March 19, 2010 IN FOCUS Impatience breeds anxiety, fear, discouragement and failure. Patience creates confidence, Weekly Indicators decisiveness, and a rational outlook, which eventually leads to success. (Brian Adams) Indicators Current Last Week S&P upgrades outlook on India to “Stable” Sensex 17,578 17,167 Global credit rating agency, Standard & Poor’s (S&P) has revised the outlook on Nifty 5,263 5,137 India to “Stable” from “Negative” due to improved government finances. The Forex Reserves US$279.7 bn US$278.43 bn agency, which identified inflation as the only downside, also affirmed the “BBB-” WSP Inflation 9.89% (Feb) 8.56% (Jan) long-term and “A-3” short-term sovereign credit ratings on India. Ratings below Food Inflation 16.3% 17.81% “BBB-” are non-investment grade. The outlook revision follows the government’s

decision to prune subsidies. S&P expects India's GDP growth to be 8% in FY11, Exchange Rates which is higher than that of many other countries and exceeds its own previous Currency Current Last Week expectations. Moreover, S&P views India's external position as resilient. US$1 Rs. 45.48 Rs. 45.45 However, the ratings continue to be constrained by the high government debt € 1 Rs. 61.89 Rs. 62.27 burden and deficit, and India's weak fiscal profile. Meanwhile, the Prime £ 1 Rs. 69.0932 Rs. 68.4886 Minister's advisory panel has said that S&P's decision to revise upwards the JP¥ 100 Rs. 50.28 Rs. 50.14 country's rating outlook to stable from negative would make help boost Global Economic News investment inflows. Japan's consumer confidence rose to 40 in Feb’10 Moody’s warns US of downgrading rating from 39.4 in Jan’10 Fed has left its benchmark interest rate unchanged Moody’s Investors Service has sounded a stern warning saying triple A rated at zero to a quarter percent (AAA ) US treasury bonds – the safest investments in the world – could be Eurozone core inflation at all-time low; stood at downgraded if the administration fails to manage the federal debts. A rise in the 0.8% in Feb’10, down from 0.9% in Jan’10: Eurostat proportion of its revenue that the US government spends servicing its debt over The Policy Board of the BoJ has decided to retain the next 10-years, as outlined in the federal budget in February, would see the the overnight call rate at 0.1% US government’s “AAA” rating come under pressure, Moody’s added. Moody The average asking price for a home in the UK was up just 0.1% MoM in Mar’10 stated that the US and other western nations have moved substantially closer to The US business inventories came in unchanged in losing gilt edged ratings. “Unless we have the political will to cut spending and Jan’10 following a revised 0.3% decrease in Dec’09 raise taxes, our debt levels are reaching the risk level for a downgrade,” the Eurozone employment declines 0.2% QoQ in agency warned. fourth quarter: Eurostat India among top 3 investment destinations: Columbia varsity report Singapore's banking system outlook remains stable: Moody's India is among the world's top three preferred investment destinations, but German economy is likely to grow 1.8% this year equity caps limit the size of potential inflows, reveals a report by Columbia and next: IWH University. The report cited liberalization in FDI policy and several economic RBA Board hikes cash rate by 25 basis points to 4% sectors, a globally competitive workforce, and rapid GDP and market growth as The US industrial production edged up by 0.1% in the main drivers of foreign investment in India. Yet, it said equity caps limit the Feb’10 following an unrevised 0.9% increase in size of potential new inflows and national security concerns might prompt more Jan’10. The capacity utilization rose to 72.7% in Feb’10, following a revised 72.5% in Jan’10 oversight of FDI approval processes. According to the 15-page report “Inward NAHB/Wells Fargo Housing Market Index fell to a FDI in India & Policy Context” India is also the 13th largest in terms of foreign reading of 15 in Mar’10 from a reading of 17 in Feb’10 investment inflows, which have risen 15-fold since 2000. Although the global Global Corporate News crisis slowed the rate of FDI growth in India in 2009, it also helped reinforce India's position among global investors, as despite the crisis, a number of leading Royal Bank of Scotland is planning to restructure its balance sheet through a programme which may global firms have announced large-scale investments in various sectors. involve buying back of around £10 bn of the British bank's debt. Hang Seng BeES… India’s first international ETF opens for trading Dell has filed a lawsuit against Sharp Corporation, Now thw Indian investors can invest in China with India’s first international ETF Hitachi, Toshiba Corporation and two other i.e. Hang Seng Benchmark Exchange Traded Scheme – Hang Seng BeES – listed companies for alleged price fixing of LCD displays Bank of America is reportedly planning to seek on the NSE with symbol HNGSNGBEES. The fund was open for public subscription approval from China to expand its operations in last month from 15-24 February. The fund is first international ETF promoted by the fast-growing country. Benchmark Mutual Fund and tracks Hang Seng Index that comprises of 42 Lehman Brothers Holdings has filed a plan with the US bankruptcy court in Manhattan to wind companies including HSBC Holdings, China Mobile, Bank of China, Cathay Pacific down its remaining assets and operations Airways and China Construction Bank Corporation and represents approximately Discover Financial Services has posted $122.2 mn profit in Q1, as against of $118.4 mn profit in Q1 60% of the total market capitalization of Hong Kong stock Exchange. The asset last year allocation under this scheme will be 90-100% in securities constituting Hang Siemens is planning to cut at least 1,000 jobs in Seng Index and; 0-10% in money market instruments, G-Secs, bonds, debt SIS Information Technology business to prepare the unit for a possible sale or IPO instruments and cash at call, mutual fund schemes / overseas exchange traded Nike has posted $496.4 mn profit in Q3, as against funds based on Hang Seng Index. Hang Seng BeES is design to take care of the $243.8 mn profit in Q3 last year foreign exchange conversions and investors in India can invest in Rupee terms through their Demat and Trading account or through a NSE member who can execute the order. The fund is ideal for investors who want to have international Asim Mohapatra exposure and are bullish on China, which even in the face of a global recession Content Editor has been a source of interest for investors around the world. 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Weekl y Newsletter 2 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ECONOMY India among top 3 investment destinations: report India is among the world's top three preferred investment destinations, but equity caps limit the size of potential inflows, reveals a report by Columbia University. The report cited liberalization in FDI policy and several economic sectors, a globally competitive workforce, and rapid GDP and market growth as the main drivers of foreign investment in India. Yet, it said equity caps limit the size of potential new inflows and national security concerns might prompt more oversight of FDI approval processes. According to the 15- page report “Inward FDI in India & Policy Context” India is also the 13th largest in terms of foreign investment inflows, which have risen 15-fold since 2000. The report said while investors initially concentrated on manufacturing, power and telecommunications, they now focus on services. Among other visible trends, firms in developed countries dominated investment in the 1990s, but in the past decade developing country investors have also become significant, it said. A third of the post-2000 inflow is invested around Mumbai, a manufacturing hub, and one-fifth around Delhi, a services hub. Since most global firms found that their Indian and Chinese operations considerably outperformed their developed market investments, they now accord even greater strategic value to these two destinations, the report pointed out. Noting that India's attractive GDP growth rate and superior market performance are likely to attract growing FDI inflows, the report said CEOs consistently rank India as one of the world's top 3-5 preferred investment destinations in recent global surveys. Although the global crisis slowed the rate of FDI growth in India in 2009, it also helped reinforce India's position among global investors, as despite the crisis, a number of leading global firms – including Volkswagen, Telenor, LG, Cairn, and a number of IT companies – have announced large-scale investments in various sectors. In contrast to the favourable development of economic drivers of inward FDI, the security-induced tightening of approval procedures and oversight policies might limit the potential inflow of FDI, as might the difficulty in obtaining operational clearances,” the report added. Hiring activity up 17.2% MoM in Feb: Naukri.Com India Inc's hiring activity was up 17.2% in Feb’10 with telecom and auto sectors leading the rebound, a report by leading job portal Naukri.Com said. The Naukri.Com's monthly Job Speak survey reflected renewed optimism among recruiters, with the new job index moving up to 947 in Feb’10, as against 808 in Jan’10. This time the portal has introduced its new and expanded job index, which takes into account not only the jobs posted online by its clients but also those made by them with the help of the website's tele- calling team. A year-on-year comparison of the job index shows a 14% growth in Feb’10 this year compared to Feb’09. Hiring activity for the top 10 industry sectors saw positive growth in Feb’10 with telecom registering a 27% growth in the reviewed month compared to same month last year. The recruitment in IT- software and auto sectors moved up by 24% and banking and insurance rose 14% in Feb’10. The IT sector has been witnessing a rapid growth in hiring and this trend is also reflected in the demand for IT software professionals, where the functional area job index moved up 24% in Feb’10. The professionals in sales and accounts also witnessed an increase in hiring by 18-19% MoM in Feb’10. Overall, the index seems to be moving in a robust manner with hiring moving up across all industry verticals, functional areas and cities. Among cities, Hyderabad emerged most bullish on hiring, with the city-wise job index moving up 25% in Feb’10. Chennai witnessed a growth of 21%, Delhi 12% and Bangalore 11% Feb’10. Hiring activity for Kolkata picked up 21% in Feb’10, following two successive months of decline in the index. India’s Media & Entertainment to reach Rs. 1,090 bn by 2014: FICCI-KPMG The Indian Media and Entertainment (M&E) industry is poised to touch Rs. 1,090 bn by 2014, driven by economic recovery, expected rise in advertising spends and increasing media penetration, reveals a study undertaken by FICCI-KPMG. According to the study, over the next five years the M&E industry is projected to grow at a compound annual growth rate (CAGR) of 13% to reach Rs. 1,090 bn by 2014. With economic slowdown and cut down in advertising spends, the industry went through a tough phase but recovery was seen in the last quarter of 2009, which is expected to continue in 2010. The study shows that in 2009 the industry stood at Rs. 587 bn, up 1.4% over the previous year, while subscription revenues of TV and print grew by 8.5% to reach Rs. 241 bn. Advertising spends, which grew at 10% CAGR in the past three years, was almost flat in 2009. But going forward, the segment is expected to rise by 14% CAGR over the next five years. The study said with changing landscape and emerging challenges in the industry, players now have a stronger focus on profitability. The Government has removed the duty on Skimmed Milk Powder (SMP) and other dairy products. The dairy industry can import up to 30,000 tonne SMP at zero duty in a financial year. Earlier, the industry was allowed to import only up to 10,000 tonne SMP at 5% duty under Tariff Rate Quota (TRQ). Similarly, the government has allowed duty-free import of other milk products including white butter, butter oil and anhydrous milk fat up to 15,000 tonne in a fiscal. The Government is in the process of bringing about further amendments to the Consumer Protection, and expects to finalize the draft and introduce the bill at the earliest, said the Minister of State for Consumer Affairs, KV Thomas. The amendments proposed would widen the scope of the Act, facilitate quicker disposal of cases and rationalize the qualifications of the consumer forum at the state level and the members at the national level.

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

ECONOMY Fund-raising via IPO grows ten-fold in Apr-Jan period: SEBI With the stock market re-emerging as the preferred place for fund raising, as many as 28 companies have raised a whopping Rs. 237.31 bn through Initial Public Offerings (IPOs) in Apr’09-Jan’10 period, as against Rs. 20.59 bn mobilized by 20 companies during Apr’08-Jan’09 period. During the period under review, two companies also came out with Follow-On Public Offers (FPO) raising a total of Rs. 64.47 crore, while none did this during the same period previous fiscal. During the period under review, there were 19 Rights Issues, which mobilized Rs. 31.32 bn, as against 21 Rights Issues that raised Rs. 119.97 bn in the same period last year. During the current financial year so far, there were 54 Qualified Institutional Placements (QIPs), which mobilized Rs. 391.43 bn, as against two QIPs during the same period last year that raised Rs. 1.88 bn. Inflation accelerates to 9.89% in Feb’10; weekly food inflation declines to 16.3% India's wholesale price inflation accelerated to 9.89% in Feb’10 from a year ago, higher than the 8.56% level recorded in Jan’10. The December WPI was revised to 8.1% compared with 7.31% previously. Inflation in manufacturing also accelerated to 7.42% in Feb’10 from 6.55% in Jan’10. India’ food inflation declined to 16.3% in the week ended March 6, 2010, as compared to 17.81% in the previous week and 17.87% in week ended February 20, 2010. Primary article inflation also slipped to 14.16% in the week under review, as against 15.08% in the previous week, while the non-food articles inflation rose to 13.99%, in comparison to 13.6% in the previous week. Fuel inflation rose to 12.68% in the week ended March 6, 2010, as against 11.38% in the previous week, while electricity inflation shot up to 4.72% in the week under review as compared to 1.95% in the week ended February 27, 2010. Rice procurement reaches 242.79 lakh tonne The government agencies have procured 242.79 lakh tonne (LT) of rice in the current marketing season so far. As on 16th March 2010, paddy procurement in terms of rice stood at 242.79 LT, which is just 2% less than the rice procured on this date last year (i.e. 248.69 LT) which was a record production and procurement year. Moreover, it is more than the rice procured by the government agencies in 2003-04 and near about the quantity procured in 2004-05. Apart from this, the procurement process is still on and in the last marketing season, about 88 LT rice was procured from March 16th till September 30th. Punjab has contributed 92.68 LT followed by AP 33.35 LT, Chhattisgarh 29.97 LT, UP 24.32 LT, Haryana 18.13 LT and Orissa 16.49 LT. India signs US$59.1 mn agreement with the ADB India has signed US$59.1 mn agreement with the ADB for the second tranche of the Himachal Pradesh Clean Energy development Investment Program. The second tranche will cover civil works for construction of a diversion barrage, power intake, de-sanding arrangements and gates and hoisting for the Sawra Kuddu hydroelectric project, located in the Shimla district of Himachal Pradesh. The Himachal Pradesh Clean Energy Development Investment Program, approved in 2008, is for a total amount of US$800 mn. It covers the Sawra Kuddu, the Keshang I, II and III stages, the Sainj, and the Shontong - Karcham projects. The first tranche of the project was signed on November 10, 2008. It was for an amount of US$150 mn. Ireland expects to invest €1 bn in India in 2-3 yrs Ireland intends to invest €350 mn in cement sector in India as part of bilateral trade and in the next two- three years, an investment of €1 bn is expected to be made in India, especially in building low-cost houses and bridges, according to Senior Irish Minister Eamon Ryan. The Minister also said that another company Kingspan Group, which designs and manufactures high quality fire-safe insulated roof and wall systems for the construction industry, is also planning to set up a local factory in Maharashtra in the next two years. India's wholesale price inflation accelerated to 9.89% in Feb’10 from a year ago, higher than the 8.56% level recorded in Jan’10. The December WPI was revised to 8.1% compared with 7.31% previously. Inflation in manufacturing also accelerated to 7.42% in Feb’10 from 6.55% in Jan’10. The Union Cabinet has approved a proposal to allow foreign universities to set up campuses, in a move that could reduce the flow of Indian students abroad. State Trading Corporation of India (STC) plans to enter into many new areas of trade such as overseas contract farming in pulses, development of infrastructure at port areas, expansion of tea operations in domestic/export markets and shall also lay added emphasis to strengthen the business of bullion, hydrocarbons, edible oils, petrochemicals and agricultural commodities. Its total turnover of STC has been projected to reach Rs. 210 bn in FY11. The International Monetary Fund (IMF) expects the Indian economy to grow by 8% in FY11, though high inflation and rising fiscal deficit would continue to remain areas of concern. However, the IMF forecasts a moderately lower growth rate for FY12 at 7.7%. For the current fiscal, the IMF said that the economy would grow by 6.7%. Besides, the other risks include asset price bubble and the possibility of a sudden stoppage of foreign capital inflows caused by turmoil in global financial markets, the IMF added. The Empowered Group of Ministers (EGoM) has cleared the draft Food Security Bill that seeks to give legal right to the poor to get 25 kgs of foodgrain in a month at Rs. 3 per kg. HSBC and the Bureau of Energy Efficiency (BEE) will jointly explore financing of energy service companies to help fight climate change. The deal will see HSBC finance BEE-accredited firms working on energy efficiency projects in buildings, small and medium enterprises, municipal lighting and in the agriculture sector. Designed to boost the number of children enrolling in and completing elementary school, and to improve the quality of engineering education across India, the World Bank has approved two education projects worth $1.05 bn.

