Sep 24, 2011 IN FOCUS " Neither should a ship rely on one small anchor, nor should life rest on a single hope."– Weekly Indicators Epictetus. Indicators Current Last Week IMF cuts global growth forecast; India 2011 GDP growth cut to 7.8% Sensex 16,162 16,934 Nifty 4,868 5,084 The International Monetary Fund cut its world growth forecast in 2011 and 2012 to Food Inflation 8.84% 9.47% 4.0% each as it said the global economy had reached a "dangerous new phase". The IMF had earlier pegged global economy to grow 4.3% in 2011, and by 4.5% in 2012. Exchange Rates "Global activity has weakened and become more uneven, confidence has fallen sharply Currency Current Last Week and downside risks are growing...the outlook for these economies (advanced US$1 Rs.49.6730 Rs.47.4670 countries) is thus for a continuing, but weak and bumpy expansion," the IMF said in its € 1 Rs. 66.9815 Rs. 65.7906 World Economic Outlook. Greater-than-anticipated weakness in the US and concerns JP¥ 100 Rs. 65.10 Rs. 61.81 over fiscal challenges in the Euro Area posed greater downside risks, it said. IMF also £ 1 Rs. 76.5064 Rs. 74.9599 cut growth of advanced economies to 1.6% in 2011 from 2.2% earlier, and to 1.9% in Global Economic and Corporate News 2012 from 2.6%. In these economies, growth activity would be supported by • Rolls-Royce: China Eastern deal worth $400 mn reconstruction investment, it said. Among advanced economies, the US economy is Global power systems company Rolls-Royce Holdings expected grow at 1.5% in 2011, against the earlier projection of 2.5%. In 2012, US PLC (RR.LN) said it has won a $400 mn contract from China Eastern Airlines (0670.HK) for V2500 engines. growth may be 1.8% compared with 2.7% projected earlier. Growth in the Euro Area, • WhiteGlove Health Shelves IPO Indefinitely mainly comprising Germany, France, Italy and Spain, could moderate to 1.6% in 2011 WhiteGlove Health Inc. finally raised the white flag, and to 1.1% in 2012. postponing its initial public offering indefinitely after several failed attempts to price it in an unwelcoming Govt mops up Rs.680 bn in 2nd tranche of advance tax, up 13% market environment. The government has collected Rs.680 bn as part of the second instalment of advance • Tesco to Float $472 Mn Thai Property Fund Tesco PLC said it plans to float a £300 mn ($472 mn) tax, up 13% from Rs.600 bn in the same period last year. The last date to pay the property fund in Thailand as it looks to create further second tranche of advance tax was Sep 15. Indian companies pay a 30% tax on their value from its real-estate portfolio. estimated profits for a financial year in the second instalment. Direct tax mop-up • FX Alliance files plans for IPO of up to $100 mn April-to-date was at Rs.1.8 trn. The official, however, said that the second instalment FX Alliance Inc. filed plans for an initial public offering of up to $100 mn in stock, as the forex of advance tax mop-up was not encouraging. The budget for 2011-12 aims to collect trading platform expands its capacity for handling Rs.5.32 trn as direct tax, up 19.4% from a year ago. Later, this target was raised to currency derivatives. Rs.5.85 trn because the government wanted to make up for the loss in revenue on • Saab gets U.S. naval radar contract account of cut in petroleum product duties. The official lamented the tepid growth in Swedish defense and security company Saab AB (SAAB-B.SK) said it has received a contract to supply advance tax payout by the top 100 companies. The tax payout by these companies as the naval surveillance radar Sea Giraffe AMB to the part of the second instalment grew only 9-10%. The slowdown in direct tax collection US Navy's Littoral Combat Ship Program. is bad news for the government, which is struggling to meet the budgeted fiscal deficit • HSBC sells advisory unit to Nat'l Bank of target of 4.6%. The country's economic growth is likely to take a hit as the series of Canada HSBC Holdings PLC (HSBA.LN), the banking group, rate hikes makes a fuller impact. As a result, tax mop-up may come under further said it has agreed to sell the full-service investment pressure. advisory business of HSBC Securities (Canada) Inc. to the National Bank of Canada (NA.T) for C$206 mn. S&P downgrades Italy's credit rating a notch • Microsoft, Casio sign patent-licensing agreement Standard & Poor's Ratings Services has downgraded Italy's credit rating by one notch, Microsoft Corp. and Casio Computer Co. (6952.TO) saying it sees weakening economic growth prospects for the European nation and have agreed to a multiyear patent cross-licensing higher-than-expected levels of government debt. The ratings firm cut Italy's long- and agreement that the companies touted as a way to provide Casio customers with patent coverage, short-term sovereign credit ratings to ``A/A-1'' from "A+/A-1+." The rating is still five among other benefits. steps above junk status. The ratings agency has a negative outlook on Italy's ratings • SAIC and GM to jointly develop electric vehicles and listed Italy's political issues and heavy debt load as the main factors contributing General Motors Co. and SAIC Motor Corp. to the downgrade. It anticipates that political differences will likely limit Italy's ability (600104.SH), China's largest auto maker by sales volume, signed an agreement to jointly develop a to respond decisively to its debt crisis. new electric vehicle platform, which they will use to build such energy efficient cars around the world. Fed to swap $400 bn bonds into longer maturities • Mexico's Coca-Cola Femsa to buy bottler Cimsa The Federal Reserve said it will sell $400 bn worth of short-maturity bonds it holds and Mexican soft drink bottler Coca-Cola Femsa SAB said reinvest in bonds maturing between 6 and 30 years by the end of June 2012, it will acquire regional Mexican Coke bottler Grupo Cimsa in a deal valued at 11 bn pesos ($838 mn). confirming market expectations that it would revive the 1960s-era program dubbed • Agnico-Eagle to pay C$275M for Grayd "Operation Twist." By a 7-to-3 vote, the Fed also said it will reinvest proceeds from Resource maturing mortgage-backed securities into mortgage-backed securities, instead of its Agnico-Eagle Mines Ltd. agreed to acquire Grayd previous practice to buy Treasurys with the proceeds. The Fed kept its target Federal Resource Corp. in a deal valued at about C$275 mn (US$280 mn), giving the Canadian gold producer an funds rate between 0% and 0.25% and kept its pledge, first announced in August, to early stage project in Mexico. keep rates at exceptionally low levels through the middle of 2013. The Fed said that "economic growth remains slow" and inflation will settle at or below levels consistent Nishita Shah Parsekar with its dual mandate. [email protected]

Please refer to important disclosures at the end of the report For Private Circulation Only. Sushil Financial Services Private Limited Member : BSEL, SEBI Regn.No. INB/F010982338 | NSEIL, SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected] Info-Spectrum Bridging the Information Gap in Corporate Landscape

INDEX

1. India’s Data Watch 03-07

2. Economy 08-16

3. Infrastructure 17-30 4. Sectors 31-67 A. IT & ITeS 31-34 B. Pharma & Healthcare 35-38 C. Telecom 39-41 D. Banking & Financial Services 42-46

E. Steel, Metals & Minerals 47-51 F. Auto & Auto Ancillaries 52-56 G. Miscellaneous 57-67 5. IPO Watch 68-70

6. Mergers & Accquistion 71-72

7. Ratings 73-79

8. Global Economy & Business 80-99

A. Global Economy 80-88 B. Global Business 89-99

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

INDIA’S DATA WATCH TRP Watch: KBC keeps Sony second among peers in week to Sep 10 Riding high on the extended success of the Amitabh Bachchan-anchored Kaun Banega Crorepati, Sony Entertainment Television remained on the second spot among Hindi general entertainment channels in the week to Sep 10, the 37th week of 2011. As per data from media measurement agency TAM Media, published on www.exchange4media.com, the overall market share of the Hindi general entertainment channel category grew 50 basis points to 28.7%. Star Plus continued to lead the general entertainment channel pack with 24% market share, followed by Sony Entertainment Television and Colors TV with market share of 19.1% and 18.2%, respectively. Colors TV is owned by Viacom18, a Network18 group company. NewsWire18, which publishes this news wire, is also part of the Network18 group. Launched on Aug 15, Kaun Banega Crorepati, which is in its fifth season, has managed to keep viewers glued, putting Sony Entertainment Television firmly in the No 2 spot. "Saath Nibhaana Saathiya" on Star Plus was the most watched programme on Hindi general entertainment channels during the week under review, followed by "Balika Vadhu" on Colors TV and Kaun Banega Crorepati. The reporting week also saw as many as four new shows being launched. Zee TV launched "Aapka Sapna Hamara Apna" programme in the 1900-1930 IST time band, which is being aired on Sunday. Sony Entertainment Television launched "Prayashchit" in the 2100-2200 IST time band. Star Plus launched "Jeele Ye Pal" in the 1930-2000 IST time band, while Doordarshan launched "Sukanya Hamari Betiyan" in the 1430-1500 IST time band. The new shows had TVRs in the range of 0.11-1.82%. The performance* and ranking* of all the channels in the Hindi GEC for the week are as follows: GAIN/LOSS OVER LAST RANK CHANNEL SHARE THIS WEEK WEEK 1. Star Plus 24.0% 1.3% 2. Sony Entertainment TV 19.1% (-)0.5% 3. Colors 18.2% (-)0.6% 4. Zee TV 14.2% (-)0.8% 5. SAB 8.8% (-)0.1% 6. Imagine TV 5.3% (-)0.1% 7. Star One 3.2% 0.6% 8. Sahara One 2.5% (-)0.2% 9. DD1 2.3% 0.1% 10. Star Utsav 2.0% 0.3% 11. Zee Smile 0.2% 0

* The performance and ratings are based on TAM data sourced from the exchange4media.com website. TAM (Television Audience Measurement) Media reports television-viewing data from Class-I towns and cities with a minimum population of 100,000. A programme's viewing details are measured in television rating points, where 1 TRP represents 1% of viewers in a surveyed area in a given minute. GRP is an accumulation of TRPs over a specified period. Advertisers use TRPs to decide rates. SPORTS CHANNELS Star cricket, which broadcast the one-day international cricket series between India and England, was the most watched sports channel with 61.1% market share, followed by Ten Sports and ESPN with respective market shares of 16.8% and 7.7%. NEWS CHANNELS CNBC TV18 led the English business news channels category with a 42.2% market share, while ET Now and NDTV Profit had 29.4% and 17.9% market share, respectively. Bloomberg UTV continued being the laggard in the category with a 10.5% share of the market. In the Hindi business news genre, the market leader CNBC Awaaz captured 60.5% market share, while Zee Business, the only other player in the segment, have a market share of 39.5%. Times Now continued to lead the English news channels space, cornering 30.5% of the market. CNN IBN and NDTV 24X7 followed Times Now with 23.4% and 18.8% of the market, respectively. The highly competitive Hindi news channels space saw Aaj Tak top the table with a 15.3%

Weekly Newsletter 3 Info-Spectrum Bridging the Information Gap in Corporate Landscape market share, followed by India TV and Star News, which had market share of 15.2% and 14.6%, respectively. India Aug National Consumer Price Index 111.7 vs 110.4 in Jul India's National Consumer Price Index rose nearly 1.17% to 111.7 in Aug from 110.4 in Jul, the Central Statistics Office said. CPI Rural for Aug rose 1.34% to 113.1, while CPI Urban rose 0.82% to 109.8, the data showed. The base year for the new series is 2010. Within the national CPI for Aug, indices of fuel and light rose 0.69% to 116.4, while food, beverages, and tobacco grew 1.27% to 111.7. The index for clothing, bedding and footwear was up 1.11% to 117.7, while housing rose 0.65% to 107.6. CSO had introduced the new CPI series in Jan to track price movements across the country. The new data--combining the urban and rural sectors—can be used to compile inflation rates only from next Jan when the comparative year ago figures are available. The Labour Bureau compiles CPI for Agricultural Labourers, Rural Labourers and Industrial Workers. Once the comparative figures are available, the new index can even replace the Wholesale Price Index as the headline inflation rate. India Aug National Consumer Price Index 111.7 vs 110.4 in Jul India's National Consumer Price Index rose nearly 1.17% to 111.7 in Aug from 110.4 in Jul, the Central Statistics Office said. CPI Rural for Aug rose 1.34% to 113.1, while CPI Urban rose 0.82% to 109.8, the data showed. The base year for the new series is 2010. Within the national CPI for Aug, indices of fuel and light rose 0.69% to 116.4, while food, beverages, and tobacco grew 1.27% to 111.7. The index for clothing, bedding and footwear was up 1.11% to 117.7, while housing rose 0.65% to 107.6. CSO had introduced the new CPI series in Jan to track price movements across the country. The new data--combining the urban and rural sectors—can be used to compile inflation rates only from next Jan when the comparative year ago figures are available. The Labour Bureau compiles CPI for Agricultural Labourers, Rural Labourers and Industrial Workers. Once the comparative figures are available, the new index can even replace the Wholesale Price Index as the headline inflation rate. RBI foreign exchange reserves in wk to Sep 9 down $4.17 bn Reserve Bank of India's foreign exchange reserves dropped a whopping $4.17 bn in week to Sep 9 at a time when the rupee dipped to a near 1-year low against the dollar amid rising uncertainty in global financial markets. The rupee has dropped about 3.8% to the dollar in the last two weeks alone as the euro has been falling amid concerns over the Eurozone debt crisis. Since the sharp drop in the rupee, there has been talk that the RBI has been selling dollars to curb the volatility in the rupee for the first time in 2011, which could have led to the depletion of its reserves. India Aug CPI farm labourer inflation 9.52% vs 9.03% Jul India's annual inflation rate based on the Consumer Price Index for agricultural labourers rose to 9.52% in Aug from 9.03% in Jul, the Labour Bureau said. CPI inflation for rural labourers also rose to 9.71% during the month from 9.03% a month ago. Month-on-month, the CPI-AL index and the CPI-RL index rose 0.99% to 610 in Aug. In the year-ago period, inflation rate for CPI-AL was 9.65%, and at 9.66% for CPI-RL. The most-widely tracked inflation based on the Wholesale Price Index rose to 9.78% in Aug, compared with 9.22% in the previous month. The point-to-point annual inflation rates, based on CPI for Agricultural Labourers and for Rural Labourers, are as follows: CPI-AL CPI-RL Point-to-Point Point-to-Point Inflation(%) Inflation(%) Month 2011-12 2010-11 2009-10 2008-09 2011-12 2010-11 2009-10 2008-09 Apr 9.11 14.96 9.09 8.88 9.11 14.96 9.09 8.61 May 9.63 13.68 10.21 9.11 9.63 13.68 10.21 8.84 Jun 9.32 13.02 11.52 8.77 9.14 13.02 11.26 8.75 Jul 9.03 11.02 12.90 9.41 9.03 11.24 12.67 9.41 Aug 9.52 9.65 12.89 10.29 9.71 9.66 12.67 10.29 Sep 9.13 13.19 10.98 9.34 12.97 10.29 Oct 8.43 13.73 11.14 8.45 13.51 11.14

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

Nov 7.14 15.65 11.11 6.95 15.65 11.11 Dec 7.99 17.21 11.14 8.01 16.99 11.14 Jan 8.67 17.57 11.62 8.69 17.35 11.35 Feb 8.55 16.45 10.79 8.55 16.45 10.79 Mar 9.14 15.77 9.46 8.96 15.52 9.69

Note: CPI-AL and CPI-RL seek to measure the rate of inflation in the countryside. Both indices use 1986-87 as the base year. The index levels and the corresponding inflation rates are averages of 20 states across the country. The government calculates consumer price indices separately for three categories--industrial workers, agricultural and rural labourers. IMF cuts global growth forecast; India '11 GDP growth seen 7.8% The International Monetary Fund cut its world growth forecast in 2011 and 2012 to 4.0% each. IMF had earlier pegged global economy to grow 4.3% in 2011, and by 4.5% in 2012. The multilateral agency said greater-than-anticipated weakness in the US and fiscal challenges in the Euro Area were posing greater downside risks. Growth forecast for India was cut to 7.8% in 2011 from 8.2% estimated earlier, and for 2012, growth was forecast was cut to 7.5% from 7.8% earlier. IMF said investment in India may remain sluggish due to renewed global uncertainty and unfavourable external financing environment. India’s Sep 10 primary articles inflation at 5-wk low of 12.17% India's primary articles inflation for the week ended Sep 10 slid to a five-week low of 12.17% because of a sharp fall in prices of minerals in addition to the statistical impact of a high base, data released today showed. The primary article inflation rate was 13.04% in the previous week. The index for the segment fell 0.1% on week to 201.9. In the same period, a year ago, primary articles index was up 0.1%. Inflation for minerals declined to 25.84% in the week to Sep 10 compared with 27.69% a week ago, while the index fell 1.4% to 306.3 because of lower prices of crude petroleum, the commerce ministry said. Food articles inflation rate eased to a seven-week low of 8.84%, compared with 9.47% a week ago helped by a high base effect. The index for the group was up 0.2% to 195.7. During the week, prices of pulses rose 1.4%, poultry chicken prices were up 8%, fish marine products were 6% higher, while maize fell 4%, fruits and onions were down 2.7% and 2%, respectively. The fuel group inflation rate inched up slightly to 13.96% from 13.01% in the previous week, and its index also rose 0.8% to 168.2. Fuel group inflation has risen on higher prices of electricity in industry, agriculture, domestic, commercial, and railway traction. Earlier this month, some states had hiked power tariffs by 10-25%. The headline inflation rate based on the Wholesale Price Index for August rose to a near one-year high of 9.78%, compared with 9.22% in July. The Reserve Bank of India estimates the headline inflation rate at 7% at the end of the current financial year in March. Today's inflation data shows indices for primary articles, and fuel and power were as follows in the week ended Sep 10: --The primary articles index fell 0.1% to 201.9 from 202.0 in the previous week; food articles index rose 0.2% to 195.7 from 195.4; non-food articles index was up 0.1% to 185.4 from 185.2 a week ago. --The fuel and power group index rose 0.8% to 168.2 from 166.8 a week ago. Below are the provisional levels, week-on-week and year-on-year changes, in per cent, in the indices of key commodity groups: Sep 10 wk-on-wk Yr-on-Yr Commodity groups Weight 2011 % change % change I. PRIMARY ARTICLES 20.12 201.9 (-)0.05 12.17 Food articles 14.34 195.7 0.15 8.84 Cereals 3.37 176.6 (-)0.67 4.13 Rice 1.79 173.3 (-)0.06 4.02 Wheat 1.12 168.1 (-)0.71 (-)2.72 Pulses 0.72 198.1 1.43 1.49 Vegetables 1.74 211.7 (-)0.38 12.13 Potatoes 0.20 159.4 (-)0.56 13.78

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

Onions 0.18 246.5 (-)1.99 28.92 Fruits 2.11 176.5 (-)2.75 17.67 Milk 3.24 194.6 0.15 10.38 Egg, Meat & Fish 2.41 216.6 3.34 9.28 Non-food articles 4.26 185.4 0.11 17.42 Fibres 0.88 228.3 3.40 29.13 Oilseeds 1.78 162.2 0.37 16.44 Minerals 1.52 306.3 (-)1.45 25.84 II. FUEL & POWER 14.91 168.2 0.84 13.96 Liquefied petroleum gas 0.91 147.3 0.00 14.27 Petrol 1.09 172.4 0.00 23.23 High speed diesel 4.67 167.8 0.00 9.32

India Aug refining up 3.9% on yr; crude output up 1.6% Crude oil throughput of Indian refiners rose 3.9% on year in Aug to 14.04 mn tn as some of the refineries exceeded their planned target for the period, ministry of petroleum and natural gas said in a release. However, the total refinery output for August was down 0.8% from its planned target of 14.15 mn tn. The refineries achieved a capacity utilisation of 109.5% in Aug compared with 102.3% a year ago. Indian Oil Ltd's eight refineries processed 4.3 mn tn of crude oil in Aug, up 0.8% on year. However, the production at the company's refineries was down 7.8% on month, against the planned target of 4.7 mn tn. IOC's Barauni refinery production fell significantly by 52.6%. Output at its Digboi, Guwahati, Koyali and Bongaigaon refineries was also down. However, production at IOC's refineries in Haldia, Panipat, and Mathura increased on-year during the period under review. Barauni refinery's output during the month was lower due to the planned shutdown of its major units for maintenance and investigation. Output at the Digboi refinery was lower in Aug due to a snag in its catalytic reforming unit. Koyali refinery's output was down because of high naphtha inventory. Production from Hindustan Petroleum Corp Ltd's refineries rose 18.9% on year to 1.38 mn tn. Production at Bharat Petroleum Corp Ltd also increased by 2.9% on year. However, Chennai Petroleum Corp Ltd registered an on-year 5.3% fall in production. Among private refiners, output at Essar Oil's refinery rose 3.9% on year in Aug, whereas that of Reliance Industries Ltd fell 0.9% on year. Reliance Industries processed 3 mn tn of crude oil, while Essar Oil's refinery output was 1.28 mn tn in Aug. India's crude oil output for Aug rose 1.6% on year to 3.25 mn tn, the ministry said. However, India's natural gas output in Aug fell 5.3% to 4.10 bn cu mtr from 4.51 bn cu mtr a year ago. The ministry detailed India's oil sector performance in August as follows: Yr-on-Yr % Units Aug 2011 Jul 2011 Aug 2010 Change Refinery Output mln tn 14.038 14.475 13.508 3.9 Refinery Capacity use % 109.5 112.9 102.3 - Crude oil output mln tn 3.247 3.277 3.196 1.6 Natural gas output bln cubic mtr 4.101 4.141 4.330 (-)5.3

The ministry detailed India's oil sector performance in Apr-Aug as follows: Units Apr-Aug 2011 Apr-Aug 2010 Yr-on-Yr % Change Refinery Output mln tn 71.045 67.839 4.7 Refinery Capacity use % 112.3 104.2 - Crude oil output mln tn 16.105 15.181 6.1 Natural gas output bln cubic mtr 20.457 22.444 (-)8.9

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

INDIA DATA CALENDAR Sep 29 Primary articles inflation rate in week to Sep 17, by commerce and industry ministry Sep 29 Average rainfall for week to Sep 28, by IMD Sep 30 Balance of payments for Apr-Jun, by RBI Sep 30 Core sector growth for August, by commerce ministry Sep 30 CPI for Industrial Workers for August, by Labour Bureau Sep 30 Government finances for Aug, Apr-Aug, by CGA Sep 30 WMA and forex reserves as on Sep 23, by RBI Oct 01 Manufacturing PMI for September, by HSBC Oct 01 Trade data for August, by commerce and industry ministry Oct 05 Services PMI and composite PMI for September, by HSBC Oct 05-10 Major port traffic in September, by Indian Ports Association Oct 05-10 Cement production, despatches in September, by CMA Oct 05-10 Foreign tourist arrivals in Sep, by tourism ministry Oct 03-07 Power generation for September, by Central Electricity Authority Oct 07-12 Automobile sales data for September, by SIAM Oct 07 Bank deposits and credit as on Sep 23, by RBI Oct 10-15 GSM mobile subscribers data for Sep, by COAI Oct 12 Index of Industrial Production for August, by CSO Oct 14 WPI inflation for Sep, by commerce and industry ministry Oct 18 CPI for rural, urban areas and combined for September, by CSO Oct 20 CPI for rural and farm labourers for September, by Labour Ministry Oct 24-30 Crude, refinery output for Sep, from petroleum ministry Nov 30 GDP growth estimate for Jul-Sep, and Apr-Sep, by CSO

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

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

ECONOMY ECONOMY: • Advance tax mop-up in Jul-Sep rose 13% on year to Rs.680 bn. • The government is worried that any deceleration in software exports due to the Eurozone debt crisis could affect India's gross domestic product growth which is expected at 8.0-8.5%. • A 6.8-magnitude quake in Sikkim kills 16; Nepal, Bangladesh hit too. • Kalam opts out of Nalanda University revival project. • Five IAF planes sent in for Sikkim quake relief. • Govt wants CAG to be audited. • PM announces Rs.200,000 ex-gratia to quake victims. • Quake toll reaches 66, rescue work struck by landslides. • Bihar CM Nitish says BJP hasn't projected anyone as PM. • Jethmalani names Ahmed Patel as bribe giver cash-for-vote scam. • Maya writes to PM for reservation for upper castes. • Amar Singh's bail extended, doctors say "little improvement" in health. • Don't give Hindus poison of secularism, Bal Thackeray tells Modi. • Karnataka lokayukta quits over land controversy. • India Aug National Consumer Price Index 111.7 vs 110.4 in Jul. • Bengal industry bodies say Sikkim earthquake not to affect business. • RBI seen hiking repo rate 25 bps Oct as inflation remains a nag. • Mehbooba denies Modi praise, calls Sushma Swaraj a "liar". • Baba Ramdev to begin yatra against corruption. • Manmohan Singh to leave for New York to attend UN session. • Relief, rescue operations on after Sikkim earthquake. • Congress says Modi a headache for BJP and NDA. • Stranded tourists in Sikkim to be airlifted. • Pakistan national, caught spying in India, jailed for 6 years. • Rangarajan sees India growing near 8% despite global econ turmoil. • Govt sees no need for panic on cash position due to ONGC FPO delay. • Govt says bird flu confirmed in Nadia district of West Bengal. • IMF cuts 2011 world growth forecast to 4%; India's to 7.8% from 8.2%. • SC questions TRAI's finding on exchequer loss in 2G scam. • HC orders Rs.1 mn compensation to each Delhi blast victim. • PM to decide on future of Tamil Nadu's nuclear plant. • Pranab note on 2G case blames Raja, Chidambaram. • Advani says he's not in the race to become PM. • Sikkim CM pegs state's loss Rs.1 trn due to quake, death toll 98. • Pakistan team meets Anna hazare for tips on anti-graft crusade. • Oct 1 govt rice stock seen highest in a decade at over 19 mn tn. • Andhra govt to give rice at Re.1/kg to 22.6 mn poor families. • India Consumer Price Index-based farm labourer inflation rose to 9.52% in August, as against 9.03% in July. • India CPI-based rural labourer inflation rose to 9.71% in August as against 9.03% in July. AGRICULTURE: • Government may spend Rs.130 bn to buy up to a third of the country's cotton production to avert a price crash.

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

• Empowered group of ministers to meet to review ban on onion exports. • RALLIS INDIA and JAIN IRRIGATION SYSTEMS are likely to sign a pact with the Maharashtra government to provide post-harvest support to pulses and cotton farmers in the state. INDIRECT TAXES: • The government is all set to appoint an ombudsman for indirect taxes, with four names shortlisted. LOKPAL: • Central Vigilance Commissioner proposes that corporates be brought under the purview of the proposed anti-corruption bill. MONSOON: • India Meteorological Department said southwest monsoon may start withdrawing from the Indian mainland towards end of the Sep 17-23 week. TEA: • Urea scarcity in Assam hits tea growers. GOVERNMENT: • Finance ministry says indirect tax target of Rs.3.98 trn for 2011-12 (Apr-Mar) will be met. • Agriculture Minister Sharad Pawar to head group of ministers that will look into inter-ministerial issues in the proposed national manufacturing policy. • Labour ministry dilutes changes to Apprenticeship Act; plan on mandatory hiring of trainees shot down. • Group of ministers agrees to keep some forest areas out of bounds for mining, infrastructure projects. • Environment ministry to clear coal projects on merit. • Plan panel says no revision in poverty line cap, says Rs.25 enough can ensure food, education, and healthcare for the poor. • Finance ministry approves proposal to directly transfer subsidies of the bank account of a beneficiary that is linked to a unique identification numbers. • Government asks plan panel to revise affidavit after facing criticism over the new criteria for poverty line. • Government may miss divestment target this year too after deferring the Oil and Natural Gas Corp's follow-on public offer. • Government to allow foreign direct investment in limited liability partnership firms but only in sectors where 100% FDI is currently allowed through the automatic route. SUGAR: • Government is likely to announce sugar export policy for the year 2011-12 (Oct-Sep) by mid Oct. • Sugar mills in Tamil Nadu and Karnataka in deals to ship 20,000 tn raw sugar to Africa. • Govt pegs '11-12 sugar output 24.6 mn tn, dn vs industry estimate. TAXATION: • Central Board of Direct Taxes sets up special investigation unit to look into funding of 200-odd political parties, illegal mining, terror funding, and various tax evading activities. • Income-Tax department says Vodafone's deal to buy Hutchison Whampoa's Indian operations was an artificial tax avoidance scheme. • Government thinks over new liquor tax. • India's tax treaty review with Mauritius unlikely soon due to political strife in the region. • The Swiss government is ready to ratify the amended double taxation avoidance treaty and share tax information with India. FERTILIZERS & CHEMICALS: • Directorate of Revenue Intelligence uncovers illegal import of pesticides from China. • Dupont India plans to launch at least three new projects in crop protection area in the next three years.

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

ENVIRONMENT: • Minister Jayanti Natarajan has undone the proposal for classifying coal-bearing areas of the country into go/no go areas. The ministry will now discuss coal projects on a case-to-case basis. • Environment ministry will not considering any proposals for mining in Bellary, Tumkur, and Chitradurga districts in Karnataka until the apex court lifts the ban in these districts. FOOD: • A scientific panel for food additives at the Food Safety Standards Authority of India has recommended the use of stevia, a natural sweetener in food items. IMF cuts global growth forecast; India 2011 GDP growth cut to 7.8% The International Monetary Fund cut its world growth forecast in 2011 and 2012 to 4.0% each as it said the global economy had reached a "dangerous new phase". The IMF had earlier pegged global economy to grow 4.3% in 2011, and by 4.5% in 2012. "Global activity has weakened and become more uneven, confidence has fallen sharply and downside risks are growing...the outlook for these economies (advanced countries) is thus for a continuing, but weak and bumpy expansion," the IMF said in its World Economic Outlook. Greater- than-anticipated weakness in the US and concerns over fiscal challenges in the Euro Area posed greater downside risks, it said. IMF also cut growth of advanced economies to 1.6% in 2011 from 2.2% earlier, and to 1.9% in 2012 from 2.6%. In these economies, growth activity would be supported by reconstruction investment, it said. Among advanced economies, the US economy is expected grow at 1.5% in 2011, against the earlier projection of 2.5%. In 2012, US growth may be 1.8% compared with 2.7% projected earlier. Growth in the Euro Area, mainly comprising Germany, France, Italy and Spain, could moderate to 1.6% in 2011 and to 1.1% in 2012. INDIA FORECAST The multilateral funding agency also cut its growth forecast for India to 7.8% in 2011 from 8.2% estimated earlier. It also clipped 2012 growth projection for India to 7.5% from 7.8% earlier. "Investment (in India) is expected to remain sluggish, reflecting in part, recent corporate sector governance issues and a drag from the renewed global uncertainty and less favourable external financing environment," it said. The report said it would be a challenge for policy makers to bring down the current high inflation in India. Headline inflation, which has remained above 9% since Dec, rose to 9.78% in Aug compared with 9.22% in Jul. The Reserve Bank of India has hiked repo rate 12 times since Mar 2010 by a cumulative 350 bps, the latest being the 25 bps hike on Friday. "Despite policy tightening, real interest rates are much lower than pre-crisis averages, and credit growth is still strong," the report said. EMERGING MARKETS Emerging and developing economies are likely to grow 6.4% and 6.1% in 2011 and 2012, respectively, but the "home-grown risks" in emerging economies seem "less severe", it said. The slowdown in the US and European countries is expected to dampen external demand in addition to capacity constraints, and tight monetary policy. IMF also said growth in China is likely to slow down to an average 9.0-9.5% during 2011- 12 due to tight monetary policy measures. In , there could be deceleration of 0.5% in growth in 2011. "Activity in Asia remained solid but moderated somewhat in the first half of 2011 owing to the temporary disruption in supply chains from the earthquake and tsunami in Japan, especially in the automotive and electronics sectors," it said. IMF expects the Japanese economy to rebound in 2012 and grow at 2.3%. Australia sees Indian investments soaring Australia expects a rapid rise in Indian investments over the next five years. Such a trend will be led by Indian power and steel companies' quest for coal and other mineral resources Down Under. “It is early days in resource relationship. We see a rapid rise in investments over the next five years,” Mr Peter Varghese, Australian High Commissioner to India, said. Such a trend will be driven by additional investments that Indian companies make to develop the resource assets they have acquired and build infrastructure such as rail network to connect those mines and ports, he said. So far, Indian companies have invested around $3 bn in Australia, dominated by coal. Recently, the GVK Group announced a deal to acquire Hancock Coal for $1.26 bn. It plans to invest an additional $6 bn to develop assets. Early this year, Lanco Infratech acquired assets of Griffin Coal in a $760-mn deal. Last year, Adani Enterprises had announced a $2.7-bn deal to acquire Linc Energy. It also announced a $1.98-bn deal to acquire Queensland Abbot Pt Coal terminal. In 2011-12, Australia has so far attracted a global investment of $83 bn in the resources sector alone, while the pipeline is at an estimated $430 bn. Mr Varghese said Australia was planning to expand its ties with

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

India on the lines with Japan and Korea. Starting with agri-commodities and resources, Australia is keen on areas such as strategic geographical security, climate change and World Trade Organisation. Direct tax collection up 6.7% Net direct tax collection in the current financial year up to Sep 15 is higher by 6.7% at Rs.1,27,858 crore as against Rs.1,19,849 crore collected from Apr 1 to Sep 15 last year. The net collection has been impacted by Rs.61,000 crore of refunds. Gross direct tax mop-up during the period has been Rs.1,88,868 crore, a growth of 29.5% over the previous year’s collection during the period of Rs.1,45,825 crore. Sep 15 was the due date for payment of the second instalment of advance tax. Interestingly, smaller centres have been doing better in growth of direct tax collection this year as compared to Mumbai and Delhi. Net direct tax revenue realisation in Chandigarh grew 42.9% to Rs.7,594 crore up to Sep 15 from Rs.5,315 crore in the same period last year. Similarly, Pune’s growth was 20.5% at Rs.6,623 crore, over last year’s collection of Rs.5,499 crore. Bhopal’s rise was 51.3%, with the realisation of Rs.3,584 crore against Rs.2,369 crore in the period last year. Ahmedabad’s was up 38.2%, to Rs.6,009 crore from Rs.4,348 crore. Other smaller centres with a similar story include Bhubaneswar, Patna, Lucknow, Kochi and Jaipur. The biggest contributor to the direct tax kitty, Mumbai, has seen an 8% decline in tax realisation with Rs.36,815.5 crore till Sep 15, as compared to Rs.40,000 crore in the same period last year. Delhi has seen a drop of 16.2%, from Rs.18,427 crore in the 2010 period to Rs.15,444 crore. The net direct tax mop-up in Chennai and Kolkata up to Sep 15 was Rs.10,334 crore and Rs.6,079 crore, respectively. While Chennai recorded a 19.9% growth, Kolkata’s was only 3.1%. Govt mops up Rs.680 bn in 2nd tranche of advance tax, up 13% The government has collected Rs.680 bn as part of the second instalment of advance tax, up 13% from Rs.600 bn in the same period last year, a senior finance ministry official said. The last date to pay the second tranche of advance tax was Sep 15. Indian companies pay a 30% tax on their estimated profits for a financial year in the second instalment. Direct tax mop-up April-to-date was at Rs.1.8 trn. The official, however, said that the second instalment of advance tax mop-up was not encouraging. "Had the growth in advance tax mop up been robust, we would have met the revised target for direct tax collection for the current financial year," the official told, adding that the current growth may be barely enough to meet the budget target. The budget for 2011-12 aims to collect Rs.5.32 trn as direct tax, up 19.4% from a year ago. Later, this target was raised to Rs.5.85 trn because the government wanted to make up for the loss in revenue on account of cut in petroleum product duties. The official lamented the tepid growth in advance tax payout by the top 100 companies. The tax payout by these companies as part of the second instalment grew only 9-10%. The slowdown in direct tax collection is bad news for the government, which is struggling to meet the budgeted fiscal deficit target of 4.6%. The country's economic growth is likely to take a hit as the series of rate hikes makes a fuller impact. As a result, tax mop-up may come under further pressure. The RBI has raised its key repo rate, at which it lends short-term funds to banks, 12 times by a cumulative 350 bps in the past 18 months. Currently, repo rate is at 8.25%. India lifts onion export ban; minimum export price set at $475/tn Bowing to pressure from Maharashtra farmers, the Empowered Group of Ministers on food decided to lift the one-and-a-half-week-old ban on onion exports. "Onions can now be exported subject to a minimum export price of $475 per tn," a commerce ministry release said. "This is exactly the position that was prevailing on Sep 8, immediately before the ban on the export of onions was imposed on Sep 9," the release said. The ministerial panel, headed by Finance Minister Pranab Mukherjee, had on Sep 8 decided to ban onion exports to keep a lid on prices. Onion farmers in Maharashtra's Nashik district, India's main onion-growing region, have been boycotting daily spot market auctions since Sep 9 to protest the ban on exports. "The minimum export price will be reviewed every fortnight and close watch would be kept on domestic arrivals, total exports, overall domestic availability and domestic prices," Commerce Secretary Rahul Khullar was quoted as saying in the release. "At present, prices are stable but if there is any upside in prices again we will take appropriate decision," Food Minister K.V. Thomas said after meeting. Rallis, Jain Irrigation to ink farm produce pact with Maharashtra Rallis India and Jain Irrigation Systems are likely to sign a memorandum of understanding with the Maharashtra government to provide post-harvest support to pulses and cotton farmers in the state, according to a senior state government official. "This will be the first major public-private partnership project in primary agriculture sector," the official said. He said the state will identify 100,000 ha farmland under cotton and pulses cultivation. The state will provide all inputs and pre-harvest services to farmers. Rallis and Jain Irrigation will provide post-harvest services to ensure better returns to farmers by leveraging the

Weekly Newsletter 11 Info-Spectrum Bridging the Information Gap in Corporate Landscape companies' marketing network, he said. Under the pact, Rallis will be responsible for packing and marketing of pulses, while Jain Irrigation will undertake ginning, pressing and conversion of raw cotton into bales, and marketing of the same, the official said. Rallis is likely to seek expertise from group company , which has pulses contract farming operations in Tamil Nadu. The pact is likely to be signed at Maharashtra 2015, a two-day agriculture conference, he said. EGoM OKs cut in grain open mkt sale rate; extends sugar stock limit The Empowered Group of Ministers on food approved a cut in open market sale scheme price for wheat and rice to increase offtake from the government's overflowing granaries, government officials said. The panel also approved extending stock limits on sugar, pulses and oilseeds, and lifting the two-week-old ban on onion exports. The stock limits on sugar was extended by two months till Nov end, while those on pulses and edible oilseeds were extended by one year till Sep 30, 2012, a senior government official said. Talking to reporters after the meeting, Food Minister K.V. Thomas said the decision on removing the stock limits on rice would be taken in a month after consulting states. The government had started imposing stocks limits on various farm commodities from 2007 onwards to curb hoarding and control prices. The industry has been asking the government to remove stock limits on most Commodities, as supplies have now considerably improved. PM leaves for US; says to press for UN Security Council expansion Prime Minister Manmohan Singh, who left for New York to attend the 66th session of the United Nations General Assembly, said he will press for expansion of the UN Security Council. "The United Nations must be seen as an impartial, credible and effective body. I will stress the need for early reform of this unique organisation, particularly an expansion of its Security Council," Singh said in a statement ahead of his departure. After a gap of 19 years, India became a non-permanent member of the UN Security Council in Jan. The Security Council is an important organ of the UN responsible for international peace and security. Singh also said the UN meeting was being held amid "multiple challenges" like the slowdown in the global economy with attendant problems such as inflationary pressures. India Aug National Consumer Price Index 111.7 vs 110.4 in Jul India's National Consumer Price Index rose nearly 1.17% to 111.7 in Aug from 110.4 in Jul, the Central Statistics Office said. CPI Rural for Aug rose 1.34% to 113.1, while CPI Urban rose 0.82% to 109.8, the data showed. The base year for the new series is 2010. Within the national CPI for Aug, indices of fuel and light rose 0.69% to 116.4, while food, beverages, and tobacco grew 1.27% to 111.7. The index for clothing, bedding and footwear was up 1.11% to 117.7, while housing rose 0.65% to 107.6. CSO had introduced the new CPI series in Jan to track price movements across the country. The new data--combining the urban and rural sectors—can be used to compile inflation rates only from next Jan when the comparative year ago figures are available. The Labour Bureau compiles CPI for Agricultural Labourers, Rural Labourers and Industrial Workers. Once the comparative figures are available, the new index can even replace the Wholesale Price Index as the headline inflation rate. Earthquake measuring 6.8 hits east, northeast; 16 reported dead A 6.8-magnitude earthquake hit east and northeast India on Sep 18 killing 16 people including seven in Sikkim, four in West Bengal and two in Bihar, IBN Live website has reported. Five people were also reported dead in Nepal. Authorities fear the toll could rise further and the exact extent of the damage has not been assessed as yet, the news report said. The earthquake rocked Sikkim and other east and northeastern part of the country at 1810 IST. Mangan, 54 km from Gangtok, was the epicentre of the quake. Tremors were also felt in Delhi, West Bengal, Bihar, Odisha, and other north eastern states, and Nepal. Mobile connectivity has been hit in the area and the national highway is closed after heavy rains and landslides. The armed forces have deployed teams for relief and rescue operations, while the Centre is sending more emergency teams, the report said. Finance ministry kicks off preparations for Union Budget 2012-13 Finance ministry has kicked off preparation for 2012-13 (Apr-Mar) Union Budget by seeking expenditure and receipt estimates for the next financial year from various ministries and departments. "We have asked for revised estimates of expenditure and receipts for the current financial year and fresh estimates for 2012- 13," the official told. The departments have been asked to get back with the details by Oct and Nov. Following this, the estimates of expenditure for each department will be finalised in a meeting with the secretary (expenditure) which will take place some time in Oct-Nov, the official said. The Union Budget is usually presented in Parliament in the month of Feb.

