July 01, 2011 IN FOCUS S&P likely to cut US rating on default Weekly Indicators Standard & Poor’s would cut the US credit rating to its lowest level and Moody’s Indicators Current Last Week Investors Service said it will probably reduce its ranking if the government fails to Sensex 18,763 18,241 increase the debt limit, leading to a default. S&P would lower its sovereign top-level Nifty 5,627 5,471 AAA ranking to D, the last rung on its scale if the US can’t pay its debt, John Food Inflation 7.78% 9.13% Chambers, chairman of the company’s sovereign rating committee, said. Moody’s said

Exchange Rates it would probably assign a position in the AA range, or within three steps of its highest Currency Current Last Week level. “If any government doesn’t pay its debt on time, the rating of that government US$1 Rs.44.5855 Rs. 44.94 goes to D,” Chambers said in an interview with Erik Schatzker on Bloomberg € 1 Rs. 64.8018 Rs. 64.09 Television’s “Inside Track”. “Having said that, we think the government will raise the JP¥ 100 Rs. 55.33 Rs. 55.86 debt ceiling. They’ve raised it 78 times more or less since 1960, often at the last moment, and we think that will be the case this time.” President Barack Obama, a £ 1 Rs. 71.7514 Rs. 71.8928 Democrat, is trying to reach a compromise with Republican lawmakers who are

Global Economic and Corporate News seeking spending cuts before they agree to raise the nation’s borrowing limit, currently • World Bank Removes Wipro from List of Barred capped at $14.3 trillion. The Treasury has said it has until August 2 before its ability to Entities pay the US debt expires. One-year credit-default swaps are rising this year as The World Bank has removed Indian software investors seek insurance in case of a US default. exporter Wipro Ltd. from its list of entities barred Greek parliament approves 5-yr austerity plan; to vote again Thu from doing business with it The Greek Parliament approved a five-year austerity plan, bringing the country closer • Lloyds Banking to Cut 15,000 Jobs to securing financial assistance worth 12 bn euro from the International Monetary Lloyds Banking Group PLC's shares leapt more Fund and Eurozone, according to media reports. Eurozone officials had made it than 7% Thursday after Chief Executive Antonio Horta-Osorio said the bank will cut costs sharply mandatory for Greece to pass these austerity measures to secure financial aid, without and invest in its four key U.K. units as part of a which it faces the risk of a default. The 78-bn-euro austerity package comprising a cut keenly awaited strategy revamp. in expenditure, hike in taxes, and sale of state assets, was passed by a margin of 155 • Samsung Seeks Ban on Apple Products Sale in to 138 votes. U.S. India, Singapore sign protocol to amend double tax avoidance pact Samsung Electronics Co.'s countersuits against India and Singapore signed a protocol, amending the existing double tax avoidance Apple Inc.'s allegations of product copying have pact between the two countries for effective exchange of information on tax matters. expanded to six countries, the company said Thursday, and now include a complaint with the The protocol would pave the way for India to obtain banking information from International Trade Commission seeking to stop Singapore for tax administration purposes. Now, for tax purposes, both sides cannot the sale of popular Apple products in the U.S. deny or withhold information on the pretext of domestic tax interest requirement or • China Curbs Wealth Management Sales bank secrecy. The negotiations for entering into an amending protocol were completed China has moved to crack down on rampant sales in one round at Singapore. The protocol was signed by Mr Prakash Chandra, Chairman of wealth management products that promise high of the Central Board of Direct Taxes (CBDT), on behalf of the Indian Government, and yields by banks under pressure to accumulate Ms Karen Anne Tan Ping Ming, High Commissioner of Singapore to India, on behalf of deposits amid a negative real interest rate environment. Singapore. Through this protocol, both India and Singapore have now adopted • Nissan CEO Remains Japan's Top-Paid Foreign internationally agreed standard for exchange of information in tax matters. Executive Non-FII/NRI foreign entities can invest up to $10 b in equity MFs Nissan Motor Co. Chief Executive Carlos Ghosn The Centre has allowed foreign investors other than FIIs and NRIs to invest up to $10 held on to his place as the highest-paid foreign bn in equity schemes of Indian mutual funds. The $10-bn investment ceiling is meant executive at a listed Japanese company, with for a new category of qualified foreign investors or QFIs. These cover individuals, ¥982 million ($12.1 million) in total compensation companies and pension funds that are neither non-resident Indians (NRI) nor foreign in the latest fiscal year, a rise of 10% from the previous year. institutional investors (FIIs) and their sub-accounts registered with SEBI. The creation • Oracle Buys Ellison's Start-Up of a separate QFI category would basically help broaden the class of foreign investors who could participate in the Indian equity markets. Currently, foreign nationals, other • Buffett-Backed China Venture Falters than NRIs, are not permitted to invest directly in Indian markets. But now it is Warren Buffett-backed China car and battery maker BYD Co. said its first-quarter profit fell 84% proposed to enable them to do so, albeit through the mutual fund route. The DP from a year earlier, dragged lower by weaker concerned as well as the mutual fund would, in turn, have to ensure that the QFI sales and an increase in management and meets the KYC (know your customer) norms to be specified by SEBI, Mr Mathew financing expenses. added. • Toyota Planning Heavy Media Campaign to Rangarajan says fuel duty cut to make FY12 fiscal aim tough to meet Promote Camry The reduction in customs and excise duties on petroleum products will make it difficult Toyota Motor Corp. will launch a massive media for the government to meet its fiscal deficit target of 4.6% of the gross domestic campaign in the fall as its production returns to normal and it rolls out a fully redesigned version of product in the current financial year, C. Rangarajan, chairman of the Prime Minister's its Camry sedan, the automaker told dealers Economic Advisory Council, said. "Some revenue loss is resulting due to reduction in gathered in Las Vegas for a meeting. customs and excise duty of petroleum product," Rangarajan told reporters "...But this (fuel price hike and duty cuts) was found necessary in order to enable the oil marketing companies to reduce their under-recovery. This will make the task of containing fiscal deficit at the budgetary level more difficult. The cut in excise and Nishita Shah Parsekar customs duties will cause Rs.490 bn per year loss to the exchequer”. For the current [email protected] year, with a quarter having already elapsed, the loss will be at Rs.367 bn. Please refer to important disclosures at the end of the report For Private Circulation Only. Sushil Financial Services Private Limited Member : BSEL, SEBI Regn.No. INB/F010982338 | NSEIL, SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected] Info-Spectrum Bridging the Information Gap in Corporate Landscape

INDEX

1. Economy 03-10

2. Infrastructure 11-19

3. Sectors 20-39 A. IT & ITeS 20-22 B. Pharma & Healthcare 23-24 C. Telecom 25-26

D. Banking & Financial Services 27-28 E. Steel, Metals & Minerals 29-30 F. Auto & Auto Ancillaries 31-32 G. Miscellaneous 33-39 4. Global Economy & Business 40-43

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

ECONOMY ECONOMY SECTOR: • Planning Commission Deputy Chairman Montek Singh Ahluwalia has said fuel price hike would not affect inflation after three to four months. • Prime Minister Singh said his government is committed to annual economic growth rate of 9-10%. • CRISIL says household expenditure in India rose Rs.5.8 trln in three years to March. • India May CPI industrial workers inflation 8.72% against 9.41% in April. • India’s weekly WPI : Jun 18 primary article inflation down to 11.84% vs 12.62% • India May refining up 4.5% on yr, crude output up 9.6% GOVERNMENT: • India's ambassador to France Ranjan Mathai will be the next foreign secretary. • Prime Minister Singh will meet a group of five select print media editors. • Government has appointed current road, transport and highway secretary R.S. Gujral as secretary in the department of revenue. MONSOON: • India Meteorological Department has said Jun 27 rainfall 17% above normal; Jun 1-27 rainfall 9% above normal. PORT: • The Jawaharlal Nehru Port Trust will open request-for-proposal bids submitted by five companies to develop the fourth container terminal at the port today. SUGAR: • Agriculture Minister Sharad Pawar has sought Prime Minister Manmohan Singh's intervention to finalise ethanol pricing and ensure smooth supply in 2011-12 sugar season starting Oct. CORPORATE: • RBI reiterated an Indian company can transfer or sell its stake in an overseas joint venture to another Indian company without its approval. Jun 18 primary article inflation dn to 11.84% vs 12.62% India's primary articles inflation rate for the week ended Jun 18 fell to 11.84% from 12.62% in the previous week mainly due to a decline in food article prices. The primary article index fell 0.4% during the week to 197.4 from 198.1. The food articles inflation rate fell to a six-week low of 7.78% from an eight-week high of 9.13% in the previous week. The index for the segment was down 0.8% to 189.8. The decline in food articles inflation was primarily because of lower prices of poultry chicken and potato (by 4% each), masur (3%), tea, condiments & spices and jowar (2% each). Non-food articles inflation was down at 17.91% from 18.43% a week ago. The index also fell 0.4% to 180.4. Non-food articles' inflation rate was down largely due to a 3% fall in prices of raw cotton and flowers. The fuel group inflation rate rose to 12.98% from 12.84% in the previous week, while the index for the group inched up by 0.2% to 160.2 driven by higher prices of aviation turbine fuel. On Jun 16, state-owned oil marketing companies had hiked aviation turbine fuel by an average 1,431.31 rupees per kL, or 2.4%, in line with global prices. The minerals group index jumped 2.1% during the week to 316.0 due to higher prices of chromite (up 12%), magnesite (11%), copper ore (7%). Minerals group inflation rate rose to 28.51%, compared with 25.90% in the previous week. The headline inflation rate based on the Wholesale Price Index for May rose to 9.06% from 8.66% in April. The Reserve Bank of India expects inflation to remain at an elevated level till December and has pegged March inflation at 6.0% with an upward bias. India May refining up 4.5% on yr, crude output up 9.6% Crude oil throughput of Indian refiners rose 4.5% on year in May to 14.38 mn tn, as some of the refineries exceeded their planned target for the period, the petroleum and natural gas ministry said in a release. The refinery output for May exceeded the target of 14.08 mn tn by 2.1%. The refineries achieved a capacity utilisation of 112.1% in May, against 104.2% use a year ago. Indian Oil Ltd's eight refineries processed 4.82 mn tn of crude oil in May, up 7.8% on year and 6.2% more than the target of 4.54 mn tn. Production at IOC's Koyali refinery and Haldia refinery was significantly up by around 28.9% on year and 22.2%, respectively. However, production at the company's Guwahati and Panipat refineries fell on year. The release said the throughput is lower at Guwahati refinery due to emergency shutdown of a unit in the refinery. Output at the company's Panipat refinery was lower in May due to the shifting of the hydrocracker unit and

Weekly Newsletter 3 Info-Spectrum Bridging the Information Gap in Corporate Landscape maintenance shutdown from April to May. Output from Bharat Petroleum Corp Ltd's refineries also dropped 10.3% on year. Hindustan Petroleum Corp's output, however, increased by 16.1% on year. Chennai Petroleum Corp Ltd registered a marginal production rise of 2.9% in May compared with the year-ago period. Among private refiners, output at Reliance Industries Ltd and Essar Oil Ltd dropped by 5.7% and 1.2%, respectively. Reliance Industries processed 2.95 mn tn of crude oil, while Essar Oil's refinery output was at 1.24 mn tn in May. India's crude oil output for May rose 9.6% on year to 3.23 mn tn, the ministry said. However, India's natural gas output in May fell by 9.6% to 4.14 bn cu mtr from 4.58 bn cu mtr a year ago. RBI rate hikes finally push banks to cut FY12 credit target After 10 successive rate hikes in the last 16 months to tame demand side pressures, banks have finally trimmed their credit targets for the current financial year to closely align them with deposit growth, giving Reserve Bank of India officials a reason to smile. "The wedge between deposit growth and credit growth, which had peaked at around 9% before our Jan policy, is now a little below 5%. So, that is a comforting indication of (policy) transmission working," RBI Deputy Governor Subir Gokarn said last week. Since March 2010, the RBI has hiked its repo rate by cumulative 275 basis points to 7.50%, forcing banks to push up their deposit and lending rates to protect their net interest margins. Following the latest 25 bps hike in repo rate on Jun 16, most banks have indicated that there could be a further increase in lending rates in July. However, companies may not have the capacity to absorb any further rise in borrowing rates, said M.V. Tanksale, former executive director of Punjab National Bank, who has now shifted to Central Bank of India as chairman and managing director. The current pipeline for investments and loan sanctions is strong, but there is a need for ensuring that the future pipeline creation is also encouraged, Tanksale said. Concurring with Tanksale, Allahabad Bank Executive Director M.R. Nayak said demand for credit may not be high if loan rates continue to rise. State Bank of India Chairman Pratip Chaudhuri agrees that there has been some slowdown in corporate lending, due to rise in interest rates for loans. "Credit growth (for 2011-12), we expect to be between 16-19% because earlier our estimates were 19-22%," Chaudhuri said. "With interest rates going up, mainly corporates, we are finding are reconsidering their expansion plans. So therefore, we expect some slowdown in the demand for credit." Union Bank of India will review its credit growth target only after the slack season ends in September, a senior official said. According to the latest RBI data, bank deposits were up 18.20% on year as on Jun 3, while credit growth grew at a faster clip at 20.90%. Minister says food security bill may cost up to 1 trln rupees/year The United Progress Alliance government's ambitious plan to provide legal entitlement to food grains to the poor at highly subsidised prices may cost the exchequer anywhere between Rs.830 bn and Rs.1 tln, Food Minister K.V. Thomas said. "It could be anywhere between 83,000-100,000 lakh crore (830 bln-1 trln) rupees annually," Thomas told reporters. The government's food subsidy in the current year is budgeted at 606 bln rupees. Thomas said the government will need 60-65 mln tn of grains annually to implement the national food security plan. This is higher than the government's current food grain procurement. The government had last year procured a record 55 mln tn food grains. According to a draft Food Security Bill, approved by the National Advisory Council, the plan will cover 90% of the rural population and 50% of the urban population. The food security plan is likely to be considered by the Empowered Group of Ministers on food. Punjab government launches new scheme for cultivation and marketing of vegetables The Punjab government on introduced a special 'vegetable initiative in urban cluster' scheme in order to encourage the farmers towards diversification. Punjab Agriculture Minister, Sucha Singh Langah said that state government has made all preparation to implement this special scheme to encourage farmers towards diversification. He said that at least 15 farmers could make a group, who would cultivate the crop on 20 hectares of land besides marketing. He said that Punjab government would provide a subsidy of Rs 2 lakh for the crop cultivation while 50% subsidy would also be given on the processing equipments with an aim to divert the attention of farmers towards cash crops. Mr Langah said that the scheme would be introduced in five districts including Ludhiana, Patiala, Fatehgarh Sahib, Jalandhar and Sangrur in first phase, which would be further implemented across the state, while Ludhiana would be the center of scheme. He said that government would also facilitate the farmers with the marketing facilities, so they could make the scheme a success without any obstacle. The Minister said that government would give subsidies and grants to the farmers on the basis of their cluster areas and groups. He said that each group would get subsidy of Rs.2 lakh for the formation of group while another subsidy of Rs.22500 to 33700 would be given for the cultivation of crop for per hectare. He said that farmers could also get subsidy of Rs 2.10 lakh for poly and

Weekly Newsletter 4 Info-Spectrum Bridging the Information Gap in Corporate Landscape net houses for vegetable cultivation and 50% subsidy would also be given on 4000 square meter area. He said that agriculture department has been working on war level to provide best marketing facilities to the farmers. Mr Langah said that a 50% subsidy would also be given for setting up of retail shops for marketing of vegetables, formation of vegetable collection center, mobile vending cart and for processing units. He said that interested farmers could approach the district horticulture officer to form a group, which would be registered under Societies Registration Act-1860. Punjab approves projects worth Rs 6,350-cr The Empowered Committee on mega projects, chaired by Punjab Chief Minister Parkash Singh Badal has approved mega projects worth Rs 6,350 crore in the State. Of proposed projects, investments worth Rs 5,453 comes from manufacturing and Rs 897 crore agro based industries. The projects include a drug manufacturing unit Nectar Life Sciences at village Nimbua in Sahibzada Ajit Singh Nagar (SAS Nagar) at Mohali. Trident Corporation plans terry towel and sheeting facilities at village Dhaula, Barnala with outlay of Rs 2,358 crore. The company is also expanding its cotton unit at village Sanghera, Barnala with an outlay of Rs 1,117 crore. Tube Investment of India has proposed to set up green- field plant to manufacture precision ERW and CDW tubes at village Tepla, Patiala at cost of Rs 170 crore. Saber Papers is investing Rs 343.59 crore to set up paper manufacturing unit at village Gonsupur Hambran, Ludhiana. Soma New Towns would set up godowns for storing food grain at four different locations in the state with Rs 170 crore. LT Food Limited would set up a rice mill and a power generation unit at Hoshiarpur at a cost of Rs 53.30 crore. The empowered committee also approved two mega housing projects one a 125 acre project by Janta Land Promoters Ltd. with an investment of Rs.679.40 crore at Sector 94-95, Mohali. The other project is a Rs.425 crore, 205.54 acre housing project by Bajwa Developers Ltd. India's maritime ambitions go global India is going global with its maritime ambitions . The government is setting up Indian Ports Global – a dedicated company like Dubai Port International and Singapore's PSA International – that will invest and acquire stakes in overseas ports and container terminals. To begin with, the cashrich port trusts that are owned by the government will pump in Rs.2,500 crore into India Ports Global, which will initially act as the shipping ministry's investment arm. The company will then leverage this amount to raise another Rs 5,000 crore from the market by issuing tax-free bonds, officials involved with the initiative said. In this year's budget the government has empowered the shipping ministry to issue port sector bonds to the tune of Rs 5,000 crore. The idea is to invest in ports with large traffic to and from India, which would translate into interest in ports in south east Asia and Australia . Officials said an international presence for India is required , amid its growing influence in international trade, which was estimated at $600 bn in the last financial year and exports are projected to double by 2014. Nearly 90% of India's trade is through marine lines. In various other spheres, the government is trying to showcase India's growing clout. India's Engineering R&D providers to capture 40% of global offshore revenues India's Engineering Research & Development providers could capture a 40% share of global offshore revenues in 11 key verticals by 2020, according to a new report. The report titled "The Futures Report 2011," by Global Futures and Foresight, says, "Outsourcing will continue to deepen in scope to include R&D. Powerful verticals could be established." The report which cites a 2010 Booz & company study, says that India is the only country in the world to offer a large third party engineering vendor base. The E R&D space has a potential to create more than five mn jobs. Key drivers of change include a shift in centers of economic activity, notably the emergence of Asia, demographic challenges in mature economies, greater technology convergence and major shifts in industry structures, the report says. Growth in Indian domestic market, infrastructure investments and offset policies are expected to drive growth in the domestic E R&D outsourcing industry. "Domestic demand is expected to contribute between 10 and 15% of the Indian ER&D market in 2020 with European demand adding another 30%. In a sign of changing times, the US market is only expected to provide 45 % of total ER&D service revenue in 2020 down from 62 % in 2009," the report said. The Booz & Co study said, overall spending on ER&D increased 12% from $980 bn in 2008 to $1.1 trln in 2009 and is expected to expand to $1.4 trln by 2020. Demand from sectors including computing systems, medical devices, energy, and infrastructure is fuelling the ER&D market. Food Processing Ministry to focus on R&D The issue of basic research in food science is a neglected one and the Government is working on a master plan proposal to correct it in the 12th Plan, said Mr Ashok Sinha, outgoing Secretary, Ministry of Food Processing Industries (MoFPI). “We need to boost our research and development in order to lessen wastage