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

INFRASTRUCTURE Ports capacity to reach 1.5 bn tonne by Mar’12: Minister The Government said that the capacity of ports is likely to reach 1.5 bn tonne by the end of the 11th Five Year Plan with Rs. 1,000 bn National Maritime Development Programme (NMDP) underway for docks and shipping sector, and the Government expects to take 12 major ports capacity to 1 bn tonne from the present 574.77 mn tonne, said Shipping Minister GK Vasan. About 200 non-major ports will have a capacity of 580 mn tonne by Mar’12. The Minister said that out of Rs. 1,000 bn, Rs. 558.04 bn has been earmarked for ports, while remaining will go for shipping and inland waterways sector, added. The Ministry is looking into policy formulation to deal with issues of port efficiency and productivity among other factors, the Minister added. NTPC to double gas-based power generation capacity by 2017 NTPC plans to double its gas-based power generation capacity to over 8,000 MW by 2017. NTPC would be able to ramp up its existing 3,955-MW electricity generation capacity from gas once the Petroleum Ministry assures supply of the fuel from all sources, including Reliance Industries' KG-D6 fields. The company is mulling mega expansion of its functional gas-based stations in the country. NTPC plans to add 1,000 MW to its existing 350 MW gas-based plant at Kayamkulam in Kerala, 700 MW to the one at 403 MW Anta (Rajasthan), 1,400 MW to the 652 MW at Auraiya (Uttar Pradesh) and 1,400 MW to the 430-MW Badarpur plant. The company would add about 520 MW generation capacity to the existing 1,480 MW at the Ratnagiri Gas and Power Pvt Ltd, a joint venture between GAIL (India) Ltd, NTPC Ltd, Indian financial institutions like IDBI, SBI, ICICI Bank and Canara Bank and MSEB Holding Company Ltd, in which the power firm holds 29.65% equity. NTPC plans to increase its installed power generation capacity to 75,000 MW by 2017 from 31,134 MW from all sources of energy. BHEL, L&T secure mega contracts worth Rs. 63.96 bn Bharat Heavy Electricals (BHEL) has won a turnkey contract worth Rs. 33.48 bn for setting up an energy efficient and environment-friendly 376-MW captive power plant at the upcoming Paradip Refinery Project of Indian Oil Corporation in Orissa. Its scope of work includes: design, engineering, manufacture, supply, erection and commissioning of the captive power plant, in addition to associated civil works. The civil works and erection and commissioning of the captive power plant will be carried out by the company's Power Sector, Southern Region. Meanwhile, Larsen & Toubro (L&T) has secured a major order valued at Rs. 20.35 bn from ONGC Mangalore Petrochemicals (OMPL) for an aromatics Complex to be set up at the Mangalore SEZ. This complex will produce Aromatic products namely Paraxylene & Benzene as well as other byproducts like Hydrogen, Heavy Aromatics and LPG, starting from Naphtha as a raw material. The project shall be executed as an EPC Contract, and is expected to be ready for commissioning by Dec’12. Moreover, L&T has secured a turnkey project worth Rs. 10.13 bn from ONGC for 4 well platforms for Phase-II of Mumbai High North re- development project. L&T will have single point responsibility for complete engineering, procurement, fabrication & installation of these platforms with total in-house capabilities. Gail India sets 21% higher gas transmitting target in FY11 Gail India has increased its gas transmitting target by 21% to 114.8 mn metric standard cubic metres of gas per day (MMSCMD) for FY11, as against 94.8 MMSCMD target in FY10. The company is eying to transmit 114.8 MMSCMD of natural gas from domestic sources and the through LNG route in FY11, under the annual memorandum of understanding (MoU) signed with Ministry of Petroleum & Natural Gas. The Company has targeted gas marketing of around 87 MMSCMD in the FY11. The MoU provides an excellent production target of 420 MT of polymers (HDPE & LLDPE) and 1,288 TMT of liquid hydrocarbons. Gail India is expected to earn more than Rs. 310 bn from gas trading in the next financial year, when compared with around Rs. 250 bn in the current year. PFC to sanction loans worth Rs. 680 bn in FY11 Power Finance Corporation (PFC) said that it would sanction loans to the tune of Rs. 680 bn in FY11. The loans sanctioned by PFC during FY10so far have been worth Rs. 600 bn, out of which Rs. 200 bn have been disbursed. PFC is also keen on picking up as much as 26% equity in power generation projects in the country. The Company would partly utilize its networth of Rs. 120 bn for acquiring stakes in electricity generation plants. Meanwhile, PFC would raise $300 mn (Rs 1,400 crore) from State Bank of India's London branch under the External Commercial Borrowing (ECB) route, to be utilized for funding power projects in the country. PFC has received the Reserve Bank of India's approval for raising the money that expires on March 31. Russia will build up to 16 nuclear reactors for power stations in India, Russia's deputy premier said during a visit to India with Prime Minister Vladimir Putin to reaffirm decades-old ties. BEML has bagged an order worth Rs. 6.32 bn from the Ministry of Defence, while Punj Lloyd has bagged a project worth $40 mn (nearly Rs. 1.81 bn) in Abu Dhabi, the power division of Fedders Lloyd Corporation has bagged orders worth Rs. 2.57 bn from MP Madhya Kshetra Vidyut Vitaran Company, McNally Bharat has received an order worth Rs. 1.73 bn from Mahanadi Coalfields, Subhash Projects-Kirloskar Brothers JV has received an order worth Rs. 4.39 bn from Bangalore Water supply Sewerage Board, Subhash Projects & Marketing has secured an order worth Rs. 35.99 crore from Delhi Jal Board, ARSS Infrastructure has received new work order worth Rs. 207.86 crore, PBA Infrastructure has bagged contracts for Rs. 95 crore from Sadbhav Engineering.

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

INFRASTRUCTURE Bharat Forge, NTPC begin construction of JV plant Bharat Forge and National Thermal Power Corporation (NTPC) began construction of their Joint Venture (JV) manufacturing plant. The Union Power Minister, Sushil Kumar Shinde laid the foundation stone of the project, BF-NTPC Energy Systems (BFNESL) that is aimed at primarily serving the power sector with a technology-intensive product range that will have wider applications across other sectors such as oil and gas, petrochemicals, and steel and mining. The products include advanced class pumps high pressure piping, castings, forgings and other critical equipment involving high-end engineering and state-of-the-art manufacturing processes. Being set up in area of about 100 acres, the new plant will have world-class manufacturing, fabrication, assembly and testing facilities for the product lines and also field services. Dalmia Cement Board approves demerger proposal The Board of Directors of Dalmia Cement (Bharat) has approved a proposal to demerge the cement business, refractory business, thermal power business and certain other businesses into DCB Renewable Energy & Industries (DREIL), which is presently wholly owned subsidiary of the Company. As part of the Scheme, DREIL will further demerge the cement business to Avnija Properties (Avnija) and thermal power business to DCB Power Ventures (DPVL). Post implementation of the Scheme, DPVL's shareholding will be held up to 74% by Dalmia Power (DPL), while the balance 26% will be held by Avnija. Avnija and DPL will become wholly owned of subsidiaries of DREIL. DREIL will be listed on NSE, BSE and Madras Stock Exchange with the same shareholding pattern as of the Company. The shareholders of the Company will receive one additional share in DREIL for every shares held in the Company. SPMCIL inks MOU with Government for 10% business growth Security Printing & Minting Corporation of India (SPMCIL), a Mini-Ratna enterprise of the Government of India, has signed a Memorandum of Understanding (MOU) with the Department of Economic Affairs (DEA). The agreement sets an ambitious business target of Rs. 27.5 bn for FY11, aiming at an increase of about 10% over FY10 targets. This is over and above already high base established by SPMCIL by achieving consistently significant growth in its turnover for last three years since FY08. Apart from meeting the national requirement of the currency and coinage, SPMCIL has started looking for export business in the currency and coinage. In FY10, SPMCIL has bagged export orders for printing Nepalese Bank Notes of Rs. 100 and Rs. 10 denominations through Global Tender Process. India Security Press (ISP), Nashik, a unit of the Company, has signed an MoU with Archaeological Survey of India for printing and supply of security features based admission tickets for its various monuments throughout the country. India will add 62,374-MW of electricity generation capacity in five years ending Mar’12, nearly 21% less than the planned capacity addition target, due to delay or lack of environmental clearances and fuel linkage for some projects, said the Union Power Minister Sushilkumar Shinde. The Govt plans to invite bids within two months for awarding mega road projects. India and Russia have inked the fresh US$2.33 bn deal for refit of aircraft carrier Admiral Gorshkov. India will now get Gorshkov in 2013 by paying US$2.33 bn instead of the US$974 mn earmarked for it in what was thought to be a fixed price contract when it was inked in Jan’04. The fresh agreement on Gorshkov, rechristened INS Vikramaditya by India, will bring to end the bitter wrangling over the huge cost escalation in its refit, which has bedeviled bilateral military ties for the last four-five years. L&T Samakhiali Gandhidham Tollway – an SPV incorporated by L&T – has signed the concession agreement with NHAI for 6-laning of the 56 km stretch of NH 8A. The project would be executed on a BOT DBFO basis, with a concession period of 24 years. The estimated project cost is of the order of about Rs. 14 bn, and the project is scheduled to be completed within a period of 30 months. The Concessionaire is entitled to collect tolls from the users of the project highway during the concession period, including the construction period. Reliance Industries (RIL) has reportedly leased a brand new ultra deepwater drill-ship to boost its eastern offshore exploration campaign. The new build ultra deepwater drill-ship Dhirubhai Deepwater KG2 commenced operations for RIL in India under a five-year drilling contract. ABW Infrastructure is planning to invest Rs. 10 bn in developing a 105-acre integrated township in Gurgaon, in Haryana. The Company is targeting sales revenue of about Rs. 20 bn from the township. Sanghi Industries – part of the Rs. 45 bn Sanghi Group – plans to raise about Rs. 6.6 bn in debt for part-financing an expansion program that will almost triple its current cement making capacity. Hindustan Dorr-Oliver has announced that its recently acquired company Davy Markham has signed up to become the first tier two member of the new nuclear Advanced Manufacturing Research Centre (AMRC). By becoming a member of the nuclear AMRC consortium, Davy Markham gains access to a wealth of resources to help build its presence in the civil nuclear supply chain. Shree Cement has commissioned its 1.8 MTPA clinker grinding unit at Akbarpur-Oud village in Haridwar district of Uttarakhand. Mahindra Lifespace Developers is reportedly in the process of acquiring around 4,000 acres in Chennai and Pune, where it intends to set up two more business parks. The Company is also looking to tap the recovering residential housing market by launching new projects in two Tier-I cities. Madhucon Projects has announced that its subsidiary i.e. PT Madhucon Indonesia has secured a new coal mining business permit for coal exploration of 30,970 hectors in Mauraduwa in South Sumatra of Indonesia. The Company shall employ agencies for environmental impac analysis, coal exploration analysis and other necessary clearances. It is estimated that the clearances for upgrading IUP exploration to IUP exploration and production shall be secured in the next 3½ years to 4 years. The Board of Directors Birla Power Solutions shall meet on March 25, 2010 to consider the proposal for raising of funds by issue of GDRs/ADRs/FCCBs and Equity shares and any other instruments convertible into Equity shares. Birla Power Solutions plans to invest in a Special Purpose Vehicle (SPV) – as a subsidiary – for entering into two new power businesses. The Company plans to enter into solar power generation and thermal power generation. The SPV will be a of Birla Power Solutions. The Board of Directors of Engineers India shall meet on March 23, 2010 to consider the proposals for issue of Bonus Shares, and stock-split. Titagarh Wagons has become part of Cimmco Birla's promoter group by virtue of Company's shareholding in Cimmco Equity Holdings, which subsequent to allotment on March 14, 2010 by Cimmco Birla pursuant to the Sanctioned Scheme of the BIFR of 1,62,88,923 equity shares of the Rs. 10 each fully paid up holds 85.1% of the total equity share capital of Cimmco Birla. Indian industrial crane manufacturer, ElectroMech has signed a partnership agreement with Stahl Crane Systems for EX range of products. Under the agreement, ElectroMech will exclusively offer Stahl’s range of EX products – European ATEX-compliant – in the Indian market. Unitech is reportedly planning to demerge its non-core businesses, like telecom, from the company to unlock value for shareholders. The new infrastructure company would include Unitech's telecom, hotel, SEZs and construction businesses. Gayatri Projects is reportedly planning to dilute 49% stake in its 1,320-MW power project unit to a strategic partner in next two months and hopes to tie up the debt component for this by March end.

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

IT & ITeS India’s data services market set to reach Rs. 100 bn: IDC India India data centre services market is projected to reach nearly Rs. 100 bn by the end of 2011, a compounded annual growth rate of 22.7% over the two-year period 2009-2011, according to research and advisory firm IDC India. The overall India data centre services market is estimated at Rs. 63 bn in 2009, an IDC India report said. The fast evolving ecosystem comprising high speed internet bandwidth service providers, data centre hosting players, power and cooling solution providers, hardware vendors and system integrators would spur this growth over the next two years. The key verticals that contributed nearly 80% of third party data centre services revenue in 2009, were manufacturing and IT/ITeS, with the third party data centres constituting about 18% of the total revenues. Captive data centres would grow at a CAGR of 19.9% in 2009-11, with manufacturing and Banking, Financial Services & Insurance (BFSI) showing high deployment. Demand from the Government sector is expected to pick up in 2010 and beyond. “Third party data centre services are gaining traction with enterprise customers due to lack of in-house skills, high investments and long gestation period that a data centre calls for,” IDC India added. Smartlinx forms strategic alliance with Nettlinx to develop biometric-based eGovernance system Smartlinx VoIP Networks – the wholly owned subsidiary of Smartlinx Inc. – has signed a Memorandum of Understanding (MoU) with Nettlinx, an ISP and STPI registered service provider in India, to collaborate on the development of biometric- based eGovernance system. Under the memorandum of understanding, Smartlinx has granted Nettlinx the right to use and market its SmartVM technology, an eGovernance application to be used with biometric systems, in the state of Andhra Pradesh, India. Smartlinx will retain the rights to market and use SmartVM outside of the state of Andhra Pradesh. Nettlinx has obtained a work order from the Forest Department of the Government of Andhra Pradesh to develop a biometric based voting machine for pilot implementation. The parties anticipate that Nettlinx will initially use SmartVM in its development of this biometric based voting machine. Smartlinx has agreed to assist Nettlinx in the customization of SmartlinxVM with biometric based hardware and will also provide maintenance and support services to Nettlinx. The term of the MoU is for a period of one year, but each party may terminate the MoU upon providing one month's written notice. IdeaPad S10-3t… Lenovo launches multi-touch netbook tablet in India Lenovo has introduced in India the IdeaPad S10-3t, its next-generation touch tablet netbook. The IdeaPad S10-3t is a mid-range tablet netbook that comes with a touch-screen, rich multimedia features and useful applications that provide extraordinary experience for the users. Lenovo said the new IdeaPad S10-3t netbook combines portability, style and industry-leading technologies that will help redefine the netbook category. The S10-3t is the first multi-touch capacitive convertible netbook tablet, built with Lenovo NaturalTouch responsive fingertip touchscreen technology, creating an optimal netbook user touch experience. The Lenovo IdeaPad S10-3t comes with the DirectShare feature, which allows users to quickly and easily synchronize files with another notebook without having to connect to the Internet. Other cool features that are available on these smart netbooks include VeriFace face recognition and Active Protection System to protect the PC hard drive from sudden bumps or falls. The Lenovo IdeaPad S10-3t will be available across all Lenovo Exclusive Stores and select Lenovo Multi Brand stores and will soon be extended to other Large Format Retail stores and regional distributors. It is priced at Rs. 30,740. Patni Computer sets up new BPO delivery center in Texas Patni Computer Systems, a leading global IT and BPO services provider, has announced the establishment of a new North American hub for Business Process Outsourcing (BPO) operations in El Paso, Texas. The move was triggered by a multiyear, multimillion-dollar BPO services contract with a leading healthcare technology and services provider. Adding the El Paso center follows through on the corporate strategy Patni announced earlier this year to invest in specific regions around the world and contribute towards generating economic opportunities in these regions. Patni has set a goal to increase the size and scope of its North American operations to adapt to market conditions that encourage the establishment of more on-shore delivery capabilities. Establishing the new service hub expands Patni’s BPO and KPO delivery capability to service North American customers from domestic locations in a cost-effective manner, deliver cost take-outs locally and employ highly skilled local talent. Patni plans to expand the offerings on site to deliver high-quality BPO services to a wide range of industries. TCS has secured sealed a five year contract from Malaysia Airlines for end-to-end IT infrastructure services. TCS will undertake IT infrastructure management of MAS data centers, It networks and IT Security. TCS will also set up an. rum V3 compliant service management organization under a unique build, operate and transfer methodology for MAS. Facebook is planning to set up its office in Hyderabad to support the growing number of users, advertisers and developers. The centre will house online advertising and developer support teams and provide round-the-clock, multi-lingual support to its users and advertisers globally.