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

Chauhan in China to make pitch for MP investments Stating that corruption was not "as big a problem" as being made out, Shivraj Singh Chauhan said: "the problem is not as big as compared to the debate it has generated...those who have committed wrong are behind bars. Even a former minister is in jail." Chauhan told media in the Chinese capital after attending the World Economic Forum meeting in Dalian that stringent action was being taken against culprits in corruption cases as India had a "very transparent system". EID Parry to up share in arm U S Nutraceuticals to 100% EID Parry India Ltd has informed that the Company has signed a Share Purchase Agreement with the existing stakeholders - "A Membership Units" of U S Nutraceuticals LLC, a subsidiary of the Company, for increasing the stake by purchase of additional units. With this purchase, the total stake of the Company in U S Nutraceuticals LLC would be increased from 51% to 100%. Consequent to this, U S Nutraceuticais LLC would become a subsidiary with 100% voting rights. Govt sticks to DEPB phase-out; shifts 1,100 items to duty drawback In a move bound to hurt exports at a time when global economy is slowing down, the government has stuck to its decision to phase out the 14-year-old Duty Entitlement Passbook Scheme and shift the items covered under it to the existing Duty Drawback scheme with entitlement of lower tax refunds. India convenes BRICS group's finance minister's meet in Washington India has convened a meeting of finance ministers of leading emerging market countries--Brazil, Russia, India, China and South Africa (BRICS)—in Washington on the sidelines of the International Monetary Fund, World Bank and G-20 meetings, Finance Minister Pranab Mukherjee said. Adviser Basu says was against RBI rate hike; votes for pause now Chief Economic Adviser to the finance ministry Kaushik Basu said he was not in favour of the 25-basis-point interest rate hike announced by the Reserve Bank of India, and said he would "vote" for a pause on further rate hikes. IMD says conditions may favour monsoon retreat Sep 23 week end The southwest monsoon that usually starts withdrawing from the Indian mainland from Sep 1, may now start retreating only towards the end of the Sep 17-23 week, India Meteorological Department said maintaining the same dates as given last week. INTERVIEW: Diesel deregulation - sooner the better, feels plan panel Any time is a good time to deregulate diesel pricing and the sooner it comes the better it is--this is the strong message from Planning Commission Member B.K. Chaturvedi, pressing for urgency on the decision which will help government achieve its fiscal goals. Ensure rural jobs scheme helps farm sector: Pawar Agriculture Minister Sharad Pawar said there was a need to bring together the centre's rural employment guarantee scheme MGNREGA and farmers in such a way that it helps the farm sector and increases production. Yashwant opposes scheme to unearth black money Expressing opposition to the idea of an amnesty scheme to unearth black money, senior BJP leader and former Finance Minister Yashwant Sinha has said they do not serve any purpose but act as a disincentive to honest taxpayers. Quake toll up to 42, may climb as victims may be trapped in debris At least 42 people were reported dead across north and east India while the possibility of bodies still remaining trapped under the debris of collapsed structures could not be ruled out, indicating death toll in the aftermath of Sunday's powerful earthquake that originated at Sikkim-Nepal border may still go up. Bengal industry bodies say Sikkim earthquake not to affect business As rescue and relief work continues in Sikkim after a strong earthquake hit the state and surrounding areas on Sep 18 at 1811 IST, industry bodies based in West Bengal said it is not likely to have any adverse affect on business.

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

RBI seen hiking repo rate 25 bps Oct as inflation remains a nag The Reserve Bank of India has not reached the end of its monetary tightening cycle as the central bank's continued "anti-inflationary stance" means a hike of 25 basis points in repo rate in October cannot be ruled out, economists said. QUAKE RELIEF: Relief teams are scrambling to rescue victims of the earthquake in remote areas in Sikkim after they reached closest to the epicentre. The death toll in Sunday's 6.8-magnitude quake has risen to 85 so far. INDIA BACKING: Prime Minister Manmohan Singh has written a letter to Palestinian President Mahmoud Abbas assuring him of India's "full support" for his country's bid for statehood at the United Nations. Rangarajan sees India growing near 8% despite global econ turmoil Prime Minister's Economic Advisory Council Chairman C. Rangarajan expressed confidence that the Indian economy would grow near 8% in the current financial year ending March despite the prevailing uncertainty in the developed nations. Uttar Pradesh yr to Sep '12 sugar output seen 6.4 mn tn, up 8.5% Uttar Pradesh, the country's second largest sugar producing state, is likely to produce 6.4 mn tn sugar in the new season starting Oct 1, as against 5.9 mn tn produced this season, a cane official of the state said. Govt mulls 1 mn tn sugar export next yr against raw imports In a bid to push more sugar exports, the sugar directorate has come up with a novel idea of allowing shipments of up to 1 mn tn of the sweetener under what they are calling the "reverse advance licence scheme" in the new season that begins Oct. Govt fears cut in EU, US software buys may hit GDP growth The government is worried that India's gross domestic product growth might be adversely affected if the US and European Union countries cut software imports due to the poor economic conditions in the US and the spreading debt crisis in the Eurozone. Govt extends term of reference of Nilekani panel The government extended the terms of reference of the Nandan Nilekani-led task force on direct subsidies on kerosene, LPG and fertiliser to include an unified payment infrastructure facilitated by UIDAI's Aadhaar scheme. Abe for Ind0-Jap-US cooperation to secure sea lanes Favouring greater interaction between Indian and Japanese navies, former Japanese Prime Minister Shinzo Abe said the two sides should work closely with the US to secure the sea lanes of commerce and ensure a stable Asia. RBI Gokarn says WPI to ease Dec; rate hike cycle near peak The Reserve Bank of India Deputy Governor Subir Gokarn said that the headline inflation may start easing from Dec after remaining at current levels for the next three months and added that the interest rate hike cycle is near its peak. Extra 80 cr to boost pulses produce in rabi season Concerned over low output of pulses and decrease in the sowing area this kharif season, the government has earmarked additional Rs.80 crore to help states increase the acreage under the staple foodgrain during the approaching rabi season. China plans to invite India to Islamic trade forum The China-Arab States Economic and Trade Forum which is being held for the second year was opened here in Yinchuan, the provincial capital of Ningxia, with a number of participants from Arab and Islamic countries. Rail Minister Trivedi says rise in fuel prices a concern Rise in fuel prices is a major concern for his ministry, Railway Minister Dinesh Trivedi said. He, however, was non-committal on any increase in passenger fares or rail freight. EGoM meeting on capping sale of subsidised LPG cylinders deferred The meeting of the Empowered Group of Ministers to discuss cap on sale of subsidised liquefied petroleum gas cylinders has been deferred, an oil ministry official said.

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

Economists say petrol price hike to hit Sep inflation by 6-8 bps The hike in petrol prices by Rs.3 per ltr by the government is likely to push up Sep headline inflation by six to eight basis points, economists told. EGoM to take call on ban on onion exports: FM Finance Minister Pranab Mukherjee said here that the Empowered Group of Ministers'' (EGoM) meeting on Sep 20 would consider the demand for lifting the ban on onion exports. Need to make agriculture exciting for youth: ICAR Amid concerns over rural youth shifting from farms to other occupations, a top agri-scientist called for making agriculture exciting for the young to ensure that villages do not turn into old-age homes. Rains threaten to affect paddy output in Punjab Torrential rains that lashed northern region in the last one week are likely to affect paddy crop in Punjab as farm scientists have forecast that the crop may have lesser yield. Vegetable clusters to start operations in rabi season To ensure uninterrupted supply of vegetables to over one million cities and towns in the country, the government is working overtime to establish community vegetable clusters in the coming rabi season. Bring corporates under Lokpal to check graft: CVC As Lokpal debate rages, the Central Vigilance Commission feels corporates should be brought under purview of proposed anti-corruption bill to check graft effectively. Sakthi Sugars redeems FCCBs worth $2.4 mn Sakthi Sugars Ltd has informed that the Company has redeemed Foreign Currency Convertible Bonds Due 2011 (Series B) aggregating to USD 2.4 mn on Sep 14, 2011. Dhanuka Agritech to buy 25% stake in seed company to diversify ops Pesticides maker Dhanuka Agritech is planning to buy 25% stake in a seed company to diversify its business. It is in talks with two multi-national companies for a joint venture to tap growing markets. KARNATAKA RAIDS: Karnataka Lokayukta police carried out searches at the four offices of Sohan Kumar, son-in-law of former chief minister B.S.Yeddyurappa, in connection with the land denotification issue. EGoM extends stock limits on sugar by two months till end Nov The Empowered Group of Ministers on food approved extending the stock limits on sugar, that were set to expire on Sep 30, by two months, Food Minister K.V. Thomas said. DATA ALERT: India Aug CPI farm labourer inflation 9.52% vs 9.03% Jul India's annual inflation rate based on the Consumer Price Index for agricultural labourers rose to 9.52% in Aug from 9.03% in Jul, the Labour Bureau said. Uttar Pradesh govt to meet farmers, mills Sep 27 on cane prices The Uttar Pradesh government is likely to meet sugarcane farmers and state millers on Sep 27 to decide on state advised price for cane in the new season starting Oct 1, a state government official said. Panel to recommend infrastructure for direct cash subsidy transfer The government-appointed task force on direct cash subsidy on fertilizer and cooking fuels would now also devise infrastructure for transfer of funds. Govt says bird flu confirmed in Nadia district of West Bengal Poultry samples from two villages in Nadia district of West Bengal have tested positive for avian influenza or bird flu, the government said. NABARD to raise Rs.2 bn via 3-yr bonds National Bank for Agriculture and Rural Development will raise at least Rs.2 bn through three-year bonds, a bank official said. 51% US pvt firms eye entry into BRIC countries Private firms in the US plan to target BRIC countries and other fast-growing markets such as Indonesia and South Africa to expand their business over next one to two years.

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

India tea imports down by 22% in April-July, 2011 The country had imported 6.62 mn kg of the brew in the same period last fiscal, as per data released by the Tea Board. Govt pegs '11-12 sugar output 24.6 mn tn, dn vs industry estimate Food Minister K.V. Thomas said the country is likely to produce 24.6 mn tn sugar in the new season starting Oct, an estimate way lower than the industry's projection of around 26 mn tn. Indian defence cos new target of cyber criminals Indian defence companies are increasingly becoming target of cyber criminals as they are vulnerable to breaches of cyber security, according to a report by Trend Micro. Mexico aims to double agri trade volume with India Mexico said it would target to double agriculture trade with India from USD 75 mn in the next one year. DHANUKA AGRITECH: The pesticide maker is planning to buy 25% stake in a seed company and is also talking to two multi-national companies for a joint venture. KAVERI SEED CO: Pioneer Overseas Corp has accused the company of copying the gene structure of a variety of corn developed by the Iowa, US-based company. EID PARRY INDIA: To raise stake in arm US Nutraceuticals to 100% from the current 51%. SAKTHI SUGARS: Redeems foreign currency convertible bonds worth $2.4 mn.

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

INFRASTRUCTURE INFRASTRUCTURE: • Delhi Intl Airport plan to up charges 5-fold to raise fares by 20-40%. • Railways may allot Rs.260 bn projects to BHEL without bids. • Government to soon provide single-window clearance that will allow state-run insurance companies to fund infrastructure projects. • The finance ministry has approved 20 new highway and housing projects worth Rs.145.3 bn in several states. • The Maharashtra government plans to raise Rs.1 trn over the next 10 years by redeveloping property across the state. • NHB head says will seek FIPB OK for mortgage guarantee co before Dec. • BPCL plans to raise $400 mn debt overseas to fund FY12 capex. • Source says L&T no longer L-2 bidder in NTPC 9x800 MW turbine tender. • ABB says parent firm has no plan now to up stake beyond 75% in co. • ONGC to buy 10 onshore rigs for Rs.11-12 bn, mostly from BHEL. • CBI may file against RIL over alleged irregularities in KG basin ops. • The Central Board of Direct Taxes has approved issuance of tax-free bonds by infrastructure companies. • The Airports Authority of India is likely to approach the government to issue infrastructure bonds to raise close to Rs.50 bn. • Govt panel to recommend infrastructure for direct cash subsidy transfer. • HDIL to sell Virar land to raise Rs.6.5 bn, repay debt. • NTPC plans to exit from International Coal Ventures. • L&T set to partner Hindustan Shipyard for shipbuilding. • IL&FS Group will sell its entire stake in ORIX Auto Infrastructure Services to its Japanese partner ORIX Corp. • Sam Pitroda panel to submit report on railway upgrade by Mar. • NTPC doesn't see much gain from Intl Coal Ventures, keen to exit. • Official says L&T will participate in PPP projects in shipbuilding. • Source says Essar Energy in advanced talks for overseas methane blocks. • HDIL MD says co looking to sell land at Virar near Mumbai. • Source says FMC gets more powers in regulation of spot exchanges. • NTPC to get coal blocks for new units. • scouts for power projects, mines in Indonesia, Australia. • IIFCL plans ADB-like infrastructure credit enhancement product. AVIATION: • Paramount Airways applies to government for restarting airline operations with two aircrafts. The company had closed operations last year. • Companies back in hiring mode due to 16% rise in air traffic, Emirates, SPICEJET, and GMR firm up hiring plans. • GMR Hyderabad International Airport to launch aircraft facility in October at a cost of about Rs.3.08 bn, despite promised investment by JET AIRWAYS (INDIA) not coming in. • India will lead a global campaign against the European Union's decision to impose carbon emissions levy on airlines from Jan 1. • Revised plan projects operational profit in five years. • Air India is likely to reduce its annual interest burden on working capital and long-term loans by as much as Rs.12 bn as part of a restructuring plan, part of which would be implemented by as early as next week.

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

POWER: • A bench of the National Green Tribunal headed by Justices C.V. Ramulu and Devendra Kumar Agrawal asked the ministry of environment and forests to begin a long-term study on the impact of radiation from thermal power plants. • Fast against Koodankulam nuclear project ends after Tamil Nadu Chief Minister Jayalalitha assured that the state Cabinet would pass a resolution urging the Centre to half the project. • Power distribution franchisees may be allowed to directly buy and sell power over the next few years instead of working through state electricity boards. • RIL plans coke-to-gas unit at Jamnagar to counter high LNG prices • Reliance Industries Ltd plans to set up a project to convert petroleum coke into gas to secure cheaper fuel for its two refineries at Jamnagar as a sharp rise in liquefied natural gas prices has pushed up operational costs, a source told. REAL ESTATE: • Maharashtra government's new inclusive housing policy to benefit everyone, may even bring down realty prices. • New property tax to hit rentals in Mumbai. • India 21st on pricey retail rental list. SPECIAL ECONOMIC ZONES: • Forty-four SEZ developers, including TATA CONSULTANCY SERVICES and PARSVANATH SEZ, have sought more time from the government for implementing their projects. • The commerce ministry plans draft to amend the SEZ Act, 2005. METRO PLANS: • Bihar will soon have the Metro Rail on a public-private-partnership model, with two routes being finalised for Patna. In Kolkata, the Metro will start from Sunday at 1000 IST instead of 1400 IST. CARGO: • The new air-cargo terminal in Nasik, Maharashtra, is likely to take over 20-25% of the cargo handled by the Mumbai airport within the first few years of operation. ENERGY: • Essar Energy gives up Australian blocks. RAILWAYS: • The ministry is likely to rope in HDFC non-executive chairman Deepak Parekh in a committee to rectify the deteriorating finances of the railways. OIL & GAS: • India is in talks with gas suppliers in Brunei, Indonesia, Australia, and Malaysia to diversify its sourcing. GVK Power acquires Australia's Hancock Coal for $1.26 bn, plans to invest $10 bn more Infrastructure major GVK Power, part of the GVK Group, said it has agreed to acquire Australia's Hancock Coal for $1.26 bn, in one of the largest overseas acquisitions by an Indian infrastructure entity. GVK said the deal, which includes acquiring majority holding in coal resources and railway line and port infrastructure projects of Hancock Coal, will offer the Hyderabad-based company option for long term coal supply contracts for the purchase of up to 20 mn tonnes every year. This can support around 7,500 megawatts of power generating capacity. On August 26, ET had reported that GVK Power was close to acquiring two coal mines from Hancock Coal for about $1.3 bn. "While this builds a strong resource business for GVK, it will also significantly enhance the value to GVKPIL shareholders as we will now be able to increase the capacity of our coal power business with an assured in house supply of raw material," GVK Chairman GVK Reddy said in a statement. GVK will pay the consideration in a phased manner to the Hancock Group, with $500 mn upfront. About $200 mn will be paid in one year from closing the deal and another $560 mn on financial closure of the project, which is expected next year. The Hancock coal project consists of 7.9 bn tonnes reserves. The deal comes a year after Adani Enterprises bought Australia-based Linc Energy's coal assets for about Rs 12,600 crore in the largest such transaction. In march this year, Lanco, another Hyderabad-based infrastructure major, bought Australia's Griffin Coal for A$750 mn. GVK Power, a flagship of the GVK group,

Weekly Newsletter 18 Info-Spectrum Bridging the Information Gap in Corporate Landscape and its subsidiary GVK Energy, have been aggressively trying to secure fuel supply agreements in an energy deficient market for their proposed power plants India. The acquisition enables GVK Power to secure adequate fuel supplies for its power ventures. Hancock Group chairman Georgina Hope Rinehart, one of Australia's richest women, will join the board of GVK Power as a non-executive director. The Hyderabad- based infrastructure group said it has tied-up the funding for the acquisition with banks and the financing documents for funding the acquisition are being executed with the banks and the transaction is expected to close and assets transferred in about two weeks. Ernst & Young acted as the financial advisor to GVK for the acquisition. Amarchand & Mangaldas & Suresh A. Shroff & Co were the legal advisors, while Minter Ellison Lawyers were Australian legal advisors to GVK. GVK estimates a total investment of $10 bn in the first phase of developing the mines, rail line and port. However, it did not disclose details on funding arrangements for this investment. The transaction was done by GVK Coal Developers (Singapore) Pte Limited (GVKCDPL), a step down subsidiary of GVK Natural Resources. Initially, GVK Natural Resources will hold 90% and GVK Power will hold the remaining 10%. GVK Power has the option to increase its stake up to 49%, subject to necessary approvals from the Foreign Investment Review Board (Australia). GVK entities have agreed to acquire a shareholding up to 79% in Alpha Corner and Alpha West Coal Projects, located in the Galilee Basin in Queensland, wherein the Hancock Group will retain the remainder of the shareholding. GVK firms would acquire a 100% shareholding in the Kevin's Corner Coal Project, located immediately adjacent to Alpha. Further, the entities of GVK group will also acquire a 100% shareholding in the rail and port project connecting the above coal projects to the port of Abbot Point and Abbot Point T3 expansion project, whilst retaining some tonnage capacity for the Hancock Group. The infrastructure project involves the development, ownership and operation of an integrated infrastructure development consisting of a 495 km rail line and a 60 mn tonnes per annum port at Abbot Point. At full production, the three coal projects are together expected to supply about 84 mn tonnes per annum to the global sea-borne coal market. GVK said the first phase of production, expected to start in 2014, envisages a total production of over 30 mn tonnes per annum of high quality thermal coal. The coal mines will deliver a very high quality thermal coal with a gross calorific value (as received) of about 5800-6000 kcal/kg and low ash and low sulphur content. Most of the coal from the project is intended for delivery into the Asian region as letters of intent for approximately 45 mn tonnes per annum have already been signed or are in the process of finalisation with major utility companies in China, Japan, Korea, Taiwan and Vietnam. NTPC to give Rs.3,600-cr order to BGR Energy A joint venture of BGR Energy and Hitachi to get orders worth Rs.3,600 crore from NTPC Ltd for the supply of super-critical steam turbine and generators has led the Chennai-based company to emerge as the winner for supplying nine units of stem turbines. However, it will take only five units, according to BGR Energy chairman and managing director B G Raghupathy. The 1985-incorporated firm has emerged as the lowest bidder for all nine units of super-critical steam turbine generators. As per the tender conditions, the Delhi- headquartered power generating corporation will award 5/4 units of super-crtical steam turbines to BGR. NTPC had invited bids for bulk supply of boilers and turbine generators for four projects —in Karnataka, Orissa and Chhattisgarh —with a total capacity of 7,200 megawatts. In the financial bids for supercritical turbine generators that were opened yesterday, BGR emerged the lowest bidder. The others who were qualified to bid include L&T Mitsubishi, Bharat Forge-Alstom and Toshiba. The value of the five units of these turbines by BGR is estimated to be around Rs.3,600 crore. “We are interested in taking up the 2x800 Mw Gajmara Super Thermal Power project, Orissa, and 3x800 Mw Kudgi Super Thermal Power Project at Karnataka,” says Raghupathy. The commissioning of the first turbine will be done in 42 months. The next will take two months thereafter. The contract provides price variation clause and foreign exchange variation clause. BGR Energy is setting up a Rs 4,400-crore super-critical steam turbine factory with Germany’s Hitachi Power Europe GmbH and Japan’s Hitatchi Ltd. “The turbines for the NTPC contract will be supplied from a mix of imports from Hitachi,” says Raghupathy. The total capacity of the plant is 5000 Mw. The construction work will commence by January 2013 and completed within one year, he adds. Antwerp Port to invest in Essar's Hazira Port Project in Gujarat by end of next year Belgium's Port of Antwerp, the second largest port in Europe, aims to pick a stake in Essar Group's Hazira Port in Gujarat by the end of the year. "Antwerp Port intends to participate in Hazira port project of Essar Group," Antwerp Port Authority managing director Eddy Bruyninckx told ET without disclosing numbers. "The talks are on between the newly-formed subsidiary, Port of Antwerp International (PAI), and Essar Group." It is believed that PAI is working with reserves of €25 mn and it has already acquired stakes in port projects in Oman and Congo. The move is in keeping with the Belgian company's expansion plans firmed up last year, when it evaluated 20 projects and zeroed in on a few of them to expand its presence out of Europe through

Weekly Newsletter 19 Info-Spectrum Bridging the Information Gap in Corporate Landscape equity participation. Subsequently, it signed an MoU with Essar Group in February for strategic collaboration in consultancy, investment, training and enhancing commercial relations in the port sector. "We are exploring opportunities overseas to expand our footprint by sharing our expertise in port development and management through a newly-formed subsidiary. We have a strong belief in cooperation with India which has a huge potential and ambition to develop ports," Bruyninckx said. Antwerp Port Authority is also keen to strengthen its ties with the Indian steel companies. "We want Indian companies to bring their steel service centres to Antwerp," said Bruyninckx. Essar Steel, which operates a capacity of 8.6 mn tonne per annum and is set to expand it to 14 mn tonne by the end of this financial year, routes its cargo to European markets through Port of Antwerp. During the first six months of 2011, Antwerp port handled 96 mn tonne of freight, an increase of 10.4% compared with the first half of 2010. Essar's port arm manages capacity of 88 mmtpa, which is being expanded to 158 mmtpa over the next few years at an investment of Rs 9,300 crore. It has two operational ports - at Hazira and Vadinar. At Hazira, on Gujarat's west coast, Essar Ports operates an all-weather deep draft port with 30 mmtpa of dry bulk cargo capacity, which is being expanded to 50 mmtpa. "The company is setting up a dry bulk terminal at Hazira with a capacity of 20 mmtpa, which will be operational by the second half of 2013-14. Environment and CRZ clearances have been received. Forest clearance is pending for part of the project. BPCL to focus on low-cost refinery expansion Bharat Petroleum Corporation plans to achieve refining capacity of nearly 42 mn tonnes by 2015-16 where the focus will be on low-cost expansions. Kochi Refinery will see the largest capacity increase to 15.5 mt from 9.5 mt during this period. The recently commissioned Bina refinery, a joint venture with Oman Oil, will be up to nine mt as part of a ‘creeping expansion' exercise using the existing infrastructure. Mr R.K. Singh, Chairman and Managing Director, told Business Line that in the case of the Mumbai refinery, two decades- old crude distillation units would be replaced by a brand new one. As a result, its capacity would go up to 14 mt from 12 mt. More importantly, this will create more space and ensure better fuel efficiency in the refinery. “Strictly speaking, this is really not an expansion, but (it) will help improve capacity utilisation,” he said. The Numaligarh refinery in Assam will stay untouched at three mt though sources said that its capacity could be doubled at a later stage depending on the availability of crude. These initiatives on the refining front will form part of BPCL's Rs 40,000-crore investment outlay over the next five years. The money will also be earmarked for entry into new areas like gas and petrochemicals with Rs.10,000 crore set aside for exploration & production. After 2015-16, BPCL will look at the second phase of the Bina refinery expansion to 15 mn tonnes, though Mr Singh reiterated that revenue generation for the project would remain top priority. The company will then consider the new Allahabad refinery (whose capacity could be 9-12 mt) if there is growing demand for petro-products in the northern region. If these projects go according to schedule, BPCL's refining capacity would be a little over 60 mn tonnes by 2020. “For the moment, though, we prefer the low-cost expansion route to setting up a grassroots refinery,” Mr Singh said. Observers of the oil industry say this approach makes sense in the context of the refiners' losses incurred on selling subsidised fuel such as diesel, cooking gas and kerosene. When compensation from the Centre takes time in coming, borrowings increase (BPCL's alone is closer to Rs.24,000 crore) but the show will literally have to go on in terms of investments in key infrastructure. Alok Ind to exit realty ops; eyes sale of 2 Mumbai projects by Mar As its real estate foray was an "accident", integrated textiles maker Alok Industries Ltd now plans exit the operations and focus more on its core operations, Managing Director Dilip Jiwrajka told. The company plans to sell around 681,000 sq ft at two of its Mumbai projects--641,000 sq ft at Lower Parel and 40,000 sq ft at Worli--by March, and estimates revenue of around 20 bn Rs. from the sale. "We will come out of it (realty business), maybe scratch-proof," Jiwrajka said. "We are committed to sell off the entire real estate by the end of this financial year and we will do that. Sales have not started, we have only been able to lease a part of it. But our endeavour would be to get rid of it by March." In 2010-11 (Apr-Mar, the company had revenue of 63.88 bn Rs. and net profit of Rs.4.04 bn. Also, Alok Industries is jointly developing a 1.1-mn-sq-ft parcel at Mahur in Maharashtra, and expects the project to be completed in around nine months, Jiwrajka said. "We are more passionate about the textiles business. Our textiles business grew at a good pace. And we don't have that energy and time to spend on that (real estate operations)," he said. Jiwrajka said he might look at real estate development individually but Alok Industries would not enter the space again. Airports Authority to seek nod to raise Rs.50 bn via infra bond The Airports Authority of India will seek government's permission to raise Rs.50 bn through infrastructure bonds for investment during the 12th Five Year Plan period starting April. "We are again approaching the

Weekly Newsletter 20 Info-Spectrum Bridging the Information Gap in Corporate Landscape government for permission for infrastructure bonds," Chairman V.P. Agrawal said here. The Authority had earlier approached the government to raise money through infrastructure bonds in 2009, but it was then denied permission. He said the Authority has outlined a Rs.200-bn investment proposal for the 12th Five Year Plan to revive 15 airports and upgrade the existing airports. "There are at least 15 good cases of revival that we would be looking at," Agrawal said. He also said the Airport Authority will spend $1 bn on improving the air traffic flow management system during 2012-17. State-owned Airports Authority manages 125 airports, including 11 international, 8 customs airports, 81 domestic and 25 civil enclaves at defence airfields. It also provides air traffic management services over entire Indian air space and adjoining oceanic areas. PSL US arm gets Rs.2.7-bn pipeline supply order PSL Ltd's wholly-owned subsidiary PSL North America LLC has bagged orders worth Rs.2.7 bn from large pipeline operators in the US for supply of high-pressure gas steel pipes, a company release said. PSL North America will supply large diameter pipes of an estimated length of around 160.93 km to be used for transmission of shale gas as per the order, and expects to complete the order by March. "PSL NA has secured these orders from major US pipeline operators notwithstanding the difficult economic situation prevailing within the west," the release said quoting Ashok Punj, managing director. "Enhanced shale gas expansion activities signal a pick-up in demand for pipeline-related infrastructure throughout the country." ABB says parent firm has no plan now to up stake beyond 75% in co Zurich-based ABB Asea Brown Boveri Ltd does not plan to hike its stake beyond the current 75% in its Indian arm ABB Ltd, Country Manager and Managing Director Bazmi R. Husain said. "At this point in time, we have no plans to go to 100% (in ABB Ltd)," he said while addressing a press conference here. Last year Husain had said the parent company had invested $1 bn in acquiring additional 25% stake in ABB Ltd. On the company's expansion plans, Husain said ABB Ltd is considering foray into equipment supply to power generation companies in India. Currently, India is among the four emerging markets that together contribute over $1 bn in revenues to the parent company's topline. He said last year ABB Ltd clocked revenues of around $1.5 bn. In a move aimed at expanding its product portfolio, the company recently set up a new manufacturing facility in Bengaluru with a planned investment of $24 mn that will manufacture a range of miniature circuit breakers and surge protection devices. Power Grid Corp gets board OK to invest in 2 projects Power Grid Corporation of India Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 16, 2011 approved the following two investment approvals for: 1. 'Common System associated with Coastal Energen Private Limited and Ind-Barath Power (Madras) Limited LTOA Generation Projects in Tuticorin area (Part-B)' at an estimated cost of Rs.1940.13 Crore, with commissioning schedule of 36 months from the date of Investment approval. 2. 'POWERGRID Sub-station works associated with Transmission Scheme for enabling import of NER/ER surplus power by NR' at an estimated cost of Rs.80.42 Crore, with commissioning schedule of 18 months from the date of investment approval. Spanco board OKs hiving off Nagpur power supply ops Spanco Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 19, 2011, inter alia, has considered the following matters: 1. Decided to seek approval of members of the Company as required under Section 293(1)(a) of the Companies Act, 1956 to transfer Company's Power Distribution Franchise Business of Nagpur to step down subsidiary of the Company, namely Spanco Nagpur Discom Ltd. 2. Decided to seek the approval of shareholders of the Company to transfer Company's Power Distribution Franchise Business of Nagpur to step down subsidiary of the Company namely Spanco Nagpur Discom Ltd. under Section 293(1)(a) as aforesaid, through postal ballot process as per the provisions of Section 192A of the Companies Act, 1956 and appointed Mr. Manish L. Ghia, Practicing Company Secretary, Mumbai as the Scrutinizer for conducting the postal ballot process in fair and transparent manner. Head says PFC likely to launch infra bonds by month-end Power Finance Corp may launch its infrastructure bond issue by the end of September, said Satnam Singh, chairman and managing director. "We should be launching the issue by the end of this month... may be Sep- 29-30," Singh said. The company had last week filed a draft shelf prospectus with the Securities and Exchange Board of India to raise up to Rs.69 bn through infrastructure bonds in one or more tranches. CRISIL Ltd has assigned AAA/Stable rating to the bonds, while ICRA Ltd has assigned AAA rating with a 'stable' outlook, the company said in the draft prospectus available on the regulator's website. SBI Capital

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Markets Ltd and ICICI Securities Ltd are the lead managers to the issue, while PNB Investment Services Ltd is the debenture trustee to the bondholders. RIL plans 4-wk shutdown of 2 Jamnagar SEZ refinery units Reliance Industries Ltd has informed BSE that the Company is planning to take Maintenance and Inspection (M&I) shutdown of Light Cycle Oil hydrocracker (LCOHC) and Vacuum Gas Oil hydtrotreating unit (VGOHT) of SEZ refinery at Jamnagar refinery complex from 19th and 23rd Sep 2011 respectively. These maintenance shutdowns will be for a period of approximately 4 weeks. The routine shutdown of these units is being planned for the first time since commissioning. Both the refineries at Jamnagar complex are planned to operate at maximum crude processing capacity i.e. 1.3 Mn barrels per day during this period. All other major processing units at the complex are also planned to operate at normal capacity. CBDT allows infrastructure companies to issue bonds in FY12 The Central Board of Direct Taxes approved issuance of tax- free bonds by infrastructure companies in the current financial year to Mar. Companies can issue bonds that have a minimum maturity of 10-years, and a minimum lock-in period of five-years for investors. "The yield of the bonds shall not exceed the yield on government securities of corresponding residual maturity as reported by the Fixed Income Money Market and Derivatives Association of India, as on the last working day of the month immediately preceding the month of the issue of the bond," the release said. had last week reported, quoting a CBDT official, that the approval was likely to come soon. The government had raised the quantum of funds that state-owned companies can raise via tax-free bonds in the Union Budget for 2011-12 (Apr-Mar) to Rs.300 bn from just Rs.50 bn last year. Indian Railway Finance Corp Ltd, National Highways Authority of India Ltd, Housing and Urban Development Corp Ltd, IFCI Ltd, and India Infrastructure Finance Co Ltd are among those who have sought CBDT approval for tax-free bonds. The CBDT gives retail investors an additional investment opportunity that will also carry tax benefits. RIL plans 4-week maintenance shutdown of 2 units at SEZ refinery Reliance Industries Ltd is planning a routine shutdown of two key units at its special economic zone refinery in Jamnagar, Gujarat, for four weeks to carry out maintenance and inspection activities, the company said in a release. The two units--light cycle oil hydrocracking unit and vacuum gas oil hydtrotreating unit--will undergo shutdown for the first time since the new 30-mn-tn-a-year refinery was commissioned in late 2008. While the light cycle oil hydrocracker will undergo maintenance from, the vacuum gas oil hydtrotreater will be shut from Friday. The country's largest company by market capitalisation operates two refineries at Jamnagar with capacity to process 1.3 mn barrels of crude per day. The older refinery is larger with annual capacity of 33 mn tn. "Both the refineries at Jamnagar complex are planned to operate at maximum crude processing capacity," the company said. "All other major processing units at the complex are also planned to operate at normal capacity." Kesar Terminals gets order from Madhya Pradesh govt Kesar Terminals & Infrastructure Ltd has informed BSE that the Company alongwith its Consortium Member, Kesar Enterprises Limited (KEL) has received a Letter of Award (LOA) from Madhya Pradesh State Agricultural Marketing Board (Mandi Board) for setting up a "Composite Logistics Hub" at Pawarkheda, District Hoshangabad, Madhya Pradesh on Design, Build, Finance, Operate and Transfer (DGFOT) basis through Public Private Participation (PPP). The setting up of "Composite Logistics Hub" would include development of infrastructure on an area of 88.3 acres provided by the Mandi Board covering an entire range of logistics infrastructure including rail sidings for cargo and container movement, rail side warehouses, Inland Container Depot (ICD), Cold Storage, food grains warehouse, development of common facilities, marketing of the same to potential customers along with operation and maintenance thereof. The project cost is estimated at Rs.147 crore. The execution of the Project shall be through a Special Purpose Vehicle by incorporating a new Company in the name and style "KESAR MULTIMODAL LOGISTICS LIMITED" jointly by the Company and KEL. The said Company will execute a Concession Agreement with the Mandi Board. Jet Airways to get 7 new aircraft by Mar; hike seats on offer Oct Jet Airways (India) Ltd expects to add seven new aircraft, including the new generation Boeing 737-800, by March, Gilbert George, senior general manager (India sales), said here. "We will add three Boeing 737-800s and four 737-900s by March," he said. The airline has ordered total 11 Boeing 737-800 aircraft. Jet Airways has already received the first Boeing 737-800 with sky interiors, which will start flying by the end of the month on domestic as well as international routes. "The balance of such aircraft (737-800) will be delivered

Weekly Newsletter 22 Info-Spectrum Bridging the Information Gap in Corporate Landscape by March 2013," George said. He said the airline will start offering 100,000 seats per day from end October as it enhances its fleet utilisation and increases frequency of flights. "We currently offer about 93,000 seats per day," George said. IFCI says Delhi HC dismisses GTL lawsuit against co The Delhi High Court has dismissed an application by GTL Group for permanent injunction restraining IFCI Ltd from selling the pledged shares of GTL. The high court ruled that the suit filed by GTL is "prima-facie not maintainable," an IFCI press release said. The GTL Group, headed by Manoj Tirodkar, had borrowed funds from IFCI Ltd by pledging shares, but failed to honour the terms and conditions of the loan facility, the release said. To recover the loan, IFCI got the shares de-pledged to the extent of around 18% of paid-up equity in GTL Infra in its own name. The move was challenged by GTL and a suit was filed against IFCI in August. Jyoti Structures, Lauren Engineers form JV Jyoti Structures Ltd. have formed a joint venture with Lauren Engineers and Constructors Inc. of US to tap EPC business in power generation, oil and gas sectors. The company has also acquired a 50% stake in Lauren Engineers and Constructors India Pvt. Ltd., a wholly owned subsidiary of Lauren US. Lauren Jyoti Pvt. Ltd., the joint venture company formed has secured a Rs 551 crore contract from Godawari Green Energy Ltd to set up a 50 MW solar thermal power plant in Jaisalmer district of Rajasthan on turnkey basis. The contract was secured against international competition. The power plant will feed power to the state grid by May 2013. Haldia Energy selects Shanghai Electric for BTG Haldia Energy Ltd, a wholly owned subsidiary of CESC Ltd, has entered into an agreement with China's leading equipment manufacturing company, Shanghai Electric Group, for supply of boilers, turbines and generators for a 600-mw thermal power project at Haldia in West Bengal. The BTG package is worth 1,000 crore. The two companies have also signed a strategic longtime cooperation agreement for setting up coal- based power plants in India. Group Chairman Sanjiv Goenka said, "In long-term, we could be looking at future tie-up in UMPP and wind power. Both the firms would like to work with each other. This contract (with Shanghai Electric) could be upgraded to a joint venture." On Haldia plant, Goenka said, "Work has begun in full swing at Haldia with all necessary clearance received. Phase-I of the plant with a generation capacity of 600 mw (2x300) is expected to be completed by the middle of 2014." Phase-I will entail an investment of 3,250 crore. The company has signed longterm coal linkage from Mahanadi Coalfields Ltd for the plant. MARG to fabricate 247 railway wagons MARG Ltd, based in Chennai, has forayed into fabrication of wagons with a new order from Braithwaite & Co. Ltd. The company's EPC division has bagged the order worth around 38 crore from Braithwaite & Co. Ltd which includes fabrication and assembly of 247 BTFLN wagons including supply of components and consumables, except raw steel, wheel set (without bearings) and dished ends. This will include all types of preparation of total fabrication, drilling, fitting, riveting, huckbolting, welding, grinding, chipping, cleaning, finishing, handling, wheeling etc., testing of dye-penetration test of welding joints, air brake test of wagon, pneumatic testing, hydraulic testing, shot blasting, painting and lettering of the wagon etc. The duration of this order is seven months (40 wagons per month as specified by BCL) subject to timely availability of raw steel, wheel set and dished ends (to be provided by Braithwaite). G.R.K. Reddy, Chairman and Managing Director, MARG Ltd, said, "This prestigious order marks our foray into the business of fabrication of railway wagons. With technological innovation as a focus, MARG's EPC division brings in the best of technology and knowledge partners in this project. Our technical edge and mechanical expertise reinforced by international technological partnerships will add value for the successful completion and on-time delivery of this project. A new team inducted in MARG with technical expertise in wagon fabrication will execute the project as scheduled." BTFLN wagon is a new and improved frameless bogie tank wagon used primarily for liquid petroleum products (petrol, naphtha, kerosene, diesel, furnace oil etc.), and also for vegetable oil and other liquid cargo. This wagon is an improvement over BTPN (Bogie Pol Tank Wagon) which was first developed by RITES in collaboration with Azovmash of Ukraine. NTPC doesn't see much gain from Intl Coal Ventures, keen to exit More than two years after the incorporation of International Coal Ventures Ltd, the consortium's 14% stakeholder NTPC Ltd is now keen to part ways with other members of the special purpose vehicle. Steel Authority of India Ltd and Coal India Ltd each hold 28% share in International Coal Ventures, while Rashtriya Ispat Nigam Ltd and NMDC Ltd hold 14% each like NTPC Ltd. NTPC Chairman and Managing Director Arup

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Roy Choudhury said the company had made a presentation to the power ministry, saying it did not see much gain from being part of the consortium and therefore, wanted to exit. The final decision rests with the government, he said on the sidelines of a conference on coal sector. Being a power generation utility, NTPC feels its coal needs are different from those of steel companies and hence continuing in International Coal Ventures may not serve its purpose. International Coal Ventures is entrusted with the task of securing coal assets and supplies abroad for public sector companies here. It has so far failed to meet with any success. HDIL MD says co looking to sell land at Virar near Mumbai Housing Development & Infrastructure Ltd is looking to sell land parcels in Virar, near Mumbai, Vice Chairman & Managing Director Sarang Wadhawan told. "Yes, we are looking to sell Virar land, but I cannot share any further details on the same," Wadhawan said in a telephone conversation. Media reports said that HDIL has put up nearly 5 mn sq ft of land parcels at Virar on the block. The company expects to raise around 6.5 bn Rs. from the land sale in the next few weeks and will use the proceeds to repay debts, reports said. The company has already sold 1 mn sq ft to a local developer, Vinay Unique Construction, 1,250 Rs. per sq ft, it said. "We always sell TDR (transfer development rights) and FSI (floor space index), so it's a part of our regular strategy. There is nothing extraordinary in it," Wadhawan said. GTL yet to reach final deal with lenders to recast debt GTL Ltd has informed BSE that the Company have observed that for past couple of days repeated news items are appearing in different sections of media about approval of Corporate Debt Restructuring (CDR) proposal by the Company's bankers / lenders and related information in respect of terms of restructuring of debt. In this connection the Company has clarified to BSE that the Company has referred its CDR proposal to CDR Cell and as & when the Company reaches final agreement with lenders, the Company would disseminate the same to the stock exchanges. Essar Energy eyeing coal-bed methane blocks in China, Indonesia Essar Energy Plc, the London-listed parent of Essar Oil Ltd, is close to acquiring coal-bed methane blocks in China and Indonesia, a senior official told. The company has identified coal-bed methane blocks that range between 500 sq km and 1,000 sq km in China, the official said. The size of blocks identified in Indonesia is also similar. "We are ready to enter Indonesia and China, but we are looking for opportunities in India as well," he said. The official said while negotiations for the blocks were at an "advanced stage", financial details still have to be agreed upon. Essar Energy had already bid for one coal-bed methane block in Indonesia via its subsidiary PT Essar Indonesia, and is currently studying more blocks for acquisition. Essar Energy also has 49.5% interest in an oil and gas block in Indonesia's Sumatra Basin. While the US is the biggest producer of coal-bed methane, accounting for over 85% of global output, countries such as China, India, Australia, Canada and Indonesia are now starting to emerge in field. Indonesia is said to have one of the largest coal-bed methane reserves in the world, with a potential of 453 trln cu ft. China, on the other hand, has the third largest reserves at about 36.8 trln cu mtr. Stewarts and Lloyds plans to raise Rs.600 mn via rights issue Stewarts and Lloyds of India Ltd has sought the approval of Securities and Exchange Board of India to raise Rs.600 mn through a rights issue of shares and warrants. The company said each share will come with a detachable warrant. The company will raise 50% of the amount through shares and the rest through warrants, which can be converted into shares at a later date. The engineering and construction company plans to purchase material- handling equipment and generators by deploying around Rs.60 mn from the issue proceeds, and to repay working capital loans worth Rs.30 mn. The company will also finance the Rs.132-mn likely increase in working capital requirements. MAPE Advisory Group Pvt Ltd is the lead manager, while HDFC Bank is the banker to the issue. Mercator Lines buys 50% in Indonesian coal mine, to invest $30 mn Mercator Lines Ltd, through its subsidiary, has completed acquisition of a 50% stake in a coal-mining concession located in East Kalimanthan, Indonesia, the company informed the National Stock Exchange. "The total investment in the mine from our side would be $30 mn, that includes the stake and development costs," Mercator Lines Ltd Managing Director Atul J. Agarwal told. The mine has estimated reserves of around 60 mn tn and mining will start by March, Agarwal said. The Kalimantan mine is the fifth mine acquisition by India's second largest private sector shipping company. It already owns three mines in Indonesia and one in Mozambique through its subsidiary Oorja Holdings Pte Ltd.

