts in India through exchange houses situated in Malaysia, the Reserve Bank of India notified. Earlier, remittances in the rupee or foreign currency vostro accounts of exchange houses were permitted only from Gulf countries, Hong Kong, and Singapore through exchange houses situated in Gulf countries, Hong Kong and Singapore, under the rupee drawing arrangements. BAG Films OKs 17.5-mn-warrant pref issue to promoter BAG Films and Media Ltd has informed that the Board of Directors of the Company, at its meeting held on August 29, 2011 has approved the preferential issue of 17, 500, 000 (One Crore Seventy Five Lac) warrants convertible into equity shares at a later date, to ARVR Communications Private Limited, a Promoter Group Company subject to approval of the shareholders in the forthcoming Annual General Meeting and such regulatory or statutory approvals as may be necessary/required. Rishi Techtex OKs merger of Centennial Fabrics with self Rishi Techtex Ltd has informed that the Board of Directors of the Company at its meeting held on August 27, 2011, inter alia, have approved the scheme of Merger between Centennial Fabrics Ltd and Rishi Techtex Ltd. The Exchange ratio approved is one share of Rishi Techtex Ltd for every share held in Centennial Fabrics Ltd. Direct selling cos rush North-East India to expand biz The mainstream industry may have stayed away from making heavy investments in India's North- Eastern states due to social and political problems there, but direct selling firms are rushing into the region to cash in on the rising aspirations of the youth. Reliance ADAG may sell up to 49% in DTH business The Reliance Anil Dhirubhai Ambani Group is planning to sell up to 49% stake in its DTH venture Reliance Big TV in a deal which is valued at around Rs.20-25 bn. The group may sell the stake to one or more investors, domestic or foreign, soon after the imminent hike in foreign direct investment cap in DTH to 74%. Fabindia invites bids from PE firms to buy Wolfensohn Capital's 8% shr Marquee ethnic wear chain Fabindia has invited bids from private equity investors to buy out Wolfensohn Capital Partners's 8% stake in the company. Fabindia plans to raise Rs.2 bn from the deal to fund expansion in the domestic market. Around a dozen private equity funds have expressed interest in investing in the company, of which Fabindia will select four-five firms to begin discussions. HS INDIA to dilute stake in Kesar Motesl HS India Ltd has informed that the Board of Directors of the Company at its meeting held on August 29, 2011, inter alia, has decided as follows: - Subject to the approval of members, dilute investment holding of 1, 62, 715 equity shares of Rs.100 each in Kesar Motesl Pvt. Ltd. to Sai Ram Krupa Hotels Pvt. Ltd. No penalty on brokers if wrong-client trades annulled In a reprieve to brokers having erred genuinely in their share sale or purchases, capital market regulator Sebi and the stock exchanges have decided not to penalise them if the trades executed in wrong names are declared as annulled. BSE assures of mkt interest in proposed SME exchange The Bombay Stock Exchange (BSE) has assured the government of sufficient interest from market participants and investors in the proposed SME exchange where shares of small and medium-size companies would be traded.