Weekly Newsletter 5 Info-Spectrum Bridging the Information Gap in Corporate Landscape and the Ministry along with the industry has to now find answers through R&D for the problems that all stakeholders know exist,” said Mr Sinha. He was speaking at a stakeholder consultation to identify focus areas in R&D in the area of food processing organised by FICCI. The R&D allocation for the Ministry for 2011- 12 is Rs 8 crore against Rs 6 crore for last year and 18 projects will be cleared this year, said Dr U. Venkateswarlu, Joint Secretary, MoFPI. He added that the allocation could be increased, if needed. The ministry was open to any model or new process that helps reduce wastage and improves the shelf-life of products and the Government would act as a facilitator for this, he said. Dr T. Ramasami, Secretary, Ministry of Science and Technology, suggested the adoption of a consortium approach to R&D in public private partnership mode. Indian attraction for global PE players With the single investment of $500 mn in Indian steel pipe manufacturer Welspun group, the US-based Apollo Global Management has given a clear indication about the significance of India as an unavoidable destination for global private equity majors. Apollo’s investment is the second-largest private equity investment in India by a single investor after Carlyle’s $650-mn investment in HDFC in 2007. Apollo makes it clear they are not supposed to engage as a volume player in Indian PE space, but large investments in a few quality companies. Carlyle has done 25 investments worth $894 mn (size of eight deals not disclosed) till date against two investments worth $600 mn by Apollo. At the same time, Blackstone manages about $1.5 bn through 18 deals in India, according to VCCedge data. Since 1990, Apollo manages assets worth $40 bn as of March 31, through private equity business. Israeli cos keen to share water management knowhow with Indian counterparts Israeli water management companies are keen to partner with their counterparts in India to bring about changes in the way water is managed better by sharing the knowhow, Mr Oded Distel, Director, Israel NEWTech, Investment Promotion Centre of Ministry of Industry, Israel, said. He said “Israeli companies have become experts in water management over the years. This is something we were forced to achieve as we did not have any other option but to find ways to meet water requirement in a water-short nation. By 2015 about 70 per cent our water required would be met through desalination.” The CII-Green Business Centre and the Israeli Ministry of Industry, Trade and Labour inked a joint declaration on cooperation in the areas of water management and technology. This is part of the Israel NEWTech programme. Speaking at the CII- GBC, Mr Oded Distel said: “we have begun to understand the Indian market for water management. This is a big opportunity for Israeli companies which have gained expertise in different aspects of water management. We also know that it would not be possible to share our expertise without local partners.” “Therefore, Israeli companies are keen to partner their Indian counterparts to share knowhow and also possibly explore opportunities for local manufacture to be competitive in India,” he said. Mr S. Raghupathy, Executive Director, CII Godrej-GBC, outlined the opportunities for Israeli companies to partner Indian firms right from water management to waste management. India-New Zealand FTA to help forge business partnerships India and New Zealand stand to gain through cooperation in a number of sectors including post harvest technologies, renewable energy, animation films and education, and the proposed bilateral free trade agreement could help forge business ties, commerce and industry minister Anand Sharma has said. "The proposed FTA would deliver a broad range of benefits to both countries. It would definitely lead to additional trade flows and economic gains," Sharma said at a luncheon meeting with New Zealand Prime Minister John Key and businessmen from both sides organised by industry chambers CII, Ficci and Assocham on Tuesday. Five rounds of negotiations on the FTA have already been carried out with the two sides hopeful that the agreement would be concluded soon. "Our partnership is growing and that is the reason we are very keen for the progress in the FTA . We hope it will be concluded by 2012," New Zealand PM John Key said. New Zealand is keen on gaining greater access to India's market for dairy products and wooden items and India seems willing to oblige. Sharma said that the FTA would provide New Zealand the opportunity to emerge as a substantial supplier in the dairy, wood and wool products sectors. India, on the other hand wants New Zealand to offer a more liberal visa regime and employment opportunities to its professionals. Bilateral trade between India and New Zealand is a low $ 1 bn with the balance in favour of New Zealand. The two countries hope to treble trade to $ 3 bn in the next four years.

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

India-Malaysia economic pact becomes operational Starting India's exports of basmati rice, motorcycles and cotton garments will get greater market access in Malaysia. In addition Indian professionals including chartered accountants, architects and medical practitioners will be able to provide their service in that country more freely on a temporary basis. This follows the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) becoming operational from July 1. The Agreement liberalises trade in goods, services, investments and other areas of economic cooperation. It aims to boost bilateral trade to $15 bn by 2015 from the current level of $10 bn, the Ministry of External Affairs said in a statement. The items on which India has obtained market access from Malaysia, under the pact, include basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments. These are all items of considerable export interest to India. At the same time, adequate protection has been provided by the Indian side for sensitive sectors such as agriculture, fisheries, textiles, chemicals and auto among others. India and Malaysia, under the services chapter of the pact, have provided commercially meaningful commitments in sectors and modes of interest to each other which should result in enhanced services trade, the statement adds. The CECA also facilitates the temporary movement of business people including contractual service suppliers, and independent professionals in commercially meaningful sectors including accounting and auditing. Besides, architecture, urban planning, engineering services, medical and dental, nursing and pharmacy, Computer and Related Services (CRS) and Management Consulting Services could also benefit. The India-Malaysia CECA also facilitates cross-border investments between the two countries. It aims to promote investments and create a liberal, facilitative, transparent and competitive investment regime. The CECA creates an attractive operating environment for the business communities of both countries to increase bilateral trade and investment. The trade in goods package under India-Malaysia CECA takes the tariff liberalisation beyond the India-Asean Free Trade Agreement commitments, which were implemented by both countries at the beginning of 2010. RBI says cos can issue shrs for cap goods import under FDI scheme Indian companies are allowed to issue equity shares or preference shares under the government route of the foreign direct investment scheme against payment for imported capital goods and machinery, and to meet preoperative or incorporation expenses, the Reserve Bank of India notified. Companies can issue shares for import only if the capital goods and equipment have been evaluated by a third party entity, preferably an "independent valuer from the country of import". The conversion of import payables for capital goods into foreign direct investment should be completed within 180 days from the date of shipment of the goods, the central bank said. Issuance of shares to meet preoperative or pre-incorporation expense is allowed only if the payment is made directly by the foreign investor to the company. The capitalization should be completed within the stipulated period of 180 days for retention of advance against equity under the present FDI policy. Ranjan Mathai appointed new foreign secy, to assume office Aug 1 India's ambassador to France Ranjan Mathai will be the next foreign secretary, a foreign ministry release said. Mathai, a 1974-batch Indian Foreign Services officer, who has been posted in Paris since 2007, would assume charge on Aug 1. Mathai will have a tenure of two years. He will succeed the current foreign secretary Nirupama Rao, who is widely tipped to become India's next ambassador to the US. Rao will retire as foreign secretary next month. Mathai, who has earlier served as India's ambassador to Israel and deputy high commissioner in London, has also served in Indian embassies in Vienna, Colombo, Washington, Tehran and Brussels. Inflation upside: Toll roads to get higher credit rates At a time when a stubbornly high inflation is giving sleepless nights to the government, RBI and policymakers by burning holes in everyone''s pockets, it has a positive impact on the tolled roads sector, according to leading research and rating agency Crisil. Montek says fuel price hike not to affect inflation after 3-4 months The fuel price hike announced by the government is not expected to affect inflation after three to four months, Planning Commission Deputy Chairman Montek Singh Ahluwalia said. 5-6% inflation 'ideal' for Indian economy: Pranab Amidst all-out efforts by the govt and RBI to tame inflation, now hovering around 9%, Finance Minister said it would be ideal for the economy if it is managed at 5-6%.

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

Inflation cost Indians Rs 5.8 Lakh crore more in past 3 years Amid government facing flak over high inflation, a study has revealed that Indian households incurred an additional expenditure of whopping Rs 5.8 lakh crore in the last three years because of spiralling prices. 'Sugar output touches 24 mn tonnes; prices stable' The country''s sugar production has touched around 24 mn tonnes (MT) so far this season and prices of the sweetener have remained stable in the past five months despite exports, industry body ISMA said. Govt sets Jul total sugar supply at 1.77 mn tn vs 1.86 mn tn Jun The government has allocated 1.77 mn tn sugar for sale in the domestic market for July, a release from the food ministry said. The quantity is lower than 1.86 mn tn sugar allocated in June. Govt notifies 500,000 tn more sugar exports under general licence The government notified additional white sugar exports of 500,000 tn under the open general licence scheme, after allowing exports of a similar quantity in April. Sugar futures up as government allows sugar export Sugar prices rose by Rs 28 to Rs 2,757 per quintal in futures trading today on speculators creating fresh positions after allowing of sugar export by the government. ISMA says to seek govt nod for 1 mn tn more sugar exports this yr The Indian Sugar Mills Association will soon approach the government to seek permission to export an additional 1 mn tn sugar in the current season ending September, its President Narendra Murkumbi said. India eases business, tourist visas for Russia India today took a lead in resolving the vexed visa issue by liberalising its rules for the Russian citizens visiting India for the purpose of business and tourism. Freight rates in Gujarat likely to go up by 10-15% The freight rates in Gujarat are expected to go up by 10 to 15% following fuel price hike and overall rise in input costs, an apex industry body said. Haryana govt waives 5% VAT on kerosene Haryana CM Bhupinder Singh Hooda announced the decision of the state government to waive off the 5% value added tax (VAT) on kerosene. 'Area under groundnut to decline in current season' Area under groundnut is expected to decline by 5-7% in Saurashtra, popularly known as India''s groundnut bowl, in the current kharif season due to the farmers opting for cotton as it is more economically viable, an industry body said. Pay packages of top brass in India to rise sharply Top executives in Asia Pacific region, especially in countries like India and China, are likely to witness rapid rise in their pay package this year, says a survey. Funds released to extend green revolution to east Aiming to increase the farm productivity in the country, the government has released Rs.181.35 crore till May this year under the Rashtriya Krishi Vikas Yojana scheme to extend green revolution to the Eastern states. Taxing aviation won't pay, experts warn government India has come under criticism for imposing fresh taxes on international air travellers in the current budget, with global aviation experts terming it as an easy "financial grab" that would affect the economy in the long run. Pawar seeks PM intervention to finalise ethanol price Agriculture Minister Sharad Pawar has sought Prime Minister Manmohan Singh''s intervention to decide the final price of ethanol for blending in petrol to ensure smooth supply of the product during the 2011-12 season. HAU signs MoU for production and marketing of maize varieties Taking a leap forward in its public-private-partnership (PPP) programme, HAU today signed a Memorandum of Understanding (MoU) with Nuziveedu Seeds of Andhra Pradesh for production and marketing of maize varieties HM-8, HM-9 and HM-10.

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

PEC invites bids for import of 6,000 tonnes of pulses State-owned trading firm PEC has invited bids for the import of 6,000 tonnes of pulses for sale in the domestic market. Cross-LoC trade to resume tomorrow in Kashmir After remaining suspended for nearly four weeks, cross-Line of Control (LoC) trade between divided parts of Kashmir will resume tomorrow following assurances from the state government to the traders of improved facilities. GST rates to be between 16-20%, says CBEC The Central Board of Excise and Customs (CBEC) said that tax rates under the proposed Goods and Services Tax (GST) regime in India is likely to be between 16% and 20%. Coffee output in 2011-12 seen at around last year's level India''s coffee production is likely to remain flat at three lakh tonnes in the 2011-12 season starting October this year. Allanasons sees India 2011-12 coffee output at 300,000 tn India's coffee output next crop year beginning October is likely to be almost unchanged at 300,000 tn, M.P. Devaiah, head of coffee exports division of India's third-largest coffee exporter, Allanasons Ltd, said. CRISIL says household spend rose by Rs.5.8 trln in 3 yrs to Mar Total household expenditure in India rose by Rs.5.8 trln in the three years to March 2011 due to surging inflation during the period, according to a study by CRISIL Research released. RS Gujral to replace Sunil Mitra as revenue secretary The government appointed R.S. Gujral, currently secretary in the road transport and highways ministry, as secretary in the Department of Revenue. Trade sees high yld seeds raising basmati 2011-12 output India's basmati rice production in the next crop year starting July is likely to be significantly higher on year, mainly on account of extensive use of high yielding varieties such as Pusa 6, All India Rice Exporters Association's President Vijay Setia told. Maharashtra government cuts VAT on diesel, kerosene by 2% each The Maharashtra government cut value added tax on diesel and kerosene by 2% each, a week after the central government slashed duties on petroleum products. Government bans 178 firms from exporting cotton The Government today barred 178 firms from exporting cotton for failing to ship the allocated quantity or not meeting various requirements 'India negotiating changes in Mauritius tax treaty' FM Pranab Mukherjee said govt is negotiating changes in a tax treaty with Mauritius, the country which accounts for the maximum foreign investment in India. AP to be in focus at business summit in San Francisco With an aim to attract industries to Andhra Pradesh, a business summit will be held alongside the Telugu Association of North America (TANA) conference in San Francisco (USA) in July. India remains Dubai's largest trading partner India remained Dubai''s largest direct trade partner in the first quarter of this year, with bilateral transactions between the two sides amounting to over USD 44.3 bn (63 bn dirhams), accounting for 34 of Dubai''s total direct trade with the world. Allow up to 49 pc FDI in multi-brand retail: Ministry Amid a debate within the government on allowing foreign direct investment in multi- brand retail, the nodal Consumer Affairs Ministry is insisting on a FDI cap of 49% in the sensitive sector, sources said. Advanta India raises $50 mln via FCCBs Advanta India Ltd has raised $50 mn through issue of unsecured foreign currency convertible bonds with a 5-year-one-day maturity at an interest rate of 3.5% + $ Libor, and an initial conversion price of Rs.282.64 per share, the company said in a regulatory filing. The company intends to use the bond proceeds to invest in overseas subsidiaries, it said. Credit Suisse (Singapore) Ltd was the sole bookrunner to the issue, it said. Advanta India, an associate company of United Phosphorus, is a maker of hybrid seeds.

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

Usher Agro inks MoU with National Bulk Handling Corp Usher Agro Ltd has signed an MOU with National Bulk Handling Corporation Limited (NBHC) for storage and handling of foodgrains across India on a long-term basis. NBHC is building its first warehousing complex for storage of foodgrains exclusively for the company with a capacity of 50,000 MT at Chhata in Mathura district of Uttar Pradesh. In March 2011, the company had completed expansion at its rice milling units. With the additional expanded capacity of 2,91,600 MTPA, the total installed capacity of the company has increased to 5,43,600 MTPA. This will result in to ease of operations.

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

INFRASTRUCTURE INFRASTRCTURE SECTOR: • The Jawaharlal Nehru Port Trust will open bids today for its fourth container terminal. DP World, Port of Singapore Authority, GVK Power and Infrastructure Ltd and Sterlite Industries are among the short-listed bidders. • Private equity major Blackstone is likely to finance Embassy Property Development's 22% stake buy in IT SEZ Manyata Tech Park in Bangalore. The 22% stake is held by HDFC Property Ventures and the deal is likely to be valued at Rs.5.4 bn.

REAL ESTATE SECTOR: • The proposed Real Estate Regulation Bill is likely to be delayed as the ministry of housing and poverty alleviation is yet to get the law ministry's opinion. Real estate investment and development firm South Asian Real Estate has clinched a deal to buy 100-acre land in Navi Mumbai from Silver Oak.

OIL & GAS: • The petroleum ministry has opposed creation of an independent regulator for the sector. • Competition Commission of India is probing an alleged cartel by state-owned oil companies in bio- diesel purchase. • Maharashtra government has cut value added tax on diesel and kerosene by 200 bps each. • Maharashtra government to face revenue loss of Rs.14 bn due to the cut in value added tax on diesel and kerosene. • Brihanmumbai Municipal Corporation has scrapped octroi on liquefied petroleum gas cylinders. • The union government on Thursday hiked petrol and diesel prices by a marginal Rs.0.27 and Rs.0.15 a litre, respectively, following an increase in the commission paid to petrol pumps.

PORTS: • PSA International Pte Ltd, with ABG Ports Pvt Ltd, is set to get the contract for the fourth terminal at the Jawaharlal Nehru Port after the consortium offered 50.82% revenue share to the government. The final award of the contract will be subject to the decision of the Bombay High Court.

AVIATION: • Air India's operations may be halted if the company fails to pay interest loans worth Rs.430 bn rupees. • Air India plans to hive off its engineering and ground handling units in new turnaround strategy. • The union law ministry has given an opinion that the aviation ministry has supremacy over the Airport Economic Regulatory Authority.

ENERGY: • Australia is set to implement the minerals resource tax on exports of coal and iron ore; 22.5% resource tax likely from Jun 2012.

POWER: • The Attorney General of India has given an opinion that tariff for customers consuming over 1 MW of power be deregulated. The power ministry has now sought the law ministry's views on the subject. • The Union Cabinet Thursday allowed hydropower PSUs to sell 40% of their power to the highest bidder. Companies including NHPC, SJVN, and THDC India Ltd will benefit. • Ratnagiri Gas and Power Ltd has paid advance tax of Rs.90 mn for the first quarter of 2011-12 (Apr- Mar). This is the first time ever the company has paid advance tax.