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

Tecpro, Elecon bag BHEL contracts Elecon Engineering Co. Ltd has been awarded a Rs 29.72 crore from Bharat Heavy Electrical Ltd for design, engineering, manufacture, supply and erection & commissioning of wagon tippler, side arm charger with guide rails, apron feeder with dribble conveyor, crushers with GERB V I S, vibrating screen and stracker cum reclaimer for CHP machine package for 2x250 MW expansion project at Barauni TPS Unit #3 & 4 at Begusarai in Bihar. Tecpro Systems Ltd has received a LoI for a Rs 521.4 crore order from BHEL for NMDC Steel Plant at Nagarnar in Chhattisgarh. The company will undertake design, engineering, manufacturing, supply, fabrication, erection, testing & commissioning of the Ore Handling Plant project and Coal Handling Plant project of Raw Material Handling System (Package -I). Satra Properties India OKs raising funds via NCD issue Satra Properties India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on Sep 21, 2011, inter alia, transacted the following business: 1. The Company has decided to raise finance by issue of upto 9,300 Secured Redeemable Non-Convertible Debentures of Face Value of Rs. 1,00,000/- each redeemable at par on a Private Placement basis. 2. The Board has also appointed IDBI Trusteeship Services Limited as debenture trustees. Dealers say institutional cement prices hiked in Gujarat, Mumbai Institutional cement prices have been increased by Rs.15 per 50-kg bag in Gujarat and Rs.5 in Mumbai, in anticipation of rise in demand in the coming weeks, dealers and stockists said. "Demand is very low currently, but I think prices have been raised because companies expect demand to rise as the monsoon has ended," a Gujarat-based cement dealer said. Cement demand typically starts rising from Sep-end as construction activity across the country gains momentum post the slump during rains. In Gujarat, prices are now around Rs.190 per 50 kg, while in Mumbai they are around Rs.270, dealers said. L&T's construction division gets new orders worth Rs.10.15 bn Larsen & Toubro Ltd's construction division bagged orders worth Rs.10.15 bn in Jul-Sep. The orders include a Rs.6.92-bn order for construction of commercial buildings. The company has also got orders worth Rs.3.23 bn to build residential buildings and factories, the release said. "These orders further augment the order book of the company which has already secured major design and build contracts in the sectors of airports, information technology parks, commercial and residential buildings," the release said. As on Jun 30, the company's order book stood at Rs.1.36 trn. Sujana Finance revokes pledge on 8.16 mn Sujana Towers shrs Sep 13 Promoter Sujana Finance and Trading Pvt Ltd revoked pledge on 8.16 mn shares of Sujana Towers Ltd on Sep 13, the latter said in a notice to the National Stock Exchange. According to the notice, another promoter Foster Infin and Trading Pvt Ltd's pledged stake went up to 8.14% when it pledged 1.35 mn more shares of the company on the same day. From the promoter group, G. Srinivasa Raju also pledged 4.6 mn shares or 90.72% of his stake in Sujana Towers on Sep 15, the notice said. Techno Electric arm commissions 101.4 MW Tamil Nadu wind power unit Simran Wind Power Pvt Ltd, a subsidiary of the Kolkata-based Techno Electric and Engineering Co Ltd, has commissioned a 101.4 MW wind power unit in Tamil Nadu. The company has signed a 20-year power purchase agreement with the Tamil Nadu Generation and Distribution Co at a tariff of Rs.2.37 per unit. In the first phase, Techno Electric plans to further raise the generation capacity by 12.6 MW by Oct. The project was funded through a mix of debt of Rs.3.6 bn and equity of Rs.2.4 bn. International Finance Corp, which invested Rs.225 mn in Simran Wind Power, holds a 3.38% stake in the company. Alok Industries's promoter ups stake in co to 2.74% Alok Industries Ltd has informed BSE that Alok Finance Pvt. Ltd. a promoter group Company have purchased additional 875825 equity shares of the Company in the open market under creeping acquisition (constituting 0.11% of the paid up capital of the Company) and thereby increased their holding in the paid up capital of the Company to 2.74% from 2.63%. With this acquisition, the holding of Promoters and Promoters Group of the Company in the paid up capital of the Company stands at 29.94% from 29.83%. Ascent Capital to invest Rs.2 bn in MARG's Karaikal port SPV Infrastructure and real estate developer MARG Ltd said that Ascent Capital Advisors India Pvt Ltd, a private equity company, will be investing up to Rs.2 bn in Karaikal Port Pvt Ltd, a special purpose vehicle that it created for developing the port in Tamil Nadu.

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

HPCL-Mittal Energy CEO says Bathinda refinery commissioning by Mar HPCL-Mittal Energy Ltd has started the pre-commissioning of the 9-mn-tn-a-year Bathinda refinery project in Punjab, and expects to commission the project by March, Managing Director and Chief Executive Officer Prabh Das said. Power tariffs to go up in many states this year: report Amid rising concerns about the poor financial health of power distribution companies, electricity tariffs in India are likely to go up in many states, including West Bengal and Karnataka, in coming months, says a report. BHEL may get contracts worth Rs.260 bn from Indian Railways Indian Railways may award contracts worth Rs.260 bn to state-owned Bharat Heavy Electricals Ltd on a nomination basis. The move is a breach of guidelines issued by the Central Vigilance Commission that discourage such nominations. Govt may benchmark natural gas price on median global prices The government is mulling a proposal to benchmark natural gas price based on the median of the highest and the lowest prices prevailing in the global markets. The move is seen encouraging more investments in gas exploration in the country. Servalakshmi Paper resumes power, paper plant ops Servalakshmi Paper Limited has informed the Exchange that "The break down in the turbine of the power plant has been rectified and our power plant and paper plant have resumed production from September 19, 2011." Jet Airways inducts 11 new Boeing 737-800 aircraft Jet Airways (India) Limited has informed the Exchange regarding a press release dated September 20, 2011, titled "JET AIRWAYS INDUCTS NEW BOEING 737-800 WITH SKY INTERIOR FOR ENHANCED FLYING EXPERIENCE". New Nasik cargo airport aims to take over 20-25% of Mumbai traffic The new air-cargo terminal in Nasik, Maharashtra, is likely to take over 20-25% of the cargo handled by the Mumbai airport within the first few years of operation, Ganesh Krishnan, chief executive officer, Clarion Solutions Pvt Ltd, said. CMD says BHEL aiming to commission over 20,000 MW of projects FY12 Bharat Heavy Electricals Ltd has set a target to commission over 20,000 MW of industrial, power and overseas projects during this financial year ending Mar 31, Chairman and Managing Director B.P. Rao said. L&T to partner Hindustan Shipyard for ship building Larsen & Toubro will partner government-owned Hindustan Shipyard for ship-building. The company has emerged the strongest contender because of its experience in building submarines. An announcement to this effect is expected soon. NTPC Ltd may sever ties with joint venture ICVL NTPC Ltd may break away from a group that owns International Coal Venture Pvt Ltd, which was formed to buy coal mines overseas. Steel Authority of India Ltd, Coal India Ltd, Rashtriya Ispat Nigam Ltd, and NMDC Ltd are other stakeholders in the venture. Fresh public hearing on Maharashtra power co units' tariffs Sep 30 The Maharashtra Electricity Regulatory Commission will hold a second public hearing on Sep 30 to determine the capital costs of two 250 MW units of Maharashtra State Power Generation Co Ltd, the company said in a recent notice. Official says L&T will participate in PPP projects in shipbuilding Larsen & Toubro Ltd is keen on participating in any public-private-partnership project in the country's shipbuilding sector and is evaluating opportunities in the segment, according to J.P. Nayak, president- operations. ISO should foster new initiatives, innovations: Thomas Appreciating the efforts of the International Organisation for Standardisation to establish quality benchmarks in the field of energy management, India called upon the global body to proactively anticipate new areas where standardisation would nurture innovation.

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

ACC and Ambuja Cements merger deferred indefinitely The merger between ACC and Ambuja Cements has been deferred indefinitely. Holcim, the Swiss cement major that controls Ambuja Cements, had hired a consultant to explore merger option last August. There were issues like dissolution of one brand at the cost of other and failure to reach an agreement on share swap ratio. Lavasa Corp to wait for green nod from environment ministry Lavasa Corp, a subsidiary of Hindustan Construction Co, will have to wait longer to get green nod from the environment ministry. The ministry had earlier denied clearance for phase I of the project, and final order was likely by Sep 23, but has been delayed as Lavasa moved the court. IL&FS and IDFC to exit Delhi Mumbai Industrial Corridor Development Corp Infrastructure development companies IL&FS and IDFC will completely exit the Delhi Mumbai Industrial Corridor Development Corp, transferring their combined 51% stake to a government-owned financial firm. Currently, government has a 49% stake in the industrial corridor. Equinox Realty and Infrastructure to partner PE funds for projects Equinox Realty and Infrastructure Pvt Ltd, promoted by Essar Group, plans to partner with private equity funds for projects that involve a mix of residential, office, and retail space development. It has invested around Rs.12 bn in office space projects in Mumbai and Bengaluru, and will invest another Rs.28 bn in ongoing projects. BPCL plans to raise $400 mn debt overseas to fund FY12 capex Bharat Petroleum Corp Ltd plans to raise $400 mn through external commercial borrowing to part-finance the capital expenditure for the current financial year to March, S. Varadarajan, director-finance of the oil refining-cum-marketing company, told. "We are in the process of appointing the bankers," he said. "That will take some days and after that we hope to raise the money in few weeks." Jyoti Structures gets Rs.3.28-bn orders from Power Grid Jyoti Structures Ltd has bagged orders worth Rs.3.28 bn from Power Grid Corp of India Ltd. The orders include the company's first turnkey contracts for 765 kV sub stations at Jabalpur and Nellore with a combined value of Rs.2.54 bn, the filing said. The other orders are for 400 kV transmission lines connecting generation projects in Sikkim to West Bengal, the release said. Alfa Laval to delist India arm in three months; shares up over 18% Swedish industrial major Alfa Laval Corporate AB said it would buy all outstanding shares of its Indian subsidiary Alfa Laval (India) Ltd and delist the company from the Indian bourses. "The delisting process is expected to take approximately three months," the Swedish company said in a release on its website. Alfa Laval Corporate currently holds 88.8% stake in the Indian arm, with the public holding the rest. GTL Infrastructure apponits Milind Naik as Chief Operating Officer GTL Infrastructure Limited has submitted to the Exchange a copy of Abstract under Section 302 of the Companies Act, 1956, issued to the shareholders of the Company, in respect to appointment of Mr. Milind Naik as Whole-time Director and Chief Operating Officer of the Company. RIL arm signs MoU with Siemens for homeland security solutions Reliance Security Solutions Ltd, a subsidiary of Reliance Industries Ltd, has signed a Memorandum of Understanding with Siemens Ltd to jointly develop homeland security solutions for cities and highways in the country. Toshiba-JSW JV edges out L&T from NTPC's 800 MW turbine tender Toshiba JSW Turbine and Generator Pvt Ltd has now emerged as the second lowest, or L2 level bidder, to supply 800 MW super-critical turbine generators to NPTC Ltd after the Larsen & Toubro-Mitsubishi Heavy Industries' bid was pushed to the third spot due to a combination of financial and technical factors, an industry source told. IOC plans Rs.700-bn capex to add 46% refinery capacity by FY17 Indian Oil Corp Ltd plans to spend Rs.700 bn on expanding its refining capacity by 46% to 90 mn tn per year by Mar 2017, A.S. Basu, executive director - operations, said.

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

Govt says not to proceed with ONGC FPO "for the time being" The government has decided not to proceed for the time being with the follow-on public offer of Oil and Natural Gas Corp Ltd, a finance ministry release said. Econ affairs secy says ONGC FPO only deferred, not put off The proposed follow-on public offer of Oil and Natural Gas Corp Ltd has only been deferred for a short period and not put off, Economic Affairs Secretary R. Gopalan said. GVK group enters $1.26 bn acquisition pact with Hancock Coal GVK Power & Infrastructure Ltd, in joint venture with GVK Coal Developers Pte Ltd, has entered into an acquisition agreement worth $1.26 bn with Australia's Hancock Prospecting Pty Ltd. Jet Airways hikes fuel surcharge on domestic tickets by Rs.200 Jet Airways India Ltd announced an increase of Rs.200 in surcharge on every ticket in the domestic sector. The hike will be applicable on all flights of Jet Airways, Jet Airways Konnect and JetLite. BGR to locally source up to 45% components for NTPC turbine order BGR Energy Systems Ltd will source up to 45% of the components locally for five of the nine 800-MW super- critical steam turbine generators it will supply to NTPC Ltd, the Chennai-based company said. Fin min source says to decide on new dates for ONGC FPO month end The government is likely to decide on the new timing for Oil and Natural Gas Corp Ltd's follow-on public offer by the month end, a senior finance ministry official said. Govt puts ONGC FPO on hold on deadlock over pricing, stock jumps 6% The government has put on hold the already-delayed follow-on public offering of state-owned Oil and Natural Gas Corp Ltd, the company informed stock exchanges. Low fare flight IndiGo to increase flights to Singapore India's low-fare airline IndiGo said it will increase flights to Singapore as the current overall limit, permitted by air services agreement b/w the two countries is underutilised. ONGC to buy 10 onshore rigs for Rs.11-12 bn, mostly from BHEL Oil and Natural Gas Corp Ltd is planning to expand its onshore rig fleet and may place orders for 10 such assets within 1-2 months, a senior official told. BPCL plans 700 new retail outlets FY12; to focus on rural areas Bharat Petroleum Corp Ltd is planning to expand its retail footprint by around 700 outlets in the current financial year to March, despite surging revenue losses, K.K. Gupta, director-marketing, told. Work on BIAL 2nd terminal to commence next year The laying of the second runway at Bangalore International Airport Ltd (BIAL) will be taken up next year. Pranab to seek US investments in infrastructure Mukherjee, who will be on a five-day visit to US from September 21, will address the 8th Annual India Investment Forum Meeting. Govt sees no need for panic on cash position due to ONGC FPO delay The government is not unduly worried about the impact of the delay in the proposed follow-on issue of Oil and Natural Gas Corp Ltd on its cash position, a senior finance ministry official said. Promoter and MD Bbarot pledged 1 mn more Atlanta shrs Sep 15 Atlanta Ltd's promoter and managing director Rajhoo Bbarot has pledged 1 mn shares of the company on Sep 15, the company said in a notice to the exchanges. Govt sets up 7-member panel to suggest ways to modernise railways The government has set up a seven-member panel to suggest ways for modernisation of the Indian Railways, Minister Dinesh Trivedi said at a press conference. New SEZ draft to relook at land ceiling norms: Govt Commerce Min says there is a need to relook land ceiling rules for SEZ in view of protests against land acquisitions and will come out with draft for changes in SEZ Act 2005.

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

Green light for Gurgaon-Mundra double-stack container train With an aim of giving a boost to the transportation of cars, steel and consumer goods, railways have decided to run double-stack container trains between Gurgaon and Mundra Port in Gujarat. NTPC: • The company's unit 3 of 500 MW Simhadri Super Thermal Project has become commercially operational. • Plans to invest around Rs.33 bn to add 660 MW capacity at its Sipat power project in Chhattisgarh. • Toshiba JSW Turbine and Generator Pvt Ltd has emerged as the second lowest bidder to supply 800 MW super-critical turbine generators to NPTC Ltd after the LARSEN & TOUBRO-Mitsubishi Heavy Industries' bid was pushed to the third spot. • Has started to send letters to Haryana power distribution utilities on pending payments. • Plans to exit from International Coal Ventures. • Group of ministers asks BK Chaturvedi committee to submit a report on the company's Rs.80-bn project in Jharkhand within a month. • The company is mulling using up available land in its plants for additional generation units instead of acquiring new land. • Gets in-principle approval for coal blocks. BHARAT PETROLEUM CORP: • To foray into niche petrochemicals; to rope in foreign ally in the project coming up near Kochi refinery. • Arm Bharat Oman Refineries' Bina refinery expects to clock $10 a barrel gross refining margin once the refinery stabilises by the end of 2011. • Arm BPCL PetroResources to drill 16 wells by the end of this fiscal year. • Plans to achieve refining capacity of nearly 42 mn tn by 2015-16 with a focus on low-cost expansion. GVK POWER & INFRASTRUCTURE: • To acquire majority stake in two coal mines projects of Australia's Hancock Prospecting for $1.26 bn. • Is about to buy stake in Australia's Alpha Coal, and Alpha West Coal, and 100% stake in Kevin's Corner. The assets may be bought through GVK Coal Developers Singapore Pte. LARSEN & TOUBRO: • L&T Shipyard to become operational by Jan. • The defence ministry has recommended the company as a preferred partner in ship-building for state-owned Hindustan Shipyard. • Not to compete with Chinese shipyards; specialised ships to roll out of Kattupalli facility from Jan. RELIANCE INDUSTRIES: • Central Bureau of Investigation considering to file a case or multiple cases against the company for alleged irregularities in the operation of Krishna-Godavari basin. • Plans four-week shutdown of two units at Jamnagar's Special Economic Zone refinery. JET AIRWAYS: • Expects to add seven new aircraft, including the new generation Boeing 737-800, by Mar, Gilbert George. • Eyes dollar loans to cut borrowing costs; plans to raise $210 mn in fresh debt by the end of this fiscal. TATA POWER: • Indonesia's decision to benchmark coal prices to international prices may erode the company's profit by 4.8 to Rs.6 bn, analysts said. • Scouts for power projects, mines in Indonesia and Australia. • The company is looking at ways to pass on higher prices of fuel.

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

GVK POWER: • Is in talks with PT Kideco Jaya Agung for divesting part of its stake in the recently acquired coal mines from Hancock Group. • Promoter G.V. Krishna's wife sells 2.59% stake in the company to group firm Vertex Infratech. JET AIRWAYS: Has announced increase of Rs.200 surcharge on all domestic flights. ALFA LAVAL INDIA: Is seeking voluntary delisting from the exchanges post the promoter company Alfa Laval Corp AB's decision to acquire 11.23% more stake in the company. BGR ENERGY: To invest Rs.44 bn to set up two manufacturing facilities in Tamil Nadu for turbine and boiler units. BHARAT HEAVY ELECTRICALS: Railways may award contracts worth Rs.260 bn for supply of coaches and locomotive components to the company on a nomination basis. GMR INFRASTRUCTURE: Group-promoted Delhi International Airport seeks airport regulator's nod to increase airport charges five-fold. RELIANCE POWER: Set to commission Rosa unit three months ahead of schedule. RURAL ELECTRIFICATION CORP: In talks to borrow $350 mn (Rs.16.60 bn) from Chinese bank. BGR ENERGY SYSTEMS: Is close to finalising a deal with Flagsol GmbH, an arm of Solar Millennium of Germany for solar energy ventures. OIL AND NATURAL GAS CORP: Government mulls almost doubling the company's share of fuel subsidy burden. POWER FINANCE CORP: May launch its infrastructure bond issue by end of September, to raise up to Rs.69 bn. POWER GRID CORP OF INDIA: The board approves investment in two projects totalling Rs.20.21 bn. SPANCO: The board approves hiving off Nagpur power distribution business to arm Spanco Nagpur Discom. ALOK INDUSTRIES: Promoter Alok Finance Pvt Ltd has increased its stake in the company to 2.74% from 2.63% through creeping acquisition. ARSS INFRASTRUCTURE: Welspun Infratech buys 50% in company's Rs.4-bn project in Bhubhaneshwar, Orissa. ESSAR OIL: Rejigs top brass; Iftikhar Nasir to replace Shishir Agarwal as chief executive officer of E&P business from Oct 1. HOUSING DEVELOPMENT AND INFRASTRUCTURE: To sell Virar land to raise Rs.6.5 bn, repay debt. IVRCL: Consortium bags order for HINDUSTAN COPPER's 3-mtpa Malanjkhand underground mine expansion project. KESAR TERMINALS: Has got Rs.1.47-bn order from Madhya Pradesh government. KS OILS: Promoters may face obstacles in plans to sell the company as accounting issues and possible loss of Rs.4 bn deters buyers. SUZLON ENERGY: The Kerala government will take over the 85.21 acres of land in Palakkad district where Suzlon has two wind mills, on grounds that the company had encroached tribal land. ACC: The merger of the company and AMBUJA CEMENTS deferred indefinitely. DB REALTY: Shareholders question company on fall in share price and dividends. DLF: And The 3C Company to sell their jointly owned IT park in Noida to INFRASTRUCTURE DEVELOPMENT FINANCE CO for Rs.5.12 bn. GMR INFRASTRUCTURE: Looks at private equity funding for its roads business. PIPAVAV SHIPYARD: Government may interfere in the company's deal with Mazagon Dock after firms that lost out on the deal complained that it lacked transparency.

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

IT & ITeS INFORMATION TECHNOLOGY: • The NASSCOM sticks to 16-18% industry growth projection for 2011-12. • TCS gets 5-year multi-mn dollar contract from Deutsche Bank. • Industry body sees some concern on IT sector growth in FY13. • HCL Technologies to set up software delivery centre in Dublin. • Subex CMD says plans to raise funds via debt, equity. Industry body sees some concern on IT sector growth in FY13 Indian information technology sector may escape the brunt of the US and Eurozone crises in the current financial year, but growth could be dampened in 2012-13 (Apr-Mar) when the clients set fresh budgets, said Ameet Nivasarkar, vice-president of the IT industry body National Association of Software and Services Companies. "Some concerns are expected for FY13 (2012-13)," Nivasarkar told. "But it is too early to say anything about it. There will be more clarity on this by December as clients in the western countries decide on client budgets during Oct-Dec." Major Indian IT companies get around 70% of their revenue from the US and around 10% from Eurozone. "For this year, there will not be much impact since budgets have been finalised for now and there is unlikely to be much change despite economic uncertainties," he said. Nivasarkar said the industry body was confident that the sector would meet the 16-18% growth target for the current financial year to March. "We see no reason to change our growth guidance," he said. "The first half of the year (Apr-Sep) has been good and there is no reason for us to believe that the second half (Oct- Mar) will be very poor." According to a media report today, the government was worried that India's gross domestic product growth might be adversely affected if the US and European Union countries were to cut software imports due to the ongoing economic crisis. The Indian economy is estimated to have risen at 8.0-8.5% during the current financial year to March. Subex to sell telecom user activation software ops to NetCracker Subex Ltd, which offers business support systems for telecom providers, has entered into a pact to sell its activation software operations to US-based NetCracker, the company said in release, without disclosing the deal value. The activation business mainly comprises of software technologies used by telecommunication operators to activate new subscribers onto their network. NetCracker, an arm of the $40-bn NEC group, also provides telecom software. "The decision to sell the activation business is an outcome of change in the Subex strategy to focus on its core products," the company said. The Bengaluru-based company's core business includes the Revenue Operation Centre-platform that helps telecommunication companies in revenue assurance, fraud management, and data integrity management. "This decision and the renewed focus will enable us in growing our revenue over 20% annually with positive growth in EBITDA (earnings before interest, tax, depreciation, and amortisation)..." Menon was quoted as saying in the release. AMD Names Rory P. Read President and CEO This is to inform you that industry veteran, Rory Read has been named as AMD’s new President, CEO & Director. Rory comes to AMD with a wealth of industry experience including 23 years at IBM and more recently five years at Lenovo, where he was President and COO. He was chosen not only for his experience and accomplishments, but also for his passion, the depth and clarity of strategic vision and his keen ability to bring that vision to reality. Rory is taking over as CEO at a strong time for AMD. For the past five quarters, AMD has successfully delivered against its major financial, business, product and technology milestones. AMD has a winning business model and a clear strategy to grow AMD’s footprint in its key markets. Under Rory’s leadership, AMD’s employees, customers, communities and partners will continue to be at the forefront of its success. Building on a strong legacy of corporate citizenship, AMD is excited by new opportunities to bring even greater benefits of its technology to people around the world. L&T Infotech's partnership with Seeburger gets first client L&T Infotech Ltd said its joint venture with the US-Based Seeburger Inc has bagged first client. L&T Infotech said the client is a Fortune 100 distributor servicing vendors and re-sellers throughout the world. The company, however, did not provide any financial details of the contract. L&T Infotech, a subsidiary of Larsen & Toubro Ltd, had partnered with North-America's Seeburger Inc to provide implementation and support services for the latter's information technology collaboration and integration solutions. Seeburger provides business integrations tools, managed file transfer solutions and various SAP-linked collaboration solutions. Both the companies formed the partnership as a part of their channel expansion strategy.

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

TCS launches exchange trading, clearing, surveillance solution Tata Consultancy Services Ltd has launched a new platform for exchange trading, real-time risk management, and clearing and surveillance. It said the new platform is integrated with other banking solutions used for clearing, depository and settlement. "This integrated solution, which has components for trading, real-time risk management, clearing and surveillance, is a significant enhancement to the capabilities of TCS BaNCS Market Infrastructure and has already been validated in a real-time customer environment," the release said. The new solution is expected to go live for two customers in the next few months. On Sep 19, South Africa's Nedbank Investor Services implemented TCS's banking solution for transaction processing and better compliance. Tata Consultancy launches new version of its banking software Tata Consultancy Services Ltd launched BaNCS Core Banking Release 12.0, a new version of its software for banks, insurance companies and capital markets, at an event in Toronto, Canada. The new version provides cross-entity customer transactions across geographies, calculation of effective interest rates, impairment of assets, and fair valuations of cash flow. "We have significantly expanded TCS BaNCS' functional coverage with the customer at the centre and updated regulatory compliance as a fundamental imperative," R. Vivekanand, global head of product delivery at TCS BaNCS, said in the release. Banking, financial services, and insurance is the largest vertical for TCS, the country's largest software exporter. BaNCS is its flagship software for the segment. IT biz: Ricoh targets Rs.250 crore India revenue by 2013 Japanese imaging solutions provider Ricoh, which recently made a foray into the Indian IT sector, is eyeing nearly Rs.250 crore in revenues from this venture by 2012-13. The Japanese company also said it plans to become a Rs.1,000 crore firm in India by FY13 and is looking to garner nearly 25% of its revenues from its IT business. Ricoh had acquired Noida-based IT company Momentum Infocare, a firm specialised in system integration, this Jun, marking its foray into the sector. We aim at generating around Rs.250 crore from our IT business, which will be nearly 25% of our total business by 2013, Ricoh India Director for Business Operations Sujit Sanyal said. TCS gets 5-year multi-mn dollar contract from Deutsche Bank Tata Consultancy Services Ltd has bagged a five-year multi-mn dollar contract from Deutsche Bank to provide information technology services for transformation of the bank's capital market business unit. As a part of this contract, TCS will provide application services desk and IT Infrastructure Library services to Deutsche Bank's locations across seven countries--US, UK, Germany, Hungary, Philippines, Singapore and India. The IT Infrastructure Library is a set of standards and practices used for IT services management, development and operations. The IT solutions will help Deutsche Bank improve service delivery using the ITIL framework of best practises, Tata Consultancy said. HCL Tech implements SAP at US-based Sacramento municipal utility HCL Technologies Ltd said its business division, HCL Axon, has implemented SAP customer relationship management application and upgrade of SAP for utilities solutions at Sacramento Municipal Utility District in US. Sacramento Municipal Utility is a community owned electric utility and serves more than 1.4 mn customers. "HCL will help us integrate more than 150 customer business processes and provide an implementation of SAP CRM (customer relationship management) for the smart-grid," said Marty Katz, manager of business technology at Sacramento Municipal Utility District. Tata Consultancy implements banking software at South African Co Tata Consultancy Services Ltd has implemented its banking software --TCS BaNCS Securities Processing--at South Africa's NedBank Investor Services. Nedbank Investor Services a leading custodian in South Africa and provides custodial and settlement services to over 100 institutional investors. It has replaced its older securities and custodial applications with Tata Consultancy's banking solution. TCS BaNCS Securities Processing will aid in management of services related to equities, bonds, money market issuances and settlements. Prism Informatics acquires 18% stake in US-based Idhasoft Prism Informatics Ltd said it has acquired 18% stake in US-based Idhasoft Ltd from a majority stakeholder. In a release, Prism Informatics said Idhasoft, which offers software products and services for industries such as education, healthcare and retail, has over 1,000 clients and is seen achieving a turnover of Rs.4 bn in 2011-12 (Apr-Mar). In August, Prism Informatics had said it would invest in Idhasoft by subscribing to its

Weekly Newsletter 32 Info-Spectrum Bridging the Information Gap in Corporate Landscape rights issue of shares, and by buying equity shares from existing shareholders for a total shareholding of 51%. Samsung aims to garner 50% share in tab PCs S Ronendra Singh, New Delhi Financial Chronicle Consumer electronics manufacturer, Samsung Electronics said the company is confident of achieving 50% market share in tablet personal computers (PCs) this year. Samsung India said it would give tough competition to all major mobile devices makers including Apple. The company said it has around 45% market share in tablet PCs through sales of two of its models Galaxy Tab P1000 and Galaxy Tab 750. Hexaware promoter Elder Venture to up stake in co to 10.13% Hexaware Technologies Ltd's promoter Elder Venture LLP said it would raise stake in the company to 10.13% from 8.41% currently via inter-se transfer on or after Sep 27. In a notice to the stock exchanges, Elder Venture said it plans to acquire 5.05 mn shares, or 1.72% stake, of Hexaware Technologies from another promoter Elder Hides and Leather Pvt Ltd. The shares will be acquired at their closing price on the National Stock Exchange a day before the transfer. Satyam develops innovation centre for University of Waterloo Satyam Computer Services Ltd has developed Smart Grid Research and Innovation Center for the University of Waterloo in Ontario, Canada. The centre will aid development of next generation smart grid technology. Smart grid technology adds computer and communications technology to existing electricity grids, optimising electricity flow and energy efficiency. Satyam Computer looks for JV to expand in Chinese markets Satyam Computer Services Ltd is looking for strategic alliance or a joint venture with a Chinese partner to expand its presence in China. The company has presence in China where it employs 500 people and has facilities in Shanghai and Nanjing. The company is also exploring opportunities in Indonesia and Philippines. HCL Technologies to set up software delivery centre in Dublin Noida-based HCL Technologies Ltd will set up a software delivery centre in Dublin, Ireland. "With this centre HCL will service a growing number of HCL clients and prospects in the financial services, insurance and healthcare/pharmaceutical industries," the company said. The centre is likely to create 80 jobs in the next three years for IT graduates in the country. Oracle Financial launches Islamic banking software Oracle Financial Services Software Ltd has informed regarding a Press Release dated Sep 19, 2011 titled "Oracle Announces New Release of Oracle Financial Services Basel II that Enables Banks to Meet Islamic Financial Services Board Guidelines for Capital Adequacy" HCL Tech gets 5-year, multi-mn dollar contract from Deutsche Bank HCL Technologies Ltd said it has signed a five-year, multi-mn dollar application support transformation deal with Deutsche Bank's capital markets arm. The company, in a release, said under the deal, it would manage key banking applications that are crucial to Deutsche Bank's business. California Soft to mull enterprise solution arm sale California Software Company Ltd has informed that a meeting of the Board of Directors of the Company will be held on Sep 23, 2011, inter alia, to consider sale of its business unit Enterprise Solution that comprises of "Inatech Infosolutions Pvt. Ltd." and its Subsidiaries. TCS Ramadorai says rupee depreciation "good" for Indian IT cos The recent depreciation in the rupee against the US dollar is "good" for the Indian information technology sector, Tata Consultancy Services Ltd's Vice Chairman S. Ramadorai said. Prism Informatics gets software order from Sri Lankan co Hemas Prism Informatics Ltd said it has received an order from Sri Lanka-based conglomerate Hemas Holding Plc for an undisclosed amount. Satyam fraud case: CBI seeks more time for trial In the trial against former Satyam chief accused in the multi-crore Satyam accounting fraud case, CBI has approached Supreme Court seeking more time.

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

TATA CONSULTANCY SERVICES: • Has launched a new platform for exchange trading, real-time risk management, and clearing and surveillance. • Launches new version of core banking software TCS BaNCS. KPIT CUMMINS INFOSYSTYEMS: • Plans to hire 2,000 people this year, primarily for automotive vertical. • Eyes $500 revenue by end of 2012-13; to hire 1,200 employees shortly. WIPRO: • A top official of the healthcare and life-sciences unit said the company is aggressively looking at buying niche companies, preferably in the US, in health and lifesciences. • Ltd is in the running to acquire Wipro's water treatment business. 3i INFOTECH: In talks with lenders to recast its Rs.6-bn short-term debt; looking to refinance foreign currency convertible bonds, open to Global depositary receipts. INFOSYS: The company's cloud computing services grow five times in past one year, jumping from about 20 last year to over 100 engagements currently. TECH MAHINDRA: Eyeing acquisitions in both business process outsourcing and information technology space. PRISM INFORMATICS: Acquires 18% stake in US-based Idhasoft; sees Idhasoft's 2011-12 turnover at Rs.4 bn. SATYAM COMPUTER SERVICES: Exploring a strategic alliance or joint venture with a Chinese company. REDINGTON INDIA: Polycom Asia selects the company as distributor across SAARC.