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

Bodal Chem shrs sway on conflicting notices on unit sale, bonus shr Two contradictory notifications from Bodal Chemicals Ltd to the Bombay Stock Exchange--one suggesting a board meeting that cleared sale of its single super phosphate unit and a bonus issue of shares and other denying these developments--sent the company's shares on a roller coaster ride. Reliance Ent procures court order for 'Bodyguard' Reliance Entertainment said it has procured an order from the Delhi High Court to prevent the illegal broadcast or streaming of its upcoming film, '''Bodyguard'', starring Salman Khan and Kareena Kapoor. Mattel to launch Fisher-Price, Hot Wheels apparel Toy-maker Mattel has said it will enter the domestic kids apparel segment by the year-end via its popular brands Hot Wheels and Fisher-Price. Pearson eyes ties with edu entities for language tests Diversified group Pearson is looking for partnerships to expand the reach of its English language tests in the fast-growing Indian education sector. 'ESOPs could be good corporate governance tool' Doling out employee stock options (ESOPs) could help improve the relationship between a company's employees and its management, leading to better corporate governance, advisory firm Mazars has said. Japan's Hitachi eyes acquisition in India to double revenue Tokyo-headquartered Hitachi is planning expansion in India and is eyeing to double revenues from the country. The company is also keen to acquire firms to grab market share in a short span of time. HINDUSTAN UNILEVER: Has been asked by the Advertising Standards Council of India to withdraw the leaflet advertising its water purifier brand Pureit for disparaging rival Tata Swach device. BALLARPUR IND: Expects operating margins to go up to 24-25% from the current 19% once the proposed expansion at its Malaysian pulp unit is completed. RELIANCE BROADCAST NETWORK: In talks with private equity players and strategic investors to raise 3- Rs.4 bn through fresh equity issue TITAN INDUSTRIES: Targets Rs.35-bn turnover by FY15 on network expansion, introduction of new designs. TATA GLOBAL BEVERAGES: Is considering entering the nourishing foods and nourishments segment. KOUTONS RETAIL: Board approves issuing shares on preferential basis to promoters, others. BAG FILMS & MEDIA: Has approved preferential issue of 17.5 mn warrants to the promoter. GILLETTE INDIA: Apr-Jun net profit slumps 86.5% on year to Rs.25.1 mn. BHANDARI HOSIERY EXPORTS: To raise Rs.600 mn for expansion.

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

IPO Watch Govt calls merchant bankers' bids to advise on Rashtriya Ispat IPO The government has invited bids from merchant bankers to advise it on the proposed initial public offer of state-owned Rashtriya Ispat Nigam Ltd, the Department of Disinvestment said on its website. The proposals are to be submitted on September 6 by 1530 IST, the department said. The government will appoint up to five book-running lead managers for the issue. The government is looking at divesting 10% stake in the company. It plans to raise Rs.400 bn from divestments in the current financial year.

SRS Ltd's initial public offer was oversubscribed 1.25 times on Aug 26, the last day of the issue.

The government has invited bids from merchant bankers to advise on the proposed initial public offer of Rashtriya Ispat Nigam.

The Securities Appellate Terminal has asked Vaswani Industries to give an exit option to retail investors.

ISSUES CLOSED Size Face To Issue Issuer Shares:Rupees Value Issue Period List Lead Manager Price (mn:bn) (rupees) on Brooks Laboratories 6.3:0.63 10 100 16/08-18/08 Sep 5 D&A Financial Enam, Antique, TD Power Systems N.A:2.27 10 256-261 24/08-26/08 - Equirus SRS 35:N.A 10 58-65 23/08-26/08 - Karvy, IDBI, SPA Readymade Steel N.A:0.347 10 108 27/06-29/06 - Arihant India VMS Industries N.A:026 10 40 30/05-02/06 - Ashika Vaswani Industries 10:0.49 10 49 29/04-03/05 - Ashika

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

MERGERS & ACCQUISITIONS ==INDIA-ABROAD==

MPHASIS - WYDE CORP Announced: Aug 30

MphasiS completes acquisition of US-based Wyde Corp.

Status: Complete

==GLOBAL M&A==

A consortium of China's CITIC Group, Baosteel Group Corp, Taiyuan Iron and Steel (Group), Anshan Iron & Steel Group, and Shougang Group Co will acquire 15% stake in Brazil's CBMM for $1.95 bn.

MELROSE PLC – CHARTER INTERNATIONAL

UK-based Melrose Plc has sweetened its 1.4 bn pound sterling, or $2.3 bn, deal for Charter International by raising its offer by 2%.

AURICO GOLD - NORTHGATE MINERALS

Canada's Northgate Minerals agrees to be acquired by AuRico Gold for C$1.46 bn, or $1.48 bn, ending a proposed deal with Primero Mining.

EUROBANK - ALPHA BANK

Large-cap Greek lenders Eurobank and Alpha Bank to merge their businesses.

PEABODY ENERGY, ARCELORMITTAL - MACARTHUR COAL

Peabody Energy and ArcelorMittal may acquire Macarthur Coal in a sweetened A$4.9 bn, or $5.2 bn deal.