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

L&T to invest Rs 30k cr more in Orissa Construction and engineering major Larsen and Toubro Ltd (L&T) plans to set up another power plant and a three-mn-tonne steel plant in Orissa at a combined investment of Rs.30,000 crore. L&T's new 2,000-Mw power project, the company's second in the state, would also involve the association of the state government and an expenditure of about Rs.10,000 crore. L&T had earlier sought the approval to set up a 2,000 Mw power plant near Dhamra port. The project would require about 1,200 acres of land. The company also plans to set up a three million-tonne steel plant and a captive power plant near Paradip, at a cost of about Rs 20,000 crore. It has already identified 600 acre of land and once a memorandum of understanding is signed with the Orissa government, the company would start work on the plant, Sailendra Roy, president, L&T, said on the sidelines of the Conclave Odisha investor summit today. “We will invest about Rs 85,000 crore in the state for all these projects, of which, Rs 20,000 crore would be invested in the steel plant, Rs 21,000 crore in the two power plants and the rest will be spent on the aluminum project,” Roy said. The company would soon start work on its aluminum project, the proposal for which, secured the approval of the state government last month. L&T had signed an agreement with Dubai Aluminium Company Limited to set up an integrated bauxite mining, alumina refinery and aluminium smelter in the state. The project involved setting up of a three million-tonne alumina refinery in Rayagada district and an aluminium smelter plant at Sambalpur. RInfra to bid for at least 5 highway projects this year Reliance Infrastructure will bid for at least five “big” road projects of the 18 that the National Highways Authority of India (NHAI) is likely to call for this year. “We will choose projects which are urban centric and high density traffic corridors,” said Mr Lalit Jalan, CEO & Whole Time Director of Reliance Infrastructure Ltd. Quoting “a top official”, he said NHAI is expected to award contracts to build 7,300 km of road worth Rs.50,000 crore this year. Last year it awarded contracts for 1,800 km. Mr Jalan was in Chennai recently with regard to the company's 60-km Hosur-Krishnagiri road project (worth Rs 925 crore) going operational. BEML signs MoU with Alenia Aeronautica Bangalore-headquartered BEML Ltd has signed a MoU with Alenia Aeronautica S.p.A of Italy for designing, manufacturing and selling new primary/basic training aircraft on a new generation screener. As per the MoU, the two companies will jointly collaborate to design & build integrated support complex system for both commercial and defence market worldwide, includes proprietary aircraft products like the C-27J, the ATR42MP and the ATR72ASW. BEML has diversified into aerospace and acquired land at SEZ Aerospace Park near Bangalore International Airport for setting up a division to manufacture aerospace components, fabrication of structural sub-assemblies and jigs for aircraft structures. RPP Infra Projects launches subsidiary in Sri Lanka RPP Infra Projects today said it has launched a new venture in Sri Lanka, known as RPP Infra Projects (Lanka) Ltd, to execute a recently won housing project for internally displaced people (IPDs) in the country. State Trading Corp of India to pay 30% final dividend State Trading Corporation of India Ltd have recommended final dividend @ 30% (amounting Rs. 1800 lakhs) for the Financial Year 2010-2011. Maharashtra gives 'mega project' status to Mandhana Ind Mandhana Industries Ltd has informed that Government of Maharashtra confers "Mega Project" status for Mandhana Industries Limited's Projects in Maharashtra. GTL appoints SBI Caps to advise on protecting lenders' interest GTL Ltd and its subsidiary GTL Infrastructure Ltd have appointed SBI Capital Markets Ltd to advice the two companies on protecting their lenders' interest. On Jun 20, GTL Ltd and GTL Infrastructure shares fell 58% and 37% respectively, on market talk that the promoter of the two companies had failed to meet margin requirements on pledged shares. On Jun 17, shares of GTL Infrastructure had fallen 8%, while that of GTL had dropped 17% on doubts over the group's ability to repay its debt, which stood at Rs.41.1 bn as on Mar 31. The appointment of SBI Capital Markets as advisor is seen as a bid by the company to dispel investor concerns arising from the recent slump in their stocks. SBI Capital Markets will prepare a report within 30 days. The advisor has also been mandated to look into the workings of the telecommunications sector and study the financials of the two companies as well. The promoter of the two companies has reassured that all necessary steps will be taken to safeguard the interest of all stakeholders, the release said. As of Mar 31, 2011, GTL Ltd and Global Holding Corp Pvt Ltd together hold 58.34% in GTL Infrastructure and Global Holding Corp holds 52.18% in GTL Ltd.

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

Punj Lloyd gets Rs.8.26-bn-Gujarat State Petroleum Corp order Punj Lloyd Ltd has got a Rs.8.26 bn order from Gujarat State Petroleum Corp Ltd for a submarine pipeline project in an exploration block on India's east coast. The contract is scheduled to be completed by April 2013. The scope of work for the lump-sum turnkey engineering, procurement and construction contract includes a 24.5-km pipeline, a 15-km effluent disposal pipeline and a 24.5-km optical fibre cable. With the latest contract, the group's order backlog on a consolidated basis has gone up to Rs.251.99 bn. Artson Engineering gets order worth Rs.210 mn Artson Engineering Ltd has informed BSE that the Company has received 2 (two) Letters of Intent from Abir Infrastructure Private Limited whereby the Company has been awarded works, amongst others, entailing fabrication, erection, installation and commissioning of tanks and Piping and Mechanical Equipments at a project in Cuddalore. The aggregate value of these orders is about Rs. 21 Crore. JNPT secretary Kaul says to open bid for 4th container terminal Tue The Jawaharlal Nehru Port Trust will Tuesday open request-for- proposal bids submitted by five companies to develop the fourth container terminal at the port, Secretary S.K. Kaul told. Head says GAIL's Apr-Jun subsidy burden seen at Rs.4.5 bn GAIL (India) Ltd's subsidy burden for sharing the revenue losses of oil marketing companies for the June quarter is seen at 4.5 bln rupees, B.C. Tripathy, chairman and managing director of the company, said. GAIL seeks exemption from payment of fuel subsidies State-run gas utility GAIL India Ltd said it should be exempted from payment of fuel subsidies as it does not get any upside from rise in crude oil or natural gas price. ABG Shipyard bags 9.7-bln-rupee order for naval training ships ABG Shipyard Ltd has won an order to construct two cadet training ships for the Indian Navy. The order is worth Rs.9.7 bn, the company said in a notice to the stock exchanges. The vessels will be approximately 110 mtr in length, and designed to achieve a maximum speed of 20 knots (1 knot=1.85 kmph). They will have the capacity to carry a light helicopter, and will be mainly used to train cadets in disaster relief and rescue operations. The order has taken ABG Shipyard's order book to around Rs.148.9 bn. StanChart, Merlion India sell entire 7.08% stake in ABG Shipyard Standard Chartered Pvt Equity (Mauritius) Ltd and Merlion India III Ltd have sold their entire 7.08% stake in ABG Shipyard Ltd in the open market between Jun 24 and Jun 28, a regulatory filing on the Bombay Stock Exchange today said. KEC Intl prepays 1st loan instalment for SAE Towers buy KEC International Limited has informed the Exchange that the Company through its Special Purpose Vehicles had acquired SAE Towers Holdings LLC together with its subsidiaries at an Enterprise Value of USD 95 mn, in the month of September 2010. Full purchase consideration for the acquisition was funded through raising loan. As per the repayment schedule of the said loan, the first installment will become due in December 2012. Further the Company informs that out of internal accruals generated by SAE Towers, a prepayment of USD 5 Mn towards loan has been volutarily made within a very short span of nine months of SAE Towers acquisition. ONGC says board OKs draft FPO; awaits govt nod for launch date State owned Oil & Natural Gas Corp Ltd's board today approved the draft red herring prospectus for the company's much-awaited follow-on public offer, its Chairman A.K. Hazarika said. JNPT secy Kaul says court no to announcing 4th terminal bid result The Jawaharlal Nehru Port Trust today opened five 'request for proposal' bids for 4th Container Terminal Project, which is estimated to cost 67 bln rupees. However, the outcome of the bids cannot be disclosed now following a directive from a court of law, S.K. Kaul, secretary of the port, told NewsWire18. Cabinet approves 700-MW dedicated power plant for Bangalore The Karnataka Government on Friday announced plans to set up a Rs 3,700-crore dedicated LNG power plant for its capital, which consumes over half the power produced in the State. It also gave go-ahead for Rapid Bus Transport system for three fast-growing cities in the State, as well as Rs 9-crore tax concession to Toyota Kirloskar. These projects were approved at the cabinet meeting, chaired by the Chief Minister, Mr B.S. Yeddyurappa. On the 700-MW dedicated power plant for Bangalore, the Minister for Higher Education, Mr V.S. Acharya, said at the media briefing that the government wants to leverage the advantage thrown up by the Dabhol-Bangalore gas pipeline, which is expected to be completed by 2014. He said, utilising the gas

Weekly Newsletter 13 Info-Spectrum Bridging the Information Gap in Corporate Landscape availability, the government wants to set up the power plant, the work for which was expected to be entrusted to the state-owned Karnataka Power Corporation — the nodal agency for power generation. 1 lk MW capacity addn needed in 12th Plan for 9% growth: PMEAC One lakh megawatt power capacity addition in the 12th Five-Year Plan is a must for the country to sustain 9 per cent GDP growth, said economist and Prime Minister''s Economic Advisory Council Chairman C Rangarajan here. Sign FSA with power cos to ensure coal supply: Montek With power companies facing coal shortages and risk of their projects becoming "unfinanciable", the Planning Commission has asked the state-run PSU Coal India (CIL) to sign pacts with them to ensure sufficient supply of dry fuel even if the coal miner has to import it. Indowind to seek shrholder OK for raising funds Jul 29 Indowind Energy Ltd is going to seek approval of the share holders in the Extra Ordinary General Meeting of the Company to be held on July 29, 2011 for Preferential Issue of Shares through GDR / ADR / FCCB / Private Placement etc., and issue of Warrants on a Preferential Basis to Promoters / Promoter group / entity / person. India May power generation 75.1 bln kWh, up 10.4% on yr India's electricity generation in May grew 10.4% on year to 75.10 bln kWh, the Central Electricity Authority today said in a release posted on its website. The electricity generation rose 4.8% from April. HCC-Alstom JV wins 18.4-bln-rupee hydropower project in Uttarakhand Hindustan Construction Co Ltd said its joint venture with Alstom Hydro France has won a hydropower project worth Rs.18.43 bn from THDC India Ltd. The engineering, procurement and construction contract is for setting up the Tehri Pumped Storage Plant in Tehri, Uttarakhand. HCC's share in the contract is Rs.7.01 bn. The company said the project has to be completed in 54 months. The Tehri Pumped Storage Plant comprises four reversible pump turbine units of 250 MW each. Upon completion of the project, generation capacity of 1,000 MW will be added to the northern region. J&K to implement 24 power projects The Jammu and Kashmir government has identified 24 power projects in the State to be completed in 10 years. “The government has adopted multi-pronged scheme to harness hydel power potential and 24 projects have been identified to be completed in ten years”, Commissioner Power Development Department Basharat Ahmad Dhar said. Jammu & Kashmir Energy Development Agency has identified 121 un-electrified villages of Kishtwar, Kupwara, Gurez, Anantnag, Shopian, Pulwama, Budgam and Kulgam districts to be provided 16,000 solar home lighting system, while proposal for 210 more villages and 20 hamlets is in process under Remote Village Electrification scheme. Proposal for 24 villages and 274 hamlets has been submitted to Ministry of New and Renewable Energy for sanction. PFC may raise Rs 5,000 cr through tax-free bonds in 2011 State-run lending agency Power Finance Corp may raise Rs 5,000 crore through a tax-free bond issue, a move that would result in lowering borrowing costs for the company. Karma Energy to invest Rs 240-cr in Dhule power project Karma Energy, the subsidiary of Weizmann Limited, today said it plans to invest Rs 240-crore to set up a 60 MW power project at Dhule in Maharashtra. Cairn Energy, Vedanta recast Cairn India deal; remove various fees Cairn Energy plc and Vedanta Resources plc have restructured the deal for the acquisition of a majority deal in Cairn India Ltd by Vedanta, which involves acquisition of another 10% in the Indian explorer and the removal of non-compete clauses and associated fees, both the companies said in a joint statement late Monday. Cairn Energy will get $5.4 bln in post-tax realisation from Vedanta, a 5.3% fall from a previously agreed value, in a deal that will now involve an initial 10% stake purchase in Cairn India by Vedanta followed by another 30%, the statement said. "The removal of the non-compete fee will result in a reduction in the effective sale price from $8.66 per Cairn India share to $7.85 per Cairn India share," the release said. The release was not clear on whether the removal of 'associated fees' meant that Vedanta Resources will now pay the royalty on oil extracted from the Barmer oil fields, instead of the current practice of state-run explorer Oil & Natural Gas Corp paying it. ONGC has a 30% stake in the Barmer oil fields. Analysts are largely in agreement that the restructured deal implied that Vedanta will now pay the royalty fees instead of ONGC. In August, the Vedanta group had proposed acquiring up to 60% in Cairn India for about $9.6 bln in cash, partly from Cairn Energy and partly through an open offer by its subsidiary Sesa Goa Ltd. The deal is

Weekly Newsletter 14 Info-Spectrum Bridging the Information Gap in Corporate Landscape yet to get government approval largely because ONGC expressed reluctance to continue paying royalty fees if Vedanta were to acquire Cairn India. Sesa Goa has already acquired 18.5% stake in Cairn India through a combination of the open offer and open market deals. The sale of the first tranche by Cairn Energy, which will be completed by Jul 11, will increase Vedanta Group's stake in Cairn India to 28.5%. A ministerial panel, formed to look into the royalty issue, is understood to be of the view that the deal be given a "conditional" approval, which includes sharing a part of the royalty burden. NTPC commissions unit 1 of 660 MW Sipat thermal project NTPC Limited has informed the Exchange that "the Unit # 1 of 660 MW of Sipat Super Thermal Power Project has been commissioned on June 28, 2011 at 04:27 Hrs. With this, the total capacity of NTPC group has become 34,854 MW. This is the first super-critical 660 MW unit of NTPC which has been added to the capacity. With the coming of this unit, the total installed capacity of Sipat Super Thermal Power Project has become 1,660 MW." KSK Energy shrholders OK Tamil Nadu windmill asset sale KSK Energy Ventures Ltd has informed BSE that the members of the Company by way of Postal Ballot have passed approved the resolution relating to Sale/Disposal of Windmill undertakings / Assets of total capacity of 31.80 MW located in the State of Tamil Nadu, by requisite majority. Competition panel probing oil PSU cartel in bio-diesel purchase The investigative arm of the Competition Commission of India is probing an alleged cartel and anti- competitive activities of public sector oil marketing firms that are offering uniform price to bio-diesel producers irrespective of the fuel's actual market value. Boost for Odisha 4,000 MW project as coal blocks get 'go' status The proposed 4,000 MW Ultra Mega Power Project at Sundergarh district in Odisha today crossed a major obstacle that has held back its progress for the past two years. The Forest Advisory Committee will consider the three coal blocks allocated to the project as "go" areas, Environment Minister Jairam Ramesh said in a release. Reliance Ind source says govt likely to OK BP deal in next few wks Reliance Industries Ltd expects the government to clear its $7.2 bln deal with London-based BP Plc in the next few weeks, a top official in the Mukesh Ambani-owned company said. Under the deal, the Indian company will sell a 30% stake in some of its hydrocarbon blocks to BP. Fitch says power project funding may stay low on lending curbs The power sector will continue to face funding constraints owing to tighter exposure limits prescribed to banks by the Reserve Bank of India, and a heightened perception of risk, said rating agency Fitch Ratings in a research report today. Promoter Madhusudhan Rao ups stake in Lanco Infratech to 4.7749% Lanco Infratech Ltd's promoter L. Madhusudhan Rao has increased his stake in the company to 4.7749% by buying shares from the market over the past two days, the company said in disclosures to the Bombay Stock Exchange. Birla Corp plans Rs 1,025 crore capex The M.P. Birla Group flagship Birla Corporation plans to invest around Rs 1,025 crore over the next one and a half years for expanding cement and power capacity. The company proposes to expand cement production capacity to 9.30 million tonnes by March 2012. Currently, the company has a production capacity of 7.5 million tonnes. Expansion projects are in progress on the 1.20 million tonnes brownfield project at Chanderia in Rajasthan and 0.6 million tonnes capacity addition at Durgapur in West Bengal. Both the projects are likely to be commissioned by November-December 2011. The company has also applied to the Ministry of Environment and Forests for further capacity expansion at Chanderia by another 1.5 million tonnes and all necessary monitoring activities as per the statutory regulations are in progress. This will take company's total cement capacity to 10.8 million tons and the capacity at Chanderia to more than 5 million tonnes. All the debottlenecking projects undertaken at the clinker manufacturing units of the company at Satna in Madhya Pradesh and at Chanderia have been completed. The company also proposes to install a grinding- cum-packing plant with a capacity of 7.5 lakh tonnes per annum at Kota in Rajasthan. Arya Energy to commission unit in December Arya Energy Ltd. (AEL), which is coming up with 12 MW bio-mass based power plant at Madhya Pradesh, hopes to commence generation from December, 2011. The project is estimated to cost Rs.60.2 crore and is being financed at debt equity ratio of 1.65:1. The financial closure for debt portion has been achieved.