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

IT & ITeS HCL Technologies enters into strategic partnership with Wellogic HCL Technologies (HCL), a leading global IT services provider, has entered into a strategic partnership with Wellogic, a leading software solutions provider for the healthcare community. The companies have collaborated to provide interoperability and health records management solutions that enable safer, more efficient care delivery across the global healthcare industry. Wellogic will leverage HCL's comprehensive global sales, professional services and cloud computing implementation services expertise to help clients adopt and operate Wellogic's market-leading health information exchange (HIE), electronic health record (EHR) and personal health record (PHR) solutions. Through this partnership, customer organizations can leverage Wellogic's innovative solutions coupled with HCL's world-renowned healthcare technology resources. HCL's healthcare practice offers services including consulting, package selection and implementation, systems integration, application development and maintenance, testing, business process outsourcing and infrastructure support to payers, providers and independent software vendors (ISVs) across the healthcare industry. Ramco Systems unveils new tools for aviation industry Ramco Systems, the global aviation M&E and MRO software provider, has announced the release of cutting edge software tools for the global aerospace & defense, civil aviation & MRO industry. The Extension Development Kit (EDK) and Implementation Tool Kit (ITK) empowers Series 5 customers to quickly extend the base product functionality, by locally adding new screens or personalizing existing transactions, without affecting the base code. These tools allow a customer to remain on the Standard Product Release cycle, while filling the need of operating in an environment that accommodates the unique practices of their business operations, built upon Ramco’s Best and Next Business practices. As a direct response to market demands, these tools provide immediate reduction in overall cost of ownership and fulfill a business need to customers who want to have the “power of change” in their own hands. If their business changes, the solution can change without being dependent on long term product roadmaps and release cycles. EDK and ITK are available to all customers using the Series 5 product and can be used to make changes to existing screens, change screen callouts, adjust menu structures, enhance workflows or create entirely new transactions that interact seamlessly with the core product. The Board of Directors of Prism Informatics has decided to issue 6.5 lakh 10% Compulsorily Convertible Debentures (CCDs) of Rs. 100 each on preferential basis. Its Board has also approved the subscription to additional equity shares for US$3 mn to be issued by Idhasoft Europe AG, Switzerland – a Wholly Owned Subsidiary of the Company. NIIT Technologies will implement and maintain the state-of-the-art cargo operations system (COSYS IS) to support the cargo handling operations at Jakarta, Bali and Surabaya Airports for PT Jasa Angkasa Semesta (PT JAS). The implementation of the COSYS intelligent System is required to ensure quicker processing of the cargo and to boost the operational efficiency of the PT JAS ground handling services. Subex has announced the launch of the upgraded version of its industry-leading Revenue Assurance solution, Moneta V 4.0, a key component of the ROC (Revenue Operations Center). Nucleus Software Exports has announced that its flagship and award winning product – FinnOne – has been chosen by South African company i.e. Capital Harvest – a Stellenbosch-based financial and business solutions company focused on the agricultural sector. Nucleus’ FinnOne Loan Management System (LMS) will be used at Capital Harvest for the entire loan servicing life cycle. Infotech Enterprises has announced the Company is looking at an aggressive acquisition strategy in line with the thinking of the shareholders; avionics and nuclear power engineering would be major thrust areas. Moreover, the Company is eyeing cockpit electronics, and it expects a couple of buyouts could happen in the first quarter of the next fiscal year. Though, the Company expects that the Q4FY10 could be flattish compared with Q3FY10. the overall annual growth would be better than that of last year. Geometric Technologies – the subsidiary of Geometric – will showcase CAMWorks 2009, the latest version of its solid-based CNC programming solution at the WESTEC 2009 Exposition to be held in Los Angeles from March 30 to April 2, 2009. This release has over 100 user-driven features and enhancements, to enable users to program parts faster and more easily. In addition, it provides a significant number of new machining options to further strengthen CAMWorks’ existing manufacturing capabilities. Kale Consultants has announced its Direct Operating Costs (DoC) payables audit service as a part of its airlines financial management solutions portfolio. DoC forms around 50-60% of an airline’s overall cost structure, hence it is crucial for airlines to audit and exercise control on these payables. Klae’s pioneering service helps airlines to recover up to 2% of direct operating costs. The Board of Directors of Compact Disc India shall meet on March 23, 2010 to consider the new animation project deal and review progress of the existing projects in production. Its Board will also consider business and expansion plan for FY11. Softech Infinium Solutions has announced the Company will open its R&D Technology Centre in Chennai on April 01, 2010. The Technology Centre is located at the same building where the Company’s corporate and registered office is functioning at present. This will be helpful in achieving the growth with greater management control. The Company is expanding its domestic business and also planning to enter into international market with software development and other products. NIIT has announced that NIIT Institution of Finance Banking & Insurance (IFBI) has entered into a strategic alliance with Tamil Nadu ADI Dravidar Housing Development Corporation (TAHDCO) – a public sector undertaking of the government of Tamil Nadu –to provide career opportunities in the banking sector to the youth of underprivileged society. Under this alliance, fully subsidized vocational training programs will be made available to the aspirants. EdServ has announced the launch of Lampsglow – a web-based anytime-anywhere portal – which will provide e-learning, tutoring, exam support services and jobs related service, all on a single web based platform starting at a very economical and affordable entry fee of Rs. 199.

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

TELECOM TRAI floats consultation paper on Collocation Charges The Telecom Regulatory Authority of India (TRAI) has released a consultation paper on “Collocation Charges” asking for view points from stakeholders. The issue of “Collocation Charges” assumes importance in a convergence world where different service providers converge on each other’s network and therefore deal in interconnection charges based on mutually agreed terms. The TRAI says that the main purpose of this consultation paper is to examine the issues involved in collocation in order to frame guidelines that will help service providers to mutually negotiate and agree on reasonable terms and charges for collocation for establishment of effective interconnection. It will discuss issues such as Terms & Conditions for collocation, measures to ensure transparent and non-discriminatory treatment in pricing and provisioning of collocation facilities, sharing of cost of collocation by the seeker and provider. The interested players can submit their opinions by April 16, 2010. Rel Com, Polycom to market wireless video conferencing services Reliance Communications (Rel Com) in partnership with video conferencing solution provider, Polycom will offer wireless video conferencing services through the operator’s Reliance Webstores. The arrangement will see Polycom QDX 6000 system being bundled with VPN connectivity through Reliance Netconnect Broadband. Rel Com expects the wireless medium to trigger mass usage of video conferencing services in India. The alliance is mainly targeting the enterprise community including the SME segment. The alliance will offer the services in over 40 cities and subsequently will be expanded to cover more places. The system will be offered for a price of sub-Rs. 2 lakh and an Rs. 1.500 per month plan has been specially designed for the service which includes 10 GB of monthly usage. Usage beyond the limit will be charged at 50 paise per MB. Rel Com says that it sees major off-take of the service in mini-metros & smaller cities, especially in the SME business clusters, and expects nearly 60% of the sales to come from these geographies. Qualcomm applies to bid for Broadband Wireless Access services Qualcomm has applied to bid in India’s forthcoming spectrum auctions for Broadband Wireless Access (BWA) services, which in the present scenario are limited to 2.3 GHz. Qualcomm – known for its CDMA chips including WCDMA, HSPA and EV-DO technological standards – aims to offer TD-LTE standard based services on the 2.3GHz band. The Company says that in the Indian scenario, TD-LTE is the technology best suited to complement current and upcoming 3G deployments and address India’s rapidly growing demand for high bandwidth broadband services. Qualcomm aims to first successfully bid for the auctions and then identify partners to offer services on this standard. If Qualcomm wins the auctions, there will be only one private player left for WiMAX services. This will obviously lead to a reduced overall ecosystem for WiMAX services in the country and will restrict the potential of WiMAX services in the country. If Qualcomm bids unsuccessfully, it will at least see to it that the price bar is raised for auctions and thus it will make that much more difficult for WiMAX players to formulate a financially viable business case. INQ comes to India; Aircel to sell INQ mobiles INQ Mobile internet phones – renowned for social networking capabilities – will be made available for the first time to Indian consumers this week. London-based INQ – who pioneered the development of social mobiles – has linked up with Aircel to launch its innovative range of mobile phones in India. The phones will be available in over 5,000 outlets, and Aircel are supporting the launch with a high-profile campaign fronted by MS Dhoni. INQ is a new brand that is backed by Hutchison Whampoa. The Company's vision is to make the mobile phone the centre of anyone's internet experience. The Company has already shaken up the mobile world by reinventing the internet experience on a mobile. INQ was first to develop a mobile dubbed the 'Facebook phone' and scooped the prestigious ’Best Mobile Handset’ award at the GSMA event in Barcelona last year. Many of the larger, traditional phone makers have since followed suit but have failed to offer the depth of experience to rival INQ. The INQ Mini 3G and the INQ Chat 3G are the latest phones from INQ and both will be available in India. The INQ Mini 3G is a slim-line mobile, the INQ Chat 3G is a qwerty device. Tata Teleservices to sell 100% stake in 21st Century Infra The Board of Directors of Tata Teleservices (Maharashtra) has approved the proposal to sell 100% equity shares held by the Company in 21st Century Infra Tele (a wholly-owned subsidiary of the Company engaged in providing passive infrastructure support to telecommunication service providers) to Wireless-TT Info Services. The towers have been valued at Rs. 52 lakh per tower with an Enterprise Value of Rs. 13.18 bn. This transaction will result in a net cash inflow to the Company (subject to adjustment at the time of payment) in excess of Rs. 9 bn. The transaction is subject to fulfillment by Parties of certain condition precedents. Dow Jones has today entered into a pact with Bharti Airtel to make financial news available to the latter's clients. Under the pact, the media firm will provide financial news from The Wall Street Journal and Dow Jones News wires to Airtel customers. The product, named as The Wall Street Journal India Mobile application, is free of charge for customers. However, those who choose to access premium financial market news and data there will be a monthly charge of Rs. 99.

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

TELECOM CARE reaffirms “AA” rating on bank facilities of Idea Cellular CARE has reaffirmed “AA” rating assigned to the long-term bank facilities of Idea Cellular (ICL). This rating is applicable for facilities having tenure of more than one year. The facilities with this rating are considered to offer high safety for timely servicing of debt obligations. CARE has also reaffirmed “PR1+” rating to the short-term bank facilities of ICL. This rating is applicable for facilities having tenure up to one year. The facilities with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk. The ratings continue to derive strength from the strong parentage, by virtue of belonging to Aditya Birla Group, equity infusion by TMI Mauritius to the extent of Rs. 72.94 bn including premium during FY09, its emergence as a pan-India player, experienced management, favorable growth potential for mobile telephony in India backed by relatively low tele-density and strong brand recognition of Idea in the market. The ratings also consider formation of ‘Indus Towers’ in partnership with Bharti Airtel and Vodafone to leverage its tower assets. However, the rating is constrained by uncertainty over spectrum allocation in 3G segment, highly competitive nature of the industry, falling tariffs, relatively lower ARPU and Minutes of Usage compared to some of the larger GSM peers. Allocation of spectrum in the 3G segment and impact of number portability along with maintaining the margins in the competitive scenario are the key rating sensitivities. Samsung India launches two new dual SIM phones; hosts Java application store Samsung India has launched two new dual SIM handsets in India namely the B 5722 Dual SIM GSM + GSM touch screen phone and Duos 259, a Dual SIM CDMA + GSM multimedia phone. The B-5722 GSM + GSM Dual SIM Active Phone, comes with a dedicated SIM switching key and a 7.11 cm (2.8”) full touch screen. B-5722 comes with SNS quick links and Instant Messenger (IM). It is priced at Rs. 10,650. The Duos 259 is a GSM + CDMA Dual SIM Active phone that comes with a 5.58 cm (2.2”) screen, 262-K colour TFT display, 1.3MP Camera, Stereo FM Radio with recording. It is priced at Rs. 7,799. The Company also announced hosting a Java application store on Samsung Fun club which is Samsung’s site for popular games, music, ring-tones, free content, wallpapers and videos. The Company is looking at driving its growth through relevance and innovation, both in terms of the handsets as well as the application space. Bharat Sanchar Nigam (BSNL) has pulled out of the bid to acquire more than 70% stake in the leading fixed phone in Zambia. The withdrawal of Indian Telecommunications Company leaves only three suitors in the race of the 23 companies that sought to buy shares in Zambia Telecommunications (Zamtel). The three companies and consortia still in contention are Russia’s Altimo Holdings and VimpelCom, Lap Green networks of Libya and UNITEL of Angola. The three bids are second round offers and they follow the first round bid submissions, received on December 23rd 2009 after undertaking a due diligence scrutiny of Zamtel from November 2. Aircel has approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against Bharat Sanchar Nigam (BSNL) alleging that the latter has raised “illegal, arbitrary and whimsical demand” for signal charges for roaming calls. Aircel has alleged that BSNL has raised bills against it for roaming signals that are not even part of the interconnect agreement between them. Admitting the petition, TDSAT Bench has directed BSNL to file its reply. Aircel alleged that BSNL has even raised penal interest in the demand and pursuant to the said illegal demand, has subsequently issued notices, threatening disconnection of Points of Interconnection. Aksh Optifibre in association with BSNL has launched commercially the fibre to home project in the city of Jaipur for the first time in India. The Company will lay the last mile fibre, market, acquire customers, and deliver triple play on a prepaid model basis. The service will provide multi-play services with high definition content for BSNL’s over 35,000 customers in six districts of Rajasthan. The network has been built on the Gigabyte Passive Optical Technology. Bright Telecom has launched a new mobile handset, G-Fone which supports two totally different modes like GSM + GSM or GSM + CDMA. The handset has a QWERTY keypad and comes preloaded with Nimbuzz. It is priced at Rs. 4,799. Videocon has launched nine new mobile handsets with an aim to clock 1 mn unit sales of handsets every month. The Company claims to be registering monthly sales of 2.5-3 lakh units every month as of now. Tata Communications and UK-based Augere are reportedly set to participate in the upcoming BWA spectrum auctions in India. Bharti Airtel has submitted its bid for 3G spectrum, auction for which starts from April 9. Videocon Industries has reportedly placed a bid for 3G mobile spectrum in India, coming up in April for auction, while Reliance Communication has submitted its application for Broadband Wireless Access.

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

PHARMA & HEALTHCARE BRIC nations to be among Top 13 pharma market by 2013: IMS Health Emerging markets such as India and China are set to overtake major developed drug markets of the world, with significant increase in pharmaceutical sales through 2013, reveals a study undertaken by IMS Health. According to IMS Health the drug sales in China is likely to outpace that of France & Germany, while Brazil, Russia and India will be among the top 13 pharma market by 2013. The US would continue to rule the world pharmaceutical market followed by Japan, with China at the third position. It further said that Brazil will be on the eight position Russia at 11th and India at the 13th place. IMS Health coined the term “pharmerging market” in 2006 in recognition of the major shift in growth away from the mature, developed economies to the seven fast-growing emerging economies of China, Brazil, Russia, India, Mexico, Turkey, and South Korea. In the three years since then, the regional gap in pharmaceutical growth contribution has widened further as the performance in the major developed markets continued to slow. IMS Health ranked the “pharmerging market” on the basis of their market value growth, with China at the forefront. The Tier-II comprised Brazil, Russia, India, while the Tier-III consisted of a group of 13 far flung nations ranging from Argentina to Egypt, Pakistan to Poland and the Ukraine to Vietnam. China is expected to drive $40 bn in growth through 2013, while Brazil, Russia and India are each expected to add $5-15 bn to the pharmaceutical market through 2013. Meanwhile, the Tier-III nations are expected to make a cumulative contribution in each market of $1-5 bn through 2013, IMS Health said. The huge swing of power to the 17 “pharmerging market” is set to intensify as they continue to gain share at the expense of the US and top five European markets. US FDA orders Glenmark Generics, Konec to stop marketing unapproved Nitroglycerin tabs The US Food & Drug Administration (US FDA) has ordered Glenmark Generics and Konec to stop marketing unapproved nitroglycerin tablets. The tablets are placed under the tongue to relieve chest pain or to stop a heart attack and are marketed in 0.3 mg, 0.4 mg, and 0.6 mg dosages. The US FDA does not anticipate a supply problem for these products. Pfizer Inc. markets FDA- approved sublingual nitroglycerin tablets in the same strengths and is able to supply the market with approved products. The US FDA also will work with patient organizations and health care professionals to ensure that they are aware that an approved product is available. The agency’s warning letters require Glenmark and Konec to remove the unapproved tablets as part of the FDA's Unapproved Drugs Initiative1. The initiative was announced in 2006 to address marketed drugs that had not received US FDA approval. The unapproved nitroglycerin tablets have not been proven safe and effective, and the US FDA has not reviewed the quality and labeling of these products. The unapproved products may differ from approved nitroglycerin products in some respects, such as formulation and labeling. The US FDA has seen significant quality and efficacy problems with some unapproved nitroglycerin products. Glenmark and Konec have 15 days to respond to the US FDA with a plan for removing their products from the market. They have 90 days from the date of the warning letters to stop manufacturing new products and 180 days to stop further shipment of existing products. Strides Arcolab buys 100% stake in Oncology JVs from Aspen; ups guidance for FY10 Aspen Pharmacare, Africa's biggest generic drugs maker, will sell its 50% stake in global oncology joint ventures to joint owner Strides Arcolab for $117 mn (around Rs. 5.3 bn). As part of the deal, Strides would license the existing and future oncology products to Aspen for distribution in certain territories. The deal forms part of Aspen's plans to source certain products for supply through its international distribution network, which reaches 100 countries. The transaction, which is subject to regulatory approvals, would boost Strides manufacturing and development capacity in its specialties business. Post-restructuring its oncology JV arrangement with Aspen Pharmacare, the Company has revised the guidance for FY10, post restructuring its oncology JV arrangement with Aspen Pharmacare. Strides will license the existing and future oncology products to Pharmacare – an Aspen group company – for certain territories. According to revised guidance, the group revenues are expected to increase by 35-37%, (Rs. 17.75 bn – Rs. 18.25 bn). The EBIDTA growth is pegged at over 70% with EBIDTA margins in the range of 20-21%. Strides Arcolab is in discussions to increase its stake in Australia's Ascent Pharmahealth to 100% from 57%. The Company would have to pay about AU$40 mn to buy the remaining 43% stake in Ascent Pharmahealth. The offer involves a cash price of A$0.35 per share of Ascent Pharmahealth at an 84%premium to the 12-month weighted average share price of AU$0.19. Sun Pharmaceutical Industries has announced that the US Food & Drug Administration (US FDA) has granted its subsidiary an approval for its ANDA for Promethazine Hydrochloride and Codeine Phosphate Oral Syrup, 6.25 mg/5 ml and 10mg/5ml. This Promethazine Hydrochloride with Codeine Phosphate Oral Syrup is bio-equivalent to the similar product of Actavis Mid Atlantic. This product has annual sales of approximately US$16 mn in the US. This medication is used to treat symptoms caused by the common cold, flu, allergies, or other breathing illnesses. Glenmark Generics has received final approval from the US Food & Drug Administration (US FDA) for Mexipril Hydrochloride/ Hydrochlorothiazide tablets in multiple strengths. The drug is the generic version of Schwarz Pharma's Uniretic tablets and used for treating hypertension.