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

RATINGS ICRA affirms BB on Peninsula Projects' fund based facilities

ICRA affirmd BB on Peninsula Projects' fund based facilities

Capital Electricals' term loan gets ICRA A4

Chandri Paper & Allied Products' fund based limits get ICRA BB

ICRA affirms B on Hi-Mac Castings' term loans

Nilesh Exim's letter of credit gets ICRA A4

CRISIL affirms BB-/Stable on Sun Paper Mill's cash credit

Jaipan Industries' cash credit gets CRISIL BB/Stable

Kartikay Resorts' term loan gets CRISIL B/Stable

Mobile Communications' cash credit gets CRISIL BB/Stable

CRISIL BB/Stable on RG Shaw & Sons' cash credit

Sai Point Cars' cash credit gets CRISIL D

CRISIL affirms BB+/Stable on Sarthak Metals' cash credit

CRISIL affirms AAA/Stable on Tata Sons' NCD issue

Tourism Finance Corp of India's bonds issue gets CARE A+

Abhijeet Bihar Roadways' long-term bk facilities get CARE BBB-

JP Engineers' non-fund based limits get ICRA A3

Homemaker Enterprises' fund based limits get ICRA BB(Stable)

ICRA affirms rtg on Emmsons International fund based bk limits

ICRA affirms B on Drisha Impex's fund based limit

ICRA BBB(SO) on Action Bridgegap's fund based limits

ICRA affirms A(Stable) on Secon's fund based limits

ICRA affirms BB+ on Salisbury Projects' fund based facilities

Shakti Yarn's cash credit gets CRISIL BB/Stable

CRISIL affirms BB-/Stable on Balu Spinning Mills' cash credit

Cargill India's commercial paper programme gets CRISIL A1+

MM Creations' overdraft facility gets CRISIL D

Megatherm Electronics' cash credit gets CRISIL BBB/Stable

Nirbhai Textiles' cash credit gets CRISIL BB-/Stable

Rajeev Education Trust's long-term loan gets CRISIL BB/Stable

CRISIL affirms BB/Stable on Johal & Co's enhanced cash credit

Alumayer India's cash credit gets CRISIL BB+/Stable

Bhagwati Lifestyle's cash credit gets CRISIL BB+/Stable

Bhandari Export Industries' cash credit gets CRISIL B+/Stable

Fitch BBB-(ind) national long-term rtg Rohtak Panipat Tollway

Fitch BB(ind) national long-term rtg on Sree Karpagambal Mills

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

CRISIL affirms B+/Stable on S Rasiklal & Co' packing credit

CRISIL affirms A1+ on Novartis India' CP programme

Madan's Wine Stores' cash credit gets CRISIL B+/Stable

CRISIL cuts rating on Suven Life Sciences' cash credit

SSVM Construction's cash credit gets CRISIL BB/Stable

ICRA ups rtg on Neco Heavy Engineering's long term loans

ICRA cuts rating on MEP Cotton's fund based facilities to D

CARE affirms rtg on Essar Bulk Terminal's bank facilities

Himalayan Heli Services long-term bk facilities get CARE BB

IFCI Factors' long-term bank facilities get CARE A-

CRISIL ups rtg on Raajratna Metal Industries' term loan

CRISIL cuts rtg outlook on Damodar Valley Corp's cash credit

CRISIL cuts rtg on EMT Megatherm's cash credit to BBB/Stable

CRISIL cuts rtg on Madhusala Drinks' term loan to D

Belgravia Projects' term loan gets CRISIL BB/Stable

Golden Liquor Agencies' cash credit gets CRISIL BB+/Stable

Oblum Electrical Ind's cash credit gets CRISIL BB+/Stable

Sona Synthetics' cash credit gets CRISIL B+/Stable

CRISIL ups rating on Paras Ind's pre-shipment packing credit

CARE affirms BBB on Sutlej Textiles' long-term bk facilities

Trimax Datacenter Services' bank facilities get CARE A-(SO)