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

Nearly 50% of the project cost has already been incurred. The company has entered into a PPA with Tata Power Trading Co. Ltd for sale of 11 MW of power for a period of eight years. Chuzachen hydel running behind schedule Chuzachen hydro electric project (HEP) in Sikkim is running behind schedule and is now scheduled for completion next month. As per the original schedule the project should have started operations in December 2010. In the mean time the project cost has increased from Rs. 652 crore to Rs.890 crore including cost overrun of Rs. 70 crore due to delayed commercial operations. 110 MW run-of-river project is being developed by Gati Infrastructure Ltd. (GIL), a special purpose vehicle (SPV) promoted by M.K. Agarwal & associates along with his group companies – Gati Ltd. (Gati) and Amrit Jal Ventures P Ltd. It may be recalled here that in 2007 Gati Infrastructure had entered into an agreement with the State Government of Sikkim and Sikkim Power Development Corporation Limited to implement 3 hydro power projects aggregating to 235 MW under development in Sikkim. 110MW Chuzachen is one of them while 54 MW Bhasmey Project on Rangpo River downstream of Chuzachen Project and 71 MW Sada Mangder Project on Rangit and Relli Rivers in West Sikkim are the other two projects. Anuppur power project makes progress 1200 MW (2X600 MW) Anuppur Coal Based Power Project being developed by MB Power Ltd in Madhya Pradesh has made considerable progress. Rs 6240 crore project has achieved financial closure and is proposed to be funded in a Debt: Equity Ratio of 75:25. MB Power, a Moser Baer group company, has received coal linkage for the project and has also completed large part of the land acquisition. PPA for 70% of the capacity has been signed. The expected Commercial Operation Date for the first and second unit is January, 2014 and April, 2014 respectively. Dhunseri Petrochem to build PET resin plant in Egypt The Kolkata-based Dhunseri Petrochem & Tea Ltd has said that the foundation stone for the 4,20,000 TPA, PET resin plant of the company’s 70 per cent subsidiary, Egyptian Indian Polyester Company S.A.E, was laid on June 23 in Egypt. The project is estimated to cost $160 million and is expected to generate $700-million revenue when fully operational. It is likely to be commissioned by the fourth quarter of 2012. Apart from Dhunseri, the other stakeholders are two Egyptian companies. High-speed trains to connect Delhi, nearby towns To facilitate faster movement of commuters between the national capital and its adjoining towns, a corporation will be set up to run high-speed AC trains as part of the Regional Rapid Transit System (RRTS) for the National Capital Region. NHPC to soon finalise joint venture for 3 projects in Orissa The country''s largest hydro power producer NHPC will soon finalise a joint venture with the Orissa government for setting up three hydel projects having a total capacity of 300 MW in the state. Tata Power launches 'Project Sujaan' In its endeavour to empower the future generations through value-added computer-aided literacy, Coastal Gujarat Power Ltd (CGPL), a subsidiary of Tata Power Ltd (TPL), today announced the launch of a development initiative in Gujarat, ‘Project Sujaan', at Mundra in Kutch district. The project is being implemented by CGPL through an agreement with the Hole–in-the-Wall Education Ltd (Hiwell), a joint venture of NIIT Ltd and the International Finance Corporation ([art of the World Bank Group) to set up, operate and monitor the evaluation of the learning stations for a period of three years, the company said here. In order to create an effective base for community development and the education backbone, an assessment of the community around the Mundra power project was undertaken. The course curriculum has been formulated keeping in view the need for computer education among the school children, prevailing level of computer literacy among the masses and its usage in their regular life. The project, as part of CSR activity, was launched recently during the Gujarat Government-sponsored Kanya Kelavani Program aimed at enrolling children in the formal education system. Learning kiosks have been set up in three schools in as many selected villages in Kutch district, said Mr. Alok Kanagat, Executive Director, CGPL. Under the project, a total of five learning stations will be set up in four schools for innovations in hardware/software technology and cognitive design. The community will be mobilized through interaction, and local leadership from the schools and community will be selected. The teachers and students will undergo orientation program to familiarise them with computer usage and trouble-shooting. The children will be monitored and evaluated on their achievement levels in computer literacy, English, mathematics and social sciences, besides their life skills. CGPL, a Special Purpose Vehicle (SPV) formed for setting up and operating the 4,000 megawatt Ultra Mega Power project (UMPP), based on super-critical technology at Mundra, had signed a Power Purchase

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

Agreement (PPA) with seven procurers (distribution licensees) from five states, i.e. Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the sale of contracted capacity. The first unit of Mundra Power Project, India's first UMPP, is close to commissioning. Tata Power is India's largest private sector power utility with an installed generation capacity of about 3,120 MW and a presence in all the segments of the power sector, from generation-to-trading. It has also acquired 30% stake in coal companies at Indonesia. Ad hoc subsidy sharing hurts profitability, cash flows: ONGC Opposing the present ad-hoc fuel subsidy sharing mechanism, state-run Oil and Natural Gas Corp (ONGC) has said its profitability and cash flows will be seriously impacted if the government forces it to bear one- third of marketing companies'' revenue loss on fuel sales. NHPC expects to sort out Parbati dispute in next two months The country''s largest hydro power generation company NHPC expects in the next two months to sort out contractual issues at its Parbati project in Himachal Pradesh, which has been hanging fire since 2007. Source says govt OK to Cairn-Vedanta may be further delayed The government approval to Vedanta Resources Plc's acquisition of Cairn India Ltd may be further delayed with the two companies tweaking the deal on Monday, an oil ministry official said today. Cairn Energy Plc and Vedanta Resources Plc Monday announced restructuring of the deal, which now involves acquisition of another 10% in Cairn India by Vedanta and removal of non-compete clauses and associated fees. The removal of the non-compete clause will reduce the price tag for Cairn India by around $600 mln. The oil ministry will need to re-examine the deal in the light of the changes in clauses before giving it a go ahead, the official said. "We do not have any formal communication from them (Cairn India) regarding this 10% sale," the official said. "The approval may get delayed. It will be re-examined by CCEA (Cabinet Committee on Economic Affairs) in the light of the fresh development." In August, the Vedanta group had proposed acquiring up to 60% in Cairn India for about $9.6 bln in cash, partly from Cairn Energy and partly through an open offer by its subsidiary Sesa Goa Ltd. Sesa Goa has already acquired 18.5% stake in Cairn India through a combination of the open offer and open market deals. The transaction got held up mainly on account of opposition from Oil and Natural Gas Corp Ltd, Cairn India's partner in Barmer oil block in Rajasthan. ONGC, though it owns only 30% stake in Barmer block, pays royalty on the entire crude oil output from the Rajasthan oilfields. ONGC has expressed reluctance to continue paying royalty fees if Vedanta were to acquire Cairn India. A ministerial panel, formed to look into the royalty issue, is reported to be of the view that the deal be given a "conditional" approval, which includes sharing a part of the royalty burden by Cairn India, or its acquirer. It is not clear whether the removal of 'associated fees' meant that Vedanta Resources will now pay the royalty on oil extracted from the Barmer oil fields, instead of the current practice of ONGC paying it. Shares of Cairn India today ended down 0.7% at 307.10 rupees on the National Stock Exchange. ONGC says board OKs draft FPO; await govt OK for launch date State owned Oil & Natural Gas Corp Ltd's board approved the draft red herring prospectus for the company's much-awaited follow-on public offer, its Chairman A.K. Hazarika said. However, the company has not yet decided to file the draft prospectus as it is awaiting clearance from the finance ministry's department of disinvestment on the date for launch of FPO, Hazarika said. In June, the government had appointed three independent directors on the company's board to pave the way for the FPO. The government has decided to divest 5% of its stake in ONGC to raise around Rs.108 bn. Post-divestment, the government's share in the company will come down to 69.14% from the current 74.14%. ONGC FPO, which was earlier slated to hit the market in July, got delayed as there was not enough clarity on the company's subsidy burden. Based on ad- hoc formula, state-owned upstream companies share a part of the gross revenue loss incurred by state- owned oil marketing companies on subsidised sale of oil products. Typically, upstream companies including ONGC have borne 33% of the gross revenue loss. However, the same was raised to 38.5% for the last financial year. Diamond Power Infra gets order worth Rs.780 mn Diamond Power Infrastructure Ltd has informed BSE that the Company had set up a modern Plant to produce transmission towers aggregating 48,000 Mt per Annum. The Company is pleased to announce the receipt of an order aggregating Rs.78 crores to supply Tower materials for 400 KV Quad and Twin lines aggregating 13531 MT to be supplied over the next 6 months. Dhunseri Petro starts work on Egypt polyethylene terephthalate unit Dhunseri Petrochem & Tea Ltd's arm Egyptian Indian Polyester Co has started construction work for a 420,000 tn per annum polyethylene terephthalate resin plant in Egypt. Dhunseri Petrochem & Tea holds

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

70% Egyptian Indian Polyester, while Egyptian Petrochemicals Holding Co has 23% stake, and 7% is held by Engineering for the Petroleum and Process Industries, Egypt, and Egyptian Petrochemicals Holding Co, the release said. The unit, being built at a total investment of $160 mn in Egypt's port town of Ain Sokhna, is expected to be commissioned by 2012-end. When operational, the unit will generate revenue of $700 mn, a release from Dhunseri Petrochem said. With the commissioning of the Egyptian plant, Dhunseri Group's polyethylene terephthalate resin capacity will rise to over 800,000 tn per annum, it said. IL&FS Engg to issue bonus shrs to pref shareholders IL&FS Engineering and Construction Company Ltd has informed BSE that, subject to the approval of shareholders of the Company, the Board of Directors of the Company have approved the issue of following Bonus Shares to Preference Shareholders: 1. 15, 00, 000 Cumulative Redeemable Preference Shares (CRPS) of Rs. 100/- each as Bonus Shares to the existing Optionally Convertible Cumulative Redeemable Preference Shareholders (OCCRPS) of the Company in the ratio of 1:16.67 (i.e. One fully paid Bonus CRPS of Rs. 100/- each for every 16.67 OCCRPS held) as on June 30, 20111 being the record date; and 2. 2, 36, 280 Cumulative Redeemable Preference Shares (CRPS) of Rs. 100/- each as Bonus Shares to the existing Cumulative Redeemable Preference Shareholders of the Company in the ratio of 1:24.33 (i.e. One filly paid CRPS of Rs. 100 each for every 24.33 CRPS held) as on June 30, 2011 being the record date. Two promoters up stake in Lanco Infratech via open mkt purchases Two promoters of Lanco Infratech Ltd have increased their stake in the company by buying shares from the market, a regulatory filing to the National Stock Exchange said. Promoter L. Madhusudhan Rao increased his stake in the company by 0.31% to 4.84% and Lanco Group bought 0.55% in the company to take its stake to 13.80%. Since Monday, Rao has bought a total of 7.43 mn shares of the company and Lanco Group has bought 13.26 mn shares. As on Mar 31, Rao held 4.55% stake in the Gurgaon-based infrastructure and power company, and Lanco Group held 13.25%, while total promoter holding in the company was 67.98%. REC head hopes to get RBI approval for FX borrowing by Fri Rural Electrification Corp Ltd may get approval to raise $750 mn through overseas loans by Friday, HD Khunteta, director finance. "We are likely to get the approval by tomorrow from RBI and will raise the funds in July and August," Khunteta said. The company plans to raise $300 mn-$400 mn through syndicated loans and will hold the road shows between Jul 11 and Jul 15 in Tokyo, Singapore, Hong Kong, and Taiwan. Khunteta said that they were yet to decide on whether the loans would be dollar- or yen-denominated. Rural Electrification Corp will also raise $300 mn through Swiss Franc-denominated bonds in August and will hold the road show in Switzerland during Aug 16 and Aug 19 for the same. The state-owned company, which finances rural electrification projects, plans to raise $1.5 bn during 2011-12 (Apr-Mar) through loans and bonds. Western India Shipyard got Rs.100-mn orders Apr-Jun Western India Shipyard Ltd has informed that the Company has signed major repair orders for repair of vessels M. V. Priyamvada of M/s. Sesa Goa Limited, M. V. Maratha Deep of M/s Chowgule & Co. Pvt. Limited during the quarter ended June 30, 2011 at an estimated value of about Rs.10 crore. The scope of repairs will include steel renewal, surface coating & protection, replacement of ship crane, dry docking and other jobs. The repair orders in the shipyard are progressing smoothly. PSL gets order worth Rs.2.32 bn from NTPC PSL Ltd has informed that the leading Public sector Company namely NTPC Limited has on June 29, 2011, awarded to the Company a Contract valuing Rs. 231.83 Crores for supply of Make-up Water Pipes Package for its Solapur Super Thermal Power Project (2x660MW). The aforesaid awarded Contract comprises of work of design, manufacture, testing, inspection, transportation, delivery etc. with respect to above stated supply. Niko may exercise option to hike stake in 3 Reliance Ind JV blocks Niko Resources Ltd plans to exercise the option to increase its stake in the three Indian blocks operated by Reliance Industries Ltd by another 3%, the Canada-based hydrocarbons explorer said in its annual report for 2010-11 (Apr-Mar). Currently, Niko holds 10% stake in the KG-D6 and NEC25 blocks, and 15% in KG-D4 block, all which are operated by Reliance Industries. The Mukesh Ambani-promoted company owns the remaining stake in the blocks. Niko Resources got the option to raise its stake in these blocks after Reliance Industries sold 30% participatory interest in 23 oil and gas blocks, including KG-D3, to the UK-based energy major BP Plc. The Canadian company said it is likely to raise debt to finance the stake buy. "Due to a pre- emptive right, Niko expects to have the opportunity to increase its net interest by 30% in each or all of the D6, NEC-25 and D4 blocks in India," Niko said. "Niko expects this opportunity would be financed with debt."

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

IL&FS TRANSPORT NETWORK: A consortium of Malaysia's Scomi International Bhd and Bengaluru-based Geodesic Techniques has tied up with the company's arm as a financial partner for the Bengaluru monorail project. NTPC: Orissa State Pollution Control Board has asked the company to shut four units of its thermal power station in the Angul district. Has tied-up with Singareni Collieries Co to secure 5 mn tn coal. OIL AND NATURAL GAS CORP: Says Essar, Great Eastern Energy, and Australia-based Dart Energy have expressed interest in picking a significant stake in the company's coal-bed methane blocks in Bokaro, Jharkhand, and Raniganj. OIL AND NATURAL GAS CORP: The company's board has approved the draft red herring prospectus for a follow-on public offer. Follow-on public offer likely to be priced between 240-260 rupee a share. Group of ministers likely to decide on price and timing of issue within a week. OIL AND NATURAL GAS CORP: Company to file a draft red herring prospectus with the Securities and Exchange Board of India for its 115-bln-rupee follow-on public offer. The FPO issue will hit the markets in three weeks from filing the DRHP. VIJAY TEXTILES: The company's board approved sale of its IT park in Hyderabad. DLF: Along with partners ACKRUTI CITY and The 3C Co is to sell IT parks in Pune and Noida for Rs.13 bn. ARTSON ENGINEERING: Gets order worth 210 mln rupees. BIRLA CORP: Has sought environment ministry's nod to increase cement manufacturing capacity at its Chanderia plant by 1.5 mln tn per annum. CONSOLIDATED CONSTRUCTION: To raise $100 mln via securities issue. RELIANCE INDUSTRIES: The Comptroller and Auditor General says company was consulted before finalising the draft performance audit on hydro carbon production sharing contract at KG-D6. ABG SHIPYARD: Standard Chartered Private Equity (Mauritius) and Merlion India III have sold entire 7.08% stake in the company via open market. ASHIANA HOUSING: Company's arm has acquired 40 acres at Bhiwadi in Rajasthan and will build a residential colony there. LANCO INFRATECH: Company's export license likely to be reviewed. LANCO INFRATECH: Promoter L. Madhusudhan Rao has increased his stake in the company to 4.7749% from 4.5500% earlier. LARSEN & TOUBRO: May seek a partner for its electrical and automation business to expand the company's product portfolio. RELIANCE INFRASTRUCTURE: Its Worli-Haji Ali sea link project hits a roadblock as Maharashtra government refuses to release viability gap funding of 13.92 bln rupees. CAIRN INDIA: Vedanta Resources not to pay non-compete fee to parent Cairn Energy; Cairn Energy to sell Indian arm's stake to Vedanta in two tranches of 10% and 30%; 30% stake to be subject to government approval. ACKRUTI CITY: Has raised 3 bln rupees from Future Capital's NBFC arm, STATE BANK OF INDIA, and ICICI BANK by mortgaging two fully-built commercial buildings in Mumbai. COMMERCIAL ENGINEERS & BODY BUILDERS CO: Received an order worth 42.5 mln rupees in Apr-Jun from LARSEN & TOUBRO. FORBES & CO: Arm Forbes Bumi Armada Offshore has got a 7-year contract from OIL & NATURAL GAS CORP for a floating-production-storage and off-loading vessel. SHRIRAM TRANSPORT: Orix Corp of Japan is in talks with US-based TPG Capital to buy the latter's 20% stake in Shriram Transport Finance Co, for close to 30 bln rupees.

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

IT & ITeS INFORMATION TECHNOLOGY: • Hewlett-Packard in talks to license its webOS mobile software. • Flash memory cards and pen drive maker Sandisk plans to set up assembly unit and testing plant in India.

India enterprise software market grew to $2.5 bn in 2010: Gartner The Indian enterprise software market showed broad growth and recovery in 2010, with total software revenue increasing 16.3% to total USD 2.5 bn, according to research firm Gartner. External experts to help frame electronics manufacture policy The Department of Information Technology (DIT) is all set to engage external consultants to help develop and implement a policy framework to spur the manufacturing of electronics in the country. It is scouting for domain experts in the areas of techno-economics, techno-procurement, human resources, communications and so on to be a part of a project management unit that the DIT is sewing together with an eye on making India a lucrative destination for electronic manufacturing, Dr Ajay Kumar, Joint Secretary-IT said. IBM ranked as leader in domestic Indian IT market with a 31.4% share in revenues IBM India led the domestic Indian software market in 2010 with a 31.4% share in the industry's revenues last year, according to research firm Gartner Inc. Customers, such as HDFC , SBI, Bharti Infratel and Indian Railways, contributed to IBM India's 55% market share in the application infrastructure and middleware ( AIM ) software segments. IBM was ranked leader in India in business integration (BI), collaboration and systems management. IBM India's revenues in 2010 grew 15.4% over 2009 in development software, systems management, collaboration and business integration categories, according to Gartner. The company is known to pick software development and maintenance contracts from small cooperative banks and manufacturing firms. "IBM is expanding into new locations, building new capabilities which has enhanced customer loyalty and profitability," Nair said. The company is extending its reach beyond the metros into tier II and III cities servicing clients such as Paragon Footwear with pay-as-you-go cloud based solution. Financial services, telecoms and contracts from government contributed about 20% each to the company's revenues. Worldwide business intelligence (BI) platform, analytic applications and performance management software revenue has reached $10.5 bn, a 13.4% increase from 2009. SAP's India arm fastest growing within APAC For Peter Gartenberg, the Managing Director of SAP India, managing growth in this market is a bigger concern than competition with peers like Microsoft, IBM and others. According to the Germany-based firm’s annual report 2010, its India subsidiary reported revenue of euro 395 mn (Rs 2,539.8 crore) reporting a growth of 35% from euro 291.6 mn (Rs 1,874.9 crore) in 2009, representing about 3% of SAP’s global revenue of euro 12.46 bn. The revenue includes SAP Labs India and SAP India Ltd. India will be the fastest growing region for the company with a 35% growth year-on-year. Whereas the other two regions within APAC (excluding Japan), Australia and China, grew by 23 and 22.5% respectively. In terms of revenue India would be the second largest region for SAP within APAC, with Australia leading the revenue of euro 427.7 mn. Wipro builds private cloud for UK's OnStream Utility Metering Wipro Technologies, the information technology unit of Wirpo Ltd, has built a private cloud for UK's OnStream Utility Metering Services Ltd, the Indian company said in a release. OnStream Utility is a part of National Grid Group, which provides gas and electricity metering solutions in UK. Wipro, which had started building the private cloud for OnStream in Oct 2010, did not detail the financials of the deal in the release. "Our engagement with OnStream covers design, build and implementation of a private cloud environment using Microsoft's private cloud solution," the release quoted Wipro Technologies' Vice President and Business Head-Cloud Services Neeraj Jaitley as saying. "OnStream will benefit hugely through this program and such an engagement is a reflection of Wipro's ability to add value to our clients' business." OnStream will now replace its existing IT infrastructure with a new model using the private cloud. HCL, Finzsoft partner for banking solution Software services provider HCL Technologies has entered into an agreement with the New Zealand-based banking and finance software solutions company Finzsoft to distribute and deliver a unified product solution. Targeted at customers in the banking and financial services sector, this is an end-to-end solution from which Finzsoft will get the license revenue, while HCL will get the services revenue. As part of the partnership, HCL will deliver the banking solution which includes full lifecycle, core and vertical banking and financial product solutions backed by systems integration and transformational services. Growth in this market is largely