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

PHARMA & HEALTHCARE Dr. Reddy's CPS biz commissions mPEG alcohol mfg facility The Custom Pharmaceutical Services (CPS) business of Dr. Reddy’s Laboratories announced the successful commissioning of its commercial scale manufacturing facility for pharma grade mPEG alcohols at its Cuernavaca facility in Mexico. mPEG Alcohols are the key raw materials for Activated mPEG, extensively used for pegylation with biologic drugs and increasingly for peptides and small molecule pharmaceuticals. Dr. Reddy’s has officially announced PEGtech as its product brand for its extensive range of Activated mPEGs. The new assets in Mexico represent a significant investment in a dedicated facility operated to c-GMP standards which is capable of producing a wide range of molecular weight mPEGs and has a multi tonne annual capacity. The mPEG alcohol manufactured in Mexico will be supplied to Dr. Reddy’s c-GMP facility in Mirfield, UK where commercial scale activation is carried out. PEGtech branding has been used to bring together a broad product range comprising a variety of activating groups and molecular weights (5-60 kDa), which are now fully supported by backward integration to the key starting materials. It furthermore highlights the company’s extensive experience in product development and GMP manufacture of the Activated mPEGs. GVK Bio opens new clinical pharmacology unit in Ahmedabad GVK Biosciences (GVK Bio), Asia's leading contract research organization announced that it has commissioned its new clinical pharmacology unit (CPU) in Ahmedabad. The Ahmedabad CPU adds 110 beds to GVK Bio's existing capacity of 144 beds. The new CPU will conduct a variety of studies in healthy volunteers. Ahmedabad was the most preferred and logical destination for expansion considering the volunteer pool accessibility and proximity to about 10 CROs and leading Pharma companies. With 3 clinical wards and 110 beds, the Unit is state-of-the-art and designed to suit all regulatory requirements. It also has special housing facilities for female volunteers. Key features of this Unit include access to special population like young women, post-menopausal women, diseased population and access to about 12,000 healthy volunteers. GVK Bio's CPU is a top service provider of bioequivalence studies to generic pharma companies globally. The CPU unit, operational from 2004 in Hyderabad, has undergone several international audits, inspections and has key accreditations to its credit including the US FDA, DCG (I), ANVISA (Brazil), AFSSAPS (France), WHO and the Ministry of Health, Turkey. In addition to the healthy volunteer population, the Ahmedabad facility gives access to diseased population in Psychiatry, Metabolism, Cardiovascular, Neurology etc. Dr. Agarwals Eye Hospital has announced that the eye care hospital in Mauritius is expected to commence its operation in Mauritius on March 17, 2010. Ranbaxy Laboratories has settled its Actos patent litigation with Japan's Takeda Pharmaceutical.Under the terms of agreement, Takeda has granted Ranbaxy a non-exclusive royalty free license to its US patents. This agreement will allow Ranbaxy Pharmaceuticals to bring to patients with diabetes a generic alternative in this important therapeutic area. Dishman Pharmaceuticals & Chemicals has announced that its Bavla facilities have been approved by Therapeutic Goods Administration (TGA), Department of Health and Ageing, Australian Government, Australia, for all Active Pharmaceutical Ingredients (API) production. Parenteral Drugs India through its subsidiary i.e. Parenteral Biotech has entered into an exclusive license, supply and distribution agreement with Beijing-headquartered Sinovac Biotech Company for purchase and supply of HIN1 influenza vaccine (Split Virion) and Inactivated (PANFLU,1) for supply of the said products in the Indian market on an exclusive basis. Sinovac is a leading vaccine player in China and the first company worldwide to receive approval for H1N1 influenza vaccine. The World Health Organisation (WHO) and the UNICEF have reportedly suspended the use and purchase of Shan5 vaccine from Sanofi Aventis-owned Shantha Biotechnics pending a quality investigation. The pending investigation threatens a three-year contract worth $350 mn. Venus Remedies has announced that the Company has been granted another product patent by Intellectual Properly Office (IPO) office Govt of India for Sulbactomax, out of its patent basket of 341 patents filed globally. Sulbactomax is a fixed dose combination of a beta lactam antibiotic Ceftriaxorte Sodium and a beta lactamase inhibitor Sulbactam Sodium in dry powder form for injection to be used after reconstitution with a super solvent. The product is used for combating betalactamase mediated antibiotic resistance of existing Ceftriaxone molecule with the aid of betalactamase inhibitor.

Weekl y Newsletter 12 Info-Spectrum Bridging the Information Gap in Corporate Landscape

AUTO & AUTO ANCILLARIES Ashok Chavan inaugurates new M&M at Chakan Mahindra Chakan – a 700 acre, future-ready facility set up by automaker Mahindra & Mahindra Ltd. (M&M) at Chakan – has been inaugurated by the Maharashtra Chief Minister, Ashok Chavan. Initially, the plant will have an annual installed capacity of 3 lakh units, including 50,000 trucks. This will enable M&M to manufacture its entire range of products ranging from the 0.75-tonne Maxximo to the 49-tonne Mahindra Navistar truck, as also its sports utility vehicle (SUV) range it plans to launch in the US. The plant will initially make the full range of medium and heavy commercial vehicles from the joint venture with Navistar ranging from 25-49 tonne tippers and trucks. It will also accommodate production of other models if required by the future market demand. Rs. 5,000 crore will be invested in the first phase of the plant, making this the largest single investment in the Indian auto sector. According to Dr. Goenka, half of this has already been made, while the other half will be invested over the next 18 months. uilt as a green facility, the plant will tap alternate energy sources such as solar energy and waste heat for use in factory operations. This will reduce the consumption of LPG and electricity in the paint shop, in addition to lowering carbon dioxide emissions by 3,500 tonne at full volume. Upon completion, Mahindra Chakan will be amongst the most eco-friendly auto plants in the world. &M Chakan will house paint shops, press shops and body shops, as also an engine plant with an installed capacity of 1,20,000 engines for utility vehicles and 40,000 engines for trucks. The facility employs around 1,400 people at present. At full capacity, the plant will provide 5,000 direct jobs and five times as many indirect jobs. Renault-Nissan alliance inaugurates Chennai plant; mulls tying up with Ashok Leyland Renault-Nissan has inaugurated its manufacturing plant here in which the two partners will together be investing Rs. 45 bn to produce four lakh units by 2015. The alliance has made an initial investment of Rs. 29 bn with a capacity of 2 lakh units annually that can be scaled up to 4 lakh units. It has already started trial production at the plant and will be rolling out the latest generation compact car Micra from the Nissan stable, which will be available in the India by July this year. The plant will play an important role in the global strategy of the alliance. Renault-Nissan said that this plant will be one of its four major export hubs for a few global models, the first of which will be the Micra. Separately, Renault-Nissan is reportedly planning to bring more small cars in India, for which it is looking to develop new product with Ashok Leyland, besides Bajaj Auto. Nissan will be launching its compact car Micra by July this year, while Renault is also looking to tap on Nissan's small car platform for the Indian market. Nissan has said it plans to launch nine models in India by 2012. In order to tap the segment, the alliance is in talks with Ashok Leyland for developing a new small car. The Indian unit of the Renault-Nissan alliance will start selling Micra hatchbacks from July and aims sales of 80,000 units in the financial year ending March 2011. Exports, which will be a major portion of sales, will start in the second half of 2010. Toyota to cut Prius output: reports Toyota Motor Corporation is reportedly slashing its output of the Prius hybrid model by 10% starting this month due to a slowdown in sales from a peak last year. Toyota, the world's biggest automaker, had been building a combined 50,000 Priuses a month at two Japanese factories since the third-generation model debuted last May. That will drop to about 45,000 units from March declining to be identified because Toyota does not make those production plans public. Meanwhile, Toyota has indefinitely suspended completion of a new assembly plant in Mississippi earmarked for Prius production as the global financial crisis hammered sales worldwide. Moreover, Toyota's Tsutsumi factory and another plant at unit Toyota Auto Body Co have been working overtime to produce the fuel-sipping Prius, and Toyota had internally considered back in January adding production at the Motomachi factory in September. M&M has received the approval of its shareholders to subdivide every Rs. 10 ordinary equity share into two ordinary shares of Rs. 5 each. Autoline Industries has secured the recognition of General Motor's Supplier of the Year Award – 2009. Bosch has announced that the workmen at the Naganathapura Plant, who had resorted to illegal tool down strike, have resumed to work from March 13, 2010, consequent to the conciliation meeting held between the management and workmen union before the Additional Labour Commissioner, Bangalore, wherein it was decided to restore the normalcy in giving production and productivity by the workmen without giving any scope for untoward incident in the factory premises. Accordingly, the lock out declared by the Company has been lifted effective from March 13, 2010. Steel Strips Wheels (SSWL) has announced that Renault has nominated SSWL to source its requirements of steel wheel rims from SSWL for its new project in Europe. SSWL will be a single source for this project. SSWL expects to 3 lakh steel wheel rims in 5 years. The global sales of Tata Motors increased by 59% to 89,768 units in Feb’10 on robust demand for both commercial and passenger vehicles. Sales of luxury brands from Jaguar Land Rover rose 60% YoY to 17,197 units in Feb’10. Its total passenger vehicles sales increased 50% YoY to 47,108 units in Feb’10, while its commercial vehicles sales rose by 70% YoY to 42,660 units in Feb’10. The total cumulative sales rose 17% YoY to at 771,238 units in Apr’09-Feb’10 period, while its passenger vehicles sales increased by 4% YoY to 4,06,118 units during the period. Its cumulative sales of commercial vehicles rose 35% YoY to 365,120 units in Apr’09-Feb’10 period. Daimler Commercial Vehicle India (DCVI) – the Indian subsidiary of German auto major Daimler – has inaugurated a truck testing facility in Chennai. Daimler said that it will invest Rs. 44 bn over the next five years for setting up a manufacturing plant in Chennai. The plant – which will manufacture light, medium and heavy commercial vehicles – will have an initial capacity of 36,000 units in the Phase-I and will be scaled up to 72,000 units. It will be spread over 400 acres at Oragadam, near Chennai and will start rolling out vehicles by 2012. BMW is planning to enhance its production capacity at its Chennai plant as it eyes sales of over 4,000 units in 2010. The Company also plans to start assembling the new 5 Series at the Chennai plant by Jul’10.

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

BANKING & FINANCIAL SERVICES Canara Bank gets “A1+” ICRA rating for Rs. 350 bn Certificate of Deposit program ICRA has assigned “A1+” rating to the Rs. 350 bn (enhanced from Rs. 300 bn) Certificate of Deposits programme of Canara Bank. The Bank’s ratings factor in the implicit sovereign support enjoyed by the bank in its role as one of the largest nationalized banks in the country, the strong brand franchise in the corporate sector, adequate capitalization levels and steady core profitability. The ratings also take into account the competitive operating cost structure, notwithstanding the bank’s large branch network and the comfortable liquidity position. ICRA has taken note of the moderate, but steady increase in NPA levels as a result of certain large slippages and the steps taken by the bank to arrest such incremental slippages. The healthy core profitability as a result of better interest spreads and improving operating efficiency could absorb any marginal increase in credit costs. The interest spreads have shown improvement as a result of the Bank’s efforts to shed high cost deposits and rebalance the credit portfolio, but the declining yield on advances could holdback interest spreads to an extent. The liquidity profile remains comfortable with no adverse gaps in the ALM statement. Sundaram BNP Paribas Home Finance gets “LAAA (SO)” rating for senior PTCs ICRA has reaffirmed “LAAA (SO)” rating assigned to the Senior Pass Through Certificates (PTC) issued by SHFL Housing Finance Trust Aug-04, Special Purpose Vehicle (SPV) for the Mortgage Backed Securitisation (MBS) programme of Sundaram BNP Paribas Home Finance (SBPHFL). The collection efficiency for this pool of home loans has been high (almost 100%) leading to low credit enhancement utilization in the pool. The current rating factors in the performance of the pool till date and the expected performance over the balance tenure and the credit enhancement available for the payouts on the balance senior rated tranche. The transaction has three series of PTCs. PTC Series A1 and A2 are senior, of which only A1 is rated. Any further rating action will be based on the performance of this pool and the availability of credit enhancement relative to ICRA’s expectations. SBPHFL has outstanding ratings of “LAA” and “MAA+” from ICRA for its various debt instruments, indicating low credit risk in the long and medium term respectively. The rating assigned by ICRA to the short-term debt instruments of SBPHFL is “A1+” indicating lowest credit risk in the short term. CIBIL in pact with 31 MFIs to set up credit bureau Credit Information Bureau India (CIBIL) has entered into an agreement with 31 Micro Finance Institutions (MFIs) to set up a credit information bureau. These MFIs are part of the Micro Finance Institutions Network (MFIN), which was set up recently as a self-regulatory organisation of MFIs. The credit bureau will help promote responsible lending and enable MFIs to assess the credit worthiness and current exposure levels of loan applicants. Quoting a CRISIL report, CIBIL said that the Indian microfinance sector is estimated to comprise around 120 mn households that translate into a credit demand of Rs. 1.2 trillion. Religare Enterprises plans to set up its asset management, sales and distribution business in Japan and has hired a team from KBC Financial Products for the same. The Company has applied for investment advisory and agency business licences with Japan's financial regulators and will follow it up over a period of time by applying for a discretionary investment management licence. The Board of Directors of PNB Gilts has decided to discontinue merchant banking activities of the Company. The Company shall accordingly move an application to SEBI for surrender of its merchant banking registration. UCO Bank has reportedly opened a Rs. 5 bn upper Tier-II bond issue. The 15-year bonds carry a coupon of 8.9% payable semi-annually. The bonds would have a call option at the end of the tenth year. Yes Bank has paid Rs. 73 cr advance tax for FY10, as against Rs. 49 cr advance tax in FY09. Lakshmi Vilas Bank (LVB) has tied up with Visa to launch Lakshmi Vilas Bank International Visa Debit Card. The Bank has made a significant leap in technology by achieving 100% core banking and is having 168 ATMs across the country within a shortest possible time. Based on the robust technology platform, LVB has been in constant pursuit of introducing various customer centric products and services. SKS Microfinance has received Rs. 1 bn subordinated debt from Small Industries Development Bank of India (SIDBI). The eight-year borrowing marks the first-ever long-term borrowing programme by the microfinance institution. The borrowing will qualify as a Tier-II capital for computation of capital adequacy ratio as per RBI norms. The long-term instrument is unsecured and will be repaid at the end of eight years. Indian Overseas Bank has hiked its deposit rates by up to 50 bps. The rate for Fixed Deposit of over five years has been raised by 50 bps to 7.25%. For the deposits of less than five years, interest rate has been hiked by 25-50 bps. The new rates for deposits between nine and 12 months will be 6% and for FDs of over one year, but less than 5 years will be 6.75%. Deposits of Rs. 1 crore and over will attract an interest rate of 6.5%, up from 6% earlier. Mahindra & Mahindra Financial Services has launched new product i.e. loan against gold. Separately, the Company has inaugurates first exclusive loan against gold branch in Thodupuza. Tamilnad Mercantile Bank (TMBL) has increased its domestic term deposit interest rates by 35 basis points in the slab of one to less than two years, 25 basis points in the slab of two to less than three years with effect from March 17. The interest rate for the maturity of one to less than two years has been increased from 7.25% to 7.60% for public and from 7.75% to 8% for senior citizens and the interest rate for the maturity of two years to less than three years has been increased from 7.5% to 7.75% for public and from 8% to 8.25% for senior citizens, said a release from the bank. The Board of Directors of SE Investments shall meet on March 20, 2010 to consider the proposal for sub-division of the equity shares of Rs. 10 each of the Company into 5 shares of Rs. 2 each with effect from the record date to be determined by the Board of Directors of the Company for this purpose. The Board of Directors of Manappuram General Finance & Leasing has decided to split the existing equity shares of the face value of Rs.10 each fully paid in to equity shares of Rs.2 each fully paid. Its Board has also decided to make a bonus issue of equity shares in the ratio 1:1 to the members of the company. Standard Chartered Bank is planning to raise up to $1 bn (over Rs. 45 bn) by Jun’10 through Indian Depository Receipts (IDR).