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

PHARMA & HEALTHCARE PHARMACEUTICAL & HEALTHCARE: • Nova Medical to raise $50 mn for expansion plans. • Manappuram Group to invest Rs.15 bn in healthcare business. • US medical device maker UE Lifesciences eyes Indian business. • Fortis Healthcare to consolidate India, overseas ops by Dec. • US court upholds ban on Sun Pharma's sales of Eloxatin generic. • Lupin gets US FDA OK for oral contraceptive generic norethindrone. • Franklin Templeton Fund invests Rs.450 mn in Symbiotec Pharmalab. • Commerce and industry minister Anand Sharma writes to the Prime Minister, seeking that all foreign investment in Indian pharmaceutical companies be approved by the government. • FDI in pharma sector likely to need government approval. • Fortis Healthcare pulls out of talks to buy Turkey-based hospital. • Roche files patent suit against Intas Pharma, seeking ban on the company from marketing the generic version of its anti-cancer drug erlotinib hydrochloride. • Department of Industrial Policy against Planning Commission member Arun Maira-headed committee's proposal to allow unrestricted FDI in the pharmaceutical sector. Emami to invest Rs.2k cr in healthcare Subsidiary to dilute 25% stake to PE firms; add seven hospitals, expand existing three over two year. Emami, the Kolkata-based diversified group, would be investing about Rs.2,000 crore in the next two years on the healthcare segment. Advance Medicare and Research Institute (Amri) Hospitals Ltd, controlled by Emami, is setting up seven hospitals across north and east India, with an investment of Rs.1,750 crore. Another Rs.300 crore would be spent on adding beds at existing hospitals. The Indian private hospitals segment would reach a size of $54 bn by 2014, with a compounded annual growth rate of 20% against the present level of $26 bn, says a recent study by The Associated Chambers of Commerce and Industry of India (Assocham). The Rs.250-crore Amri Hospitals is looking at a revenue of Rs.500 crore in the next two years. Emami holds 66% stake in Amri. The Kolkata-based Shrachi Group and the West Bengal government are among others holding the remaining stake. A senior official at Emami said Amri would raise the needed money through a mix, 70:30, of debt and equity. It is likely to dilute about 20-25% stake to private equity firms. Aditya Agarwal, director, Emami, said, “We are considering a mix of debt and equity. Though we have not finalised the plans, PE players have shown interest in the company (Amri) and we are also considering those options.” He refused to disclose the figures. In West Bengal, Amri is setting up four hospitals, with 1,300 beds. The projects are at Rajarhat (500 beds), Siliguri (300 beds), Burdwan (200 beds) and North Kolkata (300 beds). The overall cost would be Rs.800-1,000 crore. Currently, Amri has a capacity of 1,000 beds across three hospitals at Kolkata, in Dhakuria, Salt Lake and Mukundapur. The process of adding 600 more beds in these hospitals with an investment of Rs.300 crore has already started. Amri’s three other projects are at Raipur, Patna and Ranchi, with a capacity of 300 beds each, at an overall cost of Rs.750 crore. A study by KPMG says India will need another two mn beds by the end of 2028, to achieve a target of five beds/1,000 patients. At present, India has one hospital bed per 1,000 people, as against the global average of three beds per 1,000 people. Amri has also joined the contest to acquire Ahmedabad-based Sterling Hospitals, which is backed by Actis, the private equity major. The Rs.250-crore Sterling has 1,000 beds in four multi-speciality tertiary care hospitals, one each in Ahmedabad, Vadodara, Rajkot and Bhavnagar. It has secondary care hospitals in the Mundra special economic zone and at Adipur, both in Kutch. Though there is increasing potential, not many PE activities are happening in healthcare. According to data from VCCedge, since 2006, there were 46 deals worth $864 mn in the hospital sector in India. Till date in 2011, only four deals worth $45 mn have taken place, against eight deals worth $89 mn in 2010. Year 2008 witnessed the highest number of deals, 12 worth $313 mn in the same space. Gujarat to start India's first 24 hour medical tele-counselling Gujarat government will set up medical helpline to provide tele-counselling. The helpline will keep the service open for 24 hours and can be accessed by dialling 104. This is the first time any state would provide phone advisory on health issues to the citizens. It will also set up 'non-branded generic stores' at district hospitals to provide affordable medicine. In 2007, Gujarat government was the second state in the country

Weekly Newsletter 35 Info-Spectrum Bridging the Information Gap in Corporate Landscape after Andhra Pradesh to introduce 108 Emergency Ambulance services. The service was started with Hyderabad-based Emergency Management and Research Institute (EMRI) that was later taken over by GVK Group. The 104 tele-counseling and non-branded generic stores services too would be operated on Public Private Partnership (PPP) model. The government has undertaken a tendering process and would invite interested companies. The 'non-branded generic stores' would be operated through Non Governmental Organisation (NGOs) again through a tender process. Minister of health and family welfare Jayanarayan Vyas said the services would start in three months. "The corporates are ready to cater to the middle and upper middle as well as the rich class. But a huge demand for affordable healthcare is left unaddressed." he said adding that here were a PPP model can be worked out to provided medicine at a affordable rate to the bottom of the pyramid in our social and economical set up. The 'non-branded generic drug stores' would initially start at district hospitals and gradually extend to government hospitals in the state. The 104 medical counseling services over the phone would be provided 24 X 7 by qualified and trained medical and para- medical staff. They will be also equipped with providing the address of the nearest doctors or hospital to the public. South African pharma major ties up with Natco LITHA Healthcare, the fourth-largest pharmaceutical company on the Johannesburg Stock Exchange (JSE), announced a strategic tie-up with Natco Pharma, a Hyderabad-based generic pharmaceutical manufacturer. The Business Standard understands the agreement with Natco is only one of a handful of similar agreements that Litha is mulling. Market sources suggest Litha is set to sign with other Indian pharma companies in the next few months. The Natco agreement will see Litha’s new generics business marketing a range of products developed and manufactured by the Indian company in South Africa and neighbouring states. CEO Selwyn Kahanovitz said the Natco agreement would ensure Litha had access to a multitude of pharmaceutical dossiers that would hopefully be brought to market in 2014. He said it was difficult to assess the potential impact on the company's generics division, which is currently its smallest division with turnover of $14 mn (Rand 100 mn). "It’s going to add considerable scale; it will be material," he said. The Natco agreement is the second-major generics link-up between Indian and SA pharmaceutical companies. Indian pharma giant Cipla already enjoys a very successful relationship with Cipla Medpro, the third-largest pharmaceutical company on the JSE. Kahanovitz said the Natco agreement enhanced Litha’s strategy to add value and breadth to its generic pharmaceutical pipeline. "It demonstrates our commitment to an aggressive growth strategy to become a major provider of generic medicines in SA," he said. Fortis Healthcare to consolidate India, overseas ops by Dec Fortis Healthcare (India) Ltd will acquire Singapore-based sister concern Fortis Healthcare International in a bid to consolidate its health operations under one umbrella, group Chairman Malvinder Singh said. "Our vision is to create a leadership position in integrated healthcare delivery in the pan-Asia Pacific region. This integration is a fundamental step in that direction," Singh said. While the valuation of the deal will be determined by an independent agency, the Singh brothers--Malvinder Mohan and Shivinder Mohan--are hoping to close the transaction by Dec, he said. "The valuation will be advised by an independent valuation agency, to be appointed by a committee of independent directors for the purpose," the company said in a statement. Singh said though the company has not yet finalised the mode of fund raising, it will be an "all- cash deal". Sequent Scientific shuts Tarapur unit on gas leak Sequent Scientific Ltd has informed as under : "Last night ( Sep 20, 2011) there has beer an accident at our Tarapur facility which manufactures drug and drug intermediaries. The effects have been contained last night itself, but the incident resulted in the sad demise of 4 workers, and injuries to a few other workers. The plant has been temporarily shutdown post the accident. An internal committee has been set up to investigate into the accident. We are also co-operating with the police/ other regulatory agencies who are conducting their investigations. We express our deep condolences to the families of the victims. We are reaching out to the families of the victims and taking care that the injured are treated." US court upholds ban on Sun Pharma's sales of Eloxatin generic The US District Court of New Jersey has upheld its verdict barring Sun Pharmaceutical Industries Ltd from selling the generic version of cancer drug Eloxatin until August. Sun Pharmaceutical had launched Eloxatin generic in March 2010. However, in April 2010, the court had ordered the company to discontinue sales of the drug from Jun 30 that year. The court has upheld Sanofi's patent on Eloxatin, maintaining its market exclusivity on the drug through Aug 9, 2012, Sanofi said in a release. Most analysts said sales of the drug

Weekly Newsletter 36 Info-Spectrum Bridging the Information Gap in Corporate Landscape have not been factored into Sun Pharmaceutical 28-30% revenue guidance for 2011-12 (Apr-Mar), and see limited impact as a fallout of this verdict. Sun Pharma says FDA clears Cranbury unit; Detroit issues pending Sun Pharmaceutical Industries Ltd said the US Food and Drug Administration has cleared its US arm's manufacturing facility at Cranbury in New Jersey. In August 2010, the FDA had issued a warning letter on the facility for violations of good manufacturing practice regulations. Also, Sun Pharmaceutical said its other subsidiary Caraco Pharmaceutical Laboratories continues to work with consultants to resolve the issues raised by the FDA on its Detroit plant. In Apr-Jun, Sun Pharmaceuticals US formulations business grew just 1.7% to Rs.6.22 bn, mainly due to regulatory issues on its New Jersey and Detroit units. Lupin gets US FDA OK for oral contraceptive generic norethindrone Lupin Ltd's arm Lupin Pharmaceuticals Inc has got the approval from the US Food and Drug Administration to make and market the generic version of Watson Pharmaceuticals' oral contraceptive drug, NOR-QD, in the US. Lupin will "shortly" start shipping the drug, norethindrone 0.35 mg tablets, which will be its first generic oral contraceptive in the US. NOR-QD is a progestin-only oral contraceptive prescribed for prevention of pregnancy. NOR-QD and its generic versions had combined annual sales of around $52 mn for the twelve months ended Jun. Fortis Health to buy Fortis Healthcare International Fortis Healthcare (India) Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 19, 2011, inter alia, subject to necessary approvals, approved the following: 1. Consolidation of Fortis Healthcare International Pte Limited, Singapore based leading healthcare delivery Company, with the Company - Fortis Healthcare (India) Limited; and 2. Proposal to rename the Company as "Fortis Healthcare Limited" in order to align with the new strategy to consolidate the Fortis Group's healthcare services business across the Asia-Pacific region. Lupin gets US FDA nod to sell 3 strengths of Lunesta generic Drug maker Lupin Ltd has received the US Food and Drug Administration's nod to sell generic eszopiclone in the world's largest drug market, according to information available on the regulator's website. CCI clears Wockhardt's proposal to sell nutrition biz to Danone Competition Commission of India has cleared Wockhardt's proposal to sell its nutrition business to French food multinational Danone. Danone will acquire Wockhardt's nutrition business through G&K Baby Care Pvt Ltd, a special purpose vehicle registered in India for the transaction. Promoter company revokes pledge on 52.2 mn Fortis Healthcare shares Promoter company Fortis Healthcare Holdings Ltd has revoked pledge on 52.2 mn shares of Fortis Healthcare (India) Ltd Friday, reducing the number of outstanding shares pledged to 169.19 mn shares. Fortis Healthcare Holdings holds 329.59 mn shares in Fortis Healthcare (India). Tonira Pharma board approves co's merger with Ipca Laboratories Tonira Pharma Ltd said its board of directors has approved the company's merger with Ipca Laboratories Ltd with effect from Apr 2011. As per the scheme of merger, shareholders of Tonira Pharma will get 6 shares of Rs.2 each of Ipca Laboratories for every 100 shares of Rs.10 held in the company. Dr Reddy's Jul-Sep advance tax up 41%, BGR Energy up over 7-fold Dr Reddy's Laboratories Ltd paid Rs.650 mn as second instalment of advance tax for 2011-12 (Apr-Mar) against Rs.460 mn a year ago, an increase of 41%, a senior official of the Andhra Pradesh income-tax department told. Ankur Drugs reaches debt restructuring agreement with lenders Ankur Drugs and Pharma Ltd has reached an agreement with its lenders to restructure term loans of Rs.1.65 bn and working capital loans of Rs.5.31 bn, the company notified the stock exchanges. BIOCON: • Eyes $1 bn in revenue in three years. • Sees big opportunities from PFIZER deal on four insulin products form 2013-14. WOCKHARDT: The Competition Commission of India clears the company's proposal to sell its nutrition business to French company Danone.

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

ANKUR DRUGS AND PHARMA: Lenders approve debt recast plan; Rs.1.37 bn worth loans to be converted into preference shares. AMRUTANJAN HEALTHCARE: Plans to expand in US, Europe, West Asia and East Africa. Looking to set up a base in Poland. NATCO PHARMA: South African drug company LITHA Healthcare in strategic tie-up with the company. LUPIN: Gets US Food and Drug Administration OK for oral contraceptive generic norethindrone. APOLLO HOSPITALS: To divest minority stake in business process outsourcing unit. VIVIMED LABS: In talks to buy Spain's Uquifa SA for around $55 mn (Rs.2.63 bn). FORTIS HEALTHCARE: Pulls out of talks to buy Turkey-based hospital.

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

TELECOM TELECOMMUNICATION: • Samsung plans to make India its export hub and plans to supply phones to West Asia and African countries soon. • Mobile service operators and internet service providers asked to install indigenously developed online monitoring equipment at all 71 locations where net traffic flows into or outside the country; operators told to bear cost of installing the equipment. • Ailing Bharat Sanchar Nigam likely to scrap 15-mn line GSM tender. • 2G court allows law ministry opinion on associate cos. • Centre plans to monitor 3G mobile services offered by all telecom service providers--currently monitored by provisions under the unified access service licence--by bringing these under the ambit of the internet monitoring system. • Government clears Vodafone's stake buy in joint venture with Essar. • Maxx Mobile to expand footprint to Africa. • The telecommunications ministry has asked operators to submit status reports on offering location- based service of mobile users by Nov as part of network security guidelines. • US-based Qualcomm has sent another letter to the Department of Telecommunication seeking broadband spectrum and licence in the four circles for which it had won the auction in 2010. • Department of Telecommunications is looking into the use of mobile virtual network operator model to implement rural wireless broadband scheme. • Central Bureau of Investigation may have enough proof to book Dayanidhi Maran for alleged wrongdoing as telecom minister to favour Aircel after its ownership changed to the Maxis group. • Letter by finance ministry shows that former finance minister P. Chidambaram did not prevent the sale of 2G spectrum at allegedly throw-away prices. • Supreme Court frowns on Telecom Regulatory Authority of India's zero-loss theory on 2G spectrum allocation. • Bharat Sanchar Nigam ready to pay Rs.2 mn each to staff under proposed voluntary retirement scheme. • BSNL's losses have more than tripled to about Rs.60 bn during the year ending March, 2011. Pranab's note to PM casts doubts on Chidambaram's role in 2G scam That there is no love lost between Finance Minister Pranab Mukherjee and his predecessor and now Home Minister P. Chidambaram is no secret. But, the simmering antipathy may turn into a full-blown war between the two senior Cabinet colleagues after a note sent by Mukherjee to Prime Minister Manmohan Singh casting doubts over the role of Chidambaram in the 2G spectrum allocation has become public. Television news channel CNN-IBN, sourcing its information to Right to Information Act activist Vivek Garg, said it has access to the 11-page note dated Mar 25, 2011 that was sent from the finance ministry to the prime minister's office. The note casts doubts over the role of Chidambaram, who was finance minister during the allocation of 2G spectrum in 2008, the channel said. According to the note, the Department of Telecom would have been forced to cancel the 2G licences had the finance ministry stuck to the demand for auctioning of spectrum. The finance ministry's note says Chidambaram sent a secret note to the prime minister in January 2008 to treat spectrum allocation as a "closed chapter." Singh and Mukherjee are currently on a visit to the US. While the prime minister is in New York to attend a UN General Assembly session, Mukherjee is in Washington to attend the International Monetary Fund, World Bank and G-20 meetings. In the wake of fresh revelations today, Janata Party President Subramanian Swamy's plea in the Supreme Court seeking direction to the Central Bureau of Investigation to probe the role of Home Minister P. Chidambaram in the 2008 2G spectrum assumes significance. Swamy had told the court that Raja and Chidambaram had jointly decided on the pricing of the spectrum. "Four meetings were held between Chidambaram and Raja to discuss price issue in 2008. They were on Jan 30, May 29, Jun 12 and Jul 4 and the last was more in terms of conveying the decision to the prime minister," Swamy had said. Hearing on Swamy's plea in the apex court will continue. Last week, Swamy also moved the special CBI court seeking directions to make Chidambaram a co-accused in the 2G spectrum case.

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

SC "surprised" at TRAI assessing zero loss in award of 2G spectrum The Supreme Court expressed surprise at a recent report of the Telecom Regulatory Authority of India, which purportedly assessed "zero loss" in the 2G spectrum allocation of 2008. "We are surprised by the TRAI report. TRAI is a regulatory body created by Parliament. TRAI is supposed to be a regulator. What they have done is debatable," the apex court bench comprising G.S. Singhvi and Asok Kumar Ganguly said in a passing observation while hearing a petition filed by Janata Party President Subramanian Swamy. Swamy has moved the Supreme Court seeking direction to the Central Bureau of Investigation to probe Home Minister P. Chidambaram's role as the then finance minister in 2G spectrum allocation. In its report, the Comptroller and Auditor General had concluded that A. Raja, as the then telecom minister, had arbitrarily awarded 2G telecom licences at throwaway prices instead of going for an auction, which led to a loss of around Rs.1.76 trn to the exchequer. The CBI, which is now investigating the 2G spectrum allocation case, has pegged the loss at about Rs.300 bn. Raja and some senior telecom officials have been lodged in Delhi's Tihar Jail for over six months as accused in the scam. Meanwhile, the bench, which occasionally questioned the arguments of CBI Counsel K.K. Venugopal opposing the maintainability of Swamy's petition, adjourned the hearing. Subex to sell telecom user activation software ops to NetCracker Subex Ltd, which offers business support systems for telecom providers, has entered into a pact to sell its activation software operations to US-based NetCracker, the company said in release, without disclosing the deal value. The activation business mainly comprises of software technologies used by telecommunication operators to activate new subscribers onto their network. NetCracker, an arm of the $40-bn NEC group, also provides telecom software. "The decision to sell the activation business is an outcome of change in the Subex strategy to focus on its core products," the company said. The Bengaluru-based company's core business includes the Revenue Operation Centre-platform that helps telecommunication companies in revenue assurance, fraud management, and data integrity management. "This decision and the renewed focus will enable us in growing our revenue over 20% annually with positive growth in EBITDA (earnings before interest, tax, depreciation, and amortisation)..." Menon was quoted as saying in the release. Sterlite Technologies gets Rs.1.14 bn order from BSNL Sterlite Technologies Ltd has received a Rs.1.14 bn order from state-owned telecom operator Bharat Sanchar Nigam Ltd. Sterlite Technologies, a provider of transmission solutions for telecom and power companies, will install, deploy, and maintain central office broadband systems across BSNL's telecom circles in India by Mar 2013 as per the order. The company will also manage the telecom operator's broadband network for seven years after commissioning. "The system would be capable of handling about 1.6 mn broadband connections," Sterlite Technologies said. Including the latest order, Sterlite has received orders worth Rs.5.6 bn since July 1. Kavveri Telecom arm in 10-year pact with local telecom operator Kavveri Telecom Products Ltd said its subsidiary Kavveri Telecom Infrastructure Ltd has signed a 10-year agreement with a domestic telecom operator to provide wireless network solutions within large buildings. Also, Kavveri Telecom it currently planning to procure orders from overseas markets. Kavveri Telecom Products had ventured into in-building solution business in 2008 through its 51%-owned subsidiary Kavveri Telecom Infrastructure. Telenor to raise up to Rs.80 bn in its JV with Unitech Norwegian telecom company Telenor plans to raise up to Rs.80 bn in its Indian joint venture with real estate developer Unitech. The cash would be raised with a combination of rights issue and debt. Telenor's plans will be the biggest follow-on investments in the domestic telecom industry embroiled in 2G spectrum scam. Promoter Bharti Telecom raises stake in Bharti Airtel to 45.52% Bharti Airtel Ltd said its promoter Bharti Telecom Ltd has raised its stake in the company to 45.52% from 45.50%. In a notice to the National Stock Exchange, Bharti Airtel said Bharti Telecom bought 774,912 shares of the company for Rs.292.63 mn through six open market transactions between Sep 13 and Sep 16. DoT asks TCIL to revisit proposal to exit Bharti JV The Telecom Ministry has asked state-owned TCIL to revisit the proposal to exit from its joint venture with Bharti Group in Rajasthan, as it has not received any dividend despite the JV making profits since 2009-10.

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

DATA ALERT: Idea tops GSM Aug subscriber addition; total adds fall Idea Cellular sped ahead of peers that operate on the Global System for Mobile Communications in subscriber additions in the month of Aug, surpassing its nearest rival by over 1 mn users. MAHANAGAR TELEPHONE NIGAM: • Centre decides to let the company and Bharat Sanchar Nigam operate and maintain the secure telecom network that is being built to connect all government departments. • Telecom department plans 'grand alliance' of government telecom firms--MTNL, BSNL, ITI, Telecommunication Consultants of India, and research body C-DoT, proposed to share their telecom assets and buy products and services at preferential rates to optimise central sector resources and withstand competition from private sector rivals. BHARTI AIRTEL: Telecom ministry asks Telecommunications Consultants India to revisit its proposal to exit joint venture with, Bharti Hexacom, as it has received no dividend despite the partnership making profits since 2009-10.

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

BANKING & FINANCIAL SERVICES BANKING & FINANCE: • National Housing Bank aims to set up mortgage guarantee company by Mar. • Head says SBI not looking at stock split at current market price. • Banks' cash balance with RBI Rs.3.8425 trn as on Sep 15. • Axis Bank OKs 2-stage plan for Enam buy to comply with RBI norms. • Aviva Life Industance scouting for a bank partner to expand insurance network; may finalise deal by the end of Dec. • National Housing Bank sees drop in home loan growth due to high property prices. • Finance ministry denies plan for tax amnesty. • IL&FS Investment Managers Ltd, the private equity arm of Infrastructure Leasing and Financial services, plans to raise $750 mn-$900 mn through three new funds. • Insurance companies may have to standardise debt returns. • National Housing Bank plans reverse mortgage plan with Life Insurance Corp of India. • Future Group plans to rope in bank as partner in life insurance. • Lakshmi Vilas Bank MD says to raise 5-7 bln rupees via QIP Jan-Mar. • Leading private banks such as ICICI BANK, HDFC BANK, and AXIS BANK have scrapped personal guarantee clause to bail out four microfinance companies. • Banks demand credit guarantee fund for study loans. • Fin secy-led panel may decide on fund infusion in SBI by Oct end. • SBI offers 25 bps concession on floating home loan rate till Dec 31. • RBI removes Union Bk, Karur Vysya Bk from caution list of FII buy. • IDFC to raise 50 bln rupees via infrastructure bonds. • IIFCL plans ADB-like infrastructure credit enhancement product. • RBI has removed UNION BANK OF INDIA and KARUR VYSYA BANK from the caution list for foreign institutional investors' investments. • Lloyds pulls out deposits from European banks on concerns that governments may not be able to support lenders in a worsening debt crisis. • Non-banking finance companies want risk weight lowered for secured loans. • National Insurance Corp plans to raise health insurance premium. Head says IIFCL likely to get govt nod to convert to NBFC in 1 month India Infrastructure Finance Co expecting the government's nod to convert itself into a non-banking finance company in a month, S.K. Goel, Chairman and managing Director said. "We have sent a proposal (for conversion into an NBFC) and expect the Cabinet to approve it, may be in a month's time," Goel told. Goel also said IIFCL was interested in applying for banking licence but at a later stage. "...at a later stage, not immediately...we don't want to divert from our main business of financing the infrastructure (otherwise) our main business will get side-tracked," Goel said. He said the company has sent a proposal to raise Rs.100 bn through tax-free infrastructure bonds. "Government wants cheaper money for infrastructure...tax-free bond is the only source," he said. The government had allowed IIFCL to issue tax-free bonds worth Rs.300 bn of which Rs.100 bn is already raised and the second tranche of Rs.100 bn is under the process for government approval, he said. "It (second tranche) will be approved in one month's time," he said. Goel said "In my opinion, the issue should come by Dec or Jan." He said the IIFCL, Life Insurance Corp of India and IDFC, all long-term lenders, will sign a memorandum of understanding on takeout financing. "Individually, we can take out 20% of the project cost but with a consortium, we can take out 50% of the project cost comprising 20% each by IIFCL and LIC and 10% by IDFC," Goel said. Finance Minister Pranab Mukherjee said the consortium of IIFCL, LIC and IDFC will help financing to the tune of Rs.300 bn under takeout finance scheme. "I expect this mechanism will help financing to the tune of Rs.300 bn under the scheme. This will facilitate bank to take more exposure in new projects, which in turn will help in bridging the gap in infrastructure financing to a great extent," Mukherjee said in release after signing the memorandum of understanding.

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

Sidbi plans 20% higher credit support for MFIs this fiscal Small Industries Development Bank of India or Sidbi said it plans to disburse Rs.1,000 crore to microfinance companies this year, 20% higher than what it did in 2010-11, as a mark of its support to a sector which is slowly turning around. "The government and Reserve Bank of India have laid out a long term growth path for the MFI sector. The MFIs should see orderly growth in the future," Sidbi chairman and managing director S Muhnot said. The banking regulator has recently issued a detailed operational guidelines for MFIs and capped lending rates at 26% a year. The government, on the other hand, has prepared a draft MFI bill which proposed RBI as the central regulator for the sector. Muhnot said the government will soon finalise a Rs.100- crore microfinance equity fund for smaller MFIs, in line with what was proposed by finance minister Pranab Mukherjee in the Union Budget. The development finance institution is however not keen to take fresh equities in MFIs of its own at this juncture. Head says SBI not looking at stock split at current market price State Bank of India is not looking at a stock split considering the current market price and the likely higher cost involved in servicing the large number of shares post the split, Pratip Chaudhuri, chairman, told. "At the current market price, we are happy with Rs.10 face value. Splitting it would entail higher cost involved in handling the increase in stocks," he said. Chaudhuri's stand is in contrast to former chairman O.P. Bhatt who had mooted the idea of a stock split to increase liquidity and to make the stock accessible to retail investors. O.P. Bhatt had talked about the stock split when the SBI stock was trading nearly Rs.1,000 more than the current market price. Some SBI officials have been talking about splitting the stock to reduce the face value to just Rs.2 to boost liquidity. If SBI's stock split would have gone through it would have opened the doors for similar moves by other state-owned banks, such as Corporation Bank, that have very low liquidity in the market. RBI Chakrabarty says banks need time to implement norms on home loan Reserve Bank of India Deputy Governor K.C. Chakrabarty said that the central bank has set the norms on waiving penalty on home loan prepayment but banks must be given some time to implement it. "It is not that banks are not doing it, banks are. SBI has already waived these charges. Private banks must be given time to implement it," he said at an event here. RBI has asked banks to stop levying any prepayment charge on floating rate loans, much to the relief of borrowers who may be looking to prepay loans, especially home loans. Banks used to levy high penalty on foreclosure of loans before this directive, unless the borrower proved that the prepayment was from his/her own funds. By waiving floating rate loan prepayment charges, RBI has given borrowers an incentive to prepay their loans ahead of time and not be deterred by the up to 2% prepayment charge that has been levied by banks so far. IIFCL head says UK arm disbursed $800 mln of $5 bln line of credit India Infrastructure Finance Co Ltd's UK arm has so far disbursed $800 mln from the $5 bln line of credit extended by the Reserve Bank of India to the infrastructure funding company, Chairman and Managing Director S.K. Goel said. "The UK subsidiary has already covered about 32 projects in the country, primarily in power, ports and railway sectors. While the total sanctions were to the extent of $3.1 bln, the disbursement was $800 mln (so far)," he said on the sidelines of Confederation of Indian Industry's conference on infrastructure SUMINFRA-2011 here. The infrastructure funding company may consider raising funds overseas or approaching the RBI for a fresh line (of credit) once the existing line of credit has been exhausted by March 2013, Goel said. "... with new airport and seaport projects coming up, which require significant items to be imported, and with almost every major city in the country going in for metro rail projects, we expect the current line of credit to be consumed before March 2013," he said. IIFCL incorporated IIFCL (UK) Ltd in 2008 as a 100% subsidiary. On financing power projects in the country, Goel said ultra-mega power projects required anywhere between 160-180-bln rupee investments and even large banks found it difficult to extend finance to such projects. IDFC seeks SEBI nod to raise up to 50 bln rupees via infra bonds Infrastructure Development Finance Co has filed a draft shelf prospectus with the Securities and Exchange Board of India to raise up to 50 bln rupees by issuing infrastructure bonds in one or more tranches. These bonds are rated (ICRA)AAA by ICRA and Fitch AAA(ind) by Fitch Ratings, the company said in the draft available on the regulator's website. These long-term, secured, redeemable, non-convertible debentures provide income tax benefits to investors and are used to fund infrastructure projects. The bonds will be listed on the National Stock Exchange and the Bombay Stock Exchange. ICICI Securities, JM Financial, Karvy Investors Services, Kotak Mahindra Capital, and IDFC Capital are the lead managers to the issue.

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

Dena Bk to cut home, auto loan rates 25 bps Oct 1 on festive cheer Dena Bank has reduced the interest rates on new housing and car loans by 25 basis points effective Oct 1, the state-owned bank said in a press release. The bank has also cut the processing fee on home and car loans by 50%. The cut in loan rates comes even as the Reserve Bank of India last week continued with its monetary tightening, hiking its key policy rate, repo, by 25 basis points. Dena Bank said its move is aimed at benefiting customers as they make purchases during the festival season. Making major purchases is considered auspicious during the festive season, which peaks in October with Dussehra and Diwali. Sources say UCO Bank, Dena Bank scouting advisors for NPA sale UCO Bank and Dena Bank are scouting for financial advisors to help the banks sell their non-performing assets in a move aimed at reducing their NPA levels in Oct-Dec, officials at the banks told. "The main aim is to reduce NPA ratios and free up capital by taking these assets off the bank's books," a UCO Bank official said. The advisors will be expected to help the bank not only with identifying the sale portfolio, but also handling the documentation and managing the sale. Dena Bank Chairman and Managing Director D.L. Rawal had in an interview last week told that the bank was considering sale of NPAs to reduce delinquencies. "Selling NPAs will also reduce provisioning requirements," a Dena Bank official said. Punjab National Bk, FIM Bk JV to receive 1 bln rupees equity infusion India Factoring, the joint venture between Punjab National Bank and Malta-based FIM Bank, will receive 1 bn rupees equity infusion by the end of the third quarter. The non-banking financial company will start international factoring by the end of the year. The company's current asset at 5-6 bln rupees is likely to double by the end of the financial year. IL&FS to exit ORIX Auto Infra JV, sell stake to partner ORIX Corp IL&FS Group will sell its entire stake in ORIX Auto Infrastructure Services Ltd to its Japanese joint venture partner ORIX Corp, a company release said. After the stake sale, ORIX Corp would hold 99.95% share in ORIX Auto, which is engaged in auto infrastructure services with assets worth around 8.5 bln rupees. IL&FS Group and ORIX Corp had formed the joint venture in 1993. INTERVIEW: Lakshmi Vilas Bank eyeing 5-7 bln rupees via QIP Jan-Mar Volatility, which has been synonymous with the market over the past several quarters, has deprived many companies of much-needed capital as they wait for stability to return before putting their fundraising plans in place. IDFC to acquire IT park in Noida for 5.12 bln rupees Infrastructure Development Finance Co will acquire an IT park jointly owned by DLF and 3C Co in Noida for 5.12 bln rupees. This would be the second transaction for DLF in September. Earlier this month, it had sold a 27.4-acre plot in Gurgaon to M3M for 4.4 bln rupees. Bank of India seeks 40 bln rupees capital infusion from govt Bank of India has sought 40 bln rupees capital infusion from government to fund its growth for the next two- to-three years. The government holds 65% stake in the bank. As on Jun 30, the bank's capital adequacy ration was 11.6%. Fin secy-led panel may decide on fund infusion in SBI by Oct end A government-appointed panel, led by Finance Secretary R.S. Gujral, will decide on infusion of funds in public sector banks, including State Bank of India, a senior finance ministry official said. "The panel is likely to decide on SBI's capital infusion plan by October end," the official told. The panel will also decide on the quantum and methodology of the fund infusion in State Bank of India, the official said. Shares of SBI rose on the news of fund infusion SBI confirms 25 bps cut in floating home loan rate till Dec 31 The State Bank of India confirmed it was offering a 25 basis point concession for its floating rate home loans under a special scheme available till Dec 31. "A concession of 0.25% in card interest rate over the tenor of (floating) home loan is available under ongoing special home loan campaign up to 31.12.2011," a note on the SBI web site said. Axis Bank OKs 2-stage plan for Enam buy to comply with RBI norms The board of Axis Bank approved a two-stage process to acquire Enam Financial Services involving an issue of 13.79 mn shares of the bank to the brokerage's shareholders in the ratio of 5.7 shares for one share, and the subsequent demerger of the acquired entity to Axis Securities and Sales Ltd for Rs.2.74 bn in cash.

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

National Housing Bank aims to set up mortgage guarantee co by Mar National Housing Bank expects to set up a mortgage guarantee company by Mar, Chairman and Managing Director R.V. Verma said. "We are almost at the last stage of forming the mortgage guarantee company," he told reporters while discussing the bank's annual results for the financial year ended Jun 30. With back against wall, banks may be forced to cut loan spread In spite of the Reserve Bank of India's latest repo rate hike, banks may hold their horses before transmitting this increase to borrowers and may even reduce loan spreads, as they scramble to gain growth in business. Finance ministry asks state-owned banks to hold board meets in Capital The finance ministry has asked all state-owned banks to hold board meeting for two consecutive quarters in New Delhi. This will ensure that one of the official from the finance ministry is present at all the meeting. IIFCL ties with LIC, IDBI Bank for takeout financing India Infrastructure Finance Co has tied up with Life Insurance Corp of India and IDBI Bank to buy infrastructure sector loan portfolios of commercial banks. IIFCL and LIC would buy out 20% each and IDBI Bank 10% of the infrastructure loan portfolio of a bank. NABARD raises Rs.5 bn via 3-year bonds National Bank for Agriculture and Rural Development raised Rs.5 bn through three-year bonds, merchant bankers said. The company will pay an annual coupon of 9.38% on the bonds rated AAA by CRISIL. SBI MD sees Oct-Dec NIM lower than 3.5% expected in Jul-Sep State Bank of India's net interest margin in Oct-Dec is likely to be lower than 3.5% expected for Jul-Sep, A. Krishna Kumar, managing director of the country's largest lender, told. SBI head says to hike loan, deposit rates in 2-3 weeks State Bank of India Chairman Pratip Chaudhuri said the country's largest lender would look to raise lending and short-term deposit rates in two-three weeks. Dhanlaxmi Bank hikes Base Rate by 25 bps to 11% Dhanlaxmi Bank hiked the Base Rate by 25 basis points to 11.00% and Benchmark Prime Lending Rate by 50 basis points to 20.75%, the bank said in a release. INTERVIEW: MD sees Karnataka Bank FY12 loan growth 25% vs 17% FY11 Karnataka Bank Ltd is hoping retail loans will provide the push needed to achieve credit growth of 25% in 2011-12 (Apr-Mar), Managing Director and Chief Executive Officer P. Jayarama Bhat told. Banks offer concessions, fee waivers to boost home loan demand With loan demand so far in 2011-12 (Apr-Mar) coming mostly from sanctions announced last year and fresh proposals not picking up pace, banks are looking at providing concessions to boost loan growth in the retail segment. DATA ALERT: Banks' loans, deposits rise in fortnight to Sep 9 Loans dispensed by banks rose 294.33 bln rupees from the previous fortnight in the two weeks ended Sep 9 to 40.74 trln rupees, up 20.42% on year. SBI offers 25 bps concession on floating home loan rate till Dec 31 State Bank of India is providing a 25-basis-points concession on its floating rate home loan products to compete with fixed-floating rate products introduced by its peers, a senior official at the bank told. RBI revises criteria for banks to access payment systems from Oct 1 The Reserve Bank of India revised the criteria for banks to get memberships to centralised and decentralised payment systems. The revisions come into effect Oct 1. Credit offtake up 20.5% during 12 months to Sep 9 Despite the high interest rate regime, credit offtake from banks grew 20.5% to over Rs.42 lakh crore during 12 months to Sep 9, indicating strong momentum in the country's economic activity. INFRASTRUCTURE DEVELOPMENT FINANCE Co: • Signs pact with India Infrastructure Finance Co and Life Insurance Corp of India to help financing to the rune of Rs.300 bn under takeout finance scheme. • Seeks SEBI nod to raise up to 50 bln rupees by issuing infrastructure bonds in one or more tranches.

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

• The company and IL&FS to exit Delhi-Mumbai industrial corridor company, DMIC Development Corp in favour of state-owned foreign institutions BANK OFMAHARASHTRA: • May raise lending rates from Oct 1, in the wake of the latest rate hike. • Hopeful of getting Rs.8-bn fund infusion from the government in the current financial year. PUNJAB NATIONAL BANK: India Factoring, PNB's joint venture with Malta-based FIMBank, to get Rs.1 bn equity infusion from promoters by Dec. AK CAPITAL SERVICES: To invest additional funds up to Rs.7.5 bn in arm. Shareholders okay fund raising via qualified institutional placement. MUTHOOT FINANCE: Plans to increase advertising spend to Rs.1.5-2.0 bn this year against around Rs.1.30 bn last year. KARNATAKA BANK: The bank aims to achieve 25% growth in loans and 20% rise in deposit in 2011-12 (Apr-Mar). BANK OF INDIA: Has sought 40 bln rupees from the government to fund its growth for the next two-three years. The government holds 65% stake in the bank. PTC INDIA FINANCIAL SERVICES: To swap its holding in East Coast Energy, a part of Asian Genco, for a stake in the Singapore-based energy firm. DENA BANK: Has reduced interest rates on new housing and car loans by 25 basis points effective Oct 1. MANNAPURAM FINANCE: AA Development Capital India fund offloaded 1% stake in the company for 449.5 mln rupees. STATE BANK OF INDIA: Confirms 25 bps cut in floating home loan rate until Dec 31.

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

STEEL, METALS & MINERALS METALS & MINING: • Coal worth millions plundered in eastern and central India. • The mines ministry has suggested that the government create a corpus of Rs.10 bn to help mineral companies acquire overseas assets over the next five years. • Coal India to start exploring 2 Mozambique mines, eyes more assets. • Steel output in August up 7.4% against global rate of 9.8%, says World Steel Association. • Coal India says may up price if wages hiked; expects clarity by Dec. • Gravita says Metal Inc acquisition to up revenue by Rs.350-400 mn. • Nearly half the active iron ore mines in Goa are illegal and have caused the state exchequer a loss of at least Rs.30 bn since 2005, according to an official of the Public Accounts Committee. • The government of Jharkhand plans to take back excess land and mineral reserves where development of reserves has not been done, the move if approved may affect STEEL AUTHORITY OF INDIA and . • The Karnataka government may increase the volume of iron ore marked for auction to steel mills. Ministry favours Rs.1,000-cr fund for mineral buys abroad The Mines Ministry has suggested that the Government create a corpus of Rs.1,000 crore to help mineral companies acquire overseas assets over the next five years. Based on the recommendations of the Planning Commission sub-group on Mineral Exploration and Development (except coal and lignite) for the 12 {+t} {+h} Five-Year Plan, the Ministry said that besides extending diplomatic support the Government should look at formation of consortia of private and public sector units for joint asset acquisition. The Plan Panel sub-group had recommended that the Government play a facilitative role by involving diplomatic support and strengthen ties with mineral rich countries and provinces for asset acquisition. The recommendations assume significance for the country's resource security as Indian companies have been struggling to acquire overseas mineral assets except coal. This is even as major developed and developing countries are trying to acquire overseas mines. To a large extent, India is dependent on imports of rare earths and strategic minerals such as cobalt, lithium and gallium and also copper among others. China to a large extent controls the global supply of rare earths and strategic minerals. Besides creating a right framework to foster sustainable supply of raw materials from domestic sources, the Government could look at bilateral agreements with producing countries to secure supplies, it said. India can also create a national body for sourcing on raw materials on the lines of Jogmec – The Japan Oil, Gas and Metals National Corporation. The report also emphasises the need to encourage exploration of low grade ores through relaxation in taxation policy such as flow through options to offset the risks. There is a need to create mechanism by which venture capital is available to mining firms on the lines of Toronto Stock Exchange. It also calls for simplification of aerial survey procedures and approvals for expanding the exploration range, cluster mining approach to utilise small deposits, prevent illegal mining through appropriate measures and encourage recycling of scrap with appropriate technology. Uranium Corp, NPCIL to bid for assets abroad Public sector units Uranium Corporation of India Ltd (UCIL) and Nuclear Power Corp of India Ltd (NPCIL) will jointly bid for overseas uranium reserves, potentially boosting its financial firepower in any bid battle for gaining control of these assets. The two companies are exploring initial bids for mines in Mongolia, Kazakhstan, Russia and South Africa. India, which needs more power to light homes and run factories, is focusing on cleaner sources of energy. Its nuclear plants produce about 3% of the total power generated in the country, which India aims to raise to 25% by 2050. "UCIL and NPCIL will jointly bid for assets. We are keen on securing uranium assets abroad, even as we develop new mines within the country," UCIL managing director Diwakar Acharya said, adding, "We would like to bring back the ore to the country," referring to assets in those countries. While NPCIL will be the majority partner in any such project, UCIL is likely to pick up strategic stake of about 26%. UCIL has expertise is hardrock mining while NPCIL operates atomic power stations. The two companies joining hands will enhance the financial muscle of any bid. The Department of Atomic Energy, the administrative agency for both companies is framing a policy to facilitate the venture. In the past, policy issues and slow decision-making have stymied efforts by some PSUs to acquire assets abroad. "As a mining company, we can contribute our expertise in hard-rock mining. We have some of the best mining experts and technologists working for us," Acharya said. Acharya said factors such as mineable

Weekly Newsletter 47 Info-Spectrum Bridging the Information Gap in Corporate Landscape reserves, logistics and the regulatory framework of the host country would also influence choice. "Globally, uranium prices crashed after the accident at the Fukushima reactor in Japan. A good reserve could be valued anywhere between $300 mn and $500 mn," an analyst said. Coal India to start exploring 2 Mozambique mines, eyes more assets Coal India Ltd is planning to start drilling and exploration activities at its mines in Mozambique, and may consider expanding its footprints in that country by acquiring more assets, Chairman and Managing Director N.C. Jha said. In February, the company had floated tenders to invite private players to take up these activities in the leasehold area of the two coal blocks in Mozambique's north-western Tete province. The blocks are estimated to have reserves of 1 bn tn. "Bids from the interested bidders have been received and the same are under evaluation," Jha told shareholders at the company's annual general meeting. Coal India has also started the process of operationalising its subsidiary Coal India Africana Limitada, which will oversee the exploration and development activity of the coal blocks already under possession and scout for more opportunities in Mozambique. While interacting with reporters, Jha said the company is running behind in its targeted coal production for this financial year but is confident of catching up. "So far (Apr-Sep), the shortfall in (targeted) production is 16.97 mn tn," he said. "(We are) Confident of achieving the target." Coal India, under a pact with the government, aims to increase its output of the commodity to 452 mn tn coal in 2011- 12 (Apr-Mar) from 431.32 mn tn the previous financial year. The company also plans to set up 20 coal washeries at an investment of over Rs.40 bn in three-four years. The washeries will have capacity to process 111 mn tn coal a year. "As a step towards reducing environmental pollution, your company (Coal India) has decided to supply washed coal to all the non-pit head consumers in (the) first phase," Jha told the shareholders. Minister sees India FY12 coal supply gap falling to 114 mn tn The gap between demand and supply of coal in the country is expected to reduce to 114 mn tn in this financial year ending Mar from earlier estimates of 142 mn tn, Coal Minister Shriprakash Jaiswal said. "After taking into account 28 mn tn of coal stock liquidation from CIL (Coal India Ltd) for supply to power sector, the gap is envisaged to reduce to 114 mn tn," Jaiswal said while addressing an industry conference here. "However, the stock liquidation is subject to availability of rakes and if the same is not feasible, the power sector needs to arrange evacuation of coal from pit heads of their own," he said. The assessed coal demand in the current financial year is 696 mn tn and the target for production of coal is 554 mn tn, Jaiswal said. The minister also said on the sidelines of the conference that the government had given its in-principle approval for allocation of coal blocks to NTPC Ltd for its upcoming power projects. Earlier this year, the coal ministry cancelled allocation of some coal blocks to NTPC due to delays in developing assets. Vaswani Industries OKs 1-for-4 bonus share issue Vaswani Industries Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 20, 2011, inter alia, has considered and approved the following: 1. Increase in Authorized Share Capital of the Company from Rs.25,00,00,000 (Rupees Twenty Five Crore only) to Rs.30,00,00,000 (Rupees Thirty Crore only). 2. Alteration in Memorandum & Articles of Association of the Company to give effect to the prepared change in Authorizes Share Capital of the Company. 3. The proposal for making bonus issue of 25,00,000 (Twenty five lac only) equity shares of the Company to the shareholders (other than promoter & promoter entities) in the proportion of 1(one) equity share for every 4(four) shares of Rs.10 each. 4. Fixed the date and time for convening the Company's Annual General Meeting (AGM) and approved the notice of the same and authorized the Director or other person to issue the notice convening the AGM. Gravita India buys out Metal Inc; sees revenue, profits rising Gravita India Ltd, a lead products manufacturer and exporter, along with its subsidiary Gravita Exim Ltd, have further acquired 20% in the Jammu and Kashmir-based Metal Inc. The acquisition will increase the company's lead smelting and refining production capacity to 46,200 tn per annum from 3,600 tn per annum at present. The Jaipur-based Gravita India had acquired 80% stake in Metal Inc in June. Metal Inc has now become a 100% subsidiary of Gravita India and the former company's name has been changed to Gravita Metal Inc. "This acquisition will strengthen Gravita's standing in North India and will lead to improved profit margins on account of location of unit in tax heaven zone," the company said. Gravita expects the acquisition to boost its 2011-12 (Apr-Mar) revenues by Rs.350-400 mn and profits by Rs.30-35 mn. This is the second company that Gravita has acquired in Jammu and Kashmir, after recently buying K. M. Udyog.