Weekly Newsletter 20 Info-Spectrum Bridging the Information Gap in Corporate Landscape driven by good economic growth, a stable currency and as companies try to become more efficient and at the same time state-of-the-art, there are significant transformational opportunities," Sodhi added. Sri Lankan bk to use 3i Infotech's anti-money laundering software 3i Infotech Ltd will be providing its anti-money laundering software, Amlock, to Sri Lanka's Sampath Bank without disclosing the financial details of the deal. This move by Sampath Bank, will comply with AML (anti- money laundering) guidelines of Central Bank of Sri Lanka, and will also give them reputational advantage for correspondent banking in markets outside of Sri Lanka. 3i Infotech has tied up with Sri Lanka's DMS Software Engineering for on-ground support and local operations. DMS will help 3i Infotech in installing, implementing, training and supporting Amlock software in the South Asian island nation. Sampath Bank chose 3i Infotech after a more than two-year selection process. Motorola Xooms into Indian tablet market After the launch of PlayBook and Flyer this month, Motorola Mobility India has entered the burgeoning "tablet" space in India with the introduction of its "Xoom" device, priced at Rs 32,990 onward. The telecom ministry has asked Telecom Regulatory Authority of India to suggest exit route policy for licensees who wish to surrender their licences. The policy will essentially entail surrendering 4.4 Mhz of spectrum allotted to these operators. Motorola XOOM features a 1GHz dual-core processor and 1 GB of RAM, front-facing and rear-facing cameras, true multi-tasking functionality, and the latest Google Mobile services on a 25.6 cm (10.1-inch) widescreen HD display. This device is the world's first device powered by Android 3.0 (Honeycomb). The Best Buy for the Motorola XOOM Wi-Fi version is Rs 32,990 (MRP: Rs 34,490) and the Best Buy for the 3G version is Rs 39,990 (MRP: Rs 41,490). Persistent Systems in strategic pact with Realcom for Japan mkt Outsourced software product development company Persistent Systems Ltd said it has signed a strategic partnership with Realcom Inc for providing services and solutions in Japan. Realcom is an enterprise knowledge management solutions provider with operations in US and Japan. "The partnership with Realcom Inc. enables Persistent to expand its footprint in Japan while adding to its growth in the collaboration domain," a press release issued by the Indian company said. "As part of the deal, Persistent will provide professional services and support for all the existing customer relationships of Realcom." "The strategic partnership with Realcom will not only augment our resource strength in collaboration technology but will also provide an additional go-to-market vehicles into Japan and USA for Persistent Systems," the release quoted Persistent Systems' President Hari Haran as saying. Cerebra gets pollution board OK for e-waste facility Cerebra Integrated Technologies Ltd has informed BSE that the Company has received the consent for operation for our E Waste facility from Karnataka State. The Company is now fully geared up to start business in our E Waste Recycling business. The Company also wish to confirm that the Company has received the allotment for 10 Acres land from the Government of Karnataka near Bangalore. ITC Infotech partners Finnish company Solteq Oyj ITC Infotech, a global IT services company and a fully owned subsidiary of ITC, announced its partnership with Finland-based IT service provider Solteq Oyj. Tata Technologies to hire 400 people by March 2012 Embarking on an expansion plan, Tata Technologies will hire 400 people by March, 2012 which will take its headcount to over 5,000. Visesh Infotecnics gets Rs.49.14-mn Andhra order Visesh Infotecnics Limited has been awarded a contract from Andhra Pradesh Technology Services Ltd for supply of 64K Smart Cards to The Commissioner, Transport Department, Hyderabad. The value of the project is Rs. 49.14 mn. Tech Mahindra to expand Africa op; Nigeria named Africa headquarter Mumbai-based information technology firm Tech Mahindra Ltd said the company plans to scale up its operations in Africa. After two years of operations in the continent, the company declared Nigeria as the headquarters for the business process outsourcing operations in Africa, Tech Mahindra said in a press release. HCL Tech arm delivers crew mgmt solution to Canadian railway co. HCL AXON, a wholly-owned subsidiary of HCL Technologies Ltd, has delivered the initial release of iCREW, a crew management solution for transportation customers possessing SAP, to the Canadian National Railway Company. The solution was developed with the help of Canadian National Railway to be an add-on solution

Weekly Newsletter 21 Info-Spectrum Bridging the Information Gap in Corporate Landscape to SAP enterprise resource planning human capital management, and is part of HCL AXON's suite of products, the company said in a press release. Ramco Systems incorporates arm Ramco Systems FZ in Dubai Ramco Systems Ltd has informed BSE that the Company had incorporated a wholly-owned Subsidiary named Ramco Systems FZ-LLC in Dubai, vide the Certificate of Incorporation dated June 22, 2011, received by the Company on June 27, 2011 from the Dubai Technology and Media Free Zone Authority. TECH MAHINDRA: Is likely to bag a major contract to provide call centre services to an Indian telecom firm. TATA CONSULTANCY SERVICES: The Income Tax department has initiated scrutiny on the company for claiming tax benefits for onshore software services, which account for 45% of the company's revenues. Swiss company PostFinance will deploy the company's banking solution TCS BaNCS, to overhaul part of its operations. APTECH: Has got dividend of Rs.503 mn from its Chinese venture. ITC: Has acquired a 26% stake in a joint venture with Espirit Hotels to build a luxury hotel in Hyderabad; stake valued at Rs.450 mn. Ramky Group plans to set up a $100 mn integrated waste management complex in technical tie-up with ITC. ORACLE FINANCIAL SERVICES: Former officials have bid for the company's services business; deal in final stages of evaluation.

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

PHARMA & HEALTHCARE PHARMACEUTICAL: • Bristol-Myers Squibb Co signs agreement with Matrix Laboratories to expand access to anti-retro viral drug Reyataz.

Cipla to file appeal against US court order on PetArmor Cipla Ltd has informed that the Company has received an order dated June 21, 2011 from a United States District Court, Middle District of Georgia against a petition filed by Merial Limited ruling that the sales of PetArmor Plus (an animal healthcare product) allegedly infringed a patent held by Merial Limited and have suspended future sales in the United States. The District Court has stayed, the above order for 60 days in order to enable the Company to appeal. The Company is in the process of filing an appeal against this order. There is no determination as yet by the Court on the financial implication of the patent infringement. Manappuram Group to invest Rs 1,000 cr Manappuram Group, through its subsidiary Manappuram Health Care Ltd. (MHCL), plans investment of Rs 1000 crore to set up a chain of affordable healthcare clinics and diagnostics centres across South India. The clinics and diagnostics centres would operate under the brand name MAcare. Initially, MHCL will set up a state-of-the-art diagnostics laboratory with latest 3 Tesla MRI scanner facility at Kochi. The lab set up at a cost of Rs.20 crore will be the largest diagnostics laboratory in Kerala. The group also plans a chain of 400 units of MAcare - MAcare Medical Clinic, MAcare Dentral Clinic and MAcare Diagnostics in 15 major towns and 50 smaller towns in South India. Glenmark Pharma: Got $25 mn upfront payment from Sanofi Glenmark Pharmaceuticals Limited has informed that the GBR 500 deal signed by Glenmark in May'11 with Sanofi has received clearance from the Hart-Scott-Rodino Antitrust Improvements Act, USA. Following that clearance, the deal has now become effective and Glenmark has also received the first upfront payment of USD 25 mn. Jyothy Lab defers open offer for Henkel India shrs pending SEBI OK Jyothy Laboratories Ltd has postponed its open offer to acquire 20% more stake in Henkel India Ltd pending an approval from the Securities and Exchange Board of India, the companies said in an advertisement in The Economic Times newspaper. The open offer was scheduled to begin Jun 24 and close Jul 14. On May 5, Jyothy Laboratories announced it was entering into a share purchase agreement to acquire 50.97% stake in Henkel India from Henkel AG at Rs.20 a share, or a total of Rs.1.19 bn. Under SEBI rules, acquisition of 15% or more stake in a listed firm has to be followed by an open offer for at least 20% additional stake. Jyothy Laboratories had set the open offer price at Rs.41.20 a share. Once the SEBI approval is received, the new dates for the open offer would be announced, the companies said. Aanjaneya Lifecare sees FY12 sales up 20% on 600-mln-rupee orders Aanjaneya Lifecare Ltd has won orders worth Rs.600 mn, which will increase the company's sales by 20% and operating margin by 5% in 2011-12 (Apr-Mar), the company said in a regulatory filing to the stock exchanges. The orders are from several companies including Wockhardt Ltd, Cipla Ltd, Remedica Ltd and Tanzania Pharmaceutical Ltd, and will have to be met in the next two months. Aanjaneya has also received Certificate of Suitability from the European Directorate for the Quality of Medicines and Healthcare for quinine sulphate and quinine hydrochloride. This certification will help the company supply the two anti- malarial drugs in Europe, where Teva, Actavis, Sanofi Aventis and Mylan are the dominant players, Aanjaneya said. Jubilant Life US arm, Belgium co Janssen enter drug discovery pact Jubilant Discovery Services Inc, the US arm of Jubilant Life Sciences, has entered into a drug discovery pact with Belgium-based Janssen Pharmaceutica N.V., Jubilant Life said in a statement. "The alliance is set to span an initial period of 3 years and will focus on multiple targets in the area of neuroscience," the statement said. According to the arrangement between the two companies, the alliance is aimed to deliver pre-clinical molecules to Janssen. "Janssen will transfer ongoing efforts on selected drug discovery targets to Jubilant. Jubilant shall then carry out the research services and deliver preclinical candidates to Janssen for possible further development and commercialisation," the statement said. Jubilant may also receive milestones and royalties if Janssen successfully develops and commercialises the molecules. ICICI Prudential Mutual Fund cuts stake in IPCA Lab to 3.03% ICICI Prudential Mutual Fund has cut its stake in IPCA Laboratories to 3.03% after it sold 30,000 shares Jun 22, the pharmaceutical company informed the National Stock Exchange. The third largest asset manager in

Weekly Newsletter 23 Info-Spectrum Bridging the Information Gap in Corporate Landscape the country now holds 3.80 mn shares of the pharmaceutical company. The sale was done through ICICI Prudential Mutual Fund, along with International Opportunities Portfolio Management. Pfizer sues Aurobindo for infringement of Lipitor patent Pfizer Inc has sued Aurobindo Pharma Ltd for infringement of patent of its cholesterol lowering Lipitor, according to Justia.com--a legal content website of the US. Strides Arcolab to set up plant in Malaysia's biotech park Strides Arcolab Ltd said its subsidiary Agila Specialities (Malaysia) has signed a Letter of Intent with Bio- XCell Sdn Bhd to establish a manufacturing plant for biopharmaceuticals and sterile injectables in Johor, Malaysia. Bio-XCell, which is a joint venture company promoted by BiotechCorp and UEMLand, is aiming to be the new regional dedicated biotech hub of Asia. Bio-Xcell will build the plant as per the design requirements of Strides Arcolab, and it will be leased to the Malaysian arm of the Indian company on a long- term basis. The lease rentals will be applicable from the date of commercialisation, Strides Arcolab said in a regulatory filing. Jyothy Lab bought 3.29% Henkel shares from open market Jyothy Laboratories Ltd has informed that on June 29, 2011, the Acquirer has acquired 3,834,953 equity shares of Rs.10 each of the Henkel India Ltd. (Target Company), constituting 3.29% of the current paid-up share capital of the Target Company from the open market ('Acquisition'). The maximum price paid for the Acquisition was Rs. 40.70 per equity share and the average price paid was Rs. 40.68 per equity share. The maximum price paid for the Acquisition was lower than the price being offered to the equity shareholders in the Offer. TORRENT PHARMACEUTICALS: Plans to launch 35-40 drugs in Brazil in the next two years.

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

TELECOM TELECOM: • Department of Telecommunications has recommended the Telecom Regulatory Authority of India to review and finalise spectrum pricing by Dec 31 every year. • The mergers and acquisition contours of the New Telecom Policy 2011 being drafted by the Department of Telecommunications recommends lower market share and spectrum threshold compared with current guidelines. • Vodafone Plc in talks with partner Analjit Singh and other investors on who would pick up the 1.5% stake in its Indian venture. • The Central Bureau of Investigation has asked Standard Chartered Bank to share the 3-way correspondence details between the bank, Maxis Communications, and non-resident Indian usinessmen C. Sivasankaran.

Indian mobile handset market grows by 15 % Revenues of the Indian mobile handset market grew by 15% to touch Rs.33,171 crore in 2010-11 from Rs.28,897 crore a year back, according to an annual survey by the telecom industry journal Voice&Data. Nokia remained the top player in handset business in FY2010-11 with revenue of Rs.12,929 crore showing a growth of 0.2% over Rs.12,900 crore it did in FY2009-10. It lost market share in low-end segments to home grown handset makers like Micromax, Karbonn and Spice whereas its high-end phones faced a tough competition from brands like Samsung, BlackBerry and HTC. The analysts at Voice&Data attribute Nokia's loss of market share to its lack of dual-SIM phones in its portfolio. Dual-SIM phones have become an increasing phenomenon among value conscious Indian consumers. For FY2010-11, Nokia enjoys a market share of 39.0%. The Finnish firm was followed by Samsung with revenues of Rs.5,720 crore and the company captured market share of 17.2%. The company grew by 21.7% in FY2010-11 from Rs.4,700 crore it did a year before. Samsung's success can be attributed to its rich product portfolio on various popular operating systems like Windows, Android and Bada. The company's entry level smartphone 'Wave' and 'Galaxy S' have been hugely successful during the period. For FY2010-11, the company's 3G phones contributed 5% of its entire sales, adds Voice&Data, specialty publisher CyberMedia's flagship journal for the telecom industry. Eight Indian telco execs in global under-40 leaders' list Eight executives from the Indian telecom industry were named in an under-40 young leaders’ report released by Global Telecoms Business, a London-based telecommunications magazine. The list comprises executives born on or after July, 1, 1971. Srinivasa Addepalli, vice-president of strategy in Tata Communications, has been featured for the second year in this regard. Another Tata executive, Gauri Raizada, won a place in the list by rolling out a low-cost home-grown CRM (customer relationship management) software service, used by 80 mn subscribers. One of the youngest CEOs of Bharti Airtel, Anil Chitkara, who heads its $450-mn global data business, also made it to the list. Along with Rene Meza, managing director of Airtel Kenya, the company also marked two entries into the list. The chief information officer of Aircel, Pankaj Agarwal, who transformed the information technology back-end of the company by outsourcing, in a record seven months, also made an entry into the list. Udit Mehrotra, a director of Shyam Networks, featured in the report for multiple achievements. He was the founder of Ubico Networks in 2007, the largest vendor of equipment for in-building and in-campus networks in the country. Yet another venture of his, CityComs Networks, is the country’s first independent intra-city carrier of carriers. Others who made it to the list are Upendra Poranki, project owner of the Yuva project of Nokia Siemens Networks, and Mukesh Bavisi, managing director of Exponential-e. The list also includes executives from international majors such as Orange, Alcatel-Lucent, MTS and Direct Networks. Tata Comm set to cloud over more countries Tata Communications has its sights firmly set on the cloud. After launching cloud computing-based services in India and Singapore, with the latter covering other countries in Southeast Asia, the firm will now expand into the Americas, Europe and South Africa in the next 18 months. Although it remains reluctant to divulge on the investment required for this expansion, it is likely to be a “significant” spend as it looks to create “similar platforms and capabilities in Europe and the Americas,” said Amit Sinha Roy, vice-president strategy and marketing, Tata Communications. In Singapore, which is also the company’s international headquarters, it spent $180 mn to set up a state-of-the-art data centre that supports the cloud computing functions amongst others. Additionally, it will invest close to $88 mn annually over the next four years in the city-state as it continues to develop its presence in the region. However, a “defining strategy” in its present international plans will be expanding its cloud-based offerings across multiple regions, which Sinha Roy

Weekly Newsletter 25 Info-Spectrum Bridging the Information Gap in Corporate Landscape claims “is one of the most important priorities” for the company going ahead. It plans to generate revenues of up to $250 mn in the next three years from these services. And if recent numbers are considered, Tata Communications’ strategy has credence. Not only is overall spending on cloud computing expected to reach up to $72.9 bn in the next five year, according to a recent study, public cloud services are likely to account for about 46% of new net growth in information technology expenditure by 2015. A public cloud consists of a service provider making resources such as application and storage available to users over the internet, which may be offered free or on a pay-per-use model. BSNL aims to mop up Rs 3k cr revenue from enterprise biz Loss-making telecom PSU BSNL said it aims to garner a revenue of Rs.3,000 crore from enterprise business during the current fiscal. R Systems arm gets mobile broadband solution order from European co R Systems International Ltd's UK-based arm Computaris International Ltd has won a project from an eastern European mobile network operator for an undisclosed amount, the company informed the stock exchanges. Computaris International will provide a mobile broadband solution to the European company as per the deal that will enable the latter to introduce new, advanced data services and to optimise its existing network capacity, the release said. R Systems International is a software product development and business process outsourcing services company, which acquired Computaris International early this year. JMD Telefilms Industries in pact with Chinese co to mkt cell phones JMD Telefilms Industries Ltd entered into a pact with China's Century Exports Ltd for import of mobile phones, the former said in a press release. An official of Century Exports was quoted in the release as saying that the Chinese company may even look at picking up a strategic stake in JMD Telefilms Industries in futureIce Mobile aims to sell 1 mn low radiation phones in FY'12 Riding on mobile phone users'' concerns about health hazards, Ice Mobile Network expects to sell over a mn of its co-branded, low radiation Alcatel Ice3 handsets by the end of the 2011-12 financial year. Hughes to offer satellite srvcs to Rajasthan,Karnataka discoms Hughes Communications India said it has bagged contracts from power distribution firms in Rajasthan and Karnataka to provide satellite services that will help reduce distribution losses. Sibal to follow carrot-and-stick policy to turn around BSNL Determined to turn around loss-making PSU BSNL, Telecom Minister Kapil Sibal says he will adopt a ''carrot- and-stick'' policy with an aim of getting desirable results within six months. 'No tie up with Huawei to set up equipment testing lab' Amid security concerns, India has decided to conduct testing, certification of software and hardware of all foreign telecom companies and has initiated the process with Huawei.