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

STEEL, METALS & MINERALS Mineral production up 9.57% YoY to Rs. 97.13 bn in Dec’09 The mineral production from mining and quarrying sector rose 6.4% MoM in Dec’09. The mineral production rose by 9.57% YoY, while the total value of mineral production (excluding atomic & minor minerals) stood at Rs. 97.13 bn in Dec’09. The contribution of coal was the highest at Rs. 38.64 bn (40%), while the nNext in the order of importance are: iron ore Rs. 18.06 bn, petroleum (crude) Rs. 16.18 bn, natural gas (utilized) Rs. 13.5 bn, lignite Rs. 2.39 bn and limestone Rs. 2.23 bn. These six minerals together contributed about 94% of the total value of mineral production in Dec’09. Production level of important minerals in Dec’09 are: coal 489 lakh tonne, lignite 29 lakh tonne, natural gas (utilized) 4325 million cu. m., petroleum (crude) 29 lakh tonne, bauxite 1190 thousand tonne, chromite 332 thousand tonne, copper conc. 9 thousand tonne, gold 163 kg., iron ore 177 lakh tonne, lead conc. 12 thousand tonne, manganese ore 202 thousand tonne, zinc conc. 113 thousand tonne, apatite & phosphorite 77 thousand tonne, dolomite 429 thousand tonne, limestone 179 lakh tones, magnesite 24 thousand tones and diamond 1,883 carats. In Dec’09, the output of lignite increased by 39%, diamond 14.47%, apatite & phosphorite 10.21%, natural gas (utilized) 8.48%, coal 8.17%, zinc conc. 5.8%, petroleum (crude) 4.01%, copper conc. 2.10%, iron ore 0.87%, lead conc. 0.55%, and limestone 0.26%. However, the production of manganese ore decreased by 0.32%, gold 3.55%, dolomite 6.1%, magnesite 10.22% and bauxite 21.87%. Meanwhile, the mineral sector has shown a positive growth of 8.51% YoY in Apr-Dec’09 period. ArcelorMittal to set up $130 mn steel mill in Iraq ArcelorMittal has signed a Memorandum of Understanding (MoU) with Turkish firm Dayen Dayen to build a steel mini-mill with electric furnace in Sulaimaniyah in Northern Iraq. The mill would annually produce in its initial phase up to 2.5 lakh tonne of re-bars from locally sourced scrap at an estimated investment of US$100 mn to US$130 mn, jointly subscribed by ArcelorMittal and Dayen. The construction for the plant is planned to start in the second quarter of 2010 and production is planned to commence early in 2011. POSCO is planning to invest $240 mn (Rs. 11 bn) to build a galvanizing steel plant in Maharashtra. The continuous galvanizing line producing steel products for automobiles and electronic goods is set to be completed in May’12 an annual production capacity of 4.5 lakh tonne. The Government is reportedly planning up to 10% equity dilution in National Aluminium Company (Nalco), which may fetch the exchequer about Rs. 22 bn. The Government has decided the issue price at Rs. 300 per share for the FPO of NMDC with Rs. 285 per share for retail and eligible employees. Japan’s second largest steel firm, JFE Steel, is reportedly close to acquiring around 10% stake in JSW Steel. JSW Steel has reportedly won additional carbon credits for reducing greenhouse gas emissions at a project in Karnataka. It has secured 504,214 credits by the UN Clean Development Mechanism. NMDC has filed the prospectus with the Registrar of Companies (RoC) of Andhra Pradesh for a Further Public Offer (FPO) of 332,243,200 equity shares of Re. 1 each. The Board of Directors of Southern Ispat shall meet on March 22, 2010 to consider the acquisition proposal. Its Board will also consider the proposal to raise funds through FCCBs/ADRs/GDRs, and hike in limits of inter corporate investments. ArcelorMittal has reportedly sent a communication to the Jharkhand Government to relocate its 12 MTPA Greenfield steel project at an estimated cost of Rs. 500 bn project from Khunti Gumla area to Bokaro. SAIL is set to start the process to select a partner for its exclusive SEZ in Tamil Nadu this week amidst global and domestic firms evincing interest in the JV project. Heavy Engineering Corporation and SAIL has received No Objection Certificate (NOC) from the Jharkhand Government to set up medical college in Ranchi and Bokaro respectively in Jharkhand. Wheels India has commenced the commercial production of steel structure parts for power plant and the first sale took place on March 18, 2010.

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

MISCELLANEOUS Jet Airways domestic passenger traffic up 22% YoY in Feb; to start Mumbai-SA non-stop flight Jet Airways (India) has registered its fifth consecutive month of strong growth with the announcement of its results for Feb’10, maintaining its leadership position in the Indian aviation industry. The Company has reported 31% YoY growth in international passenger traffic in Feb’10, while its domestic passenger traffic also grew by 22% YoY in Feb’10. JetLite – Jet Airways' all-economy subsidiary – has registered a 10.4% growth in passenger traffic on a seat factor of 80% in Feb’10. The airline is set to sustain stronger growth with its strategic expansion program, introducing new routes in the international and domestic sectors. In the international sector, the airline is launching a daily non-stop flight with a new state-of-the-art Airbus 330-200 aircraft from Mumbai to Johannesburg from April 14, 2010, as South Africa is home to a host of breath-taking opportunities and options in business, sports and tourism. The airline will also introduce a daily flight on the Thiruvananthapuram-Dammam sector, its third daily service to the kingdom of Saudi Arabia from India, effective March 28, 2010. In the domestic sector, Jet Airways all-economy, no-frills Konnect service will introduce daily, direct services to Dehradun from New Delhi, effective March 28, 2010. In addition, JetLite, Jet Airways' all-economy subsidiary, recently introduced a new flight on the Kolkata–Agartala-Kolkata sector aboard a Boeing 737-700 aircraft from February 8, 2010. Reliance MediaWorks enters Japan; partners with Imagica Corp Reliance MediaWorks has entered into a Memorandum of Understanding (MoU) with Imagica Corporation (Imagica), Japan’s largest lab and post-production company that has provided high-quality one stop services, from shooting to distribution, since its foundation in 1935. Under the alliance, the companies would provide Film Restoration, Image Processing and Enhancement and HD Conversion services to Japanese Broadcasters and Studios. Imagica offers a comprehensive range of services such as film processing and printing, inter-media transfer, digital and optical composite, VFX, CGI, editing and sound services, DVD authoring and duplication, and image restoration, etc. The company also leads the market with high quality services for Digital Intermediates, Digital Cinema, Stereoscopic 3D, and Blu-ray disc authoring. Imagica would work closely with Reliance MediaWork’s LA-based subsidiary Lowry Digital, Hollywood’s leading film restoration expert, which has handled the digital restoration of picture elements for Akira Kurosawa’s 1950 Academy Award winning masterpiece “Rashomon”, the movie that first brought Japanese cinema to prominence in the west. Lowry Digital has handled projects for leading studios like Walt Disney, Paramount Pictures, MGM and 20th Century Fox and entertainment leaders like George Lucas, Steven Spielberg and James Cameron and has handled the restoration of footage sent back to Earth from Apollo 11, for NASA. India Agri Business Fund will invest $10 mn (about Rs. 48 crore) to pick up around 22% stake in Gautam Thapar-promoted Avantha Group's food division Global Green Company. The fund will invest another $40 mn this year in food and agri sector, said Rajesh Srivastava, chairman & Managing director, Rabo Equity Advisors, the sponsor of the $100 mn fund. Bayer CropScience has announced a fire occurred in the AC4 plant of the Company located at Ankleshwar, Gujarat wherein the active ingredients for crop protection products are produced. The fire was brought under control within 25 minutes. The Company is fully co-operating with the local authorities for investigating the cause of fire. Neo Corp International has announced that its new division i.e. Techtextil was gutted in fire on February 28, 2010. However, the old sheds and building are intact and manufacturing activities are normal. As a damage control exercise, the Company has acquired rented premises and hopes to restart lost capacities within four weeks. The rebuilding of entire lost assets shall take 12 weeks and 24 weeks in two stages, and the lost assets were fully covered under insurance, Neo Corp International added. The Board of Directors of Rishabhdev Technocable shall meet on March 20, 2010 to consider the proposal for strategic business tie-ups with various Company's for various Divisions of Business for Growth and Future Expansion of the Company. The Board of Directors of Richa Industries shall meet on March 22, 201 to consider the expansion of its existing activities in textile sector by installation of rotary printing, finishing and knitting machines. Royal Orchid Hotels has announced that the lease agreement with the owners of Peppermint Hotel (Hyderabad) has been terminated, effective from the close of business hours on February 28, 2010. Novopan Industries has announced that there was an incident of fire at the Shadnagar manufacturing unit of the Company and the stock of wood, which is a prime raw material for the Company, was burnt. The Company has reported a claim with the insurance Company pending assessment of the loss which is under process. Kemrock Industries & Exports has filed the Draft Letter of Offer with SEBI in relation to proposed issue for Rights Issue. Big Cinemas – a division of Reliance MediaWorks – has strengthened its global footprint with the reopening of ImaginAsian Theater as BIG Cinemas Manhattan in Midtown East - New York. New York has a large and affluent Asian Indian population with over three hundred thousand Indians having a strong affinity towards Indian movies and BIG Cinemas Manhattan will now provide a destination for a luxurious cinematic experience. The Board of Directors of Passari Cellulose has approved further issue of shares (Follow-on Public Offer) to fund the new factory and expansion of business. Reliance Media World said its radio arm 92.7 FM has launched classified ads service – BIG Impact – on radio. The Board of Directors of Kajaria Ceramics has approved the proposal to set up a manufacturing facility of 6-MSM capacity for production of polished and glazed vitrified tiles with an estimated cost of Rs. 1.25 bn at its existing location at Gailpur (Rajasthan). The same would be financed by way of debt and internal accruals. The commercial production is expected to start by end of Dec’10.

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

MISCELLANEOUS Kingfisher to launch seven international routes soon Kingfisher Airlines will launch seven international routes this summer, which include a daily non-stop flight between New Delhi and London starting March 28 and one between New Delhi and Hong Kong beginning April 7. The two services are part of seven new international routes, for which Kingfisher Airlines received traffic rights from the Indian government last month. The other routes include New Delhi-Bangkok, New Delhi-Dubai, Mumbai-Colombo, Mumbai-Bangkok and Mumbai-Dubai. Kingfisher Airlines plans to consider possibilities for cooperation with other European carriers at a later stage. It can be noted that Kingfisher Airlines slimmed down its fleet to 69 aircraft as part of a rationalization programme and it operates around 360 daily flights on its domestic route network and around 100 a week on its international route network. Sumeet Industries has announced that the Polyester Filament Yarn (POY/FDY) plant (Direct spinning unit through PTA and MEG route) has been commissioned successfully and production has been started from March 11, 2010. By implementation of this Project the total capacity of the Company's POY and FDY production will be increased from 12,000 TPA to 56,000 TPA. INOX Leisure has announced that the commercial operation of its new multiplex cinema theatre located at Maharanipet (Vishakhapatnam) commenced from March 17, 2010. Nitin Fire Protection Industries has announced that its subsidiary has received and is executing single order for design supply, testing and commissioning of special fire fighting and liner heat detection systems for their utility tunnel of over US$3.5 mn. The Board of Directors of Chembond Chemicals has allotted 3180206 equity shares of Rs. 10 each as fully paid up Bonus Shares to those members whose names appeared in the Register of Members on March 11, 2010. Alkali Metals has started its commercial operations with effect from March 16, 2010 from its Parwada unit (Visakhapatnam). The Board of Directors of Rain Commodities has approved the proposal to hive-off the cement operations to a wholly owned subsidiary to enable possible induction of JV partners in the future and/or to pursue value-accretive acquisitions. Its Board has also approved the proposal to create global holding company in USA for the Calcined Petroleum Coke (CPC) business. Separately, its Board has recommended 37% dividend (Rs. 3.70 per equity share of Rs. 10 each) for CY09. Western India Shipyard has received a large order worth Rs. 10.8 crore from a UAE client for major repairs to their Well Stimulation Vessel (WSV) i.e. Vlstfonn, which involves specialized industrial activities like overhauling of equipment, repairs in dry dock and jetties, etc. This is a prestigious order to be completed in about 27 days and the repairs value is about. The repair order has been won against stiff competition. The Board of Directors of Devine Impex has decided to venture into hotels and related business as a Joint Venture or through a separate subsidiary company. Asian Granito India has successfully implemented its Rs. 37 crore wall tile expansion project at its Himmatnagar plant four months ahead of schedule. The plant is set to commission commercial production from March 18, 2010. The Company will now be able to produce around 22,000 square meters of wall tiles a day, nearly two-and-half times of the existing capacity. The Board of Directors of Ushdev International has approved the allotment of 1.8 mn equity shares of Rs. 10 each at a premium of Rs. 296 per share to Vijay Gupta (HUF) - Promoter of the Company. Its Board has also approved the availing of the credit facilities to the extent of Rs. 75 crore. Gujarat Borosil has announced that the commercial production of low iron figured glass at its new unit at Govali, Bharuch district of Gujarat has commenced from March 16, 2010. Ocean Agro India has announced that Pinnacle Shares Registry – the Registrar & Transfer Agents of the Company – has decided to cease operations effective from February 28, 2010, necessitating appointment of new Registrars by the Company. Accordingly the Board of Directors at the their meeting held on February 15, 2010 has decided to appoint Sharepro Services (India) as new share transfer agent with effect from March 01, 2010. Rohit Pulp & Paper Mills has announced about the withdrawal of the proposed allotment of 5,93,755 equity shares on preferential basis to the promoters of the Company, as SEBI has not granted exemption to the Acquirer, they had preferred not to proceed further. As the above said Allotment is withdrawn, the promoters are going ahead to remove the Lock-in (NSDL) incorporated by them earlier as per the prevailing Regulations governing the preferential allotment. The Board of Directors of Kay Power & Paper has approved the proposal to issue equity shares on Rights Basis in proportion of two new equity shares for every one existing equity shares held, subject to necessary approval. The Board of Directors of Polytex India has approved the proposal to allot 89.1 mn equity shares of Rs. 10 each due to conversion of warrants, issued under Preferential Issue. The Board of Directors of Parijat Trading has approved the Scheme of Amalgamation of the Company with Multilayer Films. Its Board has approved the share exchange ratio of Ten 2% Non Cumulative Redeemable Non Convertible Preference Shares of Rs. 10 each fully paid in Multilayer Films for every one equity share of Rs. 10 each held in Company. Abhishek Industries has launched its new copier paper “Lotus” in the premium segment in New Delhi. With this launch the flagship company of the Rs. 25 bn Trident Group, has joined the league of companies offering products in the high end and eco friendly copier paper segment. TTK Prestige is launching a whole new range of induction stoves. These stoves are very safe as there is no flame and more energy efficient. The pressure cookers and cookware needed for these stoves require a special base which is induction compatible. The Company is launching a whole new range of pressure cookers and cookware with induction base using dedicated imported machinery. These products can also be used on conventional gas stoves and hobs.

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

RATINGS & DELISTINGS CARE assigns “PR1+” rating on Rs. 15 bn CP issue of DLF CARE has assigned “PR1+” rating on short-term Commercial Paper (CP) issue of Rs. 15 bn (size enhanced from Rs. 10 bn, including current outstanding) of DLF. The instruments with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk. The rating reflects DLF’s rich experience and leading position in the domestic real estate sector, large land bank (which is largely paid for), pan-India presence and diversified revenue stream derived from presence across residential, commercial and retail projects. The rating takes into account DLF’s improved financial flexibility consequent to the recent debt management steps undertaken, significant realization of debtors from DLF Asset (DAL) during H1FY10, improved cash flows resulting from the existing projects as well as success of recently-launched projects and comfortable gearing levels. The rating takes comfort from DLF’s stated intention and efforts towards de-leveraging itself by raising cash from sale of its non-core assets and disposal of some of the non-liquid assets. Going forward, DLF’s ability to improve the revenue and profitability in light of challenging operating environment and timely and adequate realization from sale of non-core assets shall be the key rating sensitivities. CARE retains “AA” rating on Rs. 1.5 bn NCD issue of Kalpataru Power CARE retained “AA” rating to the Non-convertible Debenture (NCD) issue of Rs. 1.5 bn and “PR1+” rating to Commercial Paper (CP) / Short Term Debt (STD) issue of Kalpataru Power Transmission (KPTL) for an amount up to Rs. 1 bn, including Rs. 50 crore to be carved out of the tied-up working capital facility and Rs. 50 crore on standalone basis. CARE also retained “AA” rating to the long-term bank loans/facilities and “PR1+” rating to the short-term bank loan/facilities of KPTL for an aggregate amount of Rs. 49.4 bn, including outstanding term loan of Rs. 47.41 crore as on Aug 31, 2009, fund-based working capital limit of Rs. 9.3 bn, non-fund based limit of Rs. 38.12 bn and short-term loan of Rs. 1.5 bn. The facilities with “AA” rating are considered to offer high safety for timely servicing of debt obligations. This rating is applicable for facilities/ instruments having tenure of more than one year. The facilities with “PR1” rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk. This rating is applicable for facilities/ instruments having tenure up to one year. CARE reaffirms “BBB+” rating on long-term bank facilities of Jindal Stainless Steelway CARE has reaffirmed “BBB+” rating to the long-term bank facilities of Jindal Stainless Steelway (JSSL). This rating is applicable for facilities having tenure of over one year. The facilities with this rating are considered to offer moderate safety for timely servicing of debt obligations. Such facilities carry moderate credit risk. CARE has reaffirmed “PR2” rating to the short-term bank facilities of JSSL. This rating is applicable for facilities having tenure up to one year. The facilities with this rating would have adequate capacity for timely payment of short-term debt obligations and carry higher credit risk as compared to facilities rated higher. The ratings continue to derive strength from JSSL’s emerging position in the organized stainless steel service center industry, growing contribution of high-margin distribution sales segment in the overall business, moderate overall gearing and experienced management team. The ratings are constrained by the relatively lower value addition in JSSL’s existing medium scale of operations, working-capital intensive nature of business and exposure to cyclicality of the stainless steel prices. Going forward, the ability of the company to sustain revenue growth and profitability in the light of the emerging industry scenario and the impact of planned expansions on the financial risk profile are the key rating sensitivities. CARE assigns “A-” rating on long-term bank facilities of NDTV CARE has assigned “A-” rating to the long-term bank facilities of New Delhi Television (NDTV). The facilities with this rating are considered to offer adequate safety for timely servicing of debt obligations. This rating is assigned to long-term bank facilities aggregating to Rs. 129.94 crore. CARE has assigned “PR1” rating to the short-term bank facilities of NDTV. The facilities with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk. Within this category, facilities with relatively better credit characteristics are assigned “PR1+” rating. The ratings have been placed on “credit watch” in view of developing implications arising out of de-merger of news and non-news business. The ratings derive strength from strong promoter group with successful track record in the news broadcasting industry, strong brand of ‘NDTV’ with focus on news, latest technology & infrastructure to provide focused coverage of events, well diversified advertiser base and adequate liquidity position at group level to support fund requirement of NDTV News business. However, the ratings are constrained by weakened financial performance during FY09, elongated working capital cycle, high dependence on advertising revenue which is exposed to business cycles of the advertisers. The Board of Directors of Passari Cellulose has approved the delisting of the company from Calcutta Stock Exchange, subject to necessary approval.