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

Rourkela new sinter unit commences trial run Rourkela Steel Plant (RSP) has commenced trial run of the new sinter unit, installed as part of the company’s modernization cum expansion project. The new single strand sinter plant will have an annual production capacity of 3.70 mtpa of gross sinter. The new sinter will double the steel capacity from the existing of 2 to 4.5 MTPA. Technology for the sinter project was supplied by a consortium of L & T and Outotec of Germany. At present, erection activities have been completed and pre-commissioning trial runs are in progress. Individual trial runs of key equipment have been successfully completed. Trial run for other important units will be simultaneously taken up with the firm dedicated power supply being commissioned shortly. The new sinter unit will be ready for integration with other up-stream and down-stream units very soon. Coal India says may up price if wages hiked; expects clarity by Dec State-owned Coal India Ltd would have to raise coal prices if employees' wages were hiked, Chairman and Managing Director N.C. Jha said. "If there is an increase in wage, naturally we will have to offset it from some source," Jha said when asked if the company planned to hike prices. Coal India had last raised prices in Feb, adopting differential pricing--a 30% hike for non-regulated sectors such as cement, steel and paper, while the regulated sectors of power and fertiliser were largely spared, reports said. Coal India employee unions have been pressing for a 100% hike in wages. The chairman said a joint committee of the management and employees would be meeting for the second time to work out a resolution. "These things take time. We expect to find some solution, may be by Dec," Jha said. "Why should I pay 100% hike. It's totally unreasonable," he said. Pennar to set up pre-fab unit in Rajasthan Pennar Engineered Building Systems Ltd (PEBS), a subsidiary of Pennar Industries Ltd, is setting up a manufacturing facility in Rajasthan and carrying out capacity expansion at its unit in Hyderabad. PEBS will invest around Rs.65 crore in the Rajasthan unit which will have an initial annual capacity of 30,000 tonnes, which can be expanded to 60,000 tonnes. The plant is expected to commence production by next fiscal and will cater to the north Indian market. PEBs will expand capacity of the Hyderabad unit by an additional 30,000 TPA at a cost of about Rs.25 crore. This expansion is expected to be completed by March 2012 and the total capacity will increase to 90,000 TPA. Source says I-T officials raid Adhunik Metaliks' Jharkhand offices Officials from the Income Tax Department raided the offices of Adhunik Metaliks Ltd in Ranchi and some other locations in Jharkhand, a senior official from the tax department told. "The raids were conducted jointly by our teams in Jharkhand and one sent from Kolkata," the official said. The income tax department official said the raids are an "ongoing process", but did not elaborate. Sources said income tax sleuths also conducted raids at Adhunik group offices in Kolkata and Durgapur in West Bengal, and some other locations. The steel and mining company is setting up a 1.2 mn tn per year pellet plant in Jamshedpur at an investment of around Rs.4.7 bn. JSW ISPAT Steel redeems 155.1 mn preference shrs on Sep 20 JSW ISPAT Steel Ltd has informed that pursuant to the approval sanctioned by Corporate Debt Restructuring - Empowered Group and requisite consent of the shareholders of 10% Cumulative Redeemable Preference Shares (CRPS) of Rs.10 each obtained in terms of Section 106 of the Companies Act, 1956, the outstanding 155112156 - 10% Cumulative Redeemable Preference Shares of Rs.10 each in the Company have been fully redeemed on Sep 20, 2011. Consequently, the said 10% CRPS stands fully extinguished. The redemption proceeds have been paid to the respective shareholders. Sacheta Metals plans to raise Rs.100 mn via equity Sacheta Metals Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 19, 2011, has decided, subject to approval of shareholders & other approvals, to raise fund, for its backward integration expansion plans, of an amount not exceeding Rs.10.00 crores by way of issue of equity shares, not exceeding 45,45,000 equity shares, at a price as to be determined under preferential issue guidelines of SEBI. Orissa Minerals denies news on stock split, bonus issue With reference to the news item appearing in a leading financial daily titled "OMDC plans stock split, bonus issue", Orissa Minerals Development Company Ltd has clarified to BSE that at present there is no such specific plan about the stock split and bonus issue. However, in near future, it may take action in this regard.

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

Gallantt Ispat to mull convertible debt issue Sep 26 Gallantt Ispat Ltd has informed that a meeting of the Board of Directors of the Company will be held on Sep 26, 2011, inter alia, to consider the matter of issue and allotment of the Zero Coupon Fully Convertible Debentures in the Company on Preferential basis to the NRIs/Strategic Investors and also to increase the Authorized Share Capital of the Company. Hind Copper not to bring follow-on issue for fund raising Hindustan Copper Ltd will not raise funds through a follow-on public offer as the company finds soaring copper prices adequate to meet capital expenditure. The company may raise additional fund, if required, after 2014 through external commercial borrowings or by selling a minority stake in its biggest mine in Madhya Pradesh. Mines ministry to reassess losses due to mining in Goa Mines ministry has directed the Indian Bureau of Mine to reassess the losses to the government due to illegal mining in Goa. This is being done to end speculation over the quantum of revenue loss to the exchequer, estimated at Rs.12-100 bn per year. Steel ministry wants 30% duty on iron ore exports The steel ministry will soon write to the finance ministry demanding to hike export duty on iron ore to 30% from the current 20%, a move to ensure that there is no shortage of the raw material for the domestic steel makers in the long-run. Hindustan Zinc ups zinc price by Rs.1,600/tn to Rs.121,300 on Sep 19 Hindustan Zinc Ltd raised zinc price by Rs.1,600 to Rs.121,300 per tn, on Sep 19, according to the company's website. The company also increased lead price by Rs.900 to Rs.132,800 per tn. The Vedanta group company aligns its product prices in line with London Metal Exchange prices. SteelMin seeks UP's help in setting up industrial projs Alleging that there were problems in getting land for setting up industrial projects in Uttar Pradesh, Union Steel Minister Beni Prasad Verma sought support of the state government for the same stating that ministry was ready to cooperate. Environment Ministry not to be rigid on coal mining The Environment Ministry has agreed to "discuss" the coal projects on a "case-by-case basis", as it does not want to be seen as a spoilsport in industrial development through contentious ''go'' and ''no go'' mining policy, sources said. OMDC head expects all six mines to be operational by 2012 Orissa Minerals Development Co Ltd hopes to get environmental clearances for all its six iron ore and manganese mines and to make them operational by 2012, Chairman A.P. Choudhary said. SteelMin panel for Rs.600 cr allocation on R&D A Steel Ministry panel has recommended five-fold increase in fund allocation at Rs.600 crore for research and development (R&D) activities in the sector during the 12th Plan Period ending 2017. Mercator arm completes stake buy in Indonesia coal mine Mercator Lines Limited has informed that the Company, through its subsidiary in Singapore, has completed acquisition of 50% stake in a coal mining concession situated in East Kalimanthan, Indonesia. COAL INDIA: • The environment ministry not considering lifting the moratorium on the company's two coal fields in Jharkhand and Maharashtra any time soon. • Finds no takers abroad for its offer of a long-term contract to source coal at discounted prices. • Coal import deal to take five more months. • Says production may remain flat this fiscal due to excessive rains in eastern India; hopeful of 5% growth though. • To float tenders for second round of bidding for abandoned mines. Successful bidders had backed out from all 18 units after the first round. NMDC: • Ramps up Karnataka iron ore production to up to 30,000 tn per day.

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

• NMDC may bid for iron ore, potassium deposits in Uzbekistan • Interested to bid for iron ore and potassium deposits in Uzbekistan after a meeting between delegates of the two countries in New Delhi last week. • Company's bid for majority stake in Australia's Legacy Iron Ore has been approved by shareholders of the latter. JAYASWAL NECO: • Issued notice by Raigad collector for improper disposal of coal. • The company, along with JINDAL STEEL AND POWER and MONNET ISPAT, has reportedly been illegally disposing coal waste from Chhattisgarh power plants. MERCATOR LINES: • Expects to acquire a coalmine in Indonesia in the next one week for around $30 mn and plans to list its coal division overseas. • Arm completes a 50% stake buy in Indonesia coalmine, to invest $30 mn. ORISSA MINERALS DEVELOPEMT CO: Will get environmental clearance for Kolha-Roida and Dalki mines this month and expects all six mines of the company to be operational by 2012. STEEL AUTHORITY OF INDIA: Defers $3.5 bn (Rs.166.25 bn) Bengal project by six months due to adverse soil conditions. NATIONAL ALUMINIUM CO: Considering bidding for a gold deposit in Uzbekistan for diversification. JSW STEEL: Environment ministry panel for conditional approval to the company's Bellary steel plant. GRAVITA INDIA: Buys balance 20% stake in Metal Inc; sees revenue and profits rising. SACHETA METALS: Plans to raise Rs.100 mn via equity for capital expenditure.

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

AUTO & AUTO ANCILLARIES AUTOMOBILES: • Hyundai India to launch small car Eon between Oct 10 and Oct 15 in India at Rs.250,0000- Rs.260,000. • Yamaha turns its focus to rural India. • Fiat India not to launch any new car model until 2013-14. • to invest 355 mn pound in new engine plant. • Maruti labour crisis intensifies after the arrest of 3 union leaders. • Source says may make future car models at Nano factory. • Motor India has launched its first sedan Sunny in the Indian markets in three variants priced in the range of 578,000-768,000 rupees, ex-showroom New Delhi. • Carmakers cut output during the festive season as rising rates and fuel prices have led to a pile-up of unsold cars. • Ford lines up eight compact cars for Indian market by 2015. • Maruti says aim to resume making SX4, A-Star at Manesar in 1 week. • Ssangyong aims to double sales by 2013, manufacture cars in India. • Nissan to pick up minority stake in India distributor. • Wabco US chief says big scope for Wabco TVS for growth in India CV market. • Govt plans national automotoive board to address industry issues. • The government is working on a formal auto recall policy to improve manufacturing standards in the country. • Nissan to pick up minority stake in an Indian distributor. • Government plans national automotive board to address industry issues. Ashok Leyland eyes Rs.2,300-cr investment in LCV segment Hinduja Group flagship company Ashok Leyland, which has partnered with Japanese auto major Nissan to foray into light commercial vehicle sector, launched Dost, its first product in the segment here, eyeing to invest Rs.2,300 crore in two phases in next three years. Ashok Leyland would invest Rs.1,100-1,200-crore in the first phase, Executive Vice Chairman of Hinduja Automotive V Sumantran told reporters on the sidelines of the launch of the 'Dost' here. The company would come out with three products -- light van, light truck and a heavy truck, in two phases. Ashok Leyland in all likelihood would commence operations at its Sriperambadur greenfield unit in next three years depending upon which product the company is going to launch. Sumantran said Ashok Leyland eyes to sell 55,000 units a year. "In the first year we have not disclosed the sales target ... we are doing a slow ramp up like the Japanese do... Next fiscal onwards we will start the approach for achieving 55,000 sales target," he added. Talking about the competition, Sumantran said the company was aware of the strong competition in LCV segment and was making efforts to give satisfaction to customers. "The product should speak for itself... I think success will come," he added. Ashok Leyland would not venture into below 1 tonne LCV segment because of its huge numbers. "We are going to play in above 1 tonne and below 7.5 tonne segment," he said. Sumantran said for the past two years, the LCV segment has not suffered despite economic slowdown. "The LCV segment has outperformed medium and heavy vehicles segment in most parts of the world." Sumantran said the company has already hired people in product development and would be ensuring to increase manpower utilisation at the Hosur plant. "We have 450 people in our technical centre." By partnering with Nissan, the company would be able to offer products which it said are of "Japanese quality offered at Indian cost", Sumantran said. "Since the launch of our first product, we have come a long way and we will be expanding our range (in the light commercial vehicle segment) in the next two years", he said. The company has appointed 37 exclusive dealership networks for retailing the vehicle and planned to take it up to 60 dealerships by March, 2012. Earlier, Sumantran announced the launch of its first product 'Dost' in Bangalore market. The new Dost, a 1.25-tonne light commercial vehicle, is priced at Rs.3.79 lakh (ex-showroom Bangalore) for the base variant and Rs.4.39 lakh ex-showroom Bangalore for the top variant.

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

Yamaha to focus on rural markets, more low-end models in offing Having achieved a strong presence in the urban markets, the Japanese two-wheeler major Yamaha now plans to tap the rural markets by launching more models in the affordable price range, a top company official has said. "We have so far seen good sales in urban areas, mainly in the big cities due to our image as a premium bike-maker. Now to further accelerate growth, we will strengthen our presence in the rural markets," India Yamaha Motor National Business Head Roy Kurian told PTI. The Japanese two-wheeler giant sold 3.8 lakh units in 2010 and is planning to sell 5.2 lakh units this year. "Currently, about 40% of our sales come from rural areas and we want to increase this further in the coming days," Kurian said, adding, the company will launch more models in the affordable price range. In this regard, the company also plans to strengthen its network in tier III towns. "Currently, we have around 400 dealers and plan to increase this in the coming days," he said. The firm claims its low-end model, the Crux, already enjoys a good demand in the rural market. "Our main product, the Yamaha Crux, is well accepted in the rural markets and the YBR 110 also contributes significantly to our sales," he said. The company is also looking to increase its market share in the deluxe segment to 20% from the present 15% by March. In the premium segment, it eyeing a 15% market share from the present 10%. "We expect to sell 25,000 units in the deluxe segment and 35,000 units in the premium segment by March," Kurian said. Yamaha has an installed annual capacity of 6 lakh units at its two manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and plans to further strengthen production to 1 mn units by 2013. Mahindra Navistar mulls new engine In line with its plans to enter the inter-city luxury bus segment in a year and a half, Mahindra Navistar is working on a new 4-cylinder diesel engine. “We're looking at a smaller 4-cylinder engine. Our current engine is of Brazilian design, but fully localised at Chakan. The same company (MWM), a Navistar subsidiary, also has a four-cylinder platform, which we are going to use,” Mr Nalin Mehta, Managing Director, Mahindra Navistar Automotives told. He added, “Buses are a strong candidate for this, apart from commercial vehicles likely in the 7.5 to 9 tonne range (intermediate commercial vehicles-ICVs).” The new power plant, expected to put out around 100-180 HP of power, will also help the company compete in the CV market with a lower tonnage demand and with a lower-priced product range. This will be the second engine on offer after the current 7.2-litre six-cylinder ‘Maxxforce' engine that it uses on its heavy commercial vehicle (HCV) range in two — 210 HP and 260 HP — versions. Asked if a CNG version is also planned, he said: “At an appropriate time, we will talk about it.” Mr Mehta said that apart from the new 16-tonne bus platform, which may also spawn multi-axle and city bus variants, the company will also launch a 49-tonne tractor/trailer and a 25- tonne heavy-duty tipper (for mining) in the first half of next fiscal. With investments of around Rs.950 crore, Mahindra Navistar is planning a major network expansion across the country. Over the next six months, it plans to take up service points to 1,000 from 750, while increasing 3S outlets (Sales, Service and Spares) to 100 by next fiscal from 43 now. Maruti shrs up on report Volkswagen mulling hostile bid for Suzuki Volkswagen AG may consider raising its stake in Suzuki Motor Corp and may even consider a hostile takeover bid if the Japanese carmaker decides to end their nearly two-year tie-up, Kyodo news agency reported, citing a senior Volkswagen official quoted in the German magazine Der Spiegel. In a weak market, shares of Maruti Suzuki India Ltd--in which Suzuki Motor holds a little over 54% stake--rose about 1.8% on the news to end 2.8% higher at 1,139.95 rupees on the National Stock Exchange. According to the report, the Volkswagen official said the German carmaker would be free to raise its stake in Suzuki, if the Japanese company decides to terminate the agreement for cooperation signed between the two companies in December 2009. Volkswagen had bought 19.9% stake in Suzuki Motor on signing of the deal, but was barred from raising stake further without the consent of the Japanese automaker. Earlier this month, Suzuki Motor had said it is seeking to end its alliance with Volkswagen after the latter accused it of violating the pact by agreeing on a diesel engine supply deal with Italy's Fiat. Suzuki Motor, which owns 1.49% of Volkswagen, plans to sell its holdings if Volkswagen agrees to end the tie-up. Reports say Suzuki Chairman Osamu Suzuki has even offered to buy Volkswagen's 19.9% stake in his company in cash, but Volkswagen has said it has no intention of selling. Skoda’s new sedan to hit Indian roads by year-end Czech carmaker Skoda Auto has said its entry-level sedan, being showcased as the concept MissionL at the Frankfurt Motor show, would find its way into India later this year even before going to markets such as Europe and China. Skoda is also considering a small car based on Volkswagen’s ‘UP’ platform for India, which would be its second small car in the country after the Fabia. “India is an important but challenging market

Weekly Newsletter 53 Info-Spectrum Bridging the Information Gap in Corporate Landscape for us. We want to grow our share to at least 3%,” said Winfried Vahland, chairman, Skoda Auto. “We have high hopes from the MissionL entry-level sedan.” MissionL shares the platform and powertrain with Volkswagen’s Vento launched in India last year. Vento is powered by 1.6-litre petrol and 1.4-litre diesel engines and costs R7-9.5 lakh. The new Skoda sedan is however expected to be priced lower. “The small car market in India is the most price sensitive on earth,” said Jurgen Stackman, member of the board (marketing and sales), Skoda. “On its own, Skoda will find it difficult to make a car smaller than the Fabia, but being part of a group like Volkswagen helps... a derivative of the Up concept will be developed.” Skoda will develop and showcase a concept for a small city car at the Geneva motor show next year, which will have separate versions for the European and Indian market. Nissan India launches sedan Sunny at Rs.578,000-768,000 Nissan Motor India Pvt Ltd launched its first sedan Sunny in the Indian markets in three variants priced in the range of Rs.578,000-768,000, ex-showroom New Delhi. Sunny, which is the 10th generation of the car, has seen sales of over 16 mn units in over 140 countries since its launch in 1966, said Kiminobu Tokuyama, managing director, Nissan Motor India. The company had launched its small car Micra in India in last year. Nissan aims to launch 51 products and 90 technologies by March 2016 in India, said Gilles Normand, corporate vice president, Africa, Middle East & India. The Indian subsidiary, which is targeting sales of 40,000 units in 2011-12 (Apr-Mar), plans to touch sales of 100,000 units by 2013, Dinesh Jain, chief executive officer, Hover Automotive India Pvt Ltd, a subsidiary of Nissan. Hover Automotive handles the sales, service, parts, marketing and dealer development functions in the Indian market for Nissan range of products. Jain said of the 80 dealers appointed so far, 45 of them were currently operational and the company plans add 20 more dealers by March 2013. He said that the company would look to launch the diesel version of the Sunny soon. Nissan also has plans to export Sunny to West Asia and Africa once it has secured supplies for the domestic market. heads for phase 2 of India strategy with mass market models Renault is now gearing up for the second phase of its India market strategy - competing in the mass market for volumes with localised models. The first phase was completed this month by establishing its brand in the premium car market with the Fluence sedan and Koleos SUV. In the first few months of 2012, the French automaker will launch an all new small car based on the same V-platform that underpins the Nissan Micra and Sunny. Designed for the Indian market, this will compete with Maruti Suzuki's Swift and the Hyundai i20. Mid-2012 will then see its fourth product, the entry-SUV Duster, which will compete with Mahindra's Scorpio and the Tata Safari. According to a company dealer, the fifth product due late next year is a new sedan positioned between the Volkswagen Vento and the Swift Dzire. In all, 12 products are likely to come in by 2014. Maruti Suzuki to resume production of SX4, A-Star in a week Maruti Suzuki India Ltd said it would resume production of A-Star and SX4 models at its Manesar plant next week. Operations at the Manesar unit have been severely hit since Aug 29 due to a strike, with workers protesting against Maruti Suzuki's insistence on employees signing a 'good conduct' bond. "The company is planning to start production of SX4 and A-Star models at Manesar plant," the company said in a statement adding that production would begin in a week's time. Maruti's Manesar unit produces 1,200 units of the Swift, SX4 and A-Star models every day. While the production of the Swift model had been restored soon after the stir began, the company had not resumed production of the SX4 and A-Star models. The company has been able to produce some units of the Swift car everyday by hiring temporary workers and also by using plant supervisors and engineers. Maruti said it has made 625 Swift cars. Wabco Holdings to consolidate brand name in India Wabco Holdings, manufacturer of air brakes for commercial vehicles, hopes to consolidate its position in India under the ‘Wabco' brand name. Wabco India, the Indian subsidiary of Belgium-based Wabco Holdings, was till recently called ‘Wabco-TVS'. Wabco India was originally formed as a joint venture in 1962 between TVS group and Clayton Dewandre Holdings (CDH). CDH was subsequently taken over by Wabco. In 2009, Wabco took majority ownership in Wabco-TVS by acquiring TVS group stake. Even after Wabco and TVS parted ways, the company was allowed to use the ‘TVS' name for some time. In August 2011, Wabco TVS was renamed ‘Wabco India'. Currently, Wabco holds 75 per cent, while 25 per cent is publicly traded. Wabco Holdings employs 11,000 people globally. Around 3,000, including 300 engineers, are in India. Wabco hopes India will be a potential manufacturing hub for “similar” markets globally, said Mr Jacques Esculier, Chairman and CEO, Wabco, who was here in the city to formally launch the ‘Wabco India' brand. Currently, Wabco India holds a leadership position in the Indian market with nine out of 10 trucks using the company's air

Weekly Newsletter 54 Info-Spectrum Bridging the Information Gap in Corporate Landscape brakes, said Mr P. Kaniappan, Whole-Time Director, Wabco India. Wabco India's total investment in the Indian operations this year will be around Rs 60 crore. The company is setting up an assembly unit in Lucknow to cater to its customer base in the North. Currently, Wabco India is serving clients in the North (Tata Motors and Ashok Leyland) through its Chennai facility. “We hope the Lucknow plant will cater to these clients soon. Operations will start in FY2012-13,” said Mr Kaniappan. Around Rs 10 crore will be invested in this plant. National Automotive Board to be set up soon A National Automotive Board (NAB) to look into policy and certification-related issues of the automobile industry will soon be in place. It is expected to come into force in the next two to three months. “The NAB will mainly be the co-ordinating authority for the upcoming seven automotive centres of National Automotive Testing and R&D Infrastructure Project (NATRiP). All certification such as mileage and pollution check will come under its scanner,” said the Department of Heavy Industry Joint Secretary, Mr Ambuj Sharma. The board is also considering formulating guidelines regarding recall of vehicles. “Currently, the guidelines for recalls are being deliberated. We are also discussing imposition of penalties if the auto maker does not recall vehicles despite faults,” Mr Sharma said. It will look into issues such as electric and hybrid mobility and replacement of vehicles. “We have set up a demo centre at Chennai for replacing old vehicles, which should be functional by the end of this fiscal,” he added. MD says Bajaj Auto to hike prices of vehicles from Oct 1 Bajaj Auto Ltd will increase the prices of its vehicles across categories on Oct 1 to compensate for lower export benefits when the Duty Entitlement Pass Book Scheme expires on Sep 30 and the proposed drawback scheme is implemented, Managing Director Rajiv Bajaj said. The move is aimed at protecting the company's margins in a highly competitive market, he said in an interview to CNBC-TV18. Bajaj said the 5.5% rate under the proposed drawback scheme was in line with expectations. Under the DEPB scheme, Bajaj Auto gets benefits on export of vehicles. Bajaj also said he was confident the company would meet its sales growth target of 20% for this financial year. Analysts had raised concerns the expiry of export sops and the resulting lower benefits would put additional strain on the margins of automobile exporters. Bajaj said the entire 3.5% reduction in benefits would be passed on to costumers from Oct 1 to protect margins. He said while rising interest rates are "inimical" to the growth of the automobile industry, fuel price hike is the greater concern. Bajaj said petrol prices had reached levels that would discourage vehicle purchases. On Sep 16, state-owned oil companies hiked petrol prices by Rs.3.14 a ltr. Bajaj Auto bets big on rural market with new model Bajaj Auto Ltd, which has recently rolled out the new Boxer 150cc variant in the domestic market, is betting big on rural markets of the country. "A significant number of consumers in the smaller towns need a powerful, rugged utility bike. Also we see a major shift happening from the 100cc to 150cc in the Bajaj Pulsar variant. So we thought why not give the rural customer a tough bike at the price of a 100 cc bike. We are launching the new Boxer bike in phases and we have rolled out in Gujarat after Maharashtra and Tamil Nadu. With good monsoons, the rural economy is doing well and with recruitments in urban cities also doing well, so we are expecting a good demand for the new Boxer as it is a fuel efficient bike," said Vimal Sumbly, deputy general manager (Marketing and Sales), Bajaj Auto Ltd. Bajaj Auto, one of the leading two wheeler makers in India, enjoys 33% market share in the sports bike category in Gujarat while nationally it has around 50% market share. While the company sells close to 20,000 units across various categories per month in Gujarat, they aim to sell between 3000 and 3500 Boxer bikes in the 150cc category per month. Jaguar Land Rover to invest 355 mn pound in new engine plant Jaguar Land Rover said it would spend 355 mn pound sterling to set up a new petrol and diesel engine manufacturing plant in the United Kingdom. "As we invest 1.5 bn pound sterling a year for the next five years on new product developments, expanding our engine range will help us realise the full global potential of the Jaguar and Land Rover brands," Chief Executive Officer Ralf Speth said in a statement. He said the all- new family of four-cylinder engines would increase JLR's capability to offer high-performance engines with class-leading levels of refinement, while ensuring continued significant reductions in vehicle emissions. JLR's engines are currently supplied by Ford from plants including Bridgend and Dagenham in the UK. JLR, part of Tata Motors, has been reporting strong growth in sales fuelled partly by a growing number of orders from foreign markets, including China and India. During Apr-Aug this year, JLR sales have risen 10% on year to 102,451 units.

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

Lumax Ind denies talk of stake sale to Stanley Electric Lumax Industries Ltd has informed BSE that there is a rumours/unconfirmed news circulating in the market that D. K. Jain Group (Indian Promoter's) selling their stake to M/s Stanley Electric Co. Ltd, Japan (Foreign Promoter) at a substantial premium to Current Market Price. In the interest of investors, the Company would like to clarify that these rumours are completely unfounded and are not correct. Ssangyong aims to double sales by 2013, manufacture cars in India Ssangyong Motor Co, in which Mahindra & Mahindra Ltd holds majority stake, is aiming sales of 160,000 vehicles by 2013, and 300,000 units by 2016, and is looking to set up a manufacturing base in India, the South Korean company said in its new vision statement. Source says Tata Motors may make future car models at Nano factory Tata Motors Ltd may utilise the excess capacity at its Sanand factory to manufacture future passenger car models, a component supplier to the company told. VE Commercial Vehicles to build trucks for overseas markets Indian truckmaker VE Commercial Vehicles Ltd is developing a new range of vehicles and hopes to sell in overseas markets such as Indonesia, Thailand and South Africa. The Indian commercial vehicle manufacturer, a joint venture between Volvo and Eicher Motors, plans to sell under the Eicher brand in these markets. Black Friday say auto cos - pricey petrol, loans to hit sales After having woken up to higher petrol prices, the auto industry suffered a second strike midday, as the central bank announced a fresh rate hike—with each move considered deadly enough to scare away prospective vehicle buyers in the much-awaited festive season. Suzuki Powertrain stir ends; diesel engine supply to Maruti resumes The strike at Suzuki Powertrain India Ltd's Manesar unit was called off on Sep 16 as workers resumed their shifts and restored diesel engines supplies to Maruti Suzuki India Ltd. Maruti asks 350 trainees to rejoin after talks fail A day after talks brokered by Haryana govt to end standoff at Manesar plant failed, Maruti Suzuki India said it asked 350 trainees to resume duties within the next 3 days. AAI to talk to govt to raise Rs.5000 cr through bonds The Airports Authority of India (AAI), which runs 125 airports across the country, would approach the government to allow it to raise Rs.5000 crore through infrastructure bonds, its top official said. MARUTI SUZUKI: • The three-week-long strike at Maruti's Manesar plant is likely to delay export of the A-Star Compact cars. • Labour crisis intensifies after the arrest of three union leaders as court rejected their bail plea. • Inventory shortage hits the company's South India dealers. • To resume production of SX4 and A-Star at its Manesar plant next week. • To invest nearly $1.3 bn to set up a new plant, likely in Gujarat. • Workers plan a joint convention of unions in the Goregaon-Manesar belt. WABCO INDIA: • Plans to set up an assembly plant in Lucknow, which will go on stream next fiscal, with a capital outlay of 100 mn rupees. • Wabco US chief says big scope for Wabco TVS for growth in India commercial vehicle market. MAHINDRA & MAHINDRA: Arm Ssangyong Motor plans to expand vehicle sales volume and revenue by a third in 2013 by launching five improved models and lifting overseas sales. TATA MOTORS: Arm Jaguar Land Rover to build a 400-mn-pound sterling engine plant in UK. BAJAJ AUTO: Nissan still in talks with the company for low-cost car.

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

MISCELLANEOUS MISCELLANEOUS: • SEBI restates Sep-end deadline for promoters to dematerialise stake. • Gilt market sees RBI raising govt Oct-Mar borrow cap under WMA. • RBI removes Union Bk, Karur Vysya Bk from caution list of FII buy. • Titan Ind eyeing Indonesia foray in 6 mos via distribution tie-up. • Reliance Capital may sell 26% in general insurance company. • Colgate Palmolive may hike prices in emerging markets. REGULATORY: • Securities and Exchange Board of India wants self-regulatory body to supervise financial advisers. • Life Insurance Corp of India seeks Insurance Regulatory and Development Authority to allow a single fund from its portfolio to hold more than 10% stake of a company. • The government may ask the Controller General of Accounts to audit the accounts of the Comptroller and Auditor General of India. • Securities and Exchange Board of India may allow institutions to issue third-party warrants that can be traded on stock exchanges. • Maharashtra's electricity regulator pulls up power utility companies for cost overruns. • IRDA mulls allowing brokers to pursue claims from insurance companies. • SEBI has barred seven companies from issuing fresh equity and 10 foreign institutional investors and sub accounts from dealing in Indian securities until further orders. The seven companies are ASAHI INFRASTRUCTURE & PROJECTS, IKF TECHNOLOGIES, AVON CORP, K. SERA SERA, CAT TECHNOLOGIES, MAARS SOFTWARE INTERNATIONAL, and CALS REFINERIES. • Insurance Regulatory and Development Authority says insurers can't deny claims for delay in intimation. • Usha Thorat, chairperson of Reserve Bank of India's panel on finance companies, said she does not favour allowing finance companies to raise funds via external commercial borrowings. FAST MOVING CONSUMER GOODS: • Companies cut back on new product launches this year as they wait for cost pressures to recede. • Consumer product multinationals Procter & Gamble and Unilever are investing in small, rural entrepreneurs who can help them start selling to lower-income consumers in India and other emerging markets. • Parle hikes price of Hide & Seek biscuits by over 10% due to rise in input costs. • SABMiller to buy Foster's Group for $10.2 bn. • Godrej Consumer mulling re-entry into air care segment. MEDIA: • Official broadcaster ESPN eyes 1.2 bn revenue from Champions League Twent20, that begins. • Sony/ATV in exclusive joint venture with Sony Music Entertainment for India foray. • Prasar Bharati likely to outsource the technical functions of its direct-to-home operations to private operators like DISH TV and via tenders. • The Mumbai Film Festival organised by the Mumbai Academy of Moving Images will host about 40 international movie buyers in Oct. • Government free to notify suggestions by print media wage board. INSURANCE: • Life Insurance Corp of India to buy additional Rs.300 bn worth of equities by Mar 2012. • Insurance Regulatory Development Authority plans to put traditional plans under scanner. • IRDA head says examining high net asset value guarantee products. • ED says LIC planning to set up wholly-owned arm in Singapore.

Weekly Newsletter 57 Info-Spectrum Bridging the Information Gap in Corporate Landscape

RETAIL: • Private equity investors raise exposure to luxury apparel in 2011 to $98 mn against $4 mn last year. • Future Group in talks to rope in Japanese convenience store chain Lawson as 49% partner in foods sourcing and manufacturing operations. • Reliance Retail expects same-store sales growth of 20% in FY12. EQUITY MARKET: • Foreign institutional investor holdings through participatory notes rose 1.4% in Aug. • United Stock Exchange grabs 22% market share in currency derivatives market in one year. • Bond market expects the Reserve Bank of India to cut rates at a much faster rate than it did in 2008. • Short-selling through participatory notes in revival mode. FOREIGN DIRECT INVESTMENT: • Cash-and-carry foreign direct investment norms relaxed; Bharti Wal-Mart and Tata-Tesco to benefit. • Government clears Rs.2.43 bn FDI proposals. ACCOUNTING: • Companies raising funds through public issues this fiscal need not file financial statements under the new format which includes disclosures about notional gains and losses due to exchange rate fluctuations. COMMODITIES: • Inter-ministerial committee rejects proposal of pooling of domestic natural gas prices with imported liquefied natural gas. EXCHANGES: • Small Industries Development Bank of India to launch SME exchange in two-three months. FUNDS: • India-focused Exchange Traded Funds listed abroad saw large outflows between Nov 2010 and Aug 2011. HOTELS: • Firm Starwood plans to open 100 hotels in India by 2015 with focus on smaller cities. TRADE: • India to fast-track ASEAN negotiations to include set of measures for liberalising services trade under the free trade pact. CONSUMER DURABLES: • Nikon India plans to double its market share through increased presence in the eastern region. Everonn says shr issue to promoters triggers open offer Everonn Education Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 19, 2011, inter alia, has approved the following; 1. Memorandum of Understanding between the Company, M/s. Varkey Group Ltd and M/s. SKIL Infrastructure Ltd (Confirming Party). 2. Approved the issue of 26,18,120 Equity Shares of Rs.10 each for cash at a price of Rs.528 per share (including a premium of Rs.518 per share) aggregating to Rs.1,38,23,67,360, being the price which is in accordance with the SEBI Regulations to M/s. Varkey Group Ltd on preferential basis, subject to requisite shareholder/regulatory and other approvals including SEBI Regulations. 3. Approved the increase of the total NRI limit under the portfolio investment scheme from 10% to 24%, subject to requisite shareholder/regulatory and other approvals as may be required. 4. Approved the convening of an Extra-Ordinary General Meeting of the Members of the Company on October 19, 2011 and the contents of the notice convening the same. The Board also noted that pursuant to items 1 and 2, M/s. Varkey Group Ltd and persons acting in concert with it shall be treated as a Co-promoter of the Company upon completion of the proposed allotment. Further, the preferential allotment to M/s. Varkey Group Limited together with the existing shareholding of the persons acting in concert with it has triggered the requirement of an open offer to be made to the public shareholders of the Company under and in accordance with the SEBI (Substantial Acquisition and Takeover) Regulations, 1997.