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

BANKING & FINANCIAL SERVICES INSURANCE SECTOR: • The Parliamentary Standing Committee on Finance may rule against raising the cap on foreign direct investment in the insurance sector to 49% from the current 26%. • The United Forum of Bank Unions has postponed its planned strike to Aug 5 from Jul 7 as the Parliament's Monsoon Session will begin Aug 1. • Reserve Bank of India Governor D Subbarao may get an extension when his three-year term expires in early Sep. • Banks have made it mandatory for companies to pay a commitment fee on loans that are not drawn on time; the fee is anywhere between 0.25-1.00% of the sanctioned amount.

RBI rate hikes finally push banks to cut FY12 credit target After 10 successive rate hikes in the last 16 months to tame demand side pressures, banks have finally trimmed their credit targets for the current financial year to closely align them with deposit growth, giving Reserve Bank of India officials a reason to smile. Banks' deposits fall, loans rise in fortnight to Jun 17 Banks' deposits declined in the fortnight ended Jun 17, after recording a surge over the past two fortnights, data released by the Reserve Bank of India showed. S&P says Indian banks' asset quality at risk on high inflation Rising inflation, strong lending growth and risk of property price correction could adversely impact the asset quality of major banks in India and China, said Gavin Gunning, director, financial institutions ratings with Standard & Poor's. Indian Bank to raise $1 b overseas Indian Bank expects its $1 bn (Rs.4,500 crore) medium term notes to hit the market by mid-July. The bank expects to list the bonds on the Singapore Stock Exchange. On the sidelines of the Indian Bank's annual general meeting, Mr T. M. Bhasin, Chairman and Managing Director, said the offer document is ready for $1 bn but will be issued in two tranches of $500 mn each. The bank is raising these bonds to expand its overseas lending. Central Bank of India appoints M.V. Tanksale as CMD Central Bank of India has appointed M.V. Tanksale as the chairman and managing director, a press release said. Tanksale was executive director at Delhi-headquartered Punjab National Bank since March 2009. The post of Central Bank of India's chairman and managing director has been vacant since S. Sridhar retired on May 31. Canara Bank to raise Base Rate, BPLR by 25 bps from Friday Canara Bank will raise its Base Rate and Benchmark Prime Lending Rate by 25 basis points each to 10.25% and 14.25%, respectively, from Friday, the bank said in a release. MD sees IndusInd Bank's credit growth at over 25% in FY12 IndusInd Bank's credit growth during the current financial year that started Apr 1 is likely to be over 25%, Managing Director and Chief Executive Officer Romesh Sobti said. Source says SBI eyeing QIP as rights issue unlikely in FY12 State Bank of India is toying with the idea of a qualified institutional placement of shares in 2011-12 (Apr- Mar) because its proposed Rs.200 bn rights issue of shares is unlikely to go through this year, a senior official of the bank said. Banks taking steps to deal with July 7 employee strike call With bank employees set to strike work on July 7 in protest against the government''s decision to dilute its equity in banks, PSU lenders said they are taking steps so that their operations are not hampered. BANK OF MAHARASHTRA: Has launched a co-branded credit card with SBI Cards and Payments Services Pvt Ltd. CORPORATION BANK: To up Base Rate to 10.25% from Friday vs 9.90% now. SOUTH INDIAN BANK: Plans to raise Rs.10 bn via qualified institutional placement issue by September.

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

STANDARD CHARTERED: Expects income of the Indian operations to be lower in the first half of 2011 due to margin pressures in a high inflation and interest rate scenario. ANDHRA BANK: Life Insurance Corp of India has bought over 55.8 mn shares or 9.9% stake in the bank through open market deals.

Weekly Newsletter 28 Info-Spectrum Bridging the Information Gap in Corporate Landscape

STEEL, METALS & MINERALS STEEL: • Karnataka farmers prepare to oppose land acquisition for Posco India's proposed 6 mn tn per year steel plant near Gadag. 275 farmers have already filed objections with the Industrial Area development Board. • STEEL AUTHORITY OF INDIA, BHARAT HEAVY ELECTRICALS, and Rashtriya Ispat Nigam to form a joint venture for manufacturing electrical and silicon grade steel.

MINING: • A sub-committee of the environment ministry has given a go-ahead to Vedanta's aluminium refinery and bauxite project in the Niyamgiri hills. • The government is likely to ease the rule for foreign mining companies to share 26% of their profits with local communities.

GoM on Coal to meet on July 14 to address green hurdles The Group of Ministers (GoM) on Coal is likely to meet for the fourth time on July 14 instead of July 2 to try and resolve issues hurting the production of coal in the country amid an ever-widening demand and supply gap, which is expected to reach 137 mn tonnes in 2011-12. Global aluminium stocks in May up 2.5% sequentially at 2.65 mn tn Global aluminium stocks in May rose 2.5% from April and 11% from a year ago to 2.656 mln tn, the International Aluminium Institute said in a report. Apollo private equity to invest up to $500 mln in Welspun Group Private equity major Apollo Global Management, LLC has stuck a deal to invest around $500 mn (Rs.22.50 bn ) in the Welspun Group with most of the money flowing into the listed steel pipe maker, Welspun Corp Ltd, B.K. Goenka, chairman of Welspun Group said. Apollo will invest around Rs.13.05 bn in Welspun Corp through fully compulsorily convertible debentures and global depository receipts for a stake of over 20%. However, the stake buy would not trigger an open offer according to takeover norms of Securities and Exchange Board of India, Goenka told reporters at a conference to announce the deal. Tata, SAIL JV to set up coal washery in Jharkhand S&T Mining Company, an equal joint venture of Tata Steel and SAIL, is setting up a 1.8 mn tonnes per annum (mtpa) coal washery at Bhelatand, Jharkhand, with an investment of Rs 200 crore. A detailed project report has also been prepared for the proposed project. The joint venture had previously proposed to set up the washery at Malkera, but was forced to shift the site to Bhelatand because of the high investment cost. S&T Mining Company plans to acquire and develop coal assets in the country and has been short-listed by Coal India for revival of its abandoned coal mines. The company has also submitted a tender to Bharat Coking Coal for setting up a coal washery at Dugda and developing the Bhutgoria mine with an investment of Rs.42 crore. The proposal has been for mine development has been approved by the SAIL Board. Work in proposed Posco site disrupted due to dharna Work at the proposed Posco steel project site near Paradip was disrupted for hours due to dharna by local youths alleging non-fulfilment of their demands . NALCO to offer Rs.2,000/tn discount on all pdts Jun 25-30 National Aluminium Co Ltd has offered a discount of Rs.2000 per tn on all its aluminium products, a source close to the development said. The discount offer, which was introduced on Jun 25, will be effective until Jun 30, the source told. The country's second largest aluminium producer slashed its five-inch aluminium billet price by Rs.4500 per tn and other product prices by Rs.5000 last week. Hindustan Zinc gets 86,688 carbon credits worth 56.8 mln rupees Hindustan Zinc Ltd has been allotted 86,688 certified emission reductions for its 88.8 MW wind power project in Gujarat. Based on the current price of 10.28 euros (Rs.654.8) per carbon credit on the European Climate Exchange, the carbon credits received are valued at Rs.56.8 mn. The credits have been awarded for power generation between Jul 25, 2009, and Mar 31, 2010.

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

Hind Zinc ups zinc price by 1,300 rupees/tn, lead by 1,700 rupees Hindustan Zinc Ltd raised zinc prices by Rs.1,300 per to Rs.118,200, the company said on its website. The company also increased lead prices by Rs.1,700 per tn to Rs.132,800. The Vedanta group company aligns its product prices in line with the trend on the London Metal Exchange. GACL commissions 14000 TPA Hydrogen Peroxide plant Gujarat Alkalies & Chemicals Limited (GACL) has commissioned a hydrogen peroxide plant at its Dahej Complex to increase the capacity by 14000 TPA for an investment of Rs.98.25 crore. After commissioning of expansion, GACL is poised to be the largest producer of Hydrogen Peroxide in the country. The company had roped in Chematur Engineering AB of Sweden as its technology partner. ICICI Pru Mutual Fund ups stake in Usha Martin to 5.06% vs 4.73% ICICI Prudential Mutual Fund's stake in Usha Martin Ltd rose to 5.06% from 4.73% after the fund house bought 1 mn shares Jun 23, the fund house informed the Bombay Stock Exchange. The third largest asset manager now holds 15.42 mn shares of the iron and steel company. The deal was done through ICICI Prudential Discovery Fund, ICICI Prudential Dynamic Plan, and ICICI Prudential Emerging S.T.A.R. (Stocks Targeted At Returns) Fund. Govt threatens to cancel lignite block allocation to Binani Cement The coal ministry has threatened to cancel the allocation of Nimbri Chandavan lignite block in Rajasthan to Binani Cement Ltd unless the company takes immediate steps to develop the block. Tata Steel not faced with significant debt repayment for a year Fresh from the sale of its 26.3% stake in Australia's Riversdale Mining Ltd, which got it $1.12 bn, Tata Steel Ltd is now sitting pretty as the company doesn't have significant debt repayments to make for the next one year, the company's top management said late Tuesday evening. Tata Steel sees up to 11% demand growth in current fiscal The spike in interest rate might not impact steel demand in the country in the current fiscal as it is slated to grow by up to 11% backed by higher infrastructure spendings, Tata Steel said. Nuchem declares lock-out at Chennai chemical unit Nuchem Ltd has informed that: The IFCI Ltd. has withdrawn its nominee director Sh. Alok Sabharwal from the Board of Directors of the Company w.e.f. June 24, 2011. And in the wake of prevailing financial constraints, the management has declared a lock-out at Chemical Division of the Company w.e.f. June 26, 2011. Ferro Alloys Corp declares lock out at chrome plant Ferro Alloys Corporation Ltd has informed that that the Company has declared a lock out in charge Chrome Plant with effect from 0700 hrs. on June 29, 2011 consequent to resorting to unlawful activities by the workmen of the Company. As the conditions prevailing in the plant were not conducive and apprehending risk to the property of the Company, the Management has declared lock out with effect from 0700 hrs. on June 26, 2011, as aforesaid, to all the workmen except to the essential staff. Aster Silicates to shut Jhagadia unit for repairs Aster Silicates Limited has informed the Exchange that due to emergency breakdown, Existing Jhagadia Plant shall be closed for repairing & maintenance for the period of Minimum 15 days. Repairing will be starting from July 1, 2011. The Company will intimate the Exchange as soon as the plant will be restarted. RESURGERE MINES: Promoter Subhash Sharma pledges 18.75 mn shares in the company. STERLITE IND: The National Environment Engineering and Research Institute has not found any excess percentages of arsenic, zinc or fluoride than the permissible limits in and around Sterlite Industries' Thoothukudi copper smelter plant. The study had been ordered by the Supreme Court. TATA STEEL: Promoter Tata Sons pledged 10 mn shares of the company on Jun 29. ISPAT INDUSTRIES: Has got shareholders' approval to change name to JSW ISPAT Steel. Name change affective from Jun 28. NEYVELI LIGNITE: The finance ministry has revived talks with the coal ministry to divest stake in the company.

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

AUTO & AUTO ANCILLARIES AUTOMOBILES SECTOR: • Toyota Kirloskar has forayed into the hatchback market in India with the launch of its Etios Liva car. • All India Motor Transport Congress says freight rates could go up 8-16% if the government does not rollback part of the fuel price hike. • Japanese auto major Toyota to hire 2,000 employees in India this year in a move to bolster its market share by launching small cars. • Toyota to recall over 110,000 hybrid vehicles in the US, Japan, and Europe due to faulty transistors in electrical power control boards. • Peugeot Citroen to set up a Rs.40 bn plant near Chennai to manufacture 300,000 cars a year. • Chandigarh-based JCBL Group is looking to raise about $10 mn via private placement for its bus- body manufacturing business.

Indian auto industry worried about duty cuts in FTA Amid speculations of India giving in to EU''s demand on lowering duty on imported cars in the proposed free trade agreement (FTA), the auto industry has cautioned that if such a concession was granted, future investments in the sector in the country will be hit. Tata Motors launches Nano in Nepal at Rs 5 lakh After foraying into the Sri Lankan market, Tata Motors has officially launched Nano in Nepal on Sunday at an introductory price of 7.98 lakh Nepalese Rupee (approximately Rs.4.93 lakh). Bookings for the three variants-- Nano Standard, Nano X and Nano LX are opening and will continue for the next nine days. The car will be available at showrooms of Tata Motors' distributor Sipradi Trading Pvt Ltd across the country. The company already sells passenger vehicles including Indica V2, Indigo CS, Manza, Sumo, Grande, Safari and Aria in Nepal. Tata Motors to move apex court on Singur plot row Tata Motors Ltd will move the Supreme Court after Calcutta High Court on Monday rejected its interim plea for maintaining status-quo on the Singur plot. The company had on Jun 24 appealed to the Advocate General of West Bengal that the state government should not take any action on Singur plot in view of the ongoing hearing on the automobile maker's petition challenging the Singur Land Rehabilitation & Development Act 2011. According to Tata Motors, it drew the high court's attention to media reports dated June 25, and June 26, in which the West Bengal government had taken steps towards distribution of land at Singur. Tata Motors had initially planned to manufacture its small-car Nano from Singur and had got land on lease from the West Bengal Industrial Development Corp. Subsequently, in 2008, Tata Motors pulled out of Singur due to a controversy alleging that the land was supposed to be used for agrarian purposes and was wrongly allotted to the automobile maker. SC grants interim relief to Tata Motors in Singur land case In an interim relief to Tata Motors, the Supreme Court restrained the West Bengal government from redistributing the Singur land to farmers. Tata Motors had filed an appeal in the apex court on Tuesday after the Calcutta High Court had refused to stop the state government from distributing and alienating the land. Kinetic Motor to issue pref shrs of up to Rs.125 mn Kinetic Motor Company Limited approved (subject to shareholders approval) the offer and issue of Optionally Convertible Cumulative Preference Shares of the value not exceeding Rs.125 mn, at prices worked out as per SEBI (ICDR) Regulations, to a Promoters group entity. Setco Auto in talks with China's Beiqi Foton for clutch gear supply Setco Automotive Ltd is in talks with Beiqi Foton Motor Co to supply clutch gear for their heavy and medium trucks when the Chinese company enters the Indian market. Beiqi Foton is expected to enter the Indian market with its medium and heavy commercial vehicles by the end of 2013 or start of 2014. Estilo set to touch 2-lakh sales mark Maruti Suzuki Estilo has emerged as a strong brand in Maruti Suzuki portfiolio. Powered by fuel efficient and state-of the-art K-10 engine, the Estilo has posted a growth of over 25.4% in the last financial year. It is all set to attain the milestone of two lakh units cumulative sales, in the domestic market this month. To commemorate this milestone, Maruti has introduced a limited edition “Estilo Vogue” in the Indian market.

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

Toyota enters hatchback market with Etios Liva launch in India Toyota Motor launched its hatchback Etios Liva in India, a move that has come quite late from the Japanese car giant. The move is aimed at taking on the likes of Maruti Suzuki India Ltd, Hyundai Motor India, Ford India, Tata Motors, Fiat, and Volkswagen India, who have already made their presence felt in this ever growing segment. The hatchback is the biggest automobile segment in the country with sales of 1.98 mn units for 2010-11 (Apr-Mar), a growth of about 30%, according to Society of Indian Automobile Manufacturers. The Etios Liva, launched by Kirloskar Motor Ltd, will compete with Maruti's Swift, Ford's Figo, Volkswagen's Polo and Hyundai's i20 models. Toyota Kirloskar is 89% owned by Toyota Motor and the remainder by India's Kirloskar Group. The base model of Etios Liva will cost Rs.399,000 ex-showroom New Delhi while the top-end model would cost Rs.599,000. The car will be available in four variants. Toyota Kirloskar has two units in Bangalore, where it makes the Etios sedan and now will manufacture Etios Liva. Hyundai's new verna-cular Hyundai has launched the new Verna Fluidic in the middle of last month. Hyundai has already received 20,000 bookings for the car and is looking at ramping up production to cut the waiting period. The company had set a target of selling 45,000 units of the new Verna within a year of its launch. This means nearly half of that has been achieved in just one and a half months. The management is thus confident that the Verna will be able to sell nearly twice the old variant last year. That means an average 4,000 units per month, which is more or less the same as Honda City’s average monthly sales. Priced in the range of Rs 6.99 lakh - Rs 10.7 lakh, the new Verna is cheaper than Honda City whose entry model costs Rs 7.49 lakh even after the latest price cut. This clever pricing is a key reason for Hyundai’s confidence, the other being the “fluidic design” with its sculpted waistline and swoopy headlamps and tail lamps. Besides, Hyundai has indeed pulled out all the stops for the car and has launched the new Verna with no less than 10 options, including a pair of 1.4 and 1.6 engines (both petrol and diesel). Hyundai to increase Verna production Hyundai Motor India Ltd (HMIL) has decided to increase the production of its model of Verna. Director for marketing and sales Arvind Saxena said, “We are trying to increase the production to help us reduce the waiting period and clear the backlog of bookings at the earliest". The new variant was launched in Mayat prices between Rs 699,000-Rs 1,074,500 (ex-showroom, New Delhi). Ford India to focus on diesel-run cars With petrol prices spiralling upward, Ford India will largely focus on diesel-run cars for future launches. “Petrol prices are becoming high and this has swung the proportion of cars sold in favour of diesel models,” the Ford India Executive Director, Mr Nigel Wark, told reporters in reply to a question here today. Mr Wark said the company had lined up eight product launches by the middle of the decade. “The upcoming products will be mainly on the diesel platform. This has created a lot of stress to manufacture diesel cars,” he said. During 2010, the company clocked sales of 83,000 units and has registered 58,000 units so far. “This year we will be touching the one lakh mark,” he said. Mr Wark said Ford India was aiming to expand at a faster pace than the industry, which was growing at 17%. Ford’s new small car is contributing to the company’s sales in a major way. The company is exporting the Figo to 50 countries. Peugeot plans to set up unit in TN French car maker PSA Peugeot Citroen has selected a site near Sriperumbudur, to the west of Chennai, in Tamil Nadu for putting up its car plant. The company plans to invest Rs.4000 crore in an integrated automobile project. A delegation from PSA Peugeot Citroen that included Mr Gregoire Olivier, CEO of Asian Operations of PSA Peugeot Citroen, and Mr Frederic Fabre, Managing Director of PSA Peugeot Citroen Indian project, today met the Chief Minister, Ms Jayalalithaa, the Industries Minister, Mr S.P. Velumani, and officials regarding the project. The company plans to set up a plant with an initial capacity of three lakh car a year through a fully-owned subsidiary. During the meeting, Peugeot requested the Chief Minister for a package of incentives from the State Government, including land. Ms Jayalalithaa assured the French company support for speedily implementing the project. The project is expected to provide direct employment to about 5,000 people and indirect employment to another 15,000. UK's Triumph motorcycles to enter Indian market British iconic motorcycle manufacturer Triumph said it will enter the Indian market and has appointed Royal Enfield''s ex-Europe head Ashish Joshi as its Managing Director for India. Suzuki Motorcycle sales up 42% in June Two-wheeler maker Suzuki Motorcycle India Pvt Ltd (SMIPL) reported a 42% growth in sales in June 2011 at 25,367 units as compared with 17,895 units in the same month last year. Commenting on the June sales performance, SMIPL Vice-President (Sales and Marketing), Mr Atul Gupta, said, “We have received very good

Weekly Newsletter 32 Info-Spectrum Bridging the Information Gap in Corporate Landscape response from the market to all our products.” “The growing customer satisfaction among present owners of Suzuki products has led to a positive word-of-mouth in the market. We are committed to give the best to our customers,” he added. Bajaj Auto to launch more Pulsar models in Indonesia Bajaj Auto plans to launch more models of its commuter sports bike Pulsar in Indonesia and also use the KTM platform to make higher powered motorbikes for the upper end of the Indian market. In Indonesia, a largely step-through market, Bajaj Auto assembles the Pulsar 135. The company's sales jumped 81% to 21,586 motorcycles in 2010-11 from 11,954 in the previous year. The loss was marginally down to Rs 11.2 crore from Rs 15.9 crore in 2010-10. According to Bajaj Auto's 2010-11 annual report, the growth in sales was due to the Light Sports Pulsar 135. The product portfolio will be expanded with the Pulsar 220 in the first quarter of 2011-12. ASHOK LEYLAND: After it launches its pick-up vehicle Dost in the next few weeks, the Ashok Leyland- Nissan joint venture ALNV will launch a 6-tn truck and a mini van. TATA MOTORS: Is looking to double its sales staff to boost 'Nano' sales.