Vaishnavi Cotton Ind's long-term bank facilities get CARE B

Modi Realtors' long-term bank facilities get CARE BB

Reliance Home Finance's subordinated debt gets CARE AA

CARE affirms A1 on Secure Meters' short-term debt

Sempertrans Nirlon's fund based gets CARE A-

Camlin Fine Chemicals' long-term bk facilities get CARE BBB+

Fairdeal Textile Park's long-term bk facilities get CARE BBB-

CARE affirms A1+ on First Leasing Co of India's CP

CARE affirms A on Godawari Power and Ispat's bank facilities

CARE affirms A1+ on Indian Hume Pipe Co's commercial paper

CRISIL affirms AA/Stable on Apollo Tyres' cash credit limit

Greenland Motors' cash credit gets CRISIL B+/Stable

CRISIL BB+/Stable Diya Systems' foreign currency term loan

CRISIL affirms BBB+ on Devi Lal Memorial Trust's term loan

Bardia Jewellers' cash credit gets CRISIL BB-/Stable

Greenlands A&M Corp's cash credit gets CRISIL B+/Stable

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

JR Metal Chennai's long-term loan gets CRISIL D

JNV Vira Engineering's cash credit gets CRISIL B-/Stable

JM Holdings' cash credit gets CRISIL B+/Stable

Jayaho Agri Ventures' cash credit gets CRISIL B/Stable

CRISIL affirms rtg on Hinduja Global Solutions' cash credit

Hilton Motors' cash credit gets CRISIL BB/Stable

KNS Infrastructure's cash credit gets CRISIL BB/Stable

RF Motors' cash credit gets CRISIL B+/Stable

Mangaldas Venichand's cash credit gets CRISIL BB-/Stable

Livanto Ceramic's term loan gets CRISIL B+/Stable

CRISIL B/Stable on Kongunadu Educational Charitable term loan

CRISIL D on S Veerasamy Chettiar Educational's long-term loan

Vikas Enterprises' cash credit gets CRISIL BB-/Stable

CRISIL affirms rtg on Telu Ram Amar Chand and Co's cash credit

CRISIL affirms D on Shree Balaji Engicons' bank guarantee

Shakti Industries' cash credit gets CRISIL B/Stable

Seven Seas Hospitality's term loans get CRISIL B+/Stable

Sanghar Exports' packing credit gets CRISIL BB/Stable

Sagar Enterprises' cash credit gets CRISIL BB-/Stable

Action Ispat and Power's term loans get ICRA BBB-(Stable)

Tyre Technocrats India's cash credit gets ICRA BB/stable

ICRA affirms B on Ramkumar Mills' term loan

Radiant Hospitality Services' fund based limits get ICRA LB+

ICRA affirms BBB+(stable) on Omax Autos' term loans

Manjeet Cotton's term loan gets ICRA BB+

JP Engineers' fund based limits get ICRA BBB-(stable)

Highway Infrastructure's bank lines get ICRA BB

E Durables' fund based limits gets ICRA BBB

ICRA affirms BB on Bloom Dekor's enhanced fund-based facility

ICRA ups rtg on KBJ Jewellery's fund based facilities to BB+

ICRA cuts rating on Halonix's fund based limits to BBB

ICRA cuts rtg on Unique Biotech's fund based facilities to D

CRISIL ups rtg on Suncity Realtors' term loan to BB+/Positive

CRISIL cuts rating on Devkiran Paper Mills' cash credit to D

Weekly Newsletter 46 Info-Spectrum Bridging the Information Gap in Corporate Landscape