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

RATINGS & DELISTINGS CARE assigns “PR 1” rating on Rs. 60 cr CP/NCD Program of Gati CARE has assigned “PR 1” rating to the Commercial Paper (CP)/short-term Non-Convertible Debenture (NCD) programme of Rs. 60 crore (enhanced from Rs. 45 crore) of Gati. The CP/NCD issue will be carved out of the working capital limits. The instruments with this rating would have strong capacity for timely payment of short-term debt obligations and carry lowest credit risk. Within this category, instruments with relatively better credit characteristics are assigned “PR1+” rating. The rating derives strength from Gati’s established position in express cargo industry with multi- modal transportation network and wide reach, growth in revenue over the years etc. However, the rating is constrained by deterioration in financial position of the company due to operating losses incurred in air freight business, losses on account of the derivative contracts, invocation of Bank Guarantee by National Aviation Company of India, increase in debt levels, particularly that of long-term loans leading to increase in the gearing ratio, continuing high exposure to group companies and challenging operating conditions on account of the slowdown in economy. The ability of the company to maintain profit margins and continuous growth in the operations, without further deterioration in its financial risk profile are the key sensitivities. CARE retains “BB+” rating on long-term bank facilities of Ruchi Global CARE retained “BB+” rating assigned to the long-term bank loans / facilities and “PR4” rating assigned to the short-term bank loans/facilities of Ruchi Global (RGL) for an aggregate amount of Rs. 2.7 bn, including sanctioned fund-based working capital limit of Rs. 15 crore, non-fund based limit of Rs. 2.05 bn and short-term loan of Rs. 50 cr. The facilities with “BB+” rating are considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. This rating is applicable for facilities having tenure of more than one year. The facilities with “PR4” rating would have inadequate capacity for timely payment of short-term debt obligations and carry very high credit risk. Such facilities are susceptible to default. This rating is applicable for facilities having a tenure up to one year. The ratings continue to take into account RGL’s relatively weak financial risk profile having small net worth base and low profitability. Potential volatility in profitability due to fluctuation in commodity prices, which is inherent to the trading business, also continues to constrain the ratings. However, the ratings continue to factor in experience of promoters in trading business, company being part of Ruchi Group and RGL’s low overall gearing level. CARE revises rating on long-term bank facilities of Aqua Logistics CARE has revised the rating assigned to the long-term bank facilities of Aqua Logistics (ALL) from “BBB” to “BB”. This rating is applicable for facilities having tenure of over one year. The facility with “BB” rating is considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. The rating revision takes into account the stressed working capital position experienced by ALL in view of its increasing operations. Besides, the rating is constrained by lower proportion of the long-term contracts which would have provided greater revenue visibility, uncertainty in improvement of India’s international trade and ALL’s reliance on third-party transporters for its operations. However, the rating derives strength from the track record of ALL’s promoters in the logistics industry, significant growth in operations, synergies with its consultancy business (through its subsidiary), the company’s low financial leverage and comfortable profitability ratios. CARE retained the “BBB+” rating assigned to the long-term bank loans / facilities and “PR 2+” rating assigned to the short-term bank loans/facilities of Aarvee Denims & Exports (ADEL) for an aggregate amount of Rs.85.23 crore. ICRA has re-affirmed the rating assigned to the Rs. 900 mn (enhanced from Rs. 750 mn) fund based facilities of Auro Gold Jewellery (AJPL) at “LBB+”. The rating carry stable outlook. ICRA has also re-affirmed “A4+” rating assigned to the Rs. 600 mn fund based facilities of AJPL. The Rs. 600 mn is a sub-limit of Rs. 900 mn cash credit facilities, as such the total utilization should not exceed Rs.900 mn at any point of usage. ICRA has reaffirmed “LBBB” rating assigned to the Rs. 431.7 mn outstanding term loans and Rs. 1.43 bn fund based limits of HPL Socomec (HSPL). ICRA has also reaffirmed “A3+” rating assigned to the Rs. 1.64 bn non-fund based limits of HSPL.

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

INSURANCE & MUTUAL FUNDS SEBI reduces NFO period for mutual funds Securities & Exchange Board of India (SEBI) has asked mutual funds to reduce the period between the opening and closing of issues from the present 30-45 days to 15 days to ensure that investors' money is not blocked for longer period. However, Equity-Linked Saving Schemes (ELSSs) are exempted from the norms. The market regulator also asked mutual funds to extend a facility to their schemes called ASBA, which allows investors to release their money only when they are allotted securities. DSP BlackRock MF launches new close-ended income scheme DSP BlackRock Mutual Fund has unveiled a new fund named as DSP BlackRock FMP - 13 M - Series 3, a close-ended income scheme. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will close on March 22, 2010. The primary investment objective of the scheme is to seek capital appreciation by investing in a portfolio of debt and money market securities. It is envisaged that the scheme will invest only in such securities which mature on or before the date of maturity of the scheme. The scheme may also use fixed income derivatives for hedging and portfolio balancing. The duration of the scheme is 13 months from the date of allotment. The minimum application amount is Rs. 10,000 and in multiples of Rs. 10 thereafter. Entry load and exit load charge will be nil for the scheme. Units of the scheme will be listed on the NSE. Benchmark Index for the scheme is CRISIL Liquid Fund Index. Taurus MF files offer document with SEBI to launch open-ended income scheme Taurus Mutual Fund has filed an offer document with Securities & Exchange Board of India (SEBI) to launch Taurus Gold-Edged Monthly Income Fund, an open-ended income scheme. The New Fund Offer (NFO) price for the scheme will be Rs. 10 per unit. The investment objective of the scheme is to generate regular income through a portfolio of fixed income securities, Gold ETFs and equity & equity related instruments. The scheme offers growth and dividend (payout or reinvestment) option. Under dividend option, there would be choice of monthly or quarterly dividend. The scheme would allocate 65% to 95% of assets in debt & money market instruments with low to medium risk profile. The minimum application amount for growth option will be Rs. 5000 and in multiples of Rs. 1000 thereof. It would collect Rs. 25,000 and in multiples of Rs. 1,000 thereafter for dividend option. The minimum subscription (target) amount of Rs. 100 lakh is expected to be raised during the NFO period. The Schemes performance will be benchmarked against CRISIL MIP Blended Fund Index. Sundaram BNP Paribas MF launches Fixed Maturity Plans Sundaram BNP Paribas Mutual Fund has launched 6 fixed maturity plans. All these are close-ended income schemes. The New Fund Offer (NFO) price for the schemes is Rs. 10 per unit. The scheme name, maturity and NFO period are as follows. Scheme Maturity Period NFO Period Sundaram BNP Paribas FTP - AA 14 Months March 12, 2010 to March 17 2010 Sundaram BNP Paribas FTP - T 367 Days March 12, 2010 to March 22, 2010 Sundaram BNP Paribas FTP - U 367 Days March 12, 2010 to March 24, 2010 Sundaram BNP Paribas FTP - V 367 Days March 12, 2010 to April 06, 2010 Sundaram BNP Paribas FTP - W 367 Days March 12, 2010 to April 08, 2010 Sundaram BNP Paribas FTP - X 367 Days March 12, 2010 to April 08, 2010 The objective of the scheme would be to generate income with minimum volatility by investing in debt and money market securities, which mature on or before the maturity of the scheme. Each scheme offers dividend payout and growth option. The schemes will allocate up-to 100% of assets in money market instruments, short-term, medium-term debt instruments and securitised debt with low to medium risk profile. Investment in securitised debt can be up-to 100% of the net assets. Entry load and exit load charge is not applicable for the schemes. The schemes are proposed to be listed on NSE. Religare MF unveils new close-ended debt scheme Religare Mutual Fund has unveiled a new fund named as Religare Fixed Maturity Plan - Series II - Plan E (18 Months) under Religare Fixed Maturity Plan - Series II - Plan A to F, a close-ended debt scheme. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will close on March 25, 2010. The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the Scheme. The tenure of the Scheme is 18 months from the date of allotment of units. Plan E would allocate up to 100% of assets in debt instruments including money market instruments with low risk profile. Investment in securitised debt including pass through certificate (PTC) shall not exceed 50% of the net assets of the plan. The entry and exit load charge for the plan will be nil. The plan will be listed on the NSE. Bharti AXA Mutual Fund has announced that an Annual Systematic Withdrawal Plan (Annual SWP) facility is being introduced with effect from 16 March 2010 in Bharti AXA Treasury Advantage Fund under the Regular Plan in Growth Option. This facility enables the unit holders to withdraw sums from their unit account in the scheme at annual intervals through a one-time request.

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

M&As M&A Activities… emerging economies back in business: KPMG The emerging economies – led by India, China and the Middle East – are back on the cross- border M&A trail, while their developed counterparts are still lagging behind, reveals a survey by global consultancy firm KPMG. According to KPMG's latest Emerging Markets International Acquisition Tracker (EMIAT), the trade buyers in the emerging economies are already back in full force, while the number of deals instigated by buyers in the developed economies is still on the decline. The number of Emerging-to-Developed (E2D) deals registered in the second half of 2009 was at 102, from 78 deals in the first half of 2009. In contrast, the number of Developed-to-Emerging (D2E) deals fell to 216, half from its high point of 463 deals in the latter half of 2007. Religare Technologies acquires Sobha Renaissance's health care solutions biz Religare Technologies, a group company of Religare engaged in various businesses including Fortis Hospitals, Religare Wellness and Super Religare Laboratories, has acquired the health care solutions business of Sobha Renaissance Information Technology, promoted by the Sobha Developers founder. With this acquisition, Religare Technologies becomes the sole owner of the IP related to 'Magnum" Suite of products (hospital information system). Magnum is an end-to-end, state-of-the-art Hospital Information System (HIS) which provides Healthcare providers with the tools to ensure compliance to processes, transactional efficiency related clinical, administrative or revenue related functions and with the armory required to plug revenue and process leaks and to optimize the same. With 40 modules and 9 tools, Magnum can be customized for every location thus proving to be the right HIS for Hospital Groups. This deal will add more than 100 experts who have worked on these IPs to its Health care IT practice. Post-acquisition Religare Technologies will have the ability to build and implement Hospital Management Systems that are scalable and unmatched. Phillips-Van Heusen snaps up Tommy Hilfiger for $3 bn New York-based clothing company Phillips-Van Heusen Corporation (PVH) – owner of brands like Calvin Klein and Izod – has agreed to acquire apparel maker Tommy Hilfiger (TH) from funds affiliated with British private equity firm Apax Partners for about $3 bn. The deal represents €2.2 bn in cash and stock, plus the assumption of €100 mn in liabilities. The deal marks an end to private-equity firm Apax's plans for an Initial Public Offering for the iconic brand, which it had bought in 2006 for $1.6 bn. The deal will also let PVH to expand its business through the European distribution channels of TH, with over 60% of TH's business is based in Europe. The total consideration for the deal includes $2.6 bn (€1.92 bn) in cash and $380 mn (€276 mn) in PVH common stock. For the stock component of the deal, PVH will issue about 8.7 mn shares to Apax and other TH shareholders. The Company has also agreed to pay €69 mn to the selling shareholders, in the event that the transaction does not close due to failure to obtain the financing or certain other conditions. Consol Energy to acquire Dominion Resources for about $3.5 bn Richmond, Virginia-based electric utility Dominion Resources has agreed to sell its natural gas and oil exploration and production business to Consol Energy, a producer of thermal coal, metallurgical coal and natural gas, for a total of $3.47 bn in cash. The deal includes the rights to about 491,000 acres in the Marcellus formation. According to Dominion, its estimated after-tax proceeds of $2.2 to $2.4 bn, depending on the final tax determination, will help the Company offset its equity needs for 2010 and 2011, fund the revenue credits to Dominion Virginia Power customers included in the rate case settlement agreement and repurchase common stock. The Company could also use the proceeds to fund a contribution to its employee benefit plans and/or reduce debt. Consol Energy plans to raise approximately $4 bn and is targeting a balanced mix of equity and debt to fund the acquisition and development of the acquired acreage. Following the deal, Consol Energy will maintain its strong balance sheet and liquidity position. On a pro forma basis, the acquisition will make Consol Energy the largest producer of natural gas in the Appalachian basin. Quippo acquires tower biz of TTML for Rs. 13.18 bn Quippo-WTTIL has announced the acquisition of telecom tower arm of Tata Teleservices Maharashtra (TTML) through a share purchase agreement for the sale by TTML of its 100% stake in 21st Century Infra Tele (TFCITL), the tower arm of TTML to Quippo-WTTIL. The Rs. 13.18 bn deal will increase Quippo-WTTIL’s tower count by 2,535 towers with increased presence in Mumbai, Maharashtra and Goa and total tower count to scale past the 38,000 mark. TFCITL claims to have a tenancy ratio of 2.15. The deal with TFCITL also includes setting up 4,000 new towers for the firm over a period of five years. The Board of Directors of Hindustan Construction Company (HCC) has approved the proposal to acquire controlling stake in Karl Steiner AG (KSAG), the second largest operator in the Swiss real estate market. The Company will acquire 66% stake via issuance of new shares in consideration for a CHF35 mn cash investment in KSAG. KSAG will use the funds raised by the capital increase for its Swiss operations, and the growth of the company's core business in India's booming residential and commercial construction market.