Weekly Newsletter 58 Info-Spectrum Bridging the Information Gap in Corporate Landscape

Irda to ease single company exposure norm The Insurance Regulatory and Development Authority (Irda) is set to ease rules on exposure by insurers to a single company from 10% to 25%. The rules now restrict investment in both equity and debt in a company to 10% other than infrastructure. Equity includes equity capital of the company while the debt consists of net worth and borrowings of the investee company. The insurance regulator is planning to allow insurers invest an additional 10% in corporate bonds, which are exchange traded. Beyond this, limit insurers through a special resolution from the board can raise the investment limit in corporate bonds by 5% while the total bond holdings can go up to 15%. "We are considering different dimensions in relaxing investment norms. If bonds are exchange traded, we may consider a higher cap. In certain types of debt funds, we can permit an investment of 20%, depending upon whether the bond is going to be exchange traded. There can be a higher level because once it is exchange traded, in principle they are more liquid," said Irda chairman J Hari Narayan. In infrastructure, insurers' exposure can go up to 25%. "At present, the equity and debt exposure is limited to 10%. In infrastructure, the investments can go up to 25%, including equity and debt. Within this 25% cap, 10% can be invested in corporate bonds and another 5% through the special resolution passed by the investment committee," said SBI Life CIO Abhijit Gulanikar. The country's largest insurance company LIC has sought headroom for single company exposure beyond 10%. "Most of the bonds are exchange traded. If the limits are extended beyond 20%, it would be a big relief for the industry," said a senior LIC executive. In this financial year so far, the Life Insurance Corporation has invested around 5,000 crore in non-convertible debentures. SEBI bans 7 cos, 10 FIIs and sub-accounts for structured GDR deals The Securities and Exchange Board of India barred seven companies from issuing equity in any form, and 10 foreign institutional investors and sub-accounts from dealing in Indian securities after finding them, prima facie, of being involved in "structured" global depositary receipt deals. The ban will continue until further orders, the regulator said in an interim order on its website. "A copy of the order shall also be forwarded to Enforcement Directorate to take necessary action at their end," SEBI said. The order was passed by SEBI's whole-time member Prashant Saran. The companies barred from issuing fresh shares or any other instrument convertible into shares, or from altering their capital structure are Asahi Infrastructure & Projects Ltd, IKF Technologies Ltd, Avon Corporation Ltd, K. Sera Sera Ltd, CAT Technologies Ltd, Maars Software International Ltd, and Cals Refineries Ltd. SEBI said at this stage of investigation, there appears to be "some truth" in investors' complaints regarding structuring of sale of shares by the FIIs and sub-accounts. SEBI said the relatively large size of the GDR issues of these companies, un-impressive financials, common initial investors, high proportion of cancellation of GDRs, and sale of the converted shares on Indian exchanges mostly to the same group of clients point to "an elaborate scheme to manipulate markets." "The findings in this regard reveal prima facie evidence of a pre-arrangement between parties to transactions at various stages of this complex scheme," SEBI said. Having sold Ambi Pur, Godrej Consumer mulls re-entry into air care More than a year after it sold its licensing rights to market air care brand Ambi Pur, Godrej Consumer Products Ltd plans to enter the air care product category once again. "...Likelihood in the pipeline (of) a new category could be air care," Managing Director A. Mahendran told. He said the company is in the process of developing the air care product and a likely launch is expected by Mar. "We have done a lot of work (on the air care product) but yet to enter the market," Mahendran added. While not accepting that the air care product would be like an air freshener or a room freshener, he said Godrej Consumer's product would elevate "mood and ambience". "The purpose of perfuming the air could be mood elevation basically...," he said. Godrej Consumer's air care product would be part of the company's home care category. Under home care, Godrej manufactures and sells Goodknight mosquito repellants, Hit aerosols and Ezee and Genteel specialty liquid detergents. Procter & Gamble had acquired the global licensing rights, excluding of India, of Ambi Pur in December 2009 from Sara Lee for $468 mn. The Godrej Group, however, had retained the marketing rights for the brand in India till 2012. As part of a revised deal last year, the Godrej Group had surrendered the India marketing rights for Ambi Pur to Sara Lee, which in turn had sold the rights to sell the brand in the domestic market to Procter & Gamble. Asian Paints, PPG Ind in pact to expand JV Asian PPG Ind With reference to the earlier announcement dated Jan 24, 2011 regarding its plans to broaden and deepen the collaboration with PPG Industries Inc. USA (PPG), one of the world's leading coatings and specialty products Company, to jointly accelerate growth of their non-decorative coatings businesses in India. As part of this arrangement, the Company and PPG have decided to expand their current 50-50 Joint Venture, Asian

Weekly Newsletter 59 Info-Spectrum Bridging the Information Gap in Corporate Landscape

PPG Industries Ltd. (APPG), and also establish a second 50-50 Joint Venture Company, Asian Paints Ltd has now informed BSE that the Board on Sep 21, 2011, approved the Composite Scheme for Merger and Demerger, under Section 391 to 394 of the Companies Act, 1956 and other applicable provisions whereby PPG India Private Ltd., PPG Coatings India Private Ltd. (subsidiaries of PPG in India) and AP Coatings Ltd. (wholly owned subsidiary of the Company) will merge with APPG. The Scheme then provides for the demerger of the Liquid Industrial Paints, Powder Coatings and Protective Coatings businesses from APPG into the second Joint Venture Company. The sanction of the said Composite Scheme is subject to the approval of the Hon'ble High Court of Judicature at Madras, the Hon'ble High Court of Judicature at Bombay and such other approvals as may be necessary. AK Capital Services OKs fund raising via QIP AK Capital Services Ltd has informed that the members at the 18th Annual General Meeting (AGM) of the Company held on Sep 17, 2011, inter alia, have accorded to the following: 1. Adoption of the Audited Balance Sheet of the Company as at Mar 31, 2011 and Profit and Loss Account for the financial year 2010-11 along with the Report of the Board of Directors and Auditors. 2. Declaration of final dividend @ Rs.3.00 per equity share of face value Rs.10 each. 3. Re-appointment of Mr. Subhash Chandra Bhargava, Director of the Company, liable to retire by rotation. 4. Re-appointment of Mrs. Anshu, Director of the Company, liable to retire by rotation. 5. Re-appointment of M/s. Suresh Surana & Associates, Chartered Accountants, as Statutory Auditors of the Company, who shall hold office from the conclusion of this Annual General Meeting, until the conclusion of the next Annual General Meeting of the Company. 6. Consent of the Company accorded to the Board of Directors of the proposal of fund raising through Qualified Institutional Placement (QIP) to Qualified Institutional Buyers (QIB). 7. Enhancement of investment/loan to, and/or providing guarantee/security on behalf of, subsidiary company (s) / associate company(s) upto an extent of Rs.750 crore. Head says LIC's business impacted due to change in ULIP regulations Life Insurance Corp's business has been impacted due to the change in regulations, especially for Unit- Linked Insurance Plans, D.K. Mehrotra, current-in-charge chairman told. "Business is not doing very well. There is some negative base effect impact and also the change in regulations (on ULIPs). ULIPs have now taken a back seat and we are concentrating on more traditional insurance products," he said. Following issues between Insurance Regulatory & Development Authority and Securities & Exchange Board of India, ULIPs' regulation were changed to increase the proportion of risk coverage, and reduce the investment portion, thereby making the scheme less attractive to investors. He said as against the predominance of ULIPs share in LIC's business before regulatory changes, the ULIP share had eased to 40% now, with traditional products contributing the remaining 60%. But, Mehrotra said despite the volatile economic conditions, the return on its investments and products would not be hurt and would actually rise. RIL arm signs MoU with Siemens for homeland security solutions Reliance Security Solutions Ltd, a subsidiary of Reliance Industries Ltd, has signed a Memorandum of Understanding with Siemens Ltd to jointly develop homeland security solutions for cities and highways in the country. "With contiguous, pan-India Broadband Wireless Access spectrum, Reliance plans to offer fourth generation wireless networking services for safety, security and other advanced applications." Reliance Security Solutions' fourth generation network together with Siemens's Siveillance, a comprehensive security solutions suite, will be combined to leverage the fourth-generation network required for video and security applications. Last year, Reliance Industries had acquired a 95% stake in Infotel Broadband Services (P) Ltd for around Rs.48 bn. Infotel was awarded spectrum to rollout broadband wireless services in 22 designated service areas across India in a government auction by paying Rs.128.47 bn. Reliance Industries has plans to launch fourth generation wireless telecom services based on this platform. Time Technoplast to set up packaging units in China, Malaysia Time Technoplast Ltd plans to set up industrial packaging manufacturing facility, one each at China and Malaysia. Time Technoplast already has operations in north and south China. This will be the third such industrial packaging project in China. The new unit, to be located about 130 km north-west of Shanghai, will be operational by March 2012. The Malaysia unit will be operational from Jun and will be located about 140 km from Kuala Lumpur. The company, however, did not provide any financial details of both the investment. Both the industrial packaging unit will manufacture industrial bulk containers, and plastic drums of different sizes. The plastic product company also plans to set up reconditioning and re-bottling plant for industrial bulk containers at both packaging units. "We have aggressive plans to be in all major markets in Asia and to become a dependable one stop shop for polymer based industrial packaging products," said Chief of

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

International Business C. Hubert. The company is also expanding operations in South Korea, Vietnam, Turkey and Egypt. PSL arm gets Rs.270-crore pipeline order Pipe maker PSL Ltd said its US subsidiary has bagged orders worth Rs.270 crore from large US-based pipeline operators for shale gas transmission projects. PSL manufactures pipes for transporting hydrocarbon products, water products and structural steel applications. The Mississippi-based PSL North America (PSLNA) would supply large-diameter API-certified pipes totalling an estimated 105 miles in length. These pipes are made from special steel with anti-corrosion coating for use in shale gas pipeline projects, and are being developed in both Southern and North-Eastern parts of the US, PSL said in a statement. “Enhanced shale gas expansion activities signal a pick-up in demand for pipeline-related infrastructure throughout the country, and PSLNA expects to play a significant role in facilitating the progression of this market,” said Mr Ashok Punj, MD, PSL Limited. Production against these orders is expected to commence shortly, and is required to be completed within the course of the current financial year, the company said. Head says Titan Industries targeting 38% growth in FY12 turnover Titan Industries Ltd's consolidated revenue for 2011-12 (Apr-Mar) is expected to rise nearly 38% on year to Rs.90 bn, Managing Director Bhaskar Bhat said. The company, which has four divisions--watches, eyewear, jewellery and precision engineering--is looking to clock a 25-30% on year growth in sales during the festive season that began in September and will last until Dec 31, Bhat said. The company's jewellery division, which had sales totalling Rs.50.27 bn in the previous financial year, is looking at doubling its turnover by Mar, 2015, C.K. Venkataraman, chief operating officer- jewellery, said today at a media briefing. GoldPlus, a chain of the company's jewellery retail stores, is also looking at closing 2011-12 at a turnover of Rs.7.5 bn, up from the Rs.5.3 bn recorded in the previous financial year, said A. Palani Kumar, general manager, GoldPlus. Bombay HC OKs arm CG Capital's merger with Crompton Crompton Greaves Ltd has informed that the Honourable High Court of Judicature at Bombay has sanctioned the Scheme of Amalgamation of CG Capital and Investments Ltd ("CGC" or "the Transferor Company"), a 100% subsidiary, with Crompton Greaves Limited ("the Transferee Company or the Company"), the holding company. The High Court Order has been filed with the Registrar of Companies, Mumbai and the Scheme has become effective on Sep 20, 2011; the Appointed Date being Apr 01, 2010. The amalgamation has resulted into increase in the Authorised Share Capital of the Company by Rs.85 crore comprising 425,000,000 equity shares of Rs.2 each. Since CGC is 100% subsidiary of the Company, the entire paid up share capital of CGC would be cancelled and the Transferor Company stands dissolved without winding-up. RPM Intl buys 4.98% more stake in Kemrock Industries via open offer RPM International Inc has acquired 869,328 shares or 4.98% stake in Kemrock Industries & Exports Ltd through an open offer to minority shareholders as against the planned 3.73 mn shares or 21.43% stake. The offer at Rs.539 a share was open between Aug 16 and Sep 5. RPM International spent Rs.468.57 mn on this acquisition. Post the open offer, RPM holds 23.25% stake in Kemrock Industries, up from 14.42% earlier. The open offer was subsequent to RPM International's share purchase agreement with Trust Finstock Pvt Ltd on May 12 to acquire 1,000 shares of Kemrock. On May 18, Kemrock allotted 669,732 shares or 3.84% to RPM International on conversion of warrants. RPM International is a NYSE listed company that manufactures and markets various specialty chemical products such as paints and protective coatings. Kemrock Industries is a supplier to Formula 1 McLaren-Mercedes and BMW. Polycom Asia selects Redington as distributor Redington (India) Ltd has informed that Polycom Asia Pacific Pte Ltd (Polycom) has appointed the Company as a Distributor for their Audio & Video Conferencing Products across India and other SAARC Region expect Pakistan and Afghanistan. Polycom is a worldwide leader in the field of tele and video conferencing products. It manufactures telepresence and voice communications solutions. Polycoms first products to market were audio conferencing speakerphones. Soon after, the company added content sharing, video conferencing and video network/bridging products to its portfolio. This partnership with Polycom will enable the Company to expand in the distribution of audio & video conferencing Products in the Networking segment. MD says Titan Industries plans Rs.2.4 bn capex for FY12 Titan Industries Ltd has planned capital expenditure of Rs.2.4 bn for this financial year, Managing Director Bhaskar Bhat said. The company will fund this capex through internal accruals, he said. The company will set up a jewellery manufacturing plant in Uttarakhand at an investment of Rs.200 mn, Bhat said. The facility will

Weekly Newsletter 61 Info-Spectrum Bridging the Information Gap in Corporate Landscape start operations before March. Titan Industries, which retails gold jewellery under and Goldplus brands, is witnessing some fall in demand for jewellery due to surging prices of the yellow metal, he said. Titan Industries, which aims to enter one new overseas market every year, is planning a foray into Indonesia by March, and is seeking partners for the distribution of its products in that country, Bhat said. SRF gets 3.8 mn carbon credits worth Rs.3.05 bn from UN body SRF Ltd has been allotted 3,834,984 certified emission reductions, the United Nations Framework Convention on Climate Change said in a statement. SRF manufactures chemical based industrial intermediates for sectors such as textiles, chemicals, packaging films and engineering plastics. The company has been awarded the certified emission reductions for reducing greenhouse gas emissions by thermal oxidation of the waste gas hydrofluorocarbon-23 during the period Jul 1, 2009 to Jun 30, 2010. Based on the settlement price of 12.18 euros (Rs.795) per carbon credit of the benchmark Dec contract on the European Climate Exchange, the carbon credits are valued at around Rs.3.05 bn. ED says LIC planning to set up wholly-owned arm in Singapore Life Insurance Corp of India is planning to set up a wholly-owned subsidiary in Singapore, said Sushobhan Sarker, executive director. "It will be a wholly-owned subsidiary...there won't be a local partner," Sarker told reporters. Sarker said that LIC will invest more than the local regulatory requirement in the arm, but he refrained from giving a number. The state-owned life insurance company currently has a representative office in Singapore. It also has operations in United Kingdom, Bahrain, Mauritius, Kenya, Nepal and Sri Lanka. At present, LIC has no plans to set up operations in New Zealand and Australia, Sarker said. VLCC plans a Rs.200 cr capex Wellness and beauty company, VLCC plans to invest around Rs.200 crore over the next two years on domestic and overseas expansion and also launch new range of products. Wellness and beauty company, VLCC plans to invest around Rs.200 crore over the next two years on domestic and overseas expansion and also launch new range of products. The company plans to open 15 new company-owned outlets this fiscal and also double its franchisee outlet strength from the current 35 to 70 within a year. The company has operations in seven countries and plans to foray into Sri Lanka, Bangladesh and Qatar by early 2012. Currently, VLCC has 163 slimming and beauty centres in 102 cities across the country. ICICI Securities, Oppenheimer in pact to offer equity, debt pdts ICICI Securities Ltd has signed a memorandum of understanding with US-based broking, dealing and investment advisory firm Oppenheimer & Co Inc. The strategic alliance will help them locate and win business opportunities in the US and India, ICICI Securities said. The deal covers equity and debt capital market services, advisory services, private equity transactions, and wealth management. Talking about investment opportunities in the US, Anup Bagchi, managing director and chief executive officer, ICICI Securities, said, "Increasingly, our clients are seeking access to the US market as well as a broader range of products and services." Oppenheimer & Co Inc is a principal subsidiary of Oppenheimer Holdings Inc. RBI removes Union Bk, Karur Vysya Bk from caution list of FII buy The Reserve Bank of India struck off Union Bank of India and Karur Vysya Bank from the caution list for investments by foreign institutional investors and removed the restrictions placed on the purchase of their shares. The move follows fall in the aggregate shareholding of FIIs in these banks under the portfolio investment scheme below the prescribed trigger limit. "It will be in order to purchase the shares of above (these) banks in the secondary market on behalf of FIIs who have obtained permission to invest under the Portfolio Investment Scheme subject to the existing ceilings and guidelines in this regard," RBI said in a press release. Starwood Hotels to expand in tier II and III cities Global hotel company Starwood Hotels and Resorts Worldwide, plans to expand its hotel brands ''Four Points' and 'Aloft' in the tier II and tier III cities across the country. The company aims to launch 100 hotels in India by 2015. 'Four Points' and 'Aloft' brands are targeted at business travellers. Globally, Starwood has nine brands, out of which six brands already have presence in the country. Group's brand such as Westin, Sheraton, Four Points by Sheraton, The Luxury Collection, W Hotels, St Regis, Le Meridien, Aloft and Element by Westin. The group is planning to launch two more brands W Hotels and St Regis in India by 2015. Kohinoor signs deal with US-based McCormick Basmati rice maker Kohinoor Foods Ltd, has announced the completion of Rs.520-crore deal with the US- based spices and seasonings maker McCormick so as to establish a joint venture for the marketing basmati

Weekly Newsletter 62 Info-Spectrum Bridging the Information Gap in Corporate Landscape rice and other food products in India. In the joint venture, McCormick has invested Rs.520 crore ($113 mn) and hence holds 85% majority stakes in the Kohinoor Specialty Foods India and the balance 15% will be held by the Kohinoor Foods. The production facility at Bahalgarh in Haryana has been transferred to the joint venture. McCormick is engaged in the manufacture, marketing and distribution of spices, seasoning mixes, condiments and plans to expand its operations in Indian food market. Ministry proposes 20% quota for MSMEs in govt purchases The micro, small and medium enterprises ministry has proposed 20% reservation for micro and small enterprises in government purchases. The new public procurement policy is likely to come into effect this financial year, the report said. Within the 20% quota for micro and small enterprises, 20% would be reserved for scheduled castes and tribes. The quota will make it easy for socially backward class to start enterprises. "There won't be any compromise on the quality aspect. Only products that meet certain specifications will be accepted," the newspaper said quoting the minister. SEBI restates Sep-end deadline for promoters to dematerialise stake The Securities and Exchange Board of India reiterated that companies have to dematerialise their entire promoter shareholding by the end of September. If a company misses the deadline its shares will be traded in the trade to trade segment instead of the normal segment. Under the trade to trade segment, intraday squaring off and netting is not permitted, the price band is reduced to 5% or 2%, there is a likelihood of the scrip being removed from an index, derivatives trading on the scrip could be discontinued, and the liquidity in the stock could be hit, the regulator said. Areva T&D gets Rs.2.2 bn contract to set up 765 kV substations Areva T&D India Ltd said it has received a contract worth Rs.2.2 bn from Sterlite Technologies Ltd's subsidiary Bhopal Dhule Transmission Co Ltd to construct two 765 kV high-voltage substations. In a notice to the stock exchanges today, Areva T&D India said one substation would be set up in Bhopal in Madhya Pradesh and another in Dhule in Maharashtra. Earlier this month, Sterlite Technologies' arm Sterlite Grid had awarded contracts worth Rs.5 bn to Areva T&D India, Hyundai Heavy Industries Co Ltd, and Baoding Tianwei Baobian Electric Co Ltd. Kale Consultants gets order from South American airline LAN Kale Consultants Ltd has got orders from South American airline LAN for its REVERA product, which is used to process passenger interline billings. "REVERA interline is the only standalone interline solution available in the market. It simplifies and strengthens the interline processes in passenger revenue accounting," Neela Bhattacherjee, airlines head at Kale Consultants was quoted as saying in the release. The interline solutions by Kale Consultants will improve interline billing accuracy for LAN, the company said. Kwality Dairy to raise Rs.1,000 cr to fund capex Kwality Dairy has chalked out an expansion plan to raise capacity at its 9 lakh litre per day processing plant at Faridabad in Haryana. The plant also processes additional 8 lakh litre per day through leased facilities. Currently, the company is engaged in the distribution of loose milk to institutional and bulk customers, and also plans to enter into branded milk segment. The company sells its products under brands like Dairy Best Pure Ghee and LivLite. Top fund the expansion, the company is likely to raise up to Rs.1,000 crore either through debt or equity route. ' hikes stake in to 25.66% on pref shr conversion Promoter Tata Sons Ltd has raised its stake in Trent Ltd to 25.66% from 25.23% through conversion of compulsorily convertible preference shares. On Sep 15, Tata Sons received 1.23 mn shares of garments and fast moving consumer goods retailer Trent following conversion of an equal number of series-A preference shares. The company had allotted the compulsorily convertible preference shares series-A of Rs.10 each for Rs.550 each to the shareholders on a rights basis on Aug 28, 2010. Reliance Retail expects same-store sales growth of 20% in FY12 Reliance Retail Ltd expects to maintain its 2011-12 (Apr-Mar) same-store sales growth at the levels of 20% witnessed the previous financial year. Reliance Retail is a unit of Reliance Industries Ltd. Kurien said despite high inflation and rise in interest rates, the company was not experiencing any decline in consumer demand across the country. Reliance Retail opened its first cash-and-carry store in Ahmedabad, Gujarat, earlier this month, and plans to open such stores more across India.

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

Varkey buys 12% in Everonn for Rs.1.4 bn, triggers open offer Everonn Education Ltd said Dubai-based Varkey Group will pick a 12% stake in the company via preferential allotment of 2.62 mn shares at Rs.528 each, and also make an open offer to minority shareholders. Everonn, which will raise Rs.1.38 bn through the allotment, also approved the induction of Varkey Group as co- promoter of the company. The company's board also approved increasing the non-resident limit under portfolio investment scheme to 24% from 10%. ANALYSIS: With a softer text and move, RBI says 'hair isn't on fire' If one kept the majority market view aside, economists attached to bank treasuries were polarised ahead of the Reserve Bank of India's mid-quarter review of the 2011-12 (Apr-Mar) monetary policy. Some expected Governor D. Subbarao to stand pat, while the rest saw him raise the repo rate by a measure no less than 50 basis points. LIC asks IRDA to allow it to hold more than 10% in a company Life Insurance Corp of India has asked sector regulator to allow a single fund from its portfolio to hold over 10% in a company so it could buy more equity in a falling market. Insurance Regulatory and Development Authority norms stipulate an insurance company can invest up to 10% in a single company. LIC, however, already holds more than 10% in several firms. HSBC Global sells entire 6.86% in Indiabulls Wholesale on Sep 9 Indiabulls Wholesale Services Ltd said HSBC Global Investment Funds (Mauritius) Ltd sold its entire 6.86% stake in the company on Sep 9 through the open market. In a notice to the stock exchanges, Indiabulls Wholesale said HSBC Global sold 3.4 mn shares of the company on the Bombay Stock Exchange for Rs.12.6 mn. EPFO: The Employee Provident Fund Organisation has asked regional offices to make fund transfers through national electronic fund transfer after around Rs.10 mn was siphoned off through issue of fake cheques. The organization wants its offices to make 70% and above transactions through e-payment mode. Spencer's Retail plans more stores by year-end Spencer's Retail Ltd, an RPG group company, plans to add four large format stores two in Bangalore and one each in Uttarakhand and at Kurnool in Andhra Pradesh. Each of the stores will entail an investment of around Rs.5-6 crore each. Currently, Spencer’s has 225 stores across the country, including 35 hyper stores. Delta Corp JV to sell Kenya unit to World Bank for $22.8 mn Delta Corp Ltd said its joint venture Delta Corp East Africa Ltd has signed a binding agreement with the International Bank for Reconstruction and Development to sell its Delta Centre in Kenya for $22.8 mn, the company said in a press release. ANALYSIS: LPG reform put off as UPA allies fume over petrol hike The United Progressive Alliance government's anxiety to shed its "paralysis" and display policy pulchritude at a time when it's been hemmed in by a litany of scandal charges and a combative Opposition refuses to ebb. E-commerce in India not taken off as expected: Rediff Web portal Rediff said e-commerce in India has not yet taken off in as big a way as it expected, but it hopes the government's commitment to creation of "back-hall" broadband infrastructure would give a fillip to online shopping in the country. CII for Sebi to relax floor for HNI investment in AIFs Industry chamber CII has asked market regulator Sebi to relax the proposed floor for HNI investment in Alternative Investment Funds (AIFs), asserting that the lower limit of Rs.1 crore would discourage them from participating in the scheme. SEBI finalises new rules to regulate investment advisers Securities and Exchange Board of India has finalised new rules to regulate investment advisers on the lines of the structure in the mutual fund industry to prevent growing complaints from investors about being short- changed. SEBI wants a self-regulatory organisation to be set up. ICICI Securities plans to expand institutional broking business ICICI Securities, the broking arm of ICICI Bank, is planning to expand its institutional broking business. The decision comes at a time when readily available electronic facilities have forced traditional brokerages to reduce commission.

Weekly Newsletter 64 Info-Spectrum Bridging the Information Gap in Corporate Landscape

HT, ToI Mon, Thu Delhi edition prices hiked by 50 paise Sep 12 In an encore of last month's coordinated price increases, HT Media Ltd and Bennett, Coleman & Co Ltd, raised the prices of their respective flagship products--Hindustan Times and The Times of India--on Sep 12 by 50 paise for their Monday and Thursday Delhi editions, according to trade sources. Global cos answerable to Indian consumer courts: SC International cos are answerable to Indian consumer courts for service deficiency, the Supreme Court has ruled, upholding its direction to a Lebanese international courier company to pay 71,615.75 US dollars compensation to a Mumbai-based firm. Government clears FDI proposals worth Rs.243 cr The government announced that it has cleared 12 proposals for foreign direct investment in the country worth a total Rs.242.88 crore, including one from Indian Rotorcraft to carry out the assembly of both military and civil helicopters. Industry dept to relax norms for wholesale cash-and-carry companies The Department of Industrial Policy & Promotion will relax a key condition imposed on wholesale cash-and- carry companies. So far, companies like Bharti Walmart and Tata Tesco could sell up to 25% of turnover to group companies. Under the new rule, the 25% restriction will not apply. Britannia to set up units in Bihar, Odisha, Karnataka Britannia Industries is setting up three greenfield manufacturing units in Bihar, Karnataka, and Odisha. This will boost the company's production capacity to meet growing demand. Each new plant will be set up with an investment of Rs.500-800 mn. Piramal Group PE arm to invest 2 bn Rs. in Mumbai realty developer Private equity arm of Piramal Group, Indiareit, which is focused on real estate investments, is in talks with Mumbai-based Lokhandwala Developers to invest up to Rs.2 bn. A fortnight ago, the company had concluded a Rs.2-bn special purpose vehicle investment. Carborundum Universal OKs 2-for-1 stock split Carborundum Universal Limited has informed the Exchange that the Shareholders of the Company have at the extra-ordinary general meeting held on Sep 20, 2011 approved the proposal to sub divide the equity shares of the Company from the current face value of Rs.2 each to Re.1 each. TRP Watch: KBC keeps Sony second among peers in week to Sep 10 Riding high on the extended success of the Amitabh Bachchan-anchored Kaun Banega Crorepati, Sony Entertainment Television remained on the second spot among Hindi general entertainment channels in the week to Sep 10, the 37th week of 2011. 's Voltas may acquire Wipro's water purification business Tata Group company Voltas is in advanced talks to acquire Wipro's water purification and treatment business. Wipro has mandated investment bank Anand Rathi to find a suitor for the business. This is part of Wipro's strategy to exit smaller businesses. FOCUS: Rapid fall in rupee may lead it to 50/$1 sooner vs expected The rapid fall in rupee on global woes and lack of intervention from the Reserve Bank of India may push the Indian unit towards the psychological level of Rs.50 per dollar faster than anticipated, currency traders said. FOCUS: Equities breathe easy on RBI move, but wary of mkt stability The Street appeared relieved that the Reserve Bank of India decided to raise key policy rates by only 25 basis points in its mid-quarter policy review, but doubts remain of stability returning soon. RBI says FIIs can buy up to 50% stake in Gitanjali Gems Foreign institutional investors can buy shares and convertible debentures of Gitanjali Gems Ltd up to 50% of the its paid-up capital under the portfolio investment scheme, the Reserve Bank of India said Future Group head sees Future Capital shr sale concluding in 4-6 months Future Group expects to complete divestment of Pantaloon Retail India Ltd's stake in Future Capital Holdings Ltd in 4-6 months, Group Chief Executive Officer Kishore Biyani said.

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

GoM may review mfg policy as environ min scuttles proposal The National Manufacturing Policy is likely to be referred to a group of ministers after the proposal was scuttled by Environment and Forests Minister Jayanti Natarajan, the Indian Express newspaper reported. Pranab says RBI policy formulated in consultation with govt Finance Minister Pranab Mukherjee said the Reserve Bank of India's monetary policy is formulated in consultation with the government. Fin svcs secy says decision on finalising LIC head in 7-10 days The final decision on appointment of new chairman of Life Insurance Corp of India could be taken within 7- 10 days, D.K. Mittal, secretary – department of financial services in the finance ministry said. Titan Ind looking to hike watch, eyewear prices on high input cost Titan Industries Ltd is looking at hiking prices of its watches and eyewear range, due to "really high" input cost pressures over the past year, V. Govindraj, vice president of integrated retail sales, told. Source says CARE Ratings may file draft IPO prospectus by Sep 30 Ratings agency Credit Analysis & Research Ltd is likely to file the draft red herring prospectus for its proposed initial public offer by Sep 30, a person familiar with the development told. Textile ministry seeks 60% jump in funds in 12th plan The Union textile ministry has sought nearly 60% jump in funds from the Planning Commission during the 12th Plan period for 2012-17. FDI in services jumps 3-fold during April-June Foreign direct investment (FDI) into India's services sector tripled to USD 2.19 bn (Rs.9,802 crore) during the first quarter of the current fiscal, according to the industry ministry's data. MMTC invites bids for import of 3 lakh tonnes of DAP With a view to augment fertiliser supply in the upcoming rabi season, state-owned trading firm MMTC has invited bids for the import of three lakh tonnes of di-ammonium phosphate (DAP). Kale Consultants sure of maintaining 7% revenue growth year to Jun Despite the difficult economic environment, Kale Consultants Ltd is confident of maintaining revenue growth of at least 7% in 2011-12 (Jul-Jun), Managing Director and Chief Executive Officer Vipul Jain told. Borosil Glass Works to mull share buyback Borosil Glass Works Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on Sep 23, 2011, inter alia, to consider Buy-back of shares. Dabur ups prices of select Real, Activ 1 ltr juices by Rs.2-5 Dabur India Ltd has hiked prices of certain flavours of its Real and Activ juice brands by 2 Rs. and 5 Rs. per ltr respectively, according to trade sources. FMCG firms hike advertising budget by 60% FMCG companies have hiked their advertising and promotional budget by 60% this year to perk up demand and shore up revenues during the upcoming festive season, industry chamber Assocham said. India in talks with Brunei to diversify LNG sourcing Seeking to diversify sourcing of liquefied natural gas (LNG), India is talking to Brunei, Indonesia, Australia and Malaysia to meet the nation's growing energy needs. Weakening rupee to discourage Chinese cycle import The bicycle sector expects sharp appreciation of USD against rupee will discourage and restrict "large scale" import of bicycles from China. TITAN INDUSTRIES: • Targeting 2011-12 revenue up 38% on year at Rs.90 bn. • To team up with Tata Nano to make small car 'Goldplus Car' with jewellery and precious stones worth Rs.260 mn. • To spend Rs.2.4 bn as capital expenditure by Mar; Will set up a 200-mn-rupee jewellery manufacturing plant in Uttarakhand. • To enter Indonesia via a distribution tie-up in six months.

Weekly Newsletter 66 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ASTRAL POLY TECHNIK: Arm of Warran Buffet-owned Berkshire Hathaway in partnership with the company to set up a chlorinated polyvinyl chloride industrial unit in Gujarat with initial investment of Rs.11.77 bn in the venture. RELIGARE ENTERPRISES: Has appointed former State Bank of India Managing Director S.K. Bhattacharyya as an adviser on its panel to suggest a roadmap for the firm to get a banking license. NEW DELHI TELEVISION: Tamil daily Dina Thanthi is one of the three or four prospective buyers interested in NDTV-Hindu Media Ltd's loss making Chennai-centric television channel. BRITANNIA INDUSTRIES: The company is setting up three manufacturing units, one each in Bihar, Odisha, and Karnataka, at an investment of Rs.500-800 mn each. SUN TV NETWORK: Revenues of the company are likely to be hit going ahead due to rising interest cost and adverse developments in the Tamil Nadu media industry. VISHAL RETAIL: Owners TPG Capital and Shriram Group are discussing a split and division of assets of the company following differences. AREVA T&D INDIA: Gets Rs.2.2-bn contract from STERLITE TECHNOLOGIES' subsidiary to construct two 765 kv high-voltage substations. MARG: Ascent Capital Advisors India will invest up to $2 bn for the development of the company's Karaikal Port in Tamil Nadu. LIFE INSURANCE CORP: IRDA may allow LIC to invest up to 20% in debt in a particular company instead of the current cap of 10%. SINTEX INDUSTRIES: Looking to buy custom moulding companies with a topline of $400 mn-$500 mn in the US and Europe. TIME TECHNOPLAST: Plans to set up industrial packaging manufacturing facility, one each in China and Malaysia. ZEE LEARN: Board of Directors approves raising up to $60 mn from domestic and international markets via equity. CAMLIN: Golden Oak Mauritius has sold 2.03% in the company between Jul 19 and Sep 14. MARICO: Arm Kaya targets breakeven by 2013, sales of Rs.5 bn in three-four years. SERVALAKSHMI PAPER: Resumed power and paper plants operations. ZEE ENTERTAINMENT: Bought 11.82 mn shares so far for Rs.1.43 bn. SRF: Company purchased Rs.1.08 mn shares so far for 327.80 mn. RELIANCE CAPITAL: May sell 26% stake in general insurance arm. CARBORUNDUM UNIVERSAL: Has approved 2-for-1 stock split. COLGATE PALMOLIVE: May hike prices in emerging markets. HINDUJA GLOBAL: Likely to open BPO centre in China. SIEMENS: Parent gives up nuclear business.

Weekly Newsletter 67 Info-Spectrum Bridging the Information Gap in Corporate Landscape

IPO Watch Source says CARE Ratings may file draft IPO prospectus by Sep 30 Ratings agency Credit Analysis & Research Ltd is likely to file the draft red herring prospectus for its proposed initial public offer by Sep 30, a person familiar with the development told. "The process for filing the DRHP is on and is likely to be done before this month (end)," the person said. The company has appointed six investment banks, including Bank of America Merrill Lynch, Kotak Mahindra Capital and Edelweiss Capital, to manage the public offer. The size of the issue and the quantum of stake dilution planned could not be ascertained. Depending on market conditions, the Mumbai-based company is likely to tap the equity markets before the end of the current financial year in Mar. The IPO is likely to be a mix of fresh issue of shares and offer of sale by the existing shareholders. There was no response from CARE Ratings Chief Executive Officer D.R. Dogra to calls made or SMS on the issue. Promoted by some of the major financial institutions, CARE's major shareholders include IDBI Bank, State Bank of India, and Canara Bank. According to information on its website, the three entities together hold around 58% stake. The balance is held by Federal Bank, IL&FS, ING Vysya Bank, etc. All these financial institutions may partly sell their stakes in CARE. In Aug last year, private equity firm Milestone Religare Investment Advisors had bought 5% stake in CARE Ratings from existing investors through a secondary transaction. With its peers CRISIL Ltd and ICRA Ltd already listed on the stock exchanges, CARE is the only major domestic ratings agency that remains unlisted. CARE rates debt instruments such as commercial papers, fixed deposits, bonds, debentures and asset-backed securities, and also initial public offers. It also assesses credit risk of small and medium enterprises. The company has also launched rating management institutes in terms of quality of infrastructure and facilities offered by them. CARE's latest products include rating real estate projects and it has also forayed overseas by rating a Maldives-based company. IPO Alert: Flexituff International issue to be open Sep 29-Oct 5 Flexituff International Ltd's initial public offering of 6.75 mn shares will remain open subscription between Sep 29 and Oct 5. For qualified institutional bidders, the issue will close a day earlier on Oct 4. The company is yet to declare a price band for the issue. The offer constitutes issue of fresh shares totalling 4.5 mn and sale of up to 2.25 mn shares held in the company by Clearwater Capital Partners. Flexituff International, the maker of packaging bags, plans to use the issue proceeds for expanding manufacturing facilities at its special economic zone and domestic tariff area units in Pithampur, setting up a dripper project in Kashipur, and to meet working capital requirements. Shares of the company are to be listed on the Bombay Stock Exchange and National Stock Exchange. Collins Stewart Inga is the book running lead manager to the issue. IPO Alert: M and B Switchgears sets price band Rs.180-186/share M and B Switchgears Ltd has fixed a price band of Rs.180-186 per share for its initial public offering that opens Sep 28 and closes Oct 5. The 5-mn-share issue constitutes 25% of the post-issue paid up equity capital of the company. The face value of the share is Rs.10. The Indore-based company manufactures distribution transformers and power transformers. It wants to set up a 4 MWp solar photovoltaic power plant. ICRA has graded the issue 'IPO Grade 2/5', indicating below average fundamentals. D & A Financial Services Pvt Ltd is the book running lead manager to the issue and Bigshare Services Pvt Ltd is the registrar. IPO Alert: Shemaroo files papers for Rs.1.15 bn issue Shemaroo Entertainment Ltd has filed draft red herring prospectus with the Securities and Exchange Board of India to raise Rs.1.15 bn via an initial public offering. The company is in the business of film production, distribution and animation. The company has appointed Yes Bank and ICICI Securities as lead managers to the issue. IPO Alert: Flexituff International price band Rs.145-155/share Flexituff International Ltd has set the price band of its initial public offering of 6.75 mn shares at Rs.145-155 each. At the lower end of the price band, shares of the company are valued 7.19 times its 2010-11 (Apr- Mar) consolidated earnings per share of Rs.20.17. At the upper end of the price band, they are valued at 7.68 times. The issue will be open for subscription Sep 29-Oct 5, but for qualified institutional bidders, the issue will close a day earlier on Oct 4. Flexituff plans to use the issue proceeds for expanding manufacturing facilities at its special economic zone and domestic tariff area units in Pithampur, setting up a dripper project in Kashipur, and to meet working capital requirements. Shares of the company will be listed on the Bombay Stock Exchange and the National Stock Exchange. Collins Stewart Inga is the book running lead manager to the issue.

Weekly Newsletter 68 Info-Spectrum Bridging the Information Gap in Corporate Landscape

IPO Alert: Swajas Air Charters sets price band at Rs.90-100/share Swajas Air Charters Ltd has fixed the price band for its Rs.375-mn initial public offering of shares at Rs.90- 100 a shares. The issue of the air charter services provider will be open Sep 26 through Sep 28. At the lower end of the price band, the shares are valued 23.20 times the company's 2010-11 (Apr-Mar) earnings per share of Rs.3.88, whereas at the upper end, the shares are valued 25.77 times. Swajas Air Charters plans to list its shares on the National Stock Exchange and the Bombay Stock Exchange. The company plans to use the issue proceeds for fleet expansion, setting up a maintenance, repair, and overhaul facility at the Chennai airport, purchasing an office building, and meeting working capital requirements. Aryaman Financial Services Ltd is the book running lead manager to the issue. IPO Alert: Taksheel Solutions sets price band at Rs.130-150/share Taksheel Solutions Ltd has set a price band of Rs.130-150 per shares for its initial public offering. The company's 5.5-mn-share issue will open on Sep 29 and close on Oct 4. Taksheel Solutions plans to use the issue proceeds to set up new software development centres at Hyderabad and Warangal, acquisitions and other strategic initiatives, and to meet working capital requirements. The information technology solutions company plans to list the shares on the National Stock Exchange and Bombay Stock Exchange. PNB Investment Services Ltd is the book running lead manager to the issue. IPO Alert: Prakash Constrowell sets IPO price at Rs.138/share Prakash Constrowell Ltd has fixed the issue price of its Rs.600-mn initial public offer at Rs.138 a share. The Rs.10 shares were offered in the price band of Rs.130-138. The issue was open from Sep 19 to Sep 21. At the upper end of the price band, the shares are priced 10.6 times the price-to-earnings of the financial year 2010-11 (Apr-Mar). The IPO was subscribed 2.21 times. The company received bids for 10.2 mn shares, against the issue size of 4.61 mn shares. The Nashik-based infrastructure development and civil construction company will use the issue proceeds to meet its working capital needs. Part of the proceeds will be used for purchasing construction equipments and investment in subsidiaries. The shares will be listed on the Bombay Stock Exchange and National Stock Exchange. IPO Alert: Onelife Capital price band Rs.100-110/shr; opens Sep 28 Onelife Capital Advisors Ltd has fixed the price band of its initial public offering of 3.35 mn shares at Rs.100- 110 each of face value Rs.10. The issue, which constitute 25.07% of the company's fully diluted post issue paid up capital, will open Wednesday and close Oct 4. Issue proceeds will be used to buy a corporate office in Mumbai, develop portfolio management services, and for brand building activities. Shares of the financial services company will be listed on the National Stock Exchange and the Bombay Stock Exchange. Atherstone Capital Markets Ltd is the book running lead manager to the issue. IPO Alert: Infonet IT Solutions seeks OK for Rs.600-mn issue Infonet IT Solutions (I) Ltd plans to raise up to Rs.600 mn through an initial public offering of shares of face value Rs.10 each. The company filed its draft red herring prospectus with the Securities and Exchange Board of India. The company is considering a pre-IPO placement of up to 2.5 mn shares with various investors. Infonet IT Solutions plans to use the issue proceeds on setting up of a network operating centre in Bengaluru, new offices in Bengaluru and abroad, expansions, acquisitions, and to meet working capital requirements. Shares of the company will be listed on the National Stock Exchange and the Bombay Stock Exchange. Chartered Capital and Investment Ltd is the book running lead manager to the issue. * Insurance Regulatory and Development Authority to release guidelines for initial public offerings of life insurance companies within a week. * KMC Constructions plans public issue; to enter solar power.