GLOBAL ECONOMY Spain GDP growth slows in second quarter Spain's economic growth slowed in the second quarter as the euro zone's fourth-largest economy suffered the effects of softening export growth and a tumble in domestic demand, and economists warned of further weakness ahead. Data released by Spain's statistics institute INE showed that Spain's gross domestic product rose by 0.2% on the quarter, and by 0.7% on the year. The INE also revised up its first-quarter growth estimates by a tenth of a percentage point, to 0.4% on the quarter and 0.9% on the year. The second-quarter numbers were in line with a preliminary reading from the INE this month and indicate that Spain's economic growth needs to accelerate again in the second half of the year to reach the government's target of 1.3% expansion in 2011. ECB: Private sector loan growth slowed in July Euro-zone bank lending in July rose at a slower pace in annual terms than in June, data from the European Central Bank showed. Loans to the private sector increased 2.4% on the year in July, after rising 2.5% on the year in June, ECB data showed. Annual growth in the broad money category M3 was 2.0% in July after 1.9% in June. This was below experts' forecast of 2.2% growth. Monthly data provided by the ECB showed M3 up 0.2% in July, after a flat figure in June. The three-month moving average for May to July grew at 2.1% after 2.0% in April to June. This was below experts' forecast of a 2.2% rise. The three-month moving average remains well below the ECB's "reference value" of 4.5%, which it considers to be consistent with an inflation rate of just below 2% over the medium term. Detailed data showed that the annual growth rate of loans to households decreased to 3.0% in July from 3.2% in June. On the month, these also dropped by EUR8 billion in adjusted terms. The annual growth rate of credit to the private sector fell to 1.9% in July from 2.2% in June. Banks have plenty of funds to lend, as evidenced by the high use of the ECB's deposit facility in recent weeks. Nevertheless uncertainty about the economy is making them nervous about lending it out, experts say. The annual rate of loans to non-financial corporations stood at 1.6% in July compared with 1.5% in June. These dropped by EUR3 billion on the month. Furthermore, the annual growth rate of lending for house purchase decreased to 3.9% in July against 4.3% in June. These also fell by EUR5 billion on the month. This was the first month since April 2009 in which monthly flows of lending to both households and corporations were negative. The data add further concerns about the state of the euro-zone economy. "Growing stresses in the banking sector and subdued demand for credit add to evidence that domestic demand is set to remain weak and underline our view that the euro zone's debt crisis is likely to worsen," said Ben May, a European Economist at Capital Economics. U.K. growth slows sharply in second quarter The U.K. economy slowed sharply in the second quarter after a royal wedding holiday and the Japanese tsunami hit output, the second estimate for the period confirmed, raising questions about the wisdom of the government's aggressive austerity drive. Gross domestic product grew 0.2% on a quarterly basis in the April to June period, after expanding 0.5% in the first quarter, the Office for National Statistics said. On an annual basis, growth slowed to 0.7% in the second quarter from 1.6% in the first. The figures, which don't include expenditure and income, are in line with the first estimate published on July 26 and economists' expectations. The ONS has said quarterly growth could have been as high as 0.7% in the second quarter had production not been hit by an extra holiday to celebrate a royal wedding, disruption to production lines from the Japanese tsunami, and unseasonably warm weather. Nevertheless, the data suggest the economy is barely growing, and are likely to provide ammunition to critics of the government's drive to make GBP111 billion of spending cuts and tax rises by 2015 in order to eliminate the structural budget deficit. The figures also appear to back up the Bank of England's decision to keep interest rates at a record low of 0.5% even though inflation remains elevated. The only two members of the bank's Monetary Policy Committee that were in favor of raising rates abandoned their call this month due to concerns about the weakness of the economy. There was no revision to the performance of the main components of the economy. On a quarterly basis, production industries contracted 1.6% in the April to June period, the sharpest drop since the first quarter of 2009, while construction and total services both grew 0.5%. The breakdown of the data showed mining and quarrying drove the drop in production industries, although other components, such as manufacturing and electricity, gas, and water output, also fell. Mining and quarrying production slumped 6.8% on the quarter due to maintenance in the oil and gas sector, the sharpest drop in five years. There were some revisions within the services sector, which accounts for some three quarters of the economy, the ONS said. Growth in distribution, hotels and restaurants was revised up to 0.5% from 0.3%, while growth in business services and finance and government services were both raised 0.1 percentage point to 0.8% and