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

MISCELLANEOUS AVIATION: • Air India warns the government on likely default in interest payments on foreign loans worth 150 bln rupees. The Comptroller and Auditor General is working on a special audit on Air India-Indian Airlines merger.

BROKING: • The finance ministry has decided to allow foreign direct investment in proprietary trading. • Angel Broking has laid off around 2,000 employees in the past six months in order to cut costs.

RETAIL: • The commerce and industry ministry is to call for a meeting next month to push through the proposal of foreign direct investment in multi-brand retail as it has received support for the same from several state governments.

TRADE: • Commerce Minister Anand Sharma says India and New Zealand have scope to increase bilateral trade.

INSURANCE: • The General Insurance Corp of India has seen claims of 4 bln rupees from the tsunami and earthquake in Japan. • Metlife India Insurance has posted maiden profit of 353.5 mln rupees in 2010-11 (Apr-Mar) on the back of improved operating efficiencies and better sales planning.

MUTUAL FUND: • Securities and Exchange Board of India plans to cap the expiry of a mutual fund license to just one year from the date of issue in order to prevent funds with poor finances from entering the market.

REGULATOR: • Securities and Exchange Board of India is keeping a close watch on companies that have announced buy back of shares frequently.

CAPITAL MARKET: • The Reserve Bank of India has extended the time limit for buyback of foreign currency convertible bonds issued by Indian companies to Mar 31.

FINANCIAL SERVICES: • Distributor Net Ambit is looking to list on the stock exchanges in 2013-14 (Apr-Mar).

Videocon lines up Rs 15,000-cr investment for Orissa Videocon Industries Limited unveiled a Rs 15,000-crore investment plan for Orissa, with proposals to set up a port, a 1,000-Mw thermal power plant and an information technology (IT) and logistics park, including a mobile manufacturing unit. “We have picked up Orissa as an investment destination because of its proactive industrial policy, competitive advantage and good regional connectivity”, said Director Anirudh Dhoot. “The plant would run on imported coal from Indonesia, where we have our mines”, he said. The power plant would involve an expenditure of about Rs 6,000 crore and would come up in about 800 acres of land. Saying the state government had assured land and water for the power plant, Dhoot said the exact site and the source of water would be known only after a through techno-feasibility study. The company board had recently approved a proposal for setting up a port in the state. However, the exact location of the project has not yet been decided. “The state government will soon come out with some new sites for port development. After that, we will apply to the government for the allocation of a site for port development in a public-private-participation mode or a joint venture”, Dhoot said. The company has appointed consultants—Infrastructure Leasing & Financial Services Limited and Ernst & Young—to carry out an

Weekly Newsletter 34 Info-Spectrum Bridging the Information Gap in Corporate Landscape extensive study on the location of the port and to provide advisory services for the project. The company also plans to set up an IT and logistics park close to Bhubaneswar. Pantaloon Retail shrholders OK transferring 'eZone' unit Pantaloon Retail (India) Ltd have passed the Ordinary Resolution under Section 293 (1) (a) and other applicable provision of the Companies Act, 1956 for sale / transfer of business conducted by the Company's "eZone" Division dealing in consumer durable & electronic goods to Company's direct and / or indirect wholly owned subdiaries(ies), with requisite majority. Grasim restarts output at Nagda plants, aims full capacity by Thu Grasim Industries Ltd has restarted production at its two plants in Nagda in Madhya Pradesh and it hopes to achieve full capacity at these units by Thursday. The company had suspended production at these plants earlier this month due to shortage of water, which has since improved due to the onset of the monsoon. While the production at Grasim's staple fibre plant was fully halted, while the chlor-alkali plant had been partially suspended. BHEL source says co open to idea of going alone to form NBFC Bharat Heavy Electricals Ltd, which was earlier looking at a joint venture partner for its foray into non- banking financial services, is now also open to the idea of going solo. The report of the consultant (CRISIL) has come. Both options are open...forming a JV or going alone. The company's board was earlier scheduled to take up the various models for the NBFC suggested by CRISIL at its Mar 15 meeting but eventually deferred it. DQ Entertainment says new co-production pacts to add $30.65 mn DQ Entertainment (International) Ltd will get $30.65 mn or Rs.1.38 bn revenue over the next 12-24 months on the back of various co-production deals it has signed. The company has also signed licensing and merchandising deals that will get it an additional Rs.299 mn. The content production company has signed co- production agreements with various international production companies to produce animated series 5&IT, Robin Hood, Jungle Book Season 2 and Little Nick 2, which have a production cycle of one to two years. The company is making season 2 of The Jungle Book 3D TV series in co- production with the German company ZDF Enterprises, France-based Moonscoop and TF1, which is also based in France. It will co-produce the second season of the animated series Little Nick (Le Petit Nicolas) with French company M6 Studios and Robin Hood - Mischief in Sherwood' with another French company Method Animation, the release said. DQ Entertainment's other co-production will be "5&IT" that it will make with German production company ZDF Enterprises, while it will co-produce an animated series titled "Mysteries and Feluda" with Disney India. The company has signed a broadcasting agreement with Buena Vista International for an animated TV feature titled "Surya Putra Karan". The company will also make a 3D feature film "The Prodigies" for Warner Brothers. Apart from the co-production deals, DQ Entertainment has also signed licensing and merchandising deals for its different properties with companies in India, Spain, Germany, Israel and France. The company is in talks for licensing and merchandising deals for its on-going productions such as "New Adventures of Peter Pan", "Iron Man", "Casper season 2", "Charlie Chaplin" and "Feluda", among others. At 1340 IST, DQ Entertainment shares were trading up 3% at 38.70 rupees on the National Stock Exchange. Head says Shree Ganesh Jewellery plans to buy Italian brand by Mar Shree Ganesh Jewellery House Ltd is likely to spend 100 mn euros in the current financial year (2011-12) in acquiring an Italian jewellery brand. The due diligence is going on and hope to complete the acquisition before (the end of) this year. The company did not disclose the name of the brand citing confidentiality and the proposed acquisition will be funded through internal accruals. The Italian brand is capable of adding $100 mn, or around Rs.4.5 bn to the company's revenues from 2012-13, and around $50 mn, or Rs.2.25 bn, to net profit. The Italian brand is into gold and diamond jewellery. Shyam Star Gems to sell units in Mumbai, Surat Shyam Star Gems Ltd has considered and approved to sell its undertaking / unit situated at Mumbai and Surat, pursuant to section 293(1)(a) of the Companies Act, 1956 and to conduct Postal Ballot to seek approval from its members under said section. It will appoint Mr. Deependra Shukla, Practicing Company Secretary, Mumbai, as Scrutinizer for conducting the aforesaid Postal Ballot and submission of report thereof to the chairman for declaration of the result. Consolidated Securities ups stake in APL Apollo to 5.4% from 4.9% Consolidated Securities Ltd acquired 99,000 shares or 0.49% stake in APL Apollo Tubes Ltd through open market purchases on Friday, taking its holding in the company to 5.41%, a regulatory filing today said. Consolidated Securities earlier held 4.93% stake in the Bombay Stock Exchange-listed APL Apollo. Shares of APL Apollo today ended up 3.5% at 139.90 rupees.

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

Birla Corp seeks environ min nod to up Chanderia unit capacity Birla Corp Ltd has sought the environment and forests ministry approval to increase the cement manufacturing capacity at its Chanderia plant in Rajasthan by 1.5 mln tn per annum, it announced at its 91st annual general meeting in Kolkata today. TRP Watch: Ten Cricket mkt share jumps on India-West Indies matches Ten Cricket, the television channel owned by the Taj Television Group, gained market share of 4,130 basis points in the week ended Jun 11 as viewers tuned in to watch the one-day international matches between India and West Indies, data from TAM Media showed today. ICRA revises rating symbols, definitions on various debt instrument ICRA Ltd has revised its rating symbols and their definitions after the Securities and Exchange Board of India, mid-June, asked rating agencies to implement a standardised system to make it easier for investors to understand. Seshasayee Paper to acquire 100% equity in Subburaj Papers BSE-listed Seshasayee Paper and Boards Ltd (SPB), along with its group company Ponni Sugars (Erode) Ltd, is planning to acquire Subburaj Papers Ltd (SPL), located in south Tamil Nadu. The equity acquisition is estimated to be around Rs 30 crore, while total investment, including proposed expansion, would be about Rs 250 crore. Company officials indicated SPB would need to buy the entire equity from the Subburaj Group at a fair value of Rs 20 per equity share of Rs 10, involving Rs 30 crore. At present, SPB's annual capacity of 115,000 tonnes is fully utilised. The new paper mill would bring in a ready capacity of 60,000 tonnes per annum that could be enhanced to 90,000 tonnes with marginal investment. Tirunelveli-based Subburaj Papers had set up the paper mill two years before, based on fibre. The group decided to exit from paper and approached SPB for outright divestment. SPB plans to operate the acquired outfit as a separate corporate entity for the present and would decide on a merger at anappropriate time, the company said. Country Club plan Rs 300 cr capex Country Club India has planned a Rs 300 crore capex over the next five years. The company will invest Rs 100 crore this fiscal to develop 18 properties, which are likely to be operational by 2013. Investment of Rs 200 crore is envisaged till 2016 for development of properties in India & abroad. Country Club currently has 50 own properties, out of which 36 are directly-owned and 14 by promoter group and 175 franchised establishments and over 4,000 affiliations all over the world through RCI. "Tier II cities are growing with good spending power where people are looking at quality and ambiance. Moreover, we are expanding phase by phase. After we establish in Tier-II, we may move to Tier-III," Country Club Vice-Chairman and CEO Y Siddharth Reddy said. "We will look at increasing our overseas expansion, especially in the Middle East and the South Asian nations, which are our priority growth drivers," he added. PCH Retail files papers for 16.8-mln-share IPO PCH Retail Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offer of 16.83 mln shares of face value 10 rupees each, an advertisement in The Financial Express newspaper said today. The promoters will offload up to 5.53 mln equity shares through the IPO. The issue and net issue constitute 38.71% and 25.99%, respectively of the fully diluted post-issue paid-up capital of the company, the advertisement said. BOB Capital Markets Ltd is the book running lead manager to the issue.

Kamdhenu Ispat starts production at Chhattisgarh unit With reference to earlier announcement dated February 23, 2011 regarding entering into the appropriate agreement for outsourcing the production of paints and other coatings from the plant situated at Raipur, Chhattisgarh having annual capacity of around 15,000 kilolitres, Kamdhenu Ispat Ltd has now informed BSE that the said plant has commenced the production on June 20, 2011. UTV Software arm to today launch channel UTV Action Telugu UTV Broadcast, an arm of UTV Software Communications Ltd, will launch entertainment channel UTV Action Telugu today. UTV Broadcast currently runs four movie and entertainment channels—UTV World Movies, Bindass, UTV Action and UTV Movies. UTV Action Telugu is the regional version of UTV Action, which broadcasts Hollywood action movies dubbed in Hindi. At 1221 IST, shares of UTV Software Communications were up 4.7% at 781.80 rupees on the National Stock Exchange.

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

Shopper's Stop renames co to Shoppers Stop Members of the Exchange are hereby informed that the name of Shopper's Stop Limited shall be changed to Shoppers Stop Limited w.e.f. July 04, 2011. Pidilite allots 232,926 shrs on conversion of 6 FCCBs Pidilite Industries Limited had informed the Exchange that pursuant to the Offering Circular dated December 03, 2007, the Company had Issued and allotted 400 Zero Coupon Foreign Currency Convertible Bonds (Bonds) of US$100,000 each aggregating to US$40 million. Further the Company has informed that the Foreign Currency Convertible Bonds (Share Allotment) Committee at its meeting held on June 28, 2011 has, in accordance with the terms of issue of the said Bonds, allotted 2,32,926 equity shares to the investor who has exercised its right to convert, into equity shares, the six Bonds of US$100,000 each. There are 363 Bonds aggregating US$36.3 million outstanding, as on date. Alpha Graphic allots 15 mln shrs to 49 entities for 180 mln rupees Alpha Graphic India Ltd, in a board meeting held on Jun 20, decided to issue and allot 15 mln shares of the company on preferential basis to 49 non-promoters for 12 rupees each, a regulatory filing on the Bombay Stock Exchange today said. Promoters to finalise plan to up stake in Everonn Education in 2 wk Promoters of Everonn Education Ltd are planning to raise their stake in the company through secondary market purchases, the exact quantum of which will be decided in the next two weeks. CARE revises rating symbols, definitions on diverse debt instrument CARE Rating Agencies has revised rating symbols and their definitions to comply with the Securities and Exchange Board of India directive given earlier this month. Alchemy Share shuts down institutional equities brokerage business Alchemy Share and Stock Brokers Pvt Ltd has shut down its institutional equities broking division due to 'indifferent' market conditions and consequent fall in brokerage revenue, a source told. Videocon Ind shareholders OK raising up to 10 bln rupee via equity Videocon Industries Ltd has received approval from its shareholders to raise up to 10 bln rupees through equity, the company informed the National Stock Exchange today. RBI reiterates rationalisation of overseas direct investment norms The Reserve Bank of India today reiterated that an Indian company can transfer or sell its stake in an overseas joint venture or wholly owned subsidiary to another Indian company without the approval of the central bank, but subject to certain conditions. CFO sees Reliance Broadcast profitable on standalone basis by FY15 Reliance Broadcast Network Ltd will turn profitable on a standalone basis before March 2015, Chief Financial Officer Asheesh Chatterjee said today. The company's standalone business includes the radio broadcast, intellectual properties and out of home business that it conducts under the big 92.7 FM, Big Live and Big Street brands, respectively. Kale Consultants to provide fare mgmt solutions to Kenya Airways Kale Consultants Ltd will be providing fare management solutions to Kenya Airways for an undisclosed amount and tenure, the company said in a release today. Promoter, individuals make 20% open offer for Shree Bhawani Paper Promoter Badri Vishal Tandon, along with five individual investors, has made an open offer to acquire 20% additional stake in Shree Bhawani Paper Mills Ltd at 10 rupees per share, the company said in an advertisement in The Financial Express newspaper today. Amul plans to set up manufacturing plant in US Kaira District Co-operative Milk Producers Union Limited (KDCMPU), part of the Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets its product under brand name ''Amul'', is considering setting up a manufacturing plant in the US for production of dairy products like ghee and paneer. "We shall shortly finalise steps to be taken in this direction to ensure that quality dairy products are made available in these countries," KDCMPU Chairman Ramsinh Parmar said in a statement. Govt scraps licence of Indian 'Casino King' in Nepal The Ministry of Tourism and Civil Aviation (MoTCA), which sanctions operating licence, has scrapped the licence of Nepal Recreation Centre (NRC), which is owned by Wadhwa and operates four casinos in Nepal.