Weekly Newsletter 69 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ISSUES ANNOUNCED Size Face Issue Issuer Shares:Rupees Value Issue Period Lead Manager Price (mn:bn) (rupees) Swajas Air Charters N.A:0.37 10 90-100 26/09-28/09 Aryaman Tijaria Polypipes 10.0:0.6 10 60 27/09-29/09 Hem M and B Switchgears 5.0:N.A 10 180-186 28/09-05/10 D and A Flexistuff International 6.75:N.A 10 145-155 29/09-05/10 Collins Taksheel Solutions 5.5:0.80 10 130-150 29/09-04/10 PNB Investment

ISSUES CLOSED, TO LIST

Size Face To Issuer Shares:Rupees Value Issue Price Issue Period List Lead Manager (mn:bn) (rupees) on RDB Rasayans 4.5:N.A 10 72-79 21/09-23/09 - Chartered Prakash Constrowell N.A:0.60 10 130-138 19/09-21/09 - Intensive PG Electroplast 5.75:1.207 10 210 07/09-12/09 26/09 Almondz Readymade Steel India N.A:0.347 10 108 27/06-29/06 - Arihant VMS Industries N.A:026 10 40 30/05-02/06 - Ashika

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

MERGERS & ACCQUISITIONS == INDIA-ABROAD ==

SUZLON ‐ REPOWER Announced: Sep 22 Suzlon Energy to acquire the remaining 4.8% stake in German‐based RePower. The company already holds 95.16% in REPower. Status: Ongoing NMDC ‐ LEGACY IRON ORE Announced: Sep 22 NMDC to buy 50% stake in Australia's Legacy Iron Ore for A$18.89 mn. Status: Ongoing GODREJ CONSUMER ‐ DARLING GROUP Announced: Sep 20 Godrej Consumer Products plans to acquire remaining 49% stake in Darling Group in three to five years. The company had acquired 51% stake in Darling group on Sep 6. Status: Ongoing == ABROAD-INDIA ==

EVERONN EDUCATION ‐ VARKEY GROUP Announced: Sep 20

Dubai‐based Varkey Group to pick 12% stake in Everonn Education via preferential allotment at Rs.528 a share and to also make an open offer to minority shareholders.

Status: Ongoing

== INDIA-INDIA ==

GRAVITA INDIA ‐ METAL INC Announced: Sep 21

Gravita India Ltd has acquired 20% additional stake in the Jammu and Kashmir‐based Metal Inc, increasing its shareholding to 100%.

Status: Complete

TONIRA PHARMA ‐ IPCA LABORATORIES Announced: Sep 17

Tonira Pharma's board has approved the company's merger with Ipca Laboratories Ltd with effect from Apr 2011.

Status: Complete

==GLOBAL M&A==

SABMILLER‐FOSTER

SABMiller to buy Foster's Group for $10.2 bn.

WARSAW‐POLPX

Warsaw bourse in exclusive talks to buy 80% stake in energy‐trading rival PolPX.

APACHE CORP‐EXXONMOBIL

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

US oil and gas company Apache Corp plans to buy ExxonMobil Corp's North Sea LLC's assets in the UK for around $1.75 bn.

HYNIX SEMICONDUCTOR

South Korea‐based Hynix Semiconductor's shareholders to accept fresh bids for shares worth $2.8 bn after STX Group's plan to buy the stake fell through.

VOLKSWAGEN ‐ SUZUKI MOTOR CO

Volkswagen may launch hostile takeover bid for Japan's Suzuki Motor Co.

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

RATINGS Sunrise Glass Industries' cash credit gets ICRA B+

ICRA affirm rtg on Metal Engineering & Treatment's cash credit

RP Periyasamy & Co's cash credit gets ICRA B

Sadashiva Sugars' fund based limits get ICRA BBB

KK Rao Engineering Works' cash credit gets ICRA BB

ICRA affirms BB on Colorant's term loans

ICICI Capital Protection Oriented Fund gets ICRA AAAmfs(SO)

ICRA A1+ on IDFC's enhanced short-term debt programme

ICRA affirms BBB+ on ITD Cementation India's fund-based limits

Vedanta Aluminium's working capital gets Fitch AA(SO)(ind)

Fitch BBB(ind) national long-term rating to Cimmco

Fitch BBB(ind) national long-term rating to Metco Roof

Wheels Polymers' cash credit gets CRISIL B+/Stable

CRISIL affirms BBB/Stable on Shilpa Re-rollers' cash credit

CRISIL affirms BB-/Stable on Shreyash Aluminium's cash credit

CRISIL affirms rtg on Sri Satyanarayana Raw's cash credit

CRISIL affirms BB+/Stable on Venkar Chemicals' cash credit

CRISIL affirms BB/Stable on Samrat Forgings' cash credit

R Piyarelall Intl's export packing credit gets CRISIL A4

CRISIL affirms BBB-/Stable on Radiant Exports' term loan

Care affirms AAA on State Bank of Mysore's Upper Tier II bonds

Ram Saroop Deepak Kumar's cash credit gets CRISIL B+/Stable

CRISIL affirms rtg on SR Thorat Milk Products' term loan

R Piyarelall Iron & Steel's packing credit gets CRISIL A4

CRISIL affirms BB+/Stable on Kedia Carbon's cash credit limit

CRISIL BB-/Stable on Kisanveer Sahakari Sakhar Karkhana's loan

CRISIL BB-/Stable on Nav Shubh Prabhat Education Society loan

Prime Civil Infra's cash credit gets CRISIL BB-/Stable

Kalyani Forge's term loan gets CRISIL A-/Stable

CRISIL affirms BB-/Stable on Cabcon India's cash credit

CRISIL affirms BB-/Stable on Cauvery Iron's cash credit

CRISIL puts Chambal Fertilisers' loan on developing rtg watch

CRISIL affirms BB-/Stable on Eastman Impex's term loan

CRISIL affirms BBB-/Stable on C&E Ltd's cash credit limit

Maniyar Refinery's term loan gets CRISIL B+/Stable

CRISIL affirms A-/Negative on Ador Powertron's cash credit

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

Anil Steels' cash credit gets CRISIL B+/Stable

Bewell Labs' term loan gets CRISIL B/Stable

Care affirms AAA on Bank of Mysore's Upper Tier II bonds

RC Industries' long-term bank facilities get CARE BB-

RHC Holding's short-term NCD gets CARE In-principle A1+(SO)

CARE affirms AAA(Is) issuer rtg to HDFC

CARE retains AA- on National Engineering Ind's bk facilities

Aditya Polymers and Chemicals' bank facilities get CARE BB+

Balar Fabrics' long-term bank facilities get CARE BB

Carreman Fabric India's bank facilities get CARE BBB+(SO)

CARE affirms AAA(Is) issuer rtg to HDFC

CRISIL cuts Arunkkumar Spinning's term loan rtg to B+/Stable

CRISIL ups rtg on KSE Electricals' term loan to BBB-/Stable

CRISIL ups rating on Motorsales' term loan to B/Stable

CARE cuts rtg on Jaisu Shipping Co's long-term bk facilities

CARE cuts Jaisu Dredging & Shipping's bk facilities rtg to BB+

ICRA cuts rating on Rana Sugars' term loan to D

ICRA ups rtg on Paramount Printpackaging's term loans to B+

ICRA cuts rating on Rama Paper Mills' term loans to D

ICRA cuts rating on Tradeline Enterprises' term loan to D

Udit Infraworld's fund based limits get ICRA BB+(Stable)

SRS Meditech's 110-mln-rupee term loans get ICRA B+

Sri Venkateswara Pipes' term loans get ICRA BB+ (Stable)

Sri KPR Infra & Projects' term loans get ICRA BB+ (Stable)

Kewalram Textiles' long-term bank facilities get CARE BBB-(SO)

CARE retains A- on UIC Udyog's long-term bank facilities

Fitch C(ind) national long-term rtg to Olive Tex Silk Mills

Srei Equipment Finance's short-term debt gets ICRA AA-(Stable)

Fitch affirms national long-term rtg on Spun Micro-Processing

Jayachitra Garments' term loans facilities get ICRA BB(Stable)

ICRA cuts Indus Westside Healthcare fund based facilities rtg

Fitch affirms rtg on GVR RMN Hubli Lakshmeswar Road's loans

Shri Chhatrapati Shahu Sahakari Sakhar's loan gets ICRA BB+

ICRA puts MBL Infra's bank facilities on withdrawal notice

Shakti Refoils & Agro Food's cash credit gets ICRA BB-(Stable)

Kemwell Biopharma's term loans get ICRA BBB-(Stable)

ICRA affirms AA on Tata Projects' NCDs programme

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

ICRA affirms BB(Stable) on Vandana Vidhyut's fund based limits

Fitch affirms BB+(ind) on GVNS Tollways' bank loans

HKR Roadways' bank loan gets Fitch BBB-(ind)

Garib Nawaz Polymers' long-term bank facilities get CARE BB+

CARE affirms rtg on GMR Chennai Outer Ring Road bk facilities

GN Pet's long-term bank facilities get CARE BB

CARE affirms BBB+ on McNally Humboldt Wedag's bk facilities

Sri Sai Sindhu Ind's long-term bank facilities get CARE D

CARE affirms BBB- on West Gujarat Expressways' bank facilities

Manipal Packaging Ind's long-term bank facilities get CARE B

Palm Grove Beach Hotels' term loan gets CARE A

CARE affirms A- on Greenply Ind's long-term bank facilities

Raviraj Ginning Pressing & Oil Ind's bk facilities get CARE B+

Akash Oil & Cotton Factory's bank facilities get CARE B+

Shree Papers' long-term bank facilities get CARE C

CRISIL affirms BBB/Stable on AM Marketing's cash credit

Asis Global's cash credit gets CRISIL B+/Stable

CRISIL BB+/Stable on Asis Logistics' enhanced cash credit

Asis Plywood's cash credit gets CRISIL B+/Stable

Hira Automobiles' cash credit gets CRISIL BB-/Stable

Kunjal Synergies' cash credit gets CRISIL BB+/Stable

CRISIL affirms AAA/Stable on Standard Chartered Bank's bonds

Fitch cuts national long-term rtg on Deccan Fine Chemicals

ICRA cuts rtg on Hind Metals & Industries' term loans to D

ICRA ups rating on Fekari Infrastructure's term loan limit

ICRA cuts rtg on PBA Infraprojects' fund based limits to D

ICRA cuts rtg on Rallison Electricals' cash credit limit to D

ICRA ups rating on La Opala RG's fund based limit

CRISIL affirms B/Stable on Vihaan Infrasystems' cash credit

CRISIL affirms A1+ on Federal Bank's enhanced CD programme

Shiv Gramo Udyog Sansthan's cash credit gets CRISIL C

CRISIL affirms B+/Stable on Shirdi Ind's reduced cash credit

CRISIL affirms AA-/Stable on Page Industries' cash credit

CARE cuts rtg on Nu tek India's long-term bank facilities

CRISIL BBB-/Stable on Lanco Vidarbha Thermal Power's term loan

ICRA cuts rtg on Bheema Cements' term loans to D

ICRA ups rtg on NCL Industries' term loans to BB-

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

CRISIL BBB-/Stable on GSP Crop Science's enhanced cash credit

ICRA ups rtg on Western Refrigeration's term loan to BB-

CRISIL cuts rating on TR Chemicals' cash credit to C

CRISIL cuts rating on Soma-Isolux NH One Tollway's term loan

CRISIL cuts rating on Mundra Port and SEZ's long-term loan

CRISIL cuts rtg on Bhagiradha Chemicals & Ind's cash credit

Kavisha Motors' cash credit gets CRISIL B+/Stable

Thriveni Earthmovers' cash credit gets CRISIL BBB+/Stable

Kohli Auto Co's cash credit gets CRISIL B+/Stable

Sapala Organics' cash credit gets CRISIL B/Stable

Shiv-Naresh Sports' cash credit gets CRISIL B/Stable

Romet's cash credit gets CRISIL B+/Stable

Hajra Medical Agencies' cash credit gets CRISIL BB/Stable

CRISIL affirms AAA/Stable on GE Capital Services India's NCDs

NABARD's bonds get CRISIL AAA/Stable

CRISIL cuts rtg outlook on Vadilal Industries' cash credit

CRISIL ups rtg on Alcon Electronics' term loan to BB/Positive

City Union Bank's CD programme gets CRISIL A1+

CRISIL A1+ on Karur Vysya Bank's enhanced CD programme

CRISIL affirms AA/Stable on Indiabulls Financial's bank loan

CRISIL cuts rtg on Phoenix Transmission's cash credit to D

Edelweiss Housing Finance's short-term debt gets CRISIL A1+

Fitch affirms long-term rtg to Siva Swathi Constructions

Gopinath Chem-Tech's bill discounting gets CRISIL BB-/Stable

CRISIL ups rtg on Mercury Travels' cash credit to BB+/Positive

CARE puts Tungabhadra Minerals bk facilities on credit watch

CRISIL affirms B+/Stable on Deventhira Spinners' cash credit

CRISIL affirms D on Tamilnadu Jaibharath Mills' cash credit

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

Eltel Engineers' cash credit gets ICRA BB-

Fitch affirms B(ind) national long-term rating to JK Paper

Fitch BB-(ind) national long-term rtg to Gangakhed Sugars

Fitch BBB(ind) national long-term rtg to Deltronix India

Giriraj Industries' long-term bank facilities get CARE B+

ICRA affirms BB-(Stable) on Bansal Sales' cash credit

ICRA affirms BB(stable) on Nirmal Seeds' long-term loans

ICRA affirms BBB(Stable) on Botil Oil Tools' term loans

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

ICRA affirms C on Utkal Galvanizers' term loan

ICRA affirms D on Celebrity Fashions' term loan facilities

ICRA affirms ICRA BB-(Stable) Sireesh Auto's cash credit

Mahadev Fibres' long-term bank facilities get CARE BB

Maneesh Pipes' cash credit gets ICRA BB-

Marck Biosciences' long-term bank facilities get CARE C

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

Padmanabh Healthcare's term loan gets CRISIL B-/Stable

Pagoda Steels' long-term bank facilities get CARE B+

Parakh Oils' term loan gets ICRA BB(Stable)

Prince Vitrified's long-term bank facilities get CARE BB-

Ram Krushna Cotton Ind's long-term bk facilities get CARE B+

SAC Infosystem's cash credit gets ICRA BB(Stable)

Shiv Renewable Energy's long-term loan gets CRISIL B/Stable

Shree Raghuvanshi Fibers' cash credit gets ICRA B+

Shri Hari Cotex's cash credit gets ICRA B+

Sri JaiBalaji Ispat's fund based limits get ICRA BB-(Stable)

Sunborne Energy Gujarat's fund based limits get ICRA BB

United Breweries' term loans get ICRA A(Stable)

Vaibhav Ginning & Spinning Mill's bk facilities get CARE B+

VEMB Lifestyle's long-term bank facilities get CARE BB

CRISIL affirms BB+/Stable on Chennai Radha Engg's cash credit

Fitch affirms national long-term rtg to Development Credit Bk

Fitch BBB+(ind) on Chenani Nashri Tunnelway's long-term loans

ICRA reassigns D on M Kantilal Exports' fund based facilities

Pressmach Infrastructure's cash credit gets CRISIL BB-/Stable

State Bank of Mauritius' certificate of deposits get CARE A1+

CRISIL affirms AAA/Stable on GE Money Financial Services' NCDs

Fitch cuts national long-term rating to Sargam Retails

Fitch cuts national long-term rating to Sargam Retails

CARE ups rating on Rei Agro's NCDs to A+

CARE ups rating on United Bank of India's Tier II bonds

ICRA cuts rating on Asaco's fund based limits to D

ICRA cuts rating on McML Systems' term loans to D

ICRA cuts rtg on Singh Industries' fund based limits to D

ICRA ups rating on Bola Surendra Kamath & Sons' term loans

ICRA ups rating on Harrisons Malayalam's term loans

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

Agarwalla Teak Intl's cash credit gets CRISIL BB-/Stable

Andhra Expressway' long-term bank facilities get CARE AA

Bhuwaneshwar Refineries' cash credit gets CRISIL B+/Stable

Bipico Industries Tools' cash credit gets CRISIL BB/Stable

CARE affirms AAA on Tech Mahindra's long-term bk facilities

CRISIL affirms A+/Stable on SDME Society's term loan

CRISIL affirms BB-/Stable on GMB Textiles Mills' cash credit

CRISIL affirms BBB+/Stable on Obeetee Textiles' term loan

CRISIL affirms BBB+/Stable on Obeetee's term loan

CRISIL affirms D on Gangotri Textiles' term loan

CRISIL affirms rtg on Sun Pharmaceutical Ind's cash credit

East India Udyog's term loan gets CRISIL BBB-/Stable

Fitch affirms BB+(ind) national long-term rtg on SEAM Ind

Gurvir Motors' cash credit facilities get ICRA B+

HV Equipments' term loan gets CRISIL B+/Stable

ICRA affirms B on Kumaragiri Textiles' term loan facilities

ICRA affirms BB(Stable) on Ritemed Pharma Retail's term loan

ICRA affirms BB+(Stable) on Adlec Systems' term loans

ICRA affirms BBB-(Stable) on Tijaria Polypipes' term loans

Jayshri Ginning & Spinning's bank facilities get CARE BB-

Jayshri Impex's short-term bank facilities get CARE A4+

JD Industries' cash credit gets CRISIL B/Stable

KBJ Gold Ornaments' cash credit gets CRISIL BB/Stable

L&T Finance's long term bank facilities get CARE AA+

Lovable Lingerie's long-term bank facilities get CARE A+

M Tarunkumar & Co's long-term bank facilities get CARE BB+

PM Electro- Auto's cash credit gets CRISIL B+/Stable

Prime Bond Industries' cash credit gets CRISIL BB/Stable

Rajmahal Silks' cash credit gets CRISIL BBB-/Stable

Rajmahal Textiles' cash credit gets CRISIL BBB-/Stable

RGTL Industries' term loan gets ICRA BB(Stable)

Roselabs Bioscience's term loan gets ICRA B+

S J Contracts' fund based bank lines get ICRA BB+

Sainest Tubes' term loans get ICRA BB+(Stable)

Shivam Ispat's term loan gets CRISIL BB/Stable

Sri Shardha Timbers' long term fund based limits get ICRA B+

Studds Accessories' term loan gets CRISIL BBB/Stable

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

Superhouse's fund based bank limits get ICRA A-

Tirupati KP Cotton Ind's cash credit gets CRISIL B+/Stable

Vinirrmaa Projects' long-term bank facilities get CARE BB

ICRA puts Kisan Mouldings' bank lines on developing rtg watch

CRISIL A/Stable on IndusInd Media & Communications' term loan

CRISIL A+/Stable on Hitachi Consulting Software's cash credit

Goel Exim India's working capital limits get ICRA BB-(Stable)

Goodwill Hospital and Research Centre's IPO gets CARE Grade 3

Royal Impex (India)'s short-term bank facilities get CARE A4+

Textrade International fund based limits get ICRA BB-(stable)

ICRA affirms B on Kumaragiri Electronics' term loan facilities

ICRA puts Kisan Irrigations bank lines on developing rtg watch

CARE ups rtg on Tata Housing Development's bank facilities

CRISIL cuts rating on Oracle Home Textile's term loan

ICRA cuts rating on BST Textile Mills' long-term loans

ICRA cuts rating on Conros Steels' term loan to D

ICRA ups rating on Relaxo Footwears' fund based limits to A-

CRISIL ups rtg on Vijaynagar Biotech's term loan to BBB/Stable

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

GLOBAL ECONOMY GLOBAL ECONOMY: • Poll supports Palestinian state. • Strauss-Kahn rues hotel liaison. • Colombian rebels attack police. • US drone crashes in Pakistan. • Two Pakistan govt cos expelled from UK defence exhibition. • Malik threatens to block Google, YouTube in Pakistan. • Yemen Forces Fire on Protesters, 26 Killed. • Rajapaksa leaves for US amid discomfort over Ban's action. • Taliban bomber hits Pakistan police officer's home; kills 8. • Protests against Ahmadinejad's arrival in New York. • US money is destroying Pakistan, says Imran Khan. • Greece under EU, IMF lens over next aid payment. • S&P downgrades Italy's credit rating by one notch to A. • One mn urged to evacuate as nears Japan. • Clashes sparked by Taliban attack leave 19 dead in Pakistan. • Japan defence hit by cyber attack. • Former Afghanistan President Burhanuddin Rabbani killed. • Obama to meet Abbas at UN. • Death toll in Reno air crash rises to 11. • Blast kills 3, wounds 15 in Turkish capital. • US agrees $5.9 bn arms deal with Taiwan. • Libya to announce new government in "7-10" days. • Japan's Typhoon Roke threatens tsunami zone; 4 already killed. • Iran releases two US hikers held as spies for two years. • 35 bodies dumped on road as Mexican drug war continues. • Obama warns on Palestinian UN bid. • Iran frees jailed American hikers. • US Fed unveils $400-bn bond buying plan; sees big downside risk to econ. • IMF sees $410 bn credit risk for European banks. • Iceland keeps key rates unchanged. Japanese Panel Calls for $146 Bn Tax Increase A Japanese government panel called for temporary tax increases to bring in ¥11.2 trn (about $146 bn) over a period of up to 10 years to fund post-disaster reconstruction and prevent public finances from worsening. Charged with coming up with ways to boost government revenue in the face of huge spending requirements after the Mar 11 earthquake, the Tax Commission also recommended raising ¥5 trn through non-tax sources, including the sale of government-held shares in Japan Tobacco Inc. The commission offered three tax-increase options, to be in effect for five to 10 years: a mixture of higher income, corporate and regional taxes; that mix plus higher taxes on specific items such as alcohol or cigarettes; and an increase in the country's sales tax from the current 5%. But Prime Minister Yoshihiko Noda quickly ruled out the third option, according to Finance Minister Jun Azumi. Of the projected tax revenue, ¥8 trn would be used for reconstruction and ¥2.5 trn for pension programs, among other uses. Mr. Noda doesn't want reconstruction spending—estimated at roughly ¥13 trn over five years—to add to the nation's public debt, already twice annual economic output. The government plans to sell bonds to raise much of the ¥13 trn, then gradually pay back the borrowed money using revenue from the tax increases. But there is uncertainty over the extent to which the ruling party's final tax policies will reflect Friday's proposals.

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

Argentina Posts 9.1% 2nd-Quarter Growth Argentina's economy grew 9.1% in the second quarter from a year earlier. As in the first quarter, the economy expanded much faster than expected as consumers took advantage of higher salaries to buy durable goods like cars and flat-screen TVs as a hedge against inflation. Most private sector economists say the government understates inflation, which if true would make economic growth look far more impressive than it really is. "Our measurements suggest that the economy expanded at a more modest 5.9% year-on- year during the second quarter," Morgan Stanley said. Even so, few deny that Argentina's economy is booming thanks to ample government spending, good prices for its exports and double-digit wage hikes that allow many consumers to weather inflation that is widely believed to be running above 20%. Inflation and even greater salary increases are feeding a consumer spending spree that has shown few signs of slowing. Automobile sales rose nearly 32% on the year to nearly 461,000 vehicles during the first eight months of the year, while shopping center sales are growing at a similar rate. Last month, Deputy Economy Minister Roberto Feletti said the government expects the economy to expand about 5% in 2012, down from estimated growth of 8.2% this year. Argentina's economic fortunes are very much tied to global grain prices and Brazil's economy. Grains and derivatives like soy oil are the country's No. 1 source of foreign currency, while Argentine factories survive largely thanks to import barriers and exports to Brazil. After the economy expanded 7.5% in 2010, the Brazilian government's latest forecasts put growth at 4.0% to 4.5% this year, and about 5% next year. Decision on Greek aid payment in Oct.: Juncker A decision providing the next payment of aid to Greece under the nation's 2010 bailout package will be made in Oct, Luxembourg Prime Minister Jean-Claude Juncker said at a news conference after a meeting of euro-zone finance ministers in Wroclaw, Poland. Juncker, who chairs meetings of the eurogroup of euro-zone finance ministers, said officials recognized renewed efforts by Greece to meet its fiscal targets. Greek officials have said failure to secure the next round of aid would see Greece run out of cash in weeks. Juncker said ministers "made progress" on a dispute over Finland's insistence it receive collateral for participating in a second Greek bailout. "We concluded that if collateral will be provided, it will be done at an appropriate price," Juncker said September UMich consumer sentiment rises to 57.8 A gauge of consumer sentiment rose to 57.8 in the preliminary reading for Sep after tumbling to a nearly three-year low 55.7 in Aug. In Aug, sentiment had reached the lowest level since Nov 2008 with Washington's protracted debt-ceiling negotiations taking a toll on consumers. The sentiment reading, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the start of the most recent recession. US Household debt declines for 12th straight quarter Household debt dropped for the 12th consecutive quarter, according to second-quarter data released by the Federal Reserve that shows the continued drag from the bursting of the housing bubble. Household debt declined by a seasonally adjusted annual rate of 0.6%, dragged lower by a 2.4% decline in mortgage debt as consumers took out fewer mortgages, paid off or had debts forgiven, the Federal Reserve reported in its voluminous flow-of-funds report. Consumer credit outside mortgages rose by 3.4%. Owners had 38.6% of the equity in their houses — unchanged from the first quarter but well below the 49.5% of 2007 as the housing market began to tumble. Household real estate was worth $16.18 trn, a 0.4% dip from the first quarter but about 29% lower than the peak in the fourth quarter of 2006. Businesses outside the financial sector expanded their credit at a 4% annualized rate. State and local governments borrowed 3.2% less, while the federal government — which doesn’t face balanced-budget rules that local authorities encounter — expanded its borrowing by 8.6% annualized. Total nonfinancial sector borrowing rose by 3% to $36.52 trn. The financial sector also continued to deleverage, borrowing 7.8% less in the 10th straight negative quarter. The corporate sector continued to stockpile cash, reaching a record $2.05 trn at the end of the second quarter, up from $1.96 trn at the end of the first quarter and as little as $1.4 trn in 2008. Household and nonprofit organization net worth was $58.46 trn, a small $149 bn reduction from the first quarter but well off the $65.8 trn peak from the second quarter of 2007. Indonesia 2011 wheat imports likely to rise 9% Indonesia's wheat imports this year may hit 5.0 mn metric tons, up 9% from 2010 on the back of growing domestic consumption and lower imports of wheat flour, a senior industry executive said. "So far we are importing more than 400,000 tons wheat on an average every month and seem to be on track to reach 5.0 mn tons," Franciscus Welirang, chairman of Indonesia's flour mills association, Aptindo, told. Indonesia is

Weekly Newsletter 81 Info-Spectrum Bridging the Information Gap in Corporate Landscape one of Asia's largest wheat and wheat flour importers, and its purchases of the grain are steadily growing each year from the international market as consumers turn to noodles from rice to cut their monthly food bill amid high inflation. World energy demand to jump 35% by 2035: EIA World energy consumption will grow 53% by 2035, led by demand growth in India and China, the U.S. Energy Information Administration said in a report. The 2011 International Energy Outlook predicts that consumption of energy from renewable sources will be the fastest growing energy sector, reaching 15% of the world energy use by 2035 compared to 10% in 2008. But fossil fuels will still be the world's dominant source, accounting for about 78% of the world's energy use in 2035, the report said. The EIA said it expects oil prices to remain high, reaching $125 per barrel in 2035, but added that consumption of oil will still grow during that period. The EIA also said, however, that petroleum prices are "very sensitive to both supply and demand conditions" and that prices could fall to $50 per barrel or approach $200 per barrel, depending in part of the rate of economic growth in developing countries. The report released projects changes in world energy markets between 2008 and 2035. It doesn't take into account the potential impacts of policy changes that have not yet been implemented. One area that will be particularly sensitive to policy actions: competition between coal, natural gas, and renewable sources to meet electricity demand, said Howard Gruenspecht, the acting EIA administrator, during a speech at the Center for Strategic and International Studies. The report projects, absent policy changes, tremendous growth in coal consumption by China and to a lesser extent India and other developing countries. That growth is a key driver of a projected increase in worldwide carbon dioxide emissions, which EIA predicted would jump about 43% between 2008 and 2035. China's carbon emissions were somewhat higher than those of the U.S. in 2008, but are projected to be "more than twice as high" as U.S. emissions by 2035, Gruenspecht said. Natural gas consumption was projected to grow at a faster rate than any other type of fossil fuel, thanks in part to increased supply from the U.S. and elsewhere. Consumption will grow from 111 trillion cubic feet in 2008 to 169 trillion cubic feet in 2035, the report predicted. Use of nuclear power increases slightly in the EIA projections, but "the full extent of the withdrawal of government support for nuclear power is uncertain" in the wake of the Fukushima Daiichi crisis in Japan, Gruenspecht said. Gruenspecht said that due to budget cuts impacting the EIA, the outlook report might not be released next year. "That's a little bit of question mark in the present resource environment." Brazil posts $2.5 bn trade surplus Brazil posted a foreign-trade surplus of $2.5 bn during the first 18 days of Sep. In the third week of Sep, from the 12th to 18th, Brazil posted a surplus of $1.2 bn, with exports totaling $5.9 bn and imports $4.7 bn. Year-earlier figures weren't provided. For the first 18 days of Sep, exports totaled $12.8 bn and imports reached $10.2 bn. With the new figures, Brazil's year-to-date trade surplus totaled $22.5 bn, compared with a surplus of $12.4 bn in the same period of 2010. Brazilian analysts are expecting a 2011 foreign trade surplus of $24 bn, up from the $20.1 bn seen in 2010. Obama unveils $3.6 trillion deficit plan President Barack Obama rolled out a $3.6 trillion deficit reduction plan that sought to bridge the gap between the two political parties by backing entitlement program reform supported by Republicans with increased taxes on the wealthy favored by Democrats. Obama’s plan harkened back to the so-called “grand bargain” that he and Speaker of the House John Boehner almost reached earlier this summer that would cut long-term entitlement spending and raises additional tax revenue, though Republicans responded coolly to this fresh proposal. “Today I am laying out a set of specific proposals to finish what we started this summer,” Obama said in a speech in the Rose Garden. Obama said his plan would pay down “the big pile of IOUs” amassed over the last decade with $2 in spending cuts for every $1 in new revenues. The program would allow the country to start reducing its debt level by 2017, the White House said. The proposal would hit “primary balance” in that year, where current spending is not longer adding to debt. Under the White House plan, the national debt would fall to 73% of gross domestic product in 2012. If Congress took no action to cut spending, the debt would hit 90.7% of GDP, the White House said. The deficit would fall to 2.3% of GDP by 2021, the White House said. Obama said he was proposing cutting spending by scouring the budget for every dime of waste and inefficiency, reforming government spending and making modest adjustments to Medicare and Medicaid. “We have to cut what we can’t afford to pay for what really matters,” Obama said. But taxes must also rise, Obama said. “We can’t just cut our way out of this hole. It is going to take a balanced approach,” Obama said. Obama’s plan would raise $1.5 trillion in tax increases. More than half would come from the 2013 end of Bush-era tax cuts for Americans making over $250,000. Obama will

Weekly Newsletter 82 Info-Spectrum Bridging the Information Gap in Corporate Landscape send his proposal to the congressional supercommittee that is tasked with finding $1.5 trillion in deficit savings by the end of November. Obama’s proposal included fits into what analysts called a “go big” strategy because it includes controversial entitlement “savings,” along with tax increases and less defense spending from bringing U.S. troops home from Iraq and Afghanistan. Many Congressional Democrats had hoped Obama would not propose savings to Medicare and Medicaid. The White House said 90% of the savings from Medicare would come from reducing overpayments. The plan does not propose to raise the eligibility age for Medicare benefits. “I will veto any bill that changes benefits for those who rely on Medicare but does not raise serious revenues by asking the wealthiest Americans or biggest corporations to pay their fair share,” Obama said. Obama said changes to the Social Security program should be on a separate track. The key for breaking Washington gridlock, analysts said, is whether Republicans will bend from their current stance opposing any revenue in the form of higher taxes. As it now stands, if the Republicans block tax hikes, Democrats are not expected to go along with entitlement changes. On Sunday, House Budget Committee chairman Paul Ryan said it was “constructive” that Obama included entitlement savings in his plan, but complained the savings did not go far enough. Boehner said last week that he would not any tax hikes under the supercommittee process. While designed as an opening bid for debate over the deficit, Obama’s plan had a political component aimed at the next presidential election campaign in 2012. For instance, the proposal included “five principles” for the supercommittee to consider on raising revenue, including a so- called “Buffett rule” that said mnaires should not pay a smaller share of their income in taxes than middle- class families pay. Berkshire Hathaway Chairman Warren Buffett has publicly advocated for higher tax rates for wealthy individuals like himself. Leading Republicans pounced on the Buffett rule. Ryan called the proposal “class warfare” that may be good politics but is “rotten economics.” Obama took issue with this characterization. He said the choice was whether to increase taxes on the wealthy and business or cutting back on popular services for the middle class and poor. “It is not class warfare, it is math,” Obama said. Brazil's government confirms import tax proposal Brazil's government has asked the World Trade Organization to consider letting countries take measures to compensate for the effects of exchange rate fluctuations, the Development, Innovation and Trade ministry said, confirming local press reports. The ministry spokesperson couldn't confirm details of the plan, which is intended to spur new thinking about dealing with exchange rate movements. Existing rules were made when many currencies had fixed exchange rates, and now that more currencies are floating, the rules should be updated, the spokesperson said. The O Estado de Sao Paulo newspaper reported the proposal would let governments impose an import tax on products from countries whose currencies decline rapidly, beyond limits set by international organizations such as the WTO. Brazil's import taxes aren't sufficient to counteract the strong appreciation of the Brazilian real, the agency reported, and the proposal represents part of the government's long-term strategy to deal with the issue. The Brazilian government is concerned about the rapid appreciation of the Brazilian real against the U.S. dollar, despite the real's recent weakening against that currency, and has blamed currency manipulation--either directly or indirectly--by trading partners such as the U.S. and China. The U.S. Federal Reserve has pumped hundreds of bns of dollars into the world economy, which Brazil said has weakened the dollar, while China overtly manages the yuan. Brazil's government has taken a series of steps to try to prevent the currency from appreciating as well as to help manufacturers. Last week the government announced an increase of 30% points in a tax on imported vehicles, and in Jul it announced a tax on certain types of currency derivatives. In May, the WTO accepted a Brazilian proposal that it begin a two-year study into the very specific relationship between trade and currencies. Although the question of currencies was included in the WTO's mandate when it was established in 1947, it has never been discussed in that forum. Russia Jan-July trade surplus rises to $117.6 bn Russia's foreign trade balance posted a $117.6 bn surplus in the first seven months of 2011, the country's statistics service said. That compares with a $96.4 bn surplus in the corresponding period of last year. In the seven-month period, Russian exports rose by 32.1% on the year, to $292.4 bn, while imports rose by 39.9% on the year, to $174.8 bn. S&P downgrades Italy's credit rating a notch Standard & Poor's Ratings Services has downgraded Italy's credit rating by one notch, saying it sees weakening economic growth prospects for the European nation and higher-than-expected levels of government debt. The ratings firm cut Italy's long- and short-term sovereign credit ratings to ``A/A-1'' from "A+/A-1+." The rating is still five steps above junk status. The ratings agency has a negative outlook on Italy's ratings and listed Italy's political issues and heavy debt load as the main factors contributing to the

Weekly Newsletter 83 Info-Spectrum Bridging the Information Gap in Corporate Landscape downgrade. It anticipates that political differences will likely limit Italy's ability to respond decisively to its debt crisis. Standard & Poor’s downgrades 7 Italian banks because of sovereign debt risk Standard & Poor’s said that it had downgraded seven Italian banks because of sovereign debt risk, a day after the agency downgraded Italy’s credit rating. The cut targeted leading banks Mediobanca SpA and Intesa Sanpaolo SpA, as well as Findomestic Banca SpA, Banca IMI SpA, Banca Nazionale del Lavoro SpA, Banca Infrastrutture Innovazione e Sviluppo SpA and Cassa di Risparmio in Bologna SpA. The agency said it was assigning negative outlooks to the long-term ratings on these seven banks. It was also revising its outlooks from stable to negative on eight other Italian banks, including Unicredit. “The negative outlooks on the long-term ratings on the 15 banks reflect the possibility that we could lower their ratings, all other things being equal, should we further lower our ratings on the Republic of Italy,” S&P said in a statement. This week, S&P downgraded Italian sovereign bonds to A from A+ — reinforcing fears that Italy, with the second-highest debt burden in the eurozone after Greece, is getting drawn into Europe’s debt crisis. The agency cited weaker growth prospects and a fragile governing coalition as key reasons for its surprisingly swift downgrade, just four months after issuing a warning. The Italian government of Prime Minister Silvio Berlusconi has criticized the downgrade as politically motivated. It said it was “lowering our long-term ratings on seven Italian banks and assigning negative outlooks to the long-term ratings on these banks.” Italy has passed an austerity package and promised to balance the budget by 2013, but only after several revisions and amid bickering within Berlusconi’s ruling coalition. The package has been criticized by the opposition and by Italy’s largest union, which staged a strike earlier this month. 'Cooperation' key to resolve Indo-B'desh differences Cooperation between India and Bangladesh could resolve the bilateral differences linked to terrorism, migration, border and environment, a top Bangladeshi official said, underlining that the relationship between the two neighbours was on the right path. Powerful quake jolts B'desh, sparks panic "We call it a strong earthquake on the basis of its magnitude," a Bangladesh met office spokesman told PTI. Quake kills 5 in Nepal; British embassy wall collapses At least five people were killed when a strong 6.8 magnitude earthquake jolted Nepal. Three people were killed when a wall of the British Embassy collapsed. Indo-Lanka joint naval exercise off Trincomalee India and Sri Lanka kick-started their largest ever joint naval exercise off the coast off Trincomalee to enhance interoperability b/w the two navies. China launches new communication satellite China's Long March rocket successfully launched a new communication satellite, first time after its previous mission failed last month. IMF warns Greece to cut deeper as default threatens The IMF gave Greece an ultimatum today to introduce more budget austerity to win the release of rescue funds and escape bankruptcy early next month. UAE's Gulftainer inks USD 275 mn Russian port deal UAE-based Gulftainer has secured a landmark agreement to co-develop and operate the Ust-Luga Port, near St Petersburg, in Russia, it has been announced. Qatar Airways makes further inroads into Europe Qatar Airways has spelt out the strategic importance of the airline's ongoing expansion in central and eastern Europe following its latest route launch to Sofia. Dubai offers special Diwali fares for India destinations Dubai-based Emirates airline has announced special fares to India on the occasion of Diwali, the festival of lights. Germany to push for intl finance mkt transaction tax German Finance Minister Wolfgang Schaeuble, who leads a group of EU nations seeking the speedy introduction of such a tax on a global level, said there are some chances for introducing it in the EU, even though deep divisions still exist.