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

0.1% respectively. On the downside, quarterly growth in transport, storage, and communications was revised down to 0.8% from 1.1%. U.S. growth revised lower to 1% for second quarter Economy grew at tepid 1.0% pace as exports, inventory slow The U.S. economy grew slower in the second quarter than initially reported, mainly because of lower exports and less inventory restocking. The Commerce Department said gross domestic product rose at a 1.0% annual rate, down from an original reading of 1.3%, seasonally adjusted. The newly revised growth numbers reinforce the view that the economy remains in a very fragile state. First-quarter growth was an even worse 0.4%. While the economy has expanded at an average rate of 2.5% over the past two years, that’s much slower than is typically the case after a sharp recession. What’s more, the unemployment rate remains unusually high at 9.1% at this stage of the economic cycle. A slew of recent economic data point to continued economic weakness. Some reports appear to suggest that another recession might be in the cards while other data indicate that the economy is still growing, but at a crawl. A potential obstacle to higher growth, however, are waning corporate profits. Although pretax earnings rose 3.0% to $57.3 billion from prior quarter, profits have gradually subsided over the past few years. After-tax earnings rose an even smaller 0.8% last quarter. The second estimate of GDP incorporates more data from the private sector and provides a more accurate measure of growth than the initial report released at the end of July. The revision is also the first to include data on business earnings. The downward revision in second-quarter GDP largely stemmed from lower export and inventory growth. The increase in exports, for example, was revised down to 3.1% from 6.0%. Inventories, meanwhile, rose by $40.6 billion instead of the prior estimate of $49.6 billion. Consumer spending, the single biggest source of U.S. economic growth, rose 0.4% in the second quarter instead of 0.1% as initially reported. Still, that reflected a sharp pullback from 2.1% in the prior quarter. Perhaps more important, final sales to domestic purchasers was revised up to 1.1% from 0.5%. That category is viewed as a more accurate gauge of U.S. demand for goods and services. In another positive sign, business investment rose at a 6.4% annual rate, spearheaded by a 15.7% jump in structures such as offices and manufacturing plants. The gain was nearly twice as high as the original reading and marked the biggest increase since the final quarter of 2007. The core personal consumption expenditure index — an inflation gauge that excludes food and energy prices — rose 2.2%. That’s the fastest pace since the end of 2009. Yet real disposable income, which adjusts for inflation, rose 1.0% in the second quarter and 1.2% in the first quarter. That’s higher than the prior 0.7% estimate for each quarter. IMF approves final $450 mn funding for Iceland The International Monetary Fund said it had approved a final round of $450 mn in funding to Iceland as part of a program first put in place during the financial crisis. The fund said in a news release that its board had completed its sixth and final review of Iceland's economic performance. Completion of the review allowed the IMF to provide the funding, which brings the total provided to Iceland through the arrangement to $2.25 bn.