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

M&As Welspun Infratech to acquire 75% in MSK Projects Welspun Infratech – a subsidiary of Welspun-Gujarat Stahl Rohren – would acquire the 75% stake in MSK Projects India for Rs. 4 bn enabling its direct entry into the world of infrastructure. The acquisition would be done through a combination of share purchases from promoters, associates, investors and open offer. The total investment of this acquisition would be around Rs. 4 bn, of which about Rs. 2 bn would be infused directly into the company for future business growth. The entire investment would be funded by the existing cash flow of the Welspun Gujarat. The transaction, which has been approved by the board of directors of both companies, is expected to close within 90 days. DMC International to acquire Mumbai-based Vsoft Services The Board of Directors of DMC International has approved the acquisition of Mumbai-based Vsoft Services, a 14 years company promoted by Rajiv Prakash Khare. Vsoft Services is the pioneer in development of Indian bilingual software. The multilingual software can be used to deliver higher and technical education in regional languages and caters to the needs of corporate and educational institutions. Vsoft has a wide distribution network across the country. Its major clients are: RBI, SBI, LIC, ONGC, MTNL, BSNL, PNB etc. The takeover consideration will be partly paid in cash & partly by issue of fully paid equity shares of the Company. With this acquisition DMC hopes to fulfill the Sarwa Shiksha Abhiyan objectives for rural and semi rural populations of India by providing education contents of technical & higher education in their regional languages. The above acquisition is subject to necessary statutory formalities. Massey Energy to acquire Cumberland Resources for US$960 mn US coal mining major Massey Energy Company has signed a definitive agreement to acquire Abingdon, Virginia-based Cumberland Resources Corporation (Cumberland) and its affiliated companies for US$960 mn in a combined cash and stock transaction. Cumberland – one of the largest privately held coal producers in the US – operates primarily underground coal mines in Southwestern Virginia and Eastern Kentucky. Massey will acquire Cumberland free of debt. Under the terms of the agreement, the aggregate consideration to be paid by Massey is $960 mn, consisting of $640 mn in cash and $320 mn in shares of Massey's common stock, calculated based upon the average closing price of Massey's common stock for the 20 trading days ending on the day prior to the closing of the acquisition, subject to adjustment for working capital. Godrej Consumer Products (GCPL) has acquired worldwide rights of Tura from the Tura Group of Nigeria for an undisclosed amount. Tura is a leading personal products brand in Nigeria and with this acquisition GCPL is expected to introduce its own portfolio of products in the West African nation. Tura, a household name in many African countries, is a market-leading personal-care company that manufactures and distributes a range of products, including soaps, moisturizing lotions and skin-toning creams. IVR Prime Urban Developers has announced that the Andhra Pradesh High Court has approved the scheme of amalgamation of IVR Strategic Resources & Services and IVRCL Water Infrastructures with IVR Prime Urban Developers, which has earlier been approved by the shareholders. The Board of Directors of Indage Vintners has approved the draft Scheme of Arrangement between the Company and its Creditors subject to requisite approvals. The Board of Directors of Monnet Ispat (MIL) has approved the merger of Mounteverest Trading & Investment (MTIL) – a company listed on BSE with the Company. The swap ratio for the proposed merger shall be two equity shares of MIL for every five equity shares of MTIL. Meanwhile the Board of Directors of Mounteverest Trading & Investment has also approved the said merger proposal. The Board of Directors of Incap shall meet on March 22, 2010 to consider amalgamation of the subsidiary company i.e. Incap Insulators with the Company. The shareholders of Binny have approved the modified Scheme of Arrangement. Pfizer has announced that the Bombay High Court has sanctioned the Scheme of Amalgamation of Duchem Laboratories, the unlisted wholly- owned subsidiary with the Company. HSIL has entered into Business Transfer Agreement with Havells India to acquire whole of business undertaking engaged in the business of manufacturing and dealing in chrome-plated brass bathroom fittings and accessories, located at Bhiwadi, Rajasthan for cash consideration. With this acquisition, the Company intends to become number two player in Faucet Business in next one year. The Board of Directors of Transport Corporation of India (TCI) has approved the Scheme of Arrangement relating to the demerger of Real Estate & Warehousing division of the Company with effect from April 01, 2010, subject to necessary approvals. After Scheme formalization, the existing shareholders of TCI will get one equity share of Rs. 10 each in TCI Developers against every 20 equity shares of Rs. 2 each held by them in the Company. Religare Technologies has acquired the health care solutions business of Sobha Renaissance IT. Trent has received all regulatory approvals, pursuant to which the scheme of amalgamation of Satnam Developers & Finance and Satnam Realtors with the Company has become effective. Kiri Holdings Singapore along with its JV partner Longsheng Group (China) has acquired Germany-based multinational DyStar along with its subsidiaries. Kiri Holdings Singapore is a Special Purpose Vehicle of Kiri Dyes & Chemicals (KDCL). The acquisition will help strengthen global leadership of DyStar, and will create high values for all their stakeholders, KDCL said. KDCL has plans to turnaround DyStar by replacing the high cost German manufacturing base with low cost manufacturing in India and China. It is aiming at a cash surplus DyStar from 2010 and to start generating profit from 2011. The shareholders of Techno Electric and Engineering Company have approved the proposed scheme of amalgamation of the Company with Super Wind Project. The Board of Directors of Inter Globe Finance shall meet on March 22, 2010 to consider modification in the scheme of arrangement. The Board wish to modify the scheme instead of preferential allotment proposed to merge five companies along with their seventeen associated / group companies. Vadodara-based Accord Communication – known for its EPABX products – has acquired 100% stake in Mehsana-based Quality Electric Company for an undisclosed sum to become Engineering, Procurement & Construction (EPC) Company in power sector.

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

ENSUING EVENTS ASSOCHAM to organize 3rd Herbal International Summit-cum-Exhibition in New Delhi The Associated Chambers of Commerce & Industry of India (ASSOCHAM) is organizing the 3rd Herbal International Summit-cum-Exhibition on Medicinal & Aromatic Products, Spices and finished products (Hi-MAPS) at ITPO, Pragati Maidan, New Delhi on 22nd-23rd May, 2010, aiming at to bring together cultivators, traders and manufacturers of medicinal plants by showcasing their new technological innovation and products services to promote export in overseas countries which offers immense scope. More than 100 prominent companies would participate in this event including foreign companies. 30 international buyers/speakers and regulators including foreign companies from Canada, Europe and Asia are expected to take part in this expo. The main aim of this mega event is to showcase continental, regional and local competence in this industry and to promote worldwide upcoming business of herbals, spices and finished products.. CII to organize Space Expo 2010 in Bengaluru on Aug 25-28 The Confederation of Indian Industry (CII) is organizing Bengaluru Space Expo 2010 on August 25-28, 2010 at Bengaluru International Exhibition Center. The main focus of the Bengaluru Space Expo 2010 is to showcase the latest technological advancements, related products and technical services. It will provide a platform for space agencies, specialists, entrepreneurs and space industry heavyweights to display their visions to the decision makers. The Expo would facilitate joint venture, technology transfer, marketing arrangements and will also provide opportunities to network with the who’s who of Space Industry from all over the world. The Exhibition would also be showcasing Asia’s achievements and prospects for space sector. India has made major strides in space research, development and its application for the socio-economic upliftment. CII to organize Conference on Integrating AYUSH System on May 18 in New Delhi The Confederation of Indian Industry (CII) is organizing a one day conference in association with Department of AYUSH, Ministry of Health & Family Welfare on Mar 18, 2010 at India Habitat Centre, Silver Oak, Lodi Road, New Delhi. The conference will focus on the existing status and untapped potential of Indian System of Medicine that can be leveraged while addressing the challenges and their possible solutions. The conference will be an opportunity for all the ISM stake-holders including the corporate hospitals and nursing homes to present their ideas and share the best practices, whilst charting the future road-map for the contribution of the ISM to better the healthcare delivery system. The Ministry of Health and Family Welfare, Government of India's initiative of AYUSH (Ayurveda, Yoga, Unani, Siddha and Homeopathy) is an effort to promote the Indian traditional systems of healing and cure. CII to organize Global Ayurveda Summit 2010 on Mar 24-26 at Cochin The Confederation of Indian Industry (CII) will organize Global Ayurveda Summit 2010 on March 24, 26, 2010 at Le Meridien, International Convention Center, Maradu, Cochin. The objective of the summit is to create a global market place, achieve standardization and quality in raw material, process and products, integrate health and tourism and leverage IT for delivering Ayurveda services. This summit will ensure participation of all stakeholders to share their views and jointly take action towards the upliftment of Ayurveda in India and globally. Ayurveda originated in India and its practice was intense particularly in Kerala. The science of Ayurveda evolved through eminent practitioners who utilized the rich herbal resource and researched on its usage according to principles of Ayurveda. It is critical that all stakeholders realize its growth potential in areas like Ayurvedic medicine manufacturing, healthcare, exports and tourism. It is also time for us position India as a Global Ayurveda hub. The ASSOCHAM is organizing a National Summit on Indian Real Estate - “Growth and Governance: Vision- 2020” Conference-cum-Exhibition on March 26, 2010 at New Delhi. The Summit would be a forum where high level corporate executives will share their views on the subject. We expect a large number of participants to attend the summit. The ASSOCHAM is organizing a Convention on “Agri-Tourism – Innovative supplementary Income Generating Activity for Agripreneurs” on March 18, 2010 at ASSOCHAM House, New Delhi. The objective of the Convention is to increase public and private sector partnership with the Government acting as a facilitator besides promoting Agri-Tourism and increasing strategic alliance between the airlines, tour operators, foreign embassies, hotel industry and agri-Tourism units in the country. It also aims to help the government form a national policy in order to promote the sector and focus on the pressing issues of the industry aiming to solve the same through a dialogue between the representatives. The ASSOCHAM is organizing the 6th International Education Fair-cum-Seminar during 22nd-23rd May, 2010 at Pragati Maidan, New Delhi, to spread a vast message that sustained growth of economy of the country is strongly linked with the quality of education. This is a mega education event in which 150 management, technical and professional institutions (including foreign universities/institutions) are expected to participate.

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

GLOBAL ECONOMY Fed uniquely suited to supervise large financial organizations: Bernanke Federal Reserve Chairman Ben Bernanke said that there is no other agency that could replicate the “breadth and depth of relevant expertise” that the central bank has in its regulation of the nation's banks and its analysis of systemic risks. Speaking at a hearing before the US House Committee on Financial Services, Bernanke said that the Fed is uniquely suited to supervise large financial organizations and added that its involvement in regulation of banks enhances its ability to carry out its duties. At the hearing, Bernanke said that the economy must be subject to strong supervision and said that the Fed has developed expertise in areas critical for effective consolidated supervision, including “macroeconomic analysis and forecasting” and “a close working knowledge of the financial infrastructure.” Bernanke further said that the central bank supports the effort to reform financial regulation and said the Fed itself is implementing improvements to its regulatory capabilities. Bernanke added that the central bank is using its expertise in various areas of the economy and financial sector to take a multi-disciplinary approach toward regulation and making greater use of horizontal examinations when reviewing financial firms. Bernanke concluded by saying that the Fed will make the oversight and control of its supervisory functions more centralized, enhancing the supervisory involvement of senior Fed officials as well as senior bank managers and boards of directors. Fed leaves rates unchanged; repeats extended period promise The Federal Reserve once again left its benchmark interest rate unchanged, with the central bank still seeing a weak economy as a bigger threat than inflation. The Fed also continued to predict that rates would remain low for an extended period. The Federal Open Market Committee has voted to leave the target range for the federal funds rate at zero to a quarter percent. This historically low interest rate has been maintained since Dec’08. The Fed stated that the economy has continued to strengthen over the past several weeks, with signs of stabilization in the labor market. However, the central bank warned that high unemployment and lower housing wealth, combined with income growth that is modest and credit that remains tight, are holding the recovery back. The Fed predicted a modest recovery for a time, but said it sees a gradual improvement, with prices remaining stable. The central bank continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. US Senate approves, Obama signs $17.6 bn Job Creation Bill The US Senate has approved a $17.6 bn jobs creation bill, sending it to President Barack Obama, who is expected to sign it into law. The Hiring Incentives to Restore Employment Act was passed by a vote of 68 to 29. The bill is a much smaller version of $85 bn bipartisan measure that the Senate Finance Committee drafted in February. Under the bill, the employers will be exempt from Social Security payroll taxes for every worker hired after February 3, 2010 and before January 1, 2011 if they had previously been unemployed for at least 60 days. Businesses that spend money on capital investments will also see an extension of a tax break. The legislation also provides funding for highway and transit programs through 2010. It further calls for the expansion of using the Build America Bonds program, which was developed to help states and municipalities fund capital construction projects. President Barack Obama has signed the bill aimed at making it easier for companies to hire new workers. Obama said that while the economy is once again growing and there are signs that job losses are decreasing, many Americans have yet to feel the benefits of the recovery. The jobs bill, Obama said, will start to do just that, though he noted that there is more for the government to do to lay the foundation for future growth. Eurozone agrees on bailout plan for Greece; S&P removes Greece from CreditWatch The sixteen Eurozone nations of the European Union have agreed on an emergency plan to rescue heavily indebted Greece from bankruptcy. The finance ministers of the Eurozone nations at a meeting in Brussels expressed their readiness to provide financial assistance for Greece if the Athens government's austerity measures fail to reduce the country's staggering debts of more than €300 bn and bring the finances under control. In a separate development, Standard & Poor's (S&P) has affirmed its “BBB+” long-term and “A-2” short-term sovereign credit ratings on Greece. At the same time, the ratings were removed from CreditWatch, where they had been placed with negative implications in December last year. The outlook, which was stable prior to the CreditWatch placement, is now negative, the S&P said. S&P expects the recession to continue, with real GDP contracting by 4% this year. S&P reiterated that its ratings on Greece will continue to depend on its stand- alone credit rating fundamentals. The US showed that industrial production edged up by 0.1% in Feb’10, following an unrevised 0.9% increase in Jan’10. A jump in mining output contributed to the unexpected increase in industrial production, with mining output surging up by 2.0% in Feb’10 following a 1.1% increase in Jan’10. The utilities output showed a more modest 0.5% increase in Feb’10, as an increase in electric utilities more than offset a decline in natural gas utilities. The manufacturing output edged down by 0.2% in Feb’10 after rising by 0.9% in Jan’10.Meanwhile, the capacity utilization rose to 72.7% in Feb’10 from a revised 72.5% in Jan’10.

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

GLOBAL ECONOMY US & EMEA Collateralized Loan Obligations on recovery path: Moody's The performance of the loan portfolios backing US and EMEA (Europe, Middle East and Africa) Collateralized Loan Obligations (CLOs) is now on the path of recovery, Moody's Investors Service says in its 2009 global CLO review. However, just as EMEA CLOs lagged the US CLOs in the pace of their deterioration, the same lag is showing in stabilization. More specifically, key performance metrics for CLOs issued in the US and EMEA deteriorated during the first quarter of the year. During the second quarter, performance stabilized for US deals, but continued to deteriorate for EMEA deals. In the second half of the year, most key metrics remained at stable levels for US deals, while a few suggested improvements in performance. For EMEA CLOs, certain indicators of performance such as the weighted average credit quality of the portfolio continued to decline in the second half of the year, suggesting that potential improvements in creditworthiness of collateral in EMEA CLOs lagged that of US CLOs. Changes in the amount of over- collateralization also point to improvement in US CLOs in the second half of the year, while in EMEA CLOs over-collateralization levels have only stabilized, says Moody's. Looking ahead, Moody's has a cautious outlook for the CLO sector in the US, while it expects key performance metrics to continue to deteriorate slightly in EMEA in early 2010 before stabilizing. ADB may revise economic growth forecast for developing Asia The Asian Development Bank (ADB) plans to revise upward its 2010 economic growth forecast for developing Asia to around 7%, citing the ability of some nations to quickly employ massive stimulus measures. Rapid use of monetary and fiscal stimulus measures in developing Asia have led to signs of a “v- shaped recovery”, said ADB President Haruhiko Kuroda. Kuroda said that the rapid turnaround in growth in countries such as China, India and to a certain degree Indonesia, with their capacity to support public spending and personal consumption allowed them to withstand the sharp fall in external demand for exports. The challenge will be to sustain that pace of recovery, and rolling back stimulus measures at the same time remains a difficult balancing act, he said. Kuroda advocated the region bolster domestic demand and develop financial sectors by relaxing borrowing constraints, removing barriers to interregional trade and regional cooperation. Looking ahead, Kuroda said he was not concerned about inflation in the region, citing excess production capacity in China as one reason not to expect rising prices. Leading US indicators index up 0.1% in Feb: Conference Board The Conference Board released its report on leading economic indicators in the month of February, showing that its leading economic indicators index increased slightly, marking the eleventh consecutive month of growth. The report showed that the leading indicators index edged up by 0.1% in Feb’10 following a 0.3% increase in Jan’10. The Conference Board also said that the coincident economic index rose by 0.1% in Feb’10 after coming in unchanged in Jan’10. Three of the four indicators that make up the coincident index made small positive contributions, although employees on non-agricultural payrolls fell. Additionally, the report showed that the lagging economic index increased by 0.3% in Feb’10 following a 0.2% decrease in Jan’10. The increase by the lagging index reflected positive contributions from the change in labor costs, the average duration of unemployment, and the ratio of consumer installment credit to personal income. World Bank ups 2010 growth, inflation forecasts for China; recommended tighter monetary policy The World Bank raised its 2010 growth and inflation forecasts for China and recommended a tighter monetary policy as well as a stronger exchange rate to restrain inflation expectations and asset bubbles. In its latest update on the world's third-largest economy, released on Wednesday, the bank revised its projection of gross domestic product growth this year to 9.5% from 8.7% in its previous report in November. For 2011 the bank penciled in GDP growth of 8.7% – exactly the same rate China enjoyed in 2009 as the economy responded to massive monetary and fiscal stimulus. The Bank expects consumer prices to rise by 3.7% on average this year – it had forecast 2.0% in November – and by 2.8% in 2011. The Bank coupled its stress on the need to contain inflationary expectations with a warning that wrestling inflation down to very low levels might hinder the relative price changes required in such a rapidly growing economy. German IWH institute trims 2010 GDP forecast According to IWH economic institute, the German economy is likely to grow 1.8% this year and next, cutting its outlook for this year. In December, the think tank had projected 1.9% growth for 2010. IWH said the global economic dynamic would be the main driving force for the German economy. Private consumption is forecast to fall by 0.4% this year and may grow 1% next year. Public expenditure would be up 1.4% in 2010 and 0.9% in 2011. Gross capital formation is expected to grow by 2% this year and then by 1.2% in 2011. Exports would recover by 7.7% this year, before rising by 6.1% in 2011, following a 14.2% drop in 2009. On the other hand, imports are forecast to rise by 3.7%, following a drop of 8.9% in 2009. In next year, imports are predicted to rise by 5.8%.