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

France hopes to adopt financial-transaction tax France is hopeful of achieving the implementation of a financial transaction tax, the head of the treasury Ramon Fernandez said. "The promotion of innovative financing is very dear to the President of the Republic and we share this wish with Germany. We are hopeful of implementing a financial transaction tax," Fernandez said as he delivered a speech in the place of French finance minister Francois Baroin at the International Economic Forum on Africa. Still, Fernandez admitted it will be a "difficult" debate with international partners. The European Union plans to press the case for a tax on trading shares and bonds, foreign exchange and derivatives at a summit of the Group of 20 industrial and developing nations in November. France and Germany, the euro zone's two largest economies, have already backed the idea, although there is no agreement yet on how to spend the revenue generated. However, France and Germany are struggling to win backing. As it became clear the U.S., the U.K. and Sweden are unlikely to back such a transaction tax, Belgian finance minister Didier Reynders said that the euro zone may have to contemplate going it alone. Fernandez also said France--which holds the rotating presidency of the G20--is working on ways to finance the fight against climate change. This could take the form of an emissions tax on the international air and maritime sectors, he said. Construction of new U.S. homes falls 5% Builders started construction on fewer new homes in Aug, underscoring how the depressed U.S. real estate market shows little sign of recovering. Housing starts fell 5% to an annual rate of 571,000 last month, the lowest level in three months, according to Commerce Department data. “The further fall in housing starts in August adds to other evidence, such as the recent drop in consumer confidence and fall in mortgage approvals, suggesting that demand for new homes remains close to rock bottom,” said Paul Dales, senior U.S. economist at Capital Economics. Most of August’s decline took place in the Northeast and it was concentrated in multi-dwelling buildings such as apartments. New building tumbled 29.1% in the Northeast while the construction of multi-dwelling units sank 12.4%. Construction of single-family homes, which account for three-quarters of the housing market, fell a much smaller 1.4% to an annual rate of 417,000. In the housing report’s biggest bright spot, permits for new construction actually rose 3.2% to an annual rate of 620,000, marking the highest level since January. Permits give an indication of whether demand for new homes is growing or slowing. Also, single-family permits climbed 2.5% to 413,000, the best showing since Dec. Yet the residential-construction industry remains mired in its worst slump in modern times, building fewer than 600,000 new homes in both 2009 and 2010. By contrast, nearly 1.1 mn homes were built in the year before the recession and the industry constructed 2 mn homes as recently as 2005. Now new homes are selling at about half the rate as would be the case in a healthy housing market. Among the factors depressing sales are a persistently high jobless rate, a flood of foreclosures and the difficulty that both builders and prospective buyers face in trying to get financing from cautious lenders. New building plunged in the Northeast, where construction of single-family units sank 10.8% to a record low of 33,000. And in the South, construction tapered off 3.3%. New construction rose 2.6% in the Midwest and 2.2% in the West. The moribund housing industry partly explains the softness in the U.S. economy. Housing exerts a sizable influence because so many raw materials and finished goods are required to build homes and furnish them after sale. Construction also employs mns of workers. Peru committees approve new mining tax regime Two congressional committees in Peru approved legislation that would change royalty payments in the mining sector and increase tax collection for the government, one of the main initiatives of President Ollanta Humala's new administration. The legislation will now be sent to Congress for approval. The legislation includes changing the current scheme for royalty payments of 1% to 3% on net sales to payments of 1% to 12% on operating profit. The committees also approved new payments for companies with tax stability agreements. Some of Peru's biggest mining companies have signed stability agreements. Prime Minister Salomon Lerner Ghitis has said the new system would allow the government to increase tax collection by 3 bn soles ($1.1 bn) a year. The government held talks with mining companies to discuss the new tax. However the National Mining, Oil and Energy Society, or SNMPE, sent a letter to the committees saying the tax proposal is missing some of the agreements that were reached with the government. Peru is the world's second-largest copper and silver producer and a major producer of gold, zinc, lead and other minerals. IMF slashes world economic growth outlook The International Monetary Fund slashed its economic forecast, responding to slow private-sector demand, sovereign debt and bank troubles, the Japanese earthquake and Middle East unrest. The new forecasts issued in the world economic outlook aren’t out of step with Wall Street. For instance, the IMF cut its U.S.

Weekly Newsletter 85 Info-Spectrum Bridging the Information Gap in Corporate Landscape growth forecast for this year to 1.5% and to 1.8% next year, which for 2011 is a full percentage point lower than three months ago and 0.9% below its prior forecast for 2012. The 2011 view is a just shade below Wall Street views of 1.6% U.S. growth, though the IMF’s call for 2012 is more conservative than the 2.2% growth seen by private-sector economists, according to data compiled by Blue Chip Economic Indicators. “The strong cyclical rebound in global industrial production and trade in 2010 was never expected to persist. However, in crisis-hit advanced economies, especially the United States, the handover from public to private demand is taking more time than anticipated,” the IMF said in a report. The IMF said unemployment and low wages are likely to stay high for some time, and house prices show no sign of stabilizing in hard-hit areas including the U.S. and Spain. And the agency frets over the state of financials: the IMF said its staff’s financial conditions indices, which consider developments in equity and bond prices, spreads, and bank lending volume in the United States and the euro area, have tightened noticeably. Risks are higher than even three months ago, the IMF says in identifying weak sovereigns and banks in the developed world, insufficiently strong policies to address the legacy of the crisis, vulnerabilities in emerging-market economies and volatile commodity prices and geopolitical tensions. The IMF report sounded the same go-slow on short- term government spending cuts but make medium-term adjustments theme that its new leader, Christine Lagarde, has sounded. Lagarde joined the IMF in July, about two weeks after the previous world economic outlook was published. “If (contrary to WEO assumptions) payroll tax relief and help for the unemployed in the United States are not prolonged, U.S. growth could be significantly lower. By the same token, if sound medium-term consolidation plans are not implemented, households and businesses may take an increasingly dim view of future prospects and drastically raise their saving rates. The result could be a lost decade for growth,” the report said. Separate report urged Europe to get its act together In a separate report on government finances around the globe, the IMF warned that Europe must take more steps to avoid a worsening of the debt crisis. If Europe doesn’t act, there would be “vicious debt spirals,” the IMF said in its twice-a-year fiscal monitor report, which was launched two years ago. Spain and Italy can live with higher market interest rates in the short term, giving time for “steps to be taken that can restore market confidence before the debt dynamics become excessively adverse,” the report said. The difference in yield, or spread, between German bunds and Italian and Spanish counterparts will remain about 240 basis points for the next few years, the report said. The IMF’s recommendations were not radical. It called for some further fiscal adjustment, pro-growth measures and “an adequate crisis management framework for the euro area.” “Markets are worried about the way the crisis is managed in Europe,” said Carlo Cottarelli, director of the IMF fiscal affairs department. He said there is a “cacophony of voices” in Europe that creates uncertainty that is not taken well by markets. There should also be no delay in implementing the decisions made at the July 21 European Union summit, Cottarelli said at a press conference after the report was released. The IMF report said Germany could slow down the pace of its austerity measures if the economic outlook continues to weaken. IMF officials said they saw no reason yet for the United Kingdom to alter its budget-cutting plan. The widening crisis in the euro area is a “cautionary tale” for the U.S. and Japan and other countries with high debts and deficits, the IMF said. The U.S. still needs to enact a credible plan to bring down the deficit in the medium term, including targets and measures to achieve them, Cottarelli said. The IMF gored the sacred cows of both Republicans and Democrats, saying that any credible debt plan should raise taxes, a move that is anathema to Republicans and overhaul entitlement programs protected by Democrats. Chile president says economy to grow around 5% Despite gloomy forecasts for the global economy, Chile's gross domestic product will likely expand around 5% in 2012 on the year and 6.5% in 2011, Chilean President Sebastian Pinera reiterated. The Central Bank of Chile recently said it expects GDP to grow between 4.25% and 5.25% in 2012 and narrowed its GDP growth forecast for 2011 to 6.25%-6.75%, compared with a previous estimate of between 6.0% and 7.0%. "The Chilean economy has a lot of strengths. [It's] a healthy economy that's growing and creating jobs, but we're not bullet proof because we have trade ties with a lot of countries," Pinera said at a televised event in Santiago. Chile's economy is highly export-dependent and Europe and the U.S. are two of the South American nation's main trade partners. U.S. household appliance shipments fall 4.8% Shipments of major household appliances in the U.S. fell 4.8% in August, as consumer demand for appliances appeared to weaken from a year ago, but improved from July. Shipments of what are known as the Big Six appliance categories--washers, dryers, dishwashers, refrigerators, freezers, ranges and ovens-- dropped to 2.8 mn units during the four weeks ended Aug. 27, from 2.9 mn units in August 2010, according to figures released Tuesday by the Association of Home Appliance Manufacturers, an appliance-industry

Weekly Newsletter 86 Info-Spectrum Bridging the Information Gap in Corporate Landscape trade group. August shipments, however, rose 14.6% from July, when shipments fell 9.1% from July 2010. Manufacturer shipments of all appliance categories, which include items such as microwave ovens, garbage disposals and room air conditioners were down 0.6% compared to a year-ago, at 4.3 mn units. Appliance shipment volumes are closely watched as a gauge of sales activity for appliance manufacturers Whirlpool Corp., General Electric Co., Electrolux AB (ELUXY, ELUX-B.SK) and LG Electronics Inc. Appliance manufacturers have been struggling against weakening demand and rising costs for materials such as steel and copper. Whirlpool and Electrolux raised their prices in spring and announced in July that they'll take a second price increase this fall to recoup their costs and maintain margins. Consumers have been reluctant to buy new appliances, as persistently high unemployment, falling real estate values and tougher credit conditions dampens demand for appliances and other high-priced durable items. Moody's gives DC negative outlook Moody's Investors Service gave the District of Columbia's general obligation bonds a negative outlook, warning that looming federal budget cuts could pressure its finances. Washington's local economy has generally fared better than most of the country over the past few years as the countercyclical effect of a large federal workforce bolsters the district's budget. That advantage could suffer due to federal debt- reduction efforts, including public-sector firings and entitlement cuts, Moody's said. Congress has already enacted trillions of dollars in cuts this year and is scheduled to shave more off the federal budget next year. Moody's still rates the district at Aa2, the third highest possible rating. The revised outlook reflects its unique exposure to federal government downsizing. At the same time, the district still benefits from some hallmarks of strong fiscal management, including an independent chief financial officer, five-year financial planning processes, a self-imposed debt cap, mandated reserves and congressional budget oversight, Moody's said. But the district already suffers from high unemployment among local residents compared with the rest of the nation, a challenge to its credit status. A congressional ban on taxing commuters' income and large swaths of tax-exempt federal property also constrain the local government's ability to boost revenue. HSBC Preliminary China PMI Falls in September A preliminary gauge of China's manufacturing activity fell in September, indicating that growth in the world's second-largest economy continued to slow. The preliminary HSBC China Manufacturing Purchasing Managers Index fell to 49.4 in September from a final reading of 49.9 in August, HSBC Holdings PLC said. The fall in the PMI could reignite some concerns over a sharp economic slowdown in China, due to weakening global demand for Chinese goods and various tightening measures at home. The Australian dollar, which is sensitive to Chinese demand for Australian commodities, slipped after the data was released, falling below parity to the U.S. dollar for the first time since August 8. HSBC economist Qu Hongbin, however, said the data is consistent with a "soft-landing" scenario. "Fears of a hard landing are unwarranted. External demand weakened a little but official trade data still show solid export growth," he said in a note. Mr. Qu said he expects China's gross domestic product growth to be at around 8.5% to 9% in the coming quarters. That would be down from 9.5% growth in the second quarter. The manufacturing output sub-index, meanwhile, fell to 49.2, a two-month low. The preliminary China PMI figure, also called the HSBC Flash China PMI, is based on 85% to 90% of total responses to HSBC's PMI survey each month and is issued about one week before the final PMI reading. September's final reading is due September 30. A reading below 50 indicates contraction from the previous month, while a reading above 50 indicates expansion. Greece rolls out new austerity measures Greece will suspend more civil servants than it had previously planned and cut deeper into pensions in another round of austerity measures designed to mollify its creditors so it can avoid a national default, the Associated Press reports. The moves were announced a after a daylong cabinet meeting that was closely tracked by jittery investors. The wire service notes that they include increasing the amount of government workers to be suspended this year on partial pay to 30,000 from 20,000. Also, monthly pensions above $1,636 will be subject to new cuts, along with those for people under 55. On the revenue side, the AP reported that the tax-free limit on annual income will fall to $6,818 from $10,908 starting this year. Fed to swap $400 bn bonds into longer maturities The Federal Reserve said it will sell $400 bn worth of short-maturity bonds it holds and reinvest in bonds maturing between 6 and 30 years by the end of June 2012, confirming market expectations that it would revive the 1960s-era program dubbed "Operation Twist." By a 7-to-3 vote, the Fed also said it will reinvest proceeds from maturing mortgage-backed securities into mortgage-backed securities, instead of its previous practice to buy Treasurys with the proceeds. The Fed kept its target Federal funds rate between 0% and 0.25% and kept its pledge, first announced in August, to keep rates at exceptionally low levels through the

Weekly Newsletter 87 Info-Spectrum Bridging the Information Gap in Corporate Landscape middle of 2013. The Fed said that "economic growth remains slow" and inflation will settle at or below levels consistent with its dual mandate. Sales of existing homes climb 7.7% in August Sales of existing homes climbed 7.7% to a five-month high in August, as previously delayed deals closed, prices fell and rents rose, according to data released. The National Association of Realtors reported that sales rose to a seasonally adjusted annual rate of 5.03 mn, up from 4.67 mn in July and above the 4.8 mn that economists polled by MarketWatch had anticipated. Compared to August 2010, sales surged 18.6%. Two-thirds of real estate agents polled reported rents rising in August. At the same time, the median price was $168,300, a decline of 5.1% from the same period last year. July prices were revised lower to $171,200 from an initially reported $174,000. Inventories fell 3% to 3.58 mn units, representing 8.5 months of supply at current sales rates. China officially launches own iron ore price index China, the world's biggest consumer of iron ore, launched its own price index for the commodity in its bid to gain a greater say in global pricing. China to build and launch satellite for Belarus China will build a communication satellite for Belarus and bring it into orbit, the local media reported. NASA 'plans to spend USD 1.6 bn on space taxis' NASA has plans to spend a whopping US dollars 1.6 bn over the next two years in a bid to bolster industry efforts to develop "space taxis", a media report said. US, Brazil to launch open government partnership India is not part of this eight-member that among other includes Indonesia, Mexico, South Africa, Norway, the Philippines and Britain. Saudi to import 2 mn tonnes of wheat this year Saudi Arabia is expected to import around 2 mn tonnes of wheat in 2011, 51% more than in 2009, organisers of an agricultural event in the country have said.

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

GLOBAL BUSINESS GLOBAL MARKETS: • UBS ups loss estimate to $2.3 bn. • Siemens to quit nuclear industry. • New Obama plan to tax wealthiest. • Facebook strikes Diageo advertising deal. • BA faces 50 mn euro bill for carbon emissions. • Obama plans taxes and spending cuts to reduce deficit. • Italy has debt rating cut by S&P. • Jaguar plant 'to create 750 jobs'. • Lloyds to sell 1 bn sterling of bad property loans. • UBS 'rogue trader': Loss estimate raised to $2.3 bn. • Bank of England quantitative easing "boosted GDP". • S Korea suspends savings banks citing weak finances. • Greece needs more reform not taxes, says IMF. • Siemens shelters up to 6 bn euros at ECB. • Italy has debt rating cut by S&P. • Emerging nations not answer to debt crisis, says World Bank. • Prada half-year profits soar on growing Asian demand. • US Fed to buy $400 bn of long-dated treasuries. • Greece contemplates faster cuts. • IMF warns of new threat to banks. • IMF warns of new threat to banks. • SABMiller agrees to buy Foster's. • BoE unanimous on holding rates. • Tepco considers job cuts as part of restructuring plan. • Manchester United delays Singapore IPO. • US to challenge Chinese tariffs on chickens. • GM adding 6,400 jobs under deal with United Auto Workers union. Volkswagen to Invest €62 Bn on Expansion Volkswagen AG is ramping up investments to more than €62 bn between 2012 and 2016 to boost production capacity and launch new cars as part of its bid to overtake Motor Corp. and General Motors Co. to become the world's largest automaker. Investments in plants, equipment and properties alone will account for €49.8 bn, the company said. Air France-KLM Orders 110 Jets Air France-KLM said it had placed orders for 110 aircraft, including options, in a deal potentially worth as much as $27 bn at list prices as the Franco-Dutch airline seeks to upgrade its long-haul fleet and to reduce its fuel costs. Companies Sign South Stream Deal Russian state gas firm OAO Gazprom secured backing for its South Stream gas pipeline from European energy giants Électricité de France SA, Eni SpA and Wintershall AG, heating up the battle between Russia and the European Union over competing pipelines. Blackstone Buys Mint Hotels for $950 Mn Blackstone Group has bought U.K. hotel group Mint for about $950 mn, expanding the U.S. private-equity group's hotel portfolio. Blackstone, which owns the Hilton Worldwide chain of hotels, will take over Mint's eight four-star hotels, consisting of seven in the U.K. and one in Amsterdam, Mint said in a statement.

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

U.K., Swiss Regulators to Jointly Probe UBS Losses Regulators in the U.K. and Switzerland are launching a joint investigation into the $2 bn of losses at Swiss bank UBS AG. States Join Suit Against AT&T In a further complication for AT&T Inc.'s proposed $39 bn acquisition of rival T-Mobile USA, seven states including California and New York have joined the federal government's lawsuit to block the deal. Innkeepers Is in Talks With New Set of Buyers Five Mile Capital Partners LLC is in discussions to acquire Innkeepers USA Trust in a possible deal valued at more than $1 bn, said people familiar with the matter, after a previous agreement between the hotelier and Cerberus Capital Management LP fell apart. GM Reaches Deal With UAW General Motors Co. reached a tentative agreement with the United Auto Workers for a new, four-year labor contract, setting the stage for the union's continuing negotiations with Ford Motor Co. and Chrysler Group LLC. Chevron Strikes LNG Deal With Japan's Kyushu Chevron Corp. said it signed a binding deal to supply liquefied natural gas to Japan's Kyushu Electric Power Co. from its proposed Wheatstone project in Western Australia state. A total of 700,000 metric tons of LNG will be shipped to Kyushu from Wheatstone annually for up to 20 years, with Chevron providing the bulk of the volumes and smaller supplies coming from Apache Corp. and Kuwait Foreign Petroleum Exploration Co. Samsung Widens Patent Dispute With Apple Samsung Electronics Co. widened a sprawling global patent dispute with Apple Inc. by filing a countersuit in Australia, while also appealing a key ruling in Germany. Molycorp, Sumitomo Cancel Investment U.S. rare-earth miner Molycorp Inc. said that it has mutually agreed with Sumitomo Corp. to cancel a potential investment from the Japanese trading house, saying the financing is no longer needed. Union Pact With GM Puts Pressure on Ford, Chrysler The United Auto Workers' tentative labor pact with General Motors Co. is likely to raise pressure on Chrysler LLC and Ford Motor Co. to increase worker pay and add factory jobs. Manchester United approved for Singapore IPO U.K. soccer club Manchester United Ltd. has received approval from Singapore Exchange Ltd. to list on the city-state's bourse through its planned up to US$1 bn initial public offering, people familiar with the situation said. GE signs two Russian joint ventures General Electric Co. said that it has signed two new joint ventures in Russia to build power turbines and medical diagnostic equipment. The turbine joint venture was agreed with energy company Inter Rao UES and United Engine Corp. It will manufacture turbines at a plant to be built near the city of Rybinsk. The health-care venture with Russian Technologies will start by producing CT scanners before progressing to produce other equipment. GE said it will hold 50% of both joint ventures and that combined they could generate total sales of between $10 bn and $15 bn. Transatlantic, Allied World end merger deal Transatlantic Holdings, Inc. and Allied World Assurance Co. Holdings AG said that they have mutually terminated their previously planned merger agreement. Transatlantic has agreed to pay Allied World a $35 mn termination fee and to reimburse it for $13.3 mn in expenses. Transatlantic has also agreed to pay an additional $66.7 mn fee if Transatlantic, in the next year, enters into any definitive agreement in respect of any competing transaction. Transatlantic said it has also set an additional $600 mn share buyback plan, $300 mn this year and $300 mn next year. The company also said Michael Sapnar, currently its CFO, will become chief executive on January 1, 2012. General Dynamics wins $2 bn Navy contract General Dynamics Corp. has won a $1.83 bn fixed-price incentive contract to build two next-generation guided-missile destroyers for the U.S. Navy. After exercising certain options, the Falls Church, Va.-based military contractor could earn as much as $2 bn. The ships will be the second and third of the Zumwalt-class

Weekly Newsletter 90 Info-Spectrum Bridging the Information Gap in Corporate Landscape program and are designed as multi-mission ships with a focus on land attacks. They also have a low-radar profile and allow for a significant reduction in crew size. The ships will be built by General Dynamics unit Bath Iron Works in Maine and the delivery is expected by Feb 2018. DeBeers signs Botswana sales agreement De Beers SA, the largest diamond miner, said it has signed a 10-year sales agreement with the government of Botswana involving a move of a key diamond sorting process from London to the country by the end of 2013. Adobe downgraded to market perform at JMP Software maker Adobe Systems Inc. was downgraded to market perform from market outperform at JMP Securities. Analysts said they're "incrementally concerned about the success of the company's enterprise business and about their ability to retain key management and sales personnel." They also said that the lack of economic growth in the U.S. may have caused customers to delay orders. JMP cut its adjusted 2011 earnings estimate for Adobe to $2.23 a share, from $2.26 a share. St. Joe OK's Fairholme to acquire up to 50% stake St. Joe Co. has agreed to let its largest shareholder acquire up to 50% of its stock, a move that would further solidify mutual fund manager Fairholme Funds Inc.'s grip on the real-estate developer. BP units to pay $20.5 mn in U.S. royalty case Entities now owned by BP PLC including BP Amoco Corp., Atlantic Richfield Co. and Vastar, agreed to pay $20.5 mn to resolve claims that the companies knowingly underpaid royalties on natural gas produced on federal and Native American leases, the U.S. Justice Department said. "This settlement resolves claims that the BP defendants...improperly reported processed gas as unprocessed gas to reduce royalty payments on federal and Indian leases, and improperly failed to perform 'dual accounting' on certain federal leases," the government said. Rusal to up stake in Jamaica's Alpart to 100% Russian aluminum producer United Co. Rusal (0486.HK) said it has agreed to buy a 35% stake in Alumina Partners of Jamaica, or Alpart, from Norsk Hydro ASA (NHY.OS), thus securing 100% control of the alumina producer. Rusal said it paid $46 mn for the stake. Rayonier buys 250,000 timberland acres for $33 mn Rayonier Inc. REIT agreed to acquire about 250,000 acres of timberlands in Mississippi, Louisiana, Oklahoma and Alabama for $330 mn from Joshua Timberlands LLC and Oklahoma Timber LLC. S&P cuts Sealed Air ratings further into junk zone Standard & Poor's Ratings Services lowered Sealed Air Corp.'s corporate credit rating further into junk territory, citing the company's increased debt leverage from a pending acquisition. Sealed Air agreed in Jun to buy cleaning-products maker Diversey Holdings Inc. in a cash-and-stock deal valued at $2.9 bn at the time, as the packaging-materials company attempts to diversify its product offerings and global reach. S&P downgraded Sealed Air one notch to double-B from double-B-plus, putting it two steps below investment grade. The outlook is stable. Moody's lowers Walgreen outlook Moody's Investor Service assigned Walgreen Co. a negative outlook, citing concerns that a growing dispute with partner Express Scripts Inc. could seriously hit the pharmacy chain's bottom line. Express Scripts had sued Walgreen claiming the chain had launched a campaign to disparage the pharmacy-benefits manager by disputing whether Medicare recipients who remain with Express Scripts can fill Part D prescriptions at Walgreen next year. Moody's now rates Walgreen at A2, five steps above junk territory. The ratings firm said Walgreen's credit metrics, which are already weak for the firm's current rating, could slump further if it fails to resolve the dispute or significantly make up for revenue lost after its split with Express Scripts. Sany Heavy to raise up to $3.3 bn in HK IPO Sany Heavy Industry Co. (600031.SH) plans to raise up to US$3.3 bn in a Hong Kong initial public offering ahead of listing on the Hong Kong stock exchange Oct. 3, a person familiar with the situation said. Jaguar Land Rover to build new U.K. plant Jaguar Land Rover, the carmaker owned by India's Tata Motors Ltd, will confirm this week that it plans to build a GBP400 mn engine plant in the U.K. Midlands that could create up to 2,000 jobs, The Sunday Telegraph reports without citing sources. The announcement about the plant and that Jaguar Land Rover

Weekly Newsletter 91 Info-Spectrum Bridging the Information Gap in Corporate Landscape has secured financial support from the U.K. government to bring the plant to the U.K. could come as early as Monday, the paper says. A spokesman for Jaguar Land Rover declined to comment. Toyota to make key hybrid components outside Japan Toyota Motor Corp. is considering manufacturing key components for gasoline-electric hybrid vehicles at some of its overseas plants in the United States and Asia to improve its profitability hurt by the strong yen, company sources said, Kyodo News reported. Production of such parts in the United States and Asian countries would expand the Japanese automaker's earlier plan to make hybrid components in China. Toyota, which currently exports parts for hybrid cars to its factories outside Japan, aims to start overseas production of such parts in three to four years, they said. The company hopes to finalize details of the plan in one to two years. Cinven to sell Partnership Assurance Private equity group Cinven is set to start the sale process of its Partnership Assurance business after receiving a number of takeover approaches, The Sunday Telegraph reports without citing sources. China's Goldwind signs $200 mn U.S. wind deal Xinjiang Goldwind Science and Technology Co. said that it will build a $200 mn wind farm in Illinois. Fitch lifts United's junk-level rating one notch Fitch Ratings raised United Continental Holdings Inc.'s junk-level rating one notch, saying the airline has generated strong free cash flow and significantly cut its debt since completing its merger last year. A stock- swap merger, valued at $3.2 bn in Oct 2010, combined United Airlines parent UAL Corp. with Continental Airlines Inc. to create the world's biggest airline. The credit-ratings company upgraded United Continental's issuer default rating to B from B-minus, five steps away from investment grade. The outlook is stable. Fitch said the airline's demand patterns have remained resilient in spite of macroeconomic headwinds and merger-integration efforts appear to be progressing according to plan. The firm said an upgrade is possible over the next two years if United continues to generate positive free cash flow and reduces adjusted debt levels. The rating would face a downgrade over the next year if global economic stress crimps air travel demand and leads to passenger unit revenue declines in 2012, Fitch said. Sany Heavy Launches Hong Kong IPO Chinese construction-machinery maker Sany Heavy Industry Co. began taking orders for a public offering of as much as US$3.3 bn in Hong Kong's second-biggest float this year, even as volatile markets led to some deals being either postponed or priced low. FX Alliance Files Plans for IPO FX Alliance Inc. filed plans for an initial public offering of up to $100 mn, as the currencies-trading platform expands its capacity for handling currency derivatives. The company is adding staff and building technology to handle transactions in foreign-exchange options and other market functions, spurred by regulations designed to tighten trading practices in derivatives. News Corp. Unit Plans to Pay $4.7 Mn in Dowler Hack News Corp.'s U.K. newspaper unit plans to pay about £3 mn ($4.7 mn) tied to recent allegations that its News of the World tabloid hacked the phone of murdered teenager Milly Dowler in 2002, according to people familiar with the matter. New Generic Lovenox Receives FDA Approval A California biotechnology company won Food and Drug Administration permission to sell a generic version of the blockbuster blood thinner Lovenox, following a years-long battle that was unusually bitter even for the high-stakes world of drug approvals. The approval for Amphastar Pharmaceuticals Inc.'s product could shake up the multbn-dollar-a-year market for a widely used drug in heart patients, hurting Lovenox maker Sanofi SA and another company that started selling a generic version of Lovenox last year. GM Deepens China Auto Alliance General Motors Co. is open to deepening its relationship with China's SAIC Motor Corp. and could expand the collaboration beyond existing tie-ups in China and India, GM Chairman and Chief Executive Dan Akerson said in a recent interview. The pairing with SAIC, China's largest domestic auto maker, is critical to GM's global strategy, not just its plans in China, Mr. Akerson said. He is in Shanghai this week where the GM board is holding its first-ever monthly board meeting in China, the world's largest auto market.

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

UBS Board to Meet in Singapore Ahead of F1 Race UBS AG will hold a board meeting in Singapore this week that will include the bank's senior management, a person familiar with the situation said. The meeting in the city-state was planned several months before the news of the Swiss bank's $2.3 bn rogue trading-related loss related broke this month, the person said. However the meeting will assume a heavier significance given the pressure the group faces on the back of the incident. BNP Paribas, Sberbank discuss Russia venture French bank BNP Paribas SA (BNP.FR) said it plans to launch a consumer credit joint venture in Russia with Sberbank and will wind down its small retail banking network in the country. BNP Paribas said talks with the Russian bank are at an advanced stage and it hopes to sign a binding agreement before the end of this year. Saipem gets Saudi, Angola pacts exceeding $500M Italian oil services company Saipem SpA said it had received new contracts worth more than $500 mn to do perforation work for oil explorers in Angola and Saudi Arabia. A unit of Total SA (FP.FR) will lease Saipem's offshore equipment in Angola, while Saudi Aramco will lease equipment in Saudi Arabia, the company said. Other contracts were signed with clients in Algeria, Latin America and Ukraine, Saipem said. Moody's lowers AMR outlook on liquidity, costs Moody's Investors Service raised the likelihood of a downgrade further into junk for AMR Corp., the holding company of American Airlines, on expectations for deteriorating liquidity, uncertain cost structure and pressure from losses. In changing its outlook to negative from stable, Moody's said that the company's operating metrics would continue to be weak over the medium term as it expects debt maturities and fleet- modernization costs to exceed operating cash flow, causing erosion in its liquidity profile. Moody's also said that AMR's loss-making operations would pressure credit metrics, contributing to the outlook cut. In addition, the firm cited uncertainty about how AMR would revamp cost structure to sustain positive free cash flow and reduce leverage. The firm currently rates AMR at Caa1, which is seven notches below investment- grade status. White House proposes to hike Fannie, Freddie fees The White House proposed Monday to "modestly" increase the fees that mortgage finance companies Fannie Mae and Freddie Mac charge mortgage lenders as a way to reduce the U.S. mortgage system's dependence on government support. Moody's upgrades PVH on debt-reduction efforts Moody's Investors Service upgraded PVH Corp.'s credit rating a notch closer to investment grade, citing the apparel giant's quick debt reduction following its acquisition of Tommy Hilfiger last year. PVH, formerly known as Phillips-Van Heusen Corp., has seen recent results bolstered by access to higher-margin international markets, where Tommy Hilfiger generates most of its sales. Moody's now rates PVH at Ba2, two notches shy of investment-grade territory. Its outlook remains positive, meaning the credit-rating firm could again decide to lift PVH's credit status. Moody's puts Tyco on negative review Moody's Investor Service put Tyco International Ltd.'s investment-grade rating on review for possible downgrade after the Switzerland-based conglomerate disclosed plans to split its businesses into three standalone units. Tyco said earlier it plans to separate its security, fire protection and flow control segments into three publicly traded companies in about 12 months, joining a group of large, U.S.-listed companies that have determined in recent months that the sum of their parts is worth more than the whole. Moody's still rates Tyco at A3, four steps above junk territory. The negative review reflects the ratings firm's concern that the move could give remaining debt-holders an obligor that is smaller and less protected by diverse revenue streams than the existing conglomerate. Moody's said the resulting entity could still qualify for an investment grade rating but might not warrant its A3 status. Moody's also cited potential risks in executing the split and the possibility of a disproportionate level of the legacy liabilities. Visa signs deal with Google for mobile wallet Visa Inc. said that it signed a licensing deal to include its credit and debit cards in Google Inc.'s mobile wallet application. The San Francisco company said the deal lets banks that issue Visa-branded cards to enable their customers to add their credit, debit and prepaid cards to the Google Wallet, which allows consumers to wave their smartphones in front of special point of sale terminals to make a purchase.

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

Xcel Energy appoints new CFO Xcel Energy Inc. promoted its controller to be its financial chief, the latest shuffle of executives after the company last month elevated Ben Fowke to chief executive from chief operating officer upon Richard C. Kelly's retirement. Air New Zealand August passenger count up 2.7% National carrier Air New Zealand Ltd. (AIR.NZ) said it carried 1,005,000 passengers in August, up 2.7% on the year. S&P raises Eizabeth Arden's outlook to positive Standard & Poor's Ratings Services increased the likelihood of an upgrade for junk-rated Elizabeth Arden Inc. because of its "good operating momentum and improved credit measures." In raising its outlook on the beauty-products company to positive from stable, S&P noted Elizabeth Arden's operating results have been positive over the past year. The company has seen its sales recover gradually after the economy exited recession. Its margins have also improved in recent quarters as it shifted focus to higher-margin namesake cosmetics, cut costs and updated software. S&P currently rates Elizabeth Arden at B+, four notches below investment grade. Jazz Pharma to merge with private Irish drug maker Jazz Pharmaceuticals Inc. said it would merge with privately held Irish specialty drug maker Azur Pharma Ltd. in an all-stock deal. Jazz, a developer of drugs to fulfill unmet needs in neurology and psychiatry, said it has a closely aligned mission to Azur, which operates in Philadelphia in addition to its Dublin headquarters. Azur markets ten specialty drugs in the U.S. which focus on the central nervous system and women's health. Valuation details weren't provided, and a Jazz representative wasn't immediately available for comment. Chinese Firm to Build Big Wind Farm in U.S. Turbine Maker Xinjiang Goldwind Plans to Construct $200 Mn Facility in Illinois Wind-turbine maker Xinjiang Goldwind Science & Technology Co. plans to build a $200 mn wind farm in Illinois—the latest attempt at clean-energy collaboration between China and the U.S. even as disputes over renewable-energy technology continue. The agreement is part of ambitious international expansion plans for the company, China's second-largest wind turbine producer by new capacity sold. The project, Xinjiang Goldwind's largest U.S. project to date, underscores the ability of Chinese renewable-energy companies to make inroads into the U.S., despite widespread criticism in the U.S. that Chinese companies have unfairly benefited from government subsidies. STX Quits Bid to Control Chip Maker Hynix STX Corp. dropped its bid for a controlling stake in South Korean chip maker Hynix Semiconductor Inc. due to market uncertainties and financial burden, leaving SK Telecom Co. as the sole bidder for the chip maker in a deal worth at least three trillion won ($2.7 bn). Analysts expect SK Telecom, the country's largest mobile carrier, to have the upper hand in negotiations with Hynix's creditors-turned-shareholders over price and other terms because it is unlikely any other bidders will emerge. Swiss Watch Exports Rise 14.5% Swiss watch exports in Aug rose 14.5% from a year earlier, as demand jumped in Italy and continued to grow strongly in China and Hong Kong despite growing economic uncertainty. Exports of Swiss watches last month were valued at 1.29 bn Swiss francs ($1.46 bn), according to data released by the Swiss customs office. In nominal terms, which aren't adjusted for inflation, the gain was 16.4%. Apple Set to Sell 3G iPad 2 in China Apple Inc. said it will start selling a version of its iPad 2 tablet computer with third-generation cellular- network compatibility in China. The move could boost Apple's iPad sales in a crucial growing market where Apple is also expanding its retail presence. Tyson to Pay $32 Mn in Wage Settlement Tyson Foods Inc. agreed to pay as much as $32 mn to settle 12-year-old litigation over whether it should pay its hourly poultry-plant workers for the time it takes them to get in and out of their work clothes and gear. Under the settlement, which was approved Thursday by a federal judge in Columbus, Ga., Tyson Foods will pay as much as $17.5 mn to 16,703 workers, and as much as $14.5 mn in attorney's fees.

Weekly Newsletter 94 Info-Spectrum Bridging the Information Gap in Corporate Landscape

National Bank of Canada to Buy HSBC Unit National Bank of Canada has agreed to acquire the Canadian retail brokerage arm of HSBC Holdings Inc. for C$206 mn (US$208 mn), the banks confirmed. The deal is set to close by the end of Dec and will broaden the reach of Quebec-based National Bank's retail brokerage arm in western Canada. It will also bring National Bank Financial's assets under administration to C$80 bn and investment adviser headcount to 1,060, according to a National Bank release. Google+ Social Network Opened to Public Google Inc. broadened its assault on rival Facebook Inc. by opening its Google+ online social network to the public. The company also introduced new features to Google+, including the ability to search for information about topics such as cooking and photography, and along with the ability to see relevant Google+ users and their posts on such topics, as well as relevant content from around the Web. Tesco to Float £300 Mn Thai Property Fund Tesco PLC said it plans to float a £300 mn ($471.8 mn) property fund in Thailand as it looks to create further value from its property portfolio. "By releasing value from our Thai property we will be able to invest in further innovation and growth for our customers and shareholders," Tesco Chief Financial Officer Laurie McIlwee said. The fund will initially include 15 shopping malls, each anchored by a Tesco Lotus hypermarket, in prime locations across Thailand, as well as freehold land and ground leases. The initial public offering will be the largest retail property fund in Thailand, Tesco said, with a portfolio of properties in Bangkok, provincial capitals and popular tourist areas. Tesco Lotus will continue to lease all 15 hypermarkets from the fund. Still, the final structure of the fund is subject to market conditions and approval by the SEC. Boeing in Talks with Chinese Airlines on Dreamliners Boeing Co. is engaged in "very advanced discussions" with Chinese airlines about the coming 787 Dreamliner that could lead to new orders soon, according to a senior sales executive. General Electric discloses $3 bn in new pacts General Electric Co. disclosed more than $3 bn in new customer agreements in its energy business, with commitments in Brazil, Egypt, Australia, Iraq and other countries. IBM offers moves to end EU antitrust probe International Business Machines Corporation has offered to commit to a series of measures to end a year- long antitrust investigation into whether it abused its dominant position in the market for mainframe computers, the European Commission said. Cypress Semi sets new $400 mn stock buyback plan Cypress Semiconductor Corp.'s board has authorized a new $400 mn stock repurchase program after completing a prior buyback plan. Merged Micex-RTS open to future exchange deals The combined entity to be formed from the merger of Russia's Micex Group and RTS aims to be a global player and will be open to business deals from some of the biggest exchanges in the world, Micex Group Chief Executive Ruben Aganbegyan said. Rio Copper Kennecott expansion seen at $2 $3 bn Anglo-Australian miner Rio Tinto PLC estimates that it will cost $2 bn to $3 bn to expand its Kennecott Utah Copper Bingham Canyon Mine according to plan, the head of the company's copper division said. Moody's upgrades Brown-Forman a notch Moody's Investors Services upgraded Brown-Forman Corp.'s (BF.A, BF.B) investment-grade credit ratings a notch, citing the maker of Jack Daniels whisky's consistently strong performance and strong credit quality. The company's Class B shares were up 2.8% at $70.27 in recent trading. S&P cuts Willbros deeper into junk territory Standard & Poor's Ratings Services on Tuesday lowered its rating on Willbros Group Inc. deeper into junk territory, citing the oil-service company's weak operating performance of late. S&P said the one-notch downgrade, to B-plus from double-B-minus, reflects an aggressive financial risk profile as well as the natural cyclicality of the engineering and construction services sector in which Willbros operates. A negative outlook, the firm added, reflects its opinion that the company's operating results could remain under pressure over the next year. The rating could be lowered further if Willbros's operating performance fails to improve meaningfully, among other criteria.

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

Bahrain Investcorp buys U.S. retailer Sur la Table Bahrain-based investment firm Investcorp said it has acquired U.S. kitchenware retailer, Sur La Table, from the Behnke family and investment firm, Freeman Spogli & Co. Vodafone partners with Conexus Mobile Alliance Vodafone Group PLC (VOD.LN), a mobile communications company and the Conexus Mobile Alliance announced the agreement to form a strategic partnership which will significantly expand Vodafone's partner market presence in Asia and provide Conexus member customers with greater support in Vodafone's global footprint. Air Canada flight attendants in tentative deal The union representing flight attendants at Air Canada said it has struck an agreement in principle with the company, averting a looming strike at Canada's largest air carrier. Orexigen to renew development of diet drug Orexigen Therapeutics Inc. signaled it would renew development of its experimental diet drug Contrave after the U.S. Food and Drug Administration told the company it could approve Contrave if an interim analysis meets specified criteria on cardiovascular risk. Teliasonera to buy stake in GSM Kazakhstan Swedish telecommunications firm TeliaSonera AB (TLSN.SK) said it has signed a deal with Kazakhtelecom regarding Kazakhtelecom's intention to conduct an IPO of GSM Kazakhstan LLP, operating under the brand Kcell. The contemplated final outcome of the transactions is that Kazakhtelecom will sell its shares in an IPO, apart from 24% plus one share that will be acquired by TeliaSonera (or its Fintur Holdings unit). Boeing in Talks with Chinese Airlines on Dreamliners Boeing Co