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

GLOBAL BUSINESS FDA Approves Pfizer Lung-Cancer Drug The U.S. Food and Drug Administration approved a Pfizer Inc. drug that shrinks tumors in lung-cancer patients with a rare genetic abnormality, the latest molecularly targeted therapy to win a rapid approval from the agency. Crizotinib treats a deadly form of lung cancer that often affects the people least expected to develop the disease: young nonsmokers. Patients with this cancer would be identified by a genetic test made by Abbott Laboratories that was also approved and then take the pills twice a day. Moody's lowers outlook on Lowe's to negative Moody's Investors Service lowered its outlook on Lowe's Co. to negative from stable, pointing to the company's lowered earnings guidance and stiffer competition from larger rival Home Depot Inc. (HD). Continued challenges in the housing market and a slowdown in the U.S. economic recovery were also cause for the reduced outlook, the credit ratings firm said. Boeing gets 787 approval from U.S., Europe Boeing Co. shares jumped after the aircraft builder said it received U.S. and European regulatory approval for its long-awaited 787 Dreamliner and announced the first delivery date for the jet. The Chicago-based manufacturer said Japan’s ANA would receive the first 787 on Sept. 26, a day after its contractual delivery. The Dreamliner’s first passenger flight is scheduled for the end of October. ANA is expected to receive 12 more 787s by the end of March. FDA approves Pfizer lung cancer drug Xalkori The U.S. Food and Drug Administration approved Pfizer Inc.'s drug Xalkori on a shortened schedule, handing the pharmaceutical giant a new win as it races to replace expiring patents. The drug maker called Xalkori capsules the first-ever approved therapy for anaplastic lymphoma kinase in patients with locally advanced or metastatic nonsmall-cell lung cancer. Dynamic Offshore to offer up to $400 mln in IPO Dynamic Offshore Resources Inc. filed plans to offer up to $400 million of common stock in an initial public offering, as the independent exploration and production company aims to raise funds to repay debt and for general corporate purposes. Rothschild Credit buys Elgin Capital Rothschild Credit Management Ltd., part of investment bank NM Rothschild, has acquired debt-management business Elgin Capital, in the latest example of a financial firm positioning itself to benefit from a deluge of maturing leveraged loans. Procter & Gamble CEO to get $16.2 mln compensation Procter & Gamble Co. Chief Executive Robert McDonald received $16.2 million in total compensation in fiscal 2011, up nearly 24% from the prior year on higher stock and option awards. McDonald took home a $1.6 million salary in fiscal 2011, up from $1.4 million the prior year, and his bonus dropped slightly to $2.6 million, according to a filing with the Securities and Exchange Commission. His stock awards rose 86% to $5.6 million and his option awards rose 10% to $6.2 million. Qatar Holding buys 2% of Energias de Portugal Energias de Portugal SA (EDP.LB), which is set to be fully privatized by the government, said Qatar Holding LLC has bought a 2% stake in the Portuguese energy company. At a current share price of EUR2.16, the stake cost Qatar EUR159.4 million. PG&E proposes spending $769M to test gas pipelines PG&E Corp. proposed spending $769 million over three years to test its natural gas pipelines as part of a $2.2 billion pipeline safety program, following a deadly pipeline explosion last year. Dresser-Rand plans $150 million stock buyback Dresser-Rand Group Inc. said its board has authorized a $150 million share-repurchase program, which represents about 5% of the company's outstanding stock. Chief Financial Officer Mark Baldwin said the oil- equipment maker and services company decided to buy back stock for three reasons: Its share price has fallen, its balance sheet can handle the spending and it expects strong bookings in the second half, which would generate cash flows.

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

Shikoku Electric restarts thermal power generator Shikoku Electric Power Co. (9507.TO) said it has restarted operation of the No. 1 thermal power generation unit at its Sakaide plant in Kagawa Prefecture, which had been suspended since Aug. 18 due to a malfunction, Kyodo news reported. Air Canada flight attendants reject tentative pact Air Canada's flight attendants have given a solid thumbs-down to a tentative agreement with the airline, reached early this month. A strike vote will be held in September. If the flight attendants vote to strike, Air Canada's 6,800 flight attendants could walk off the job next month. KPMG to sell Aero Inventory unit KPMG plans to put aircraft-parts supplier Aero Inventory up for sale next month, reports without citing sources. Based in London, Aero supplies air-conditioning units and engine components to airlines including easyJet PLC (EZJ.LN) and Qantas Airways Ltd. (QAN.AU). It went into administration in 2009 and has been turned around by KPMG. The company is expected to fetch hundreds of millions of pounds, the report added. A representative for KPMG wasn't immediately available to comment. ANZ reportedly looking to buy Japanese bank Australia & New Zealand Banking Group Ltd. (ANZ.AU) is eyeing Tokyo Star Bank or Aozora Bank Ltd. (8304.TO) as possible acquisition targets, The Australian Financial Review reports Monday, without saying where it got the information. LG Display plans $2.8 billion in capex for 2012 Flat-panel maker LG Display Co. said it is planning around KRW3 trillion (US$2.8 billion) of capital expenditure next year amid weak global demand for flat-screen panels. The company's announcement comes just a month after it revised down its capital spending budget for this year to around KRW4.5 trillion from the KRW5.5 trillion it had planned previously.

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