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

FB to launch Facebook Credits for Indian users New Delhi: Social networking site Facebook will launch a payment system, ''Facebook Credits'', for Indian users on the popular website from tomorrow. United Spirits eyes acquisitions in Sri Lanka, Bangladesh United Spirits Ltd has initiated talks for potential acquisitions in Sri Lanka, Bangladesh and Mauritius, The Times of India reported today. "We want to build a business identifying high growth markets in Asia and Africa. This could be through acquisitions, bottling arrangements or through greenfield plants," the report quoted Chairman Vijay Mallya as having said. "We are in discussions with two of Sri Lanka's largest distillery groups for a stake purchase," Mallya said. "The industry there has a big player in Harry Jayawardena and his Distilleries Company of Sri Lanka. We are talking to the next two big players for a potential alliance," he added. The company is also looking to re-acquire distillery assets of Carew Phipson in Bangladesh, which was nationalised decades ago. "We are evaluating a proposal for reacquiring assets that were nationalised. The government officials there have communicated to me that they are willing to look at such a proposal as part of the plan to boost foreign direct investment in the country," Mallya added. Parrys Sugar shrholders OK raising up to 1 bln rupees Parrys Sugar Industries Ltd has informed BSE that the members at the Extra Ordinary General Meeting (EGM) of the Company held on June 28, 2011, inter alia, approved the following: 1. To increase the Authorised Capital of the Company from Rs. 75 Crores to Rs. 175 Crores. 2. Issue of 8% Preference Shares of Rs. 10/- each aggregating to a nominal amount not exceeding Rs. 100 Crores (Rupees One hundred Crores) to the promoters or such other investors in one or more tranches and on such terms and conditions as the Board may decide. DB Corp to invest 26.7 mln rupees in DMC Education DMC Education Ltd has informed BSE that the Company has entered into a Debenture Subscription Agreement with D.B.Corp Ltd. for issue and allot, subject to necessary statutory approval, 1(One) Zero %age Fully Convertible Debentures of the Company having a par value of Rs. 2,67,00,000/-, compulsorily convertible into Equity Shares with a face value of Rs. 5/- each at the end of 1(One) year from the date of allotment amounting to 26.7 million. The Company will spend the subscription amount for advertisement and brand building of the Company. India Infoline denies rumours of stake sale in co India Infoline Ltd has informed BSE that: "We have come across certain rumours on SMS going around in the market today about India Infoline that: Invesco Limited, a US financial conglomerate, to buy 9.9% stake in the Company at a considerable premium to the market price before the Annual General Meeting of the Company scheduled on July 29, 2011. Invesco has also agreed to form joint venture with India Infoline Asset Management Company. Both will contribute U$ 2 mn initially to set up the venture. The Board is in favour of the deal. We hereby clarify that all these rumours are totally baseless and we deny the same. The Company or the Board has not considered any such proposal." Promoter, individuals make 20% open offer for Shree Bhawani Paper Promoter Badri Vishal Tandon, along with five individual investors, has made an open offer to acquire 20% additional stake in Shree Bhawani Paper Mills Ltd at 10 rupees per share, the company said in an advertisement in The Financial Express newspaper today. The offer price for the partly paid up shares is 5 rupees each. The open offer was triggered after the board, on May 18, approved issuing 18.4 mln shares to Badri Vishal Tandon and the five investors—Omprakash Goenka, Kiran Goenka, Gaurav Goenka, Girija Goenka, and Mirah Dekor Ltd. Of the 18.4 mln shares, 1.5 mln shares were issued to other investors Mohit Chaturvedi, Bina Chaturvedi, and Ganges Leasing and Finance Co. The open offer starts on Aug 17 and ends Sep 5. Kale Consultants to provide fare mgmt solutions to Kenya Airways Kale Consultants Ltd will be providing fare management solutions to Kenya Airways for an undisclosed amount and tenure, the company said in a release today. Kale Consultants will be providing fare-filing services to the airline company, which would include creation of logs, reviewing of logs at various stages and updates on existing fares. Kenya Airways, which has used Kale Consultants' solutions earlier, has 32 aircraft, and flies to 54 destinations across the world. At 1318 IST, shares of Kale Consultants were trading up 3.4% at 86.95 rupees on the National Stock Exchange. Ashok Soota sells 2.24 mln MindTree shrs in block deal on NSE Ashok Soota, the co-founder and former executive chairman of MindTree Ltd, has offloaded 2.24 mln shares held by him in block deal to existing investor, Global Technology Ventures Ltd, Chief Financial Officer Rostow Ravanan told CNBC-TV18 news channel today. The block deal, on the National Stock Exchange, was struck

Weekly Newsletter 38 Info-Spectrum Bridging the Information Gap in Corporate Landscape at 428 rupees per share. As on Mar 31, Soota held 4.4 mln shares, or 11.1% stake in MindTree. Global Technology Ventures held 2.4 mln shares, or 6.12% stake in the company. At 1145 IST, shares of MindTree were at 400 rupees on the National Stock Exchange, up 10.8% from close Wednesday. MindTree expands offerings under strategic pact with Getronics MindtTree Ltd has expanded the offerings under its strategic partnership with Netherlands-based Getronics, and entered into a joint go-to-market agreement with the company, it said in a press release today. The two companies have a partnership for offering remote infrastructure management, telecom, and application support services. "This strategic partnership between MindTree and Getronics has proven itself over the last seven years," the release quoted Getronics' acting Chief Executive Officer Steven van Schilfgaarde as saying. "This partnership will provide our clients with an extended services portfolio to choose from." As many as 450 engineers are working for the existing partnership of the two companies at MindTree's delivery centres in Bengaluru and Chennai. At 1352 IST, shares of MindTree were traded up nearly 10% at 397 rupees on the National Stock Exchange on the news that Ashok Soota, the co-founder and former executive chairman of the company, had offloaded 2.24 mln shares held by him in block deal to existing investor, Global Technology Ventures Ltd. Sebi to discuss afresh NSDL's role in IPO scam Sebi is set to reopen its probe into multi-crore IPO scam of 2003-2006, after more than a year of declaring as ''null and void'' the charges made by its own committee against depository NSDL and others in the matter. Nine of top 10 cos add over Rs 36K cr in m-cap last week The combined market capitalisation (m-cap) of nine of the top 10 companies grew by Rs 36,083.93 crore during the last week, with state-run oil & gas major ONGC emerging as the top gainer. IKF Technologies gets Dish TV, Aircel mandate to expand BPO ops IKF Technologies Ltd has received mandate from Dish TV India Ltd and Aircel Ltd to expand the scope of business process outsourcing operations it currently provides to these companies. The new services will be operational by early next month. IKF Technologies currently handles the call centre operations for Dish TV and Aircel from its Kolkata centre. The company did not provide details of the additional orders. DISH TV: Promoter Veena Investments revokes 10.5 mln pledged shares of the company. FUTURE VENTURES: Kishor Biyani-led Future group to charge royalty from group firms for use of the brand name. Future Ventures will be the first to pay royalty to the Future Ideas Co, a promoter group entity. TRENT: In talks with Spanish retailer Inditex group to bring one more brand Massimo Dutti to India. ALPHA GRAPHIC: Has decided to issue and allot 15 mln shares of the company on preferential basis to 49 non-promoters for 12 rupees each. BATA INDIA: Uday Khanna takes over as chairman of the company. SHREE GANESH JEWELLERY HOUSE: Plans to acquire at least two global ventures in 2011-12 (Apr-Mar). MEDIAONE GLOBAL ENTERTAINMENT: Plans to raise up to 1 bln rupees through a follow-on public offer of shares. VIDEOCON INDUSTRIES: Has received shareholder approval to raise up to 10 bln rupees through equity. COX & KINGS: The company has applied to Foreign Investment Promotion Board seeking approval to raise around 15 bln rupees to fund acquisitions abroad. DISH TV: Has hiked prices of set-top box by 10% or 200 rupees. RELIANCE BROADCAST NETWORK: Has acquired BIG Productions, a division of group company Reliance BIG Entertainment Pvt Ltd.

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

GLOBAL ECONOMY AND GLOBAL BUSINESS

Amul to set up facilities in US & Europe Cooperative dairy giant Amul is aiming to expand its presence out of India. It is considering to open a processing facility in US and subsequently Europe market. The representatives of Kaira District Co-operative Milk Producers' Union Limited that operates 65 year old Amul Dairy are likely to visit US next month to shape its ambitious plans to go international. The delegation will prepare a detailed report for costs and logistics. Currently, apex marketing body of 13 district unions, including Kaira Union, Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) is exporting Amul and Sagar dairy products in middle east, Europe and US. "Considering presence of a million Indian families in US, we are anticipating market for at last 500 tonne of Ghee. Today, GCMMF exports only 500 tonne of ghee per annum. There is a wide scope to produce and market other dairy products locally in US as brand Amul is preferred by Indians even overseas," said Amul Dairy MD Rahul Kumar. He added that Amul Dairy will procure white butter and raw milk from local cooperative dairies to cater to American market. Kaira Union that markets milk and milk products in Gujarat, Maharashtra and West Bengal clocked turnover of Rs 2,111 crore during fiscal 2010-11, up by 25% over the previous fiscal. Mr Kumar stated that Kaira Union is now aiming to achieve sales revenue mark of Rs 2,500 crore during current fiscal. On Saturday, talking to farmers, Kaira Union chairman Ramsinh Parmar said: "There are great potential in Europe and US for Amul products and plans are afoot to establish our own manufacturing facilities in the US initially to start with manufacturing Ghee and Paneer. Shortly we will finalise steps in this direction and establish manufacturing facilities to ensure quality dairy products are made available in these countries." G20 should adopt flexible trade policy in times of high prices India, the world''s second- largest producer of wheat and rice, has said free export of agricultural commodities could affect the country''s food security at a time when global prices are high and urged G-20 nations to adopt flexibility in trade policy. Jose Graziano da Silva to head UN body FAO Jose Graziano da Silva, the former Brazilian Food Security Minister, will be the 8th Director General of Food and Agriculture Org, United Nations said in a statement. Warning against Chinese 'weight reduction' tea Qatar''s Supreme Council for Health (SCH) has warned against the use of Dr Ming''s Herbal Tea, produced by Chinese Angel Export and Import Company Ltd and used for slimming and weight reduction. Alpen arranges USD 25 mn for Visen through Carlyle Group An affiliate of global alternative asset manager The Carlyle Group has invested USD 25 million in Visen Industries Limited, a large manufacturer of water-based polymer emulsions in India. Intl Tool Co to up localisation for products in India UK-based tools manufacturer International Tool Company today said it plans to increase localisation content for its products in India. CSS Corp CEO Nick Sharma to step down by month end United States-headquartered information and technology company CSS Corp today said its Global CEO, Nick Sharma, will step down by this month end. US SC rejects NYC petition to collect tax from Indian mission In 2010, 2nd US Circuit Court of Appeals in Manhattan upheld the State Department intervention in 2009, which exempts taxes on property owned by foreign governments and UN missions that housed diplomatic staff. Saudi Arabia to link port with mining centres: Report Saudi Arabia plans to link the industrial city of Jubail and the Dammam port through a rail network interconnected with mining centres along the route, the head of the company that is overseeing the project is quoted to have said. Mineral Enterprises to start production in Indonesia Bangalore-based Mineral Enterprises Ltd will start the production of gold and mineral resources from its mine in Indonesia next month, its managing director Basant Poddar told PTI in Singapore.

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

France names finance minister to replace Lagarde French President Nicolas Sarkozy named Francois Baroin as the new finance minister today to replace Christine Lagarde, who takes the top job at the International Monetary Fund next week. Ease barriers on US companies: Geithner tells India US Treasury Secy Timothy Geithner asked India to ease barriers on US cos and said it would be a step towards integrating teconomies of the two countries. US, India vow to deepen economic engagement "Through stronger collaboration and coordination amongst our economic and financial policymakers, this Partnership has sought to deepen US-India bilateral and multilateral engagement in order to fully capitalize on the wealth of economic opportunities between our two nations," a joint statement issued at the end of the conclusion of second India-US Economic and Financial Partnership said. 'Resolve Chinese currency issue through discussions' "This issue has been discussed in the G-20 Finance Minister''s meeting. And we expressed our views that were the general views that these issues are to be resolved through mutual discussions and it should be realistic and market relative.... as far as possible," Indian Finance Minister Pranab Mukherjee told a joint news conference with the US Treasury Secretary Timothy Geithner here. Dubai's budget air carrier boasts impressive growth Dubai''s first low cost airline, flydubai, has registered significant growth in the second year of its operations during the June, 2010-May, 2011, period. Samsung seeks US import ban on Apple products Seoul: Seoul, June 30 (AFP) South Korea''s Samsung Electronics said today it had asked the US International Trade Commission to ban the import of Apple products into the United States, expanding its patent war with the US giant. Mark Zuckerberg now richer than Google founders Earlier this week, GSV Capital Corp bought 225,000 shares in Facebook at an average price of USD 29.28 each. 'China a major economic, security challenge to US' Senator John Cornyn from Texas said in his remarks at Washington-based think tank The Heritage Foundation that China has continuously under-reported its defence spending and has reinforced its territorial ambitions by making renewed claims in the South China Sea and Arunachal Pradesh. Committed to UK-India strategic relationship: Cable Britain is committed for a strategic relationship with India, which has transformed considerably over last decade,Secy of State for Business, Innovation and Skills said. EU proposes USD 1.48 tln budget for 2014-2020 The European Union proposed a budget worth Euro 1.025 trillion (USD 1.48 trillion) for the seven years between 2014 and 2020, up 5 per cent from the previous budget period. Greece passes austerity, but riots seize capital Greece fended off a bankruptcy that would have roiled global markets and threatened the future of the euro when lawmakers backed controversial austerity measures in the face of violent protests. News Corp sells ailing Myspace for USD 35 million News Corp sold Myspace for a fraction of its purchase price, bringing the curtain down on Rupert Murdoch''s tie-up with a one-time Internet star that ended up being eclipsed by Facebook. Ex-Citi executive charged with $19 mn fraud in US A former top executive of Citigroup has been charged for allegedly siphoning off more than USD 19 mn from the bank, the latest in a string of frauds that have come to light at the global banking giant. StanChart expects double-digit revenue growth in H1, 2011 Standard Chartered Plc said it expects to post double-digit growth in global revenue and pre-tax profit in the first half of 2011, helped by its strong performance in Asian markets and cost-cutting efforts.

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

Dell earmarks $1 bn for 'mid-market' opportunities Computer-maker Dell Inc today said it has earmarked USD 1 billion for acquisitions in mid-market opportunities, including small and medium businesses in the public sector, education and the healthcare industry. Lloyds Banking to Cut 15,000 Jobs Lloyds Banking Group PLC will cut 15,000 jobs, simplify its business and focus on four key U.K. units as it seeks to cut annual costs by £1.5 billion ($2.41 billion) within three years, Chief Executive Antonio Horta- Osorio said Thursday in a keenly awaited strategy review. U.K. House Prices Stay Unchanged U.K. home prices flatlined in June as demand remained sluggish due to the squeeze on household budgets, mortgage lender Nationwide Building Society said. Birmingham City Owner Arrested Hong Kong businessman Carson Yeung, who made headlines in 2009 with his multi-million dollar cash takeover of English soccer team Birmingham City, was arrested late Wednesday by local police on charges of money laundering involving more than 720 million Hong Kong dollars (US$93 million). Samsung Seeks Ban on Apple Products Sale in U.S. Samsung Electronics Co. expanded its legal tussle with Apple Inc. by filing a complaint with the International Trade Commission seeking to stop the sale of key Apple products in the U.S. Samsung also said it filed another lawsuit against Apple in a Delaware district court in the U.S., alleging violations by Apple of patents Samsung holds on telecommunications technology, as well as lawsuits in the U.K and Italy. Despite Weak Earnings, BYD Shines in Debut Chinese car and battery maker BYD Co. rose as much as 46% in the morning session of its first day of trading on the Shenzhen Stock Exchange on Thursday, as the broader market's extended rebound and persistent enthusiasm about new-energy firms helped investors shrug off the company's poor earnings results China Curbs Wealth Management Sales China has moved to crack down on rampant sales of wealth management products that promise high yields by banks under pressure to accumulate deposits amid a negative real interest rate environment. Aimed at protecting inexperienced investors, new rules issued by the China Banking Regulatory Commission Wednesday require banks to make an adequate assessment of customers' risk tolerance and investment experience, and to disclose risks related to their wealth management products. As QE2 Sets Sail, Bond Rally Sinks Just as the Federal Reserve is about to step away from the Treasurys market, a months-long rally is showing signs of pulling back. Hyundai Zooms Forward In the past decade, Hyundai has worked to root out defects, improve quality and design, expand production into low-cost locations and offer cars with more features. Pay Tally Up 19% for Finance Chiefs Median pay for chief financial officers of S&P 500 companies surged 19% to $2.9 million last year, according to a Wall Street Journal survey. Myspace Sold for a Song News Corp. agreed to sell Myspace to Specific Media. The price is said to be $35 million in stock and cash, well below the $100 million News Corp. sought. Nissan CEO Remains Japan's Top-Paid Foreign Executive Nissan Motor CEO Carlos Ghosn held on to his place as the highest-paid foreign executive at a listed Japanese company in the last fiscal year with $12.1 million in total. Market Volatility Stymies Prospective IPOs Around US$1 billion in initial public offerings fell victim to weak markets, with China Hanking Holdings Ltd. and Australia's Barminco Ltd.

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

Kansai Beats Back Nuclear Naysayers Kansai Electric Power shareholders rejected proposals to exit or limit nuclear power, following a raucous, five-hour-long annual meeting for Japan's largest nuclear operator. U.S. June Auto Sales Likely Rose U.S. auto sales likely resumed their rise in June, rebounding after dipping in May from year-ago figures, industry watchers estimate. Mayor Demands SAIC Repay City Mayor Michael Bloomberg is demanding that the primary contractor for the city's fraud-tainted automated payroll system project repay the city. Federated Fund Sees European Banks as Pillars While Europe's finances are crumbling, Richard Winkowski is picking Europe's banks to be pillars in his Federated International Leaders Fund. California Online Tax Law Pressures Amazon Amazon.com may soon have to collect sales taxes in California after an online tax-collection bill was signed by the governor. Tiger, a Pitchman in Japan Tiger Woods has been hired by Kowa Co. in Japan as a pitchman for a heat rub, used to relieve muscle and joint pain. Kraft Spiffs Up Its Old Brands Marketer turns to Twitter, Facebook, and edgy ads to shuck stodgy image and sell more Mac & Cheese. Oracle Buys Ellison's Start-Up Oracle said it is buying Pillar Data Systems, a storage start-up where Oracle chief Larry Ellison is the principal owner and biggest creditor. Buffett-Backed China Venture Falters BYD, the Warren Buffett-backed Chinese car and battery maker, said its first-quarter profit tumbled on weaker auto sales and higher expenses. Charity, With Entrepreneurial Spin Pierre Omidyar, founder of eBay who now runs a philanthropic investment firm, says giving away money is more challenging than it looks. SEC Pushes to Level Swaps Playing Field U.S. securities regulators issued draft proposals aimed at protecting investors in some of the complex financial instruments blamed for exacerbating the financial crisis. Toyota Planning Heavy Media Campaign to Promote Camry Toyota will launch a massive media campaign in the fall as its production returns to normal and it rolls out a fully redesigned version of its Camry sedan. Univision Elevates Operating Chief to CEO Univision appointed operating chief Randy Falco as CEO, capping a three-month search at the Spanish- language broadcaster. KB Home Posts Loss as Orders Slide KB Home recorded a wider quarterly loss as new-home deliveries and orders tumbled. BJ's Wholesale Sold BJ's Wholesale Club agreed to be acquired for about $2.8 billion by a group including the private-equity firms Leonard Green & Partners and CVC Capital Partners. HomeAway Jumps in Trading Debut Online vacation rental website HomeAway became a hot property in its Nasdaq debut, gaining 49%. Full Story Callaway CEO Resigns Callaway Golf said its chief executive resigned, as the golf-equipment maker issued a weak outlook and signaled job cuts.

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

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Weekly Newsletter 44