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GLOBAL ECONOMY Eurozone employment declines 0.2% QoQ in Q4; core inflation falls to record low in Feb The number of employed in the Eurozone fell for a sixth straight quarter in the final three months of 2009, according to Eurostat data. The Eurozone employment dropped 0.2% (347,000 persons) QoQ in the fourth quarter, Eurostat said. However, the pace of decline eased from a 0.5% drop in the third quarter. Compared to the previous year, there was a fall of 2% in the fourth quarter, also slower than a 2.2% drop recorded in the third quarter. Among Eurozone members, Greece and Spain recorded the steepest decline of 0.8%, reflecting the economic issues both countries face. Finland followed with a 0.7% drop. Sector wise, employment fell by 1.1% in the manufacturing sector, by 0.4% in the construction sector and by 0.5% in the trade, transport and communication services. Employment in financial services and business activities dropped by 0.1% and that in the agriculture sector increased 0.5% and other services grew by 0.2%. In the EU27, employment fell 0.3% QoQ, as against 0.5% decline in Q3. Annually, the decline was 2.1%, unchanged from the fourth quarter. Over the whole of 2009, employment decreased by 1.8% (by 2,721,000 persons) in the Euroarea and by 1.8% or 4,021,000 persons in the EU27. Separately, the Eurozone core inflation dropped to an all-time low in Feb’10, suggesting that deflationary pressures persist in the 16-nation economy. Core inflation, which excludes energy, food, alcohol and tobacco, stood at 0.8% in Feb’10, down from 0.9% in Jan’10, as per Eurostat data. The consumer price inflation eased to 0.9% in Feb’10 from 1% recorded in Jan’10. Headline inflation in the EU was 1.4% in Feb’10, down from 1.7% in Jan’10 and from 1.8% last year. Monthly inflation was 0.3% in Feb’10. The statistical office said the lowest annual rates were observed in Latvia, Ireland and Lithuania, while the highest rates were in Hungary, Romania and Poland. The US business inventories came in unchanged in Jan’10 following a revised 0.3% decrease in Dec’09. At the same time, the business sales increased by 0.6% in Jan’10 after rising by 1.0% in Dec’09. The business inventories/sales ratio fell to 1.25 in Jan’10 from 1.26 in Dec’09. With the decrease, the ratio fell to its lowest level since Nov’07. The homebuilder confidence in the US unexpectedly deteriorated in Mar’10 reveals a report by the National Association of Home Builders (NAHB), with the report likely to add to recent concerns about the outlook for the housing market. The reported showed that the NAHB/Wells Fargo Housing Market Index fell to a reading of 15 in Mar’10 from a reading of 17 in Feb’10. The average asking price for a home in the UK was up just 0.1% MoM in Mar’10, property tracking Web site Rightmove said. That was the slowest rate of increase for Mar’10 in at least eight years, as against an average of 1.3%. It follows a 3.2% increase in Feb’10. On an annual basis, home prices were up 5.3% in Mar’10, following the 6.1% spike in Feb’10. The number of properties on the market jumped 17.5% MoM and 34% YoY, the data showed. Japan's consumer confidence rose to 40 in Feb’10 from 39.4 in Jan’10, as per a monthly survey conducted by the Cabinet Office. Households' consumer confidence stood at 39.8 in Feb’10, up from 39 in Jan’10. Among the sub indices of households' consumer confidence, overall livelihood moved up to 40.7 in Feb’10 from 39.8 in Jan’10. The index for income growth came in at 38.8 in Feb’10, up from 37.9 in Jan’10. The indicator for employment and willingness to buy durable goods rose to 34.2 and 45.4, respectively. Singapore retail sales grew by a seasonally adjusted 5.8% MoM in Jan’10, following a revised 1.2% fall in Dec’09. Excluding motor vehicles, retail sales rose 4.6%. Annually, retail sales grew 2.3% in Jan’10. In Dec’09, the retail sales declined by a revised 4.9%. The report showed that sales of watches and jewellery, telecommunications apparatus and computers, furniture and household equipment, petrol service stations and optical goods and books increased by between 14.3% and 27.9% in Jan’10. The Philippines' Bureau of Treasury said that the national government debt decreased 0.6% (PHP 28 bn) from November to PHP 4.39 trillion at the end of December. Of the total outstanding debt, 44% was owed to foreign creditors and 56% to domestic creditors. The domestic debt increased PHP 17.7 bn or 0.7% from the recorded end-November 2009 level arising from the net issuance of government securities. The number of new motor vehicles sold in Canada remained unchanged at 128,426 units in Jan’10. Lower sales of North American-built passenger cars were offset by higher sales of trucks and overseas-built passenger cars. Sales rose 2.6% in Dec’09, and preliminary industry data indicate that the number of new motor vehicles sold increased by 7% in Feb’10. Sales of new trucks increased 2.4% to 65,726 units in Jan’10, marking a second consecutive monthly increase. The Reserve Bank of Australia's monetary policy board saw more evidence this month that an economic recovery was well underway, and used that as a basis for raising interest rates. Minutes of the March 2 RBA meeting were released by the central bank in Sydney. At the meeting, the Board increased the cash rate by 25 bps to 4%. The board also said data indicated that underlying inflation would fall further in the near term, to around 2.5% for the full year ahead. The RBA also noted that while housing loan approvals had slowed, house prices had gained significant momentum and were 'continuing to rise strongly for all but the bottom segment of the market. According to Moody's Investors Service the outlook for Singaporean banking system remains stable. But the long-term ratings of its three rated Singaporean banks namely DBS Bank, Oversea-Chinese Banking Corporation, and United Overseas Bank are negative. The rating agency expects the Singaporean banks will leverage their rich SGD deposit funding to expand loans, in line with rising demand for working capital and investment in the corporate sector and for housing loans in the consumer sector. Further, Moody's assessed that fee and commission income from loans and trade financing will possibly increase, providing additional support for banks' non-market sensitive earnings. Meanwhile, credit costs should moderate as the banks progress from the credit down-cycle leading to improved risk-adjusted profits. The Policy Board of the Bank of Japan (BoJ) has unanimously decided to retain the overnight call rate at 0.1%, in line with market expectations. The last change in the rate was a 0.1% cut in interest rates at the Dec’08 meeting. The central bank also unveiled an expansion to a bank lending operation put in place in December to facilitate corporate financing, by “substantially increasing” the amount of funds to be provided through its fixed-rate operation. It comes after incessant pressure from the government to ease monetary conditions further so as to prevent an appreciation in the yen and a deepening of the country's deflationary woes. The BoJ again repeated its vow to fight deflation and widely retained its economic assessment. Taiwan's export orders in terms of US dollars rose 36.25% YoY to US$27.41 bn in Feb’10, while the orders rose more than the expected growth of 30.7%. If counted in NT Dollars, the export orders amounted to NT$877.6 bn, up by 27.58% over the same month of last year. Germany's producer price index fell 2.9% YoY in Feb’10. In Jan’10, the prices fell 3.4%. On a monthly basis, producer prices were flat in Feb’10. Home rents in the UK may rise in the coming months after continuous declines, as the supply of new properties coming on to the rental market dropped for the second consecutive quarter in the period November to January, reveals a survey by the Royal Institution of Chartered Surveyors (RICS). The net balance of chartered surveyors reporting rising rather than falling rents in the three months to Jan’10 was zero, following five quarters of negative readings.

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GLOBAL BUSINESS Discover posts $122.2 mn net loss in Q1; gets nod to redeem $1.2 bn of preferred stock Riverwoods, Illinois-based Discover Financial Services has posted $122.2 mn net loss in the first quarter, as against of $118.4 mn net income in the year-ago quarter, due to the absence of a hefty settlement from the Visa/MasterCard antitrust litigation settlement recorded in the year ago quarter. The net interest income soared to $1.15 bn from $503.07 mn, but other income decreased to $545.88 mn from $1.19 bn in the year-ago quarter. Revenue net of interest expense remained flat at $1.69 bn for the latest quarter. Provision for loan losses grew to $1.39 bn from $937.81 mn in the previous year quarter. Provision for loan losses in the year-ago would have been $1.48 bn, as adjusted. Its card sales volume increased 5% to $22 bn from $21.3 bn, on adjusted basis, in the prior year quarter. Discover, which operates as a credit card and electronic payment services company, also said it has received regulatory approval to redeem $1.2 bn of its preferred stock issued to the US Treasury under the TARP Capital Purchase Program. Prior to such redemption, Discover Bank will issue $350 mn of tier 2 qualifying capital in the form of subordinated debt. The subordinated debt offering is expected to be completed during the second quarter, subject to market conditions. The dispute stemmed from a $2.75 bn antitrust settlement payment Discover received from Visa and MasterCard as part of a 2004 lawsuit. Nike net income doubles to $496.4 mn in Q3 Beaverton, Oregon-based world's largest maker of athletic shoes and apparel, Nike has posted $496.4 mn net income in the third quarter, as against $243.8 mn net income in the year-ago quarter. Its gross margins for the quarter improved to 46.9% from 43.9% a year ago, mainly due to improved in-line product margins, less discounted close-out sales and favorable changes in product mix. Its revenues for the third quarter increased 7% to $4.73 bn from $4.44 bn in the same quarter last year. In Q3, its footwear sales rose 7% to $2.7 bn, while apparel sales increased 3% to $1.2 bn and equipment sales grew 2% to 242.3 mn. For the first nine month of its fiscal year, the Company has posted $1.38 bn net income, as against $1.15 bn net income in the same period last year. Its revenue for the nine-month period fell 4% to $13.94 bn from $14.46 bn in the prior year period. Lehman plans to end bankruptcy Lehman Brothers Holdings has filed a plan with the US bankruptcy court in Manhattan to wind down its remaining assets and operations and end the largest US bankruptcy case in history. Under the proposed Chapter 11 plan, a newly created business called LAMCO would manage what is left of Lehman's commercial real estate, mortgages, principal investments, private equity, corporate debt and derivatives assets. Lehman said the reorganization plan would provide a global and efficient resolution to the company's bankruptcy, by resolving creditor claims and even those claims that various Lehman entities have against each other. Secured, administrative and priority creditors would be paid in full under the proposed plan, while general unsecured claims, direct inter- company claims and guarantee claims would in part be satisfied by some “pro rata” cash distributions. Stockholders would receive nothing and their shares would be canceled. Lehman said the new LAMCO Company would provide management services to Lehman, administer its assets and offer long-term employment opportunities for the hundreds of Lehman employees who are currently working to liquidate the former investment bank's estate. Siemens to axe 1,000 jobs: reports German conglomerate Siemens AG is reportedly planning to cut at least 1,000 jobs in its SIS information technology business to prepare the unit for a possible sale or Initial Public Offering (IPO). The job cuts will reportedly cost the Company several hundred mn Euros. The unit currently has about 35,000 employees, including 9,700 in Germany and 12,500 elsewhere in Europe. Sales at the SIS unit has been declining for several years, and the technical staff at the unit are said to be better paid than at rivals such as Accenture, IBM and Hewlett-Packard. In January, Siemens reported an increase in profit for the first quarter, aided by lower costs and a gain on sale of a business. The company's net income attributable to shareholders for the first quarter was €1.48 bn, up from €1.2 bn in the prior-year period. Total group revenues for the quarter declined 12% to €17.35 bn from €19.63 bn in the same period of the prior year. Siemens IT solutions and services generated revenues of €1.03 bn for the first quarter, down from €1.29 bn a year ago. The unit's profit for the quarter declined to €17 mn from €46 mn a year ago, reflecting lower volume. Royal Bank of Scotland (RBS) is reportedly planning to restructure its balance sheet through a programme which may involve buying back of around £10 bn of the British bank's debt. The move could involve at least £10 bn of the bank's £28 bn debt being bought back at a premium to current prices. Dell has filed a lawsuit against Sharp Corporation, Hitachi, Toshiba Corporation and two other companies for alleged price fixing of LCD displays. Dell filed the suit at a US district court in San Francisco against the group of five firms, which also includes Japan's Seiko Epson and Taiwan's HannStar. However, Dell has not decided the level of damages it will seek in the lawsuit. The Board of Pepsico has approved 7% rise in annual dividend and has also authorized repurchase of up to $15 bn of its common stock through Jun’13. The Company has increased its annual dividend to $1.92 per share from the current annual rate of $1.80 per share. Bank of America is reportedly planning to seek approval from China to expand its operations in the fast-growing country.

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GLOBAL BUSINESS MDS slips into red; posts $143 mn net loss in Q1 Mississauga, Ontario-based life sciences company, MDS has posted US$143 mn net loss in the first quarter, as against US$2 mn net income in the year-ago quarter, hurt by restructuring charges and a 30% decline in quarterly revenues. The loss from continuing operations stood at US$43 mn in Q1, as against US$3 mn income from continuing operations in the year-ago quarter. Its total Q1 revenues from continuing operations fell 30% YoY to US$46 mn, as against US$66 mn in the same quarter last year. Its Q1 operating loss from continuing operations stood at US$43 mn, as against of US$1 mn income from continuing operations in the prior-year quarter. IHS profit declines to $26.82 mn; revenue rises to $240.74 mn Englewood, Colorado-based critical and insight information service provider, IHS has reported quarterly net income of $26.82 mn, as against $27.1 mn net income in the year-ago quarter, hurt by higher expenses and changes related to shift in the executive conference period. Excluding changes, profit for the quarter improved 20%. Its revenue rose to $240.74 mn, up 2% from the first quarter 2009 revenue of $235.41 mn. Its operating income for the quarter declined 3% YoY to $36.74 mn from $37.73 mn in the year-earlier quarter. Looking ahead, the company has reaffirmed its revenue forecast for full year 2010. For the full year 2010, IHS continues to sees revenues in a range of $1.04 bn - $1.08 bn or 8%-12% all-in growth from a 2009 base of $967 mn. GTS Central Europe (GTS CE) has announced expansion of its data centre infrastructure namely in countries including the Czech Republic, Hungary, Poland, Slovakia and Romania. In addition the company will also open a new data centre in Brno in the Czech Republic. Los Angeles, California-based international fashion house Guess? Inc. has posted $86.6 mn net income in the fourth quarter, as against $47.9 mn net income in the year-ago quarter, driven by higher sales and improved margins. The Company has reported operating earnings for the fourth quarter jumped 76.3% to $120.7 mn from $68.5 mn in the corresponding quarter of the prior year. For fiscal year 2010, Guess has posted $242.8 mn net income, as against $213.6 mn in the previous year. Its annual net revenue increased 1.7% YoY to $2.13 bn, as against $2.09 bn in the year-ago. Filtration products company, Clarcor has $14.86 mn net income in the first quarter, as against $8.79 mn in the comparable period a year-ago. Its Q1 net sales increased 0.7% to $215.13 mn from $213.69 mn in the year-ago quarter. Etisalat and Comviva joined hands to offer advanced value-added services (VAS) to Etisalat’s over 100 million subscribers across the globe. Packaged consumer products distributor, Core-Mark Holding Company has posted $8.5 mn net income in the fourth-quarter, as against $7.4 mn fourth-quarter in the year-ago quarter. Its Q4 net sales grew to $1.65 bn, as against $1.49 bn in Q4 last year. For the fiscal year 2009, the Company has posted $47.3 mn net income, as against $17.9 mn net income in 2008. Its annual net sales stood at $6.53 bn, as against $6.04 bn in 2008. ProspEx Resources has posted C$1.23 mn net loss in the fourth quarter, as against C$487 thousand net income in the year-ago quarter. Its Q4 oil and gas revenue declined to C$8.09 mn from C$15.05 mn in the year-ago quarter. Samson Oil & Gas has posted US$2.3 mn half-year comprehensive net loss, as against US$26.43 mn net loss in the year-ago period. Its total H1 revenue declined to US$2.19 mn, as against US$3.38 mn in the previous year. China Techfaith Wireless Communication Technology has posted US$3.11 mn net income in fourth quarter, as against US$824 thousand net income in the year-ago quarter. Its Q4 net revenue rose 15.2% YoY to US$59.8 mn, as against US$51.9 mn in the year-ago quarter. The Company has posted US$6.34 mn annual net income, as against US$8 mn net income in the previous year. Its annual net revenue rose to US$211.08 mn, as against US$208.85 mn a year earlier. The United Auto Workers union has reached a tentative agreement for workers at a California plant Toyota Motor plans to close within weeks, the JV that operates the plant said. Sunnyvale, California-based smartphone maker, Palm has posted $18.5 mn GAAP net loss in the third quarter, compared to a GAAP net loss of $95.0 mn GAAP net loss in the year-ago quarter. For the nine months, the Company has posted $108.3 mn GAAP net loss, as against $640.7 mn GAAP net loss in the year-ago period. Uniforms and business service provider, Cintas Corporation has posted $48.98 mn income for the third quarter, as against $71.81 mn income in the comparable quarter a year-ago. Grapevine, Texas-based video game and entertainment software retailer, GameStop Corporation has posted $215.92 mn net income in the fourth quarter, as against $232.33 mn net income in the prior-year period. For the full year, its net income declined 5.3% YoY to $377.27 mn, as against $398.28 mn net income in the corresponding period prior year. Pleasanton, California-based off-price retail chain, Ross Stores has posted $142.88 mn net income in the fourth quarter, as against $97.39 mn net income in the prior-year quarter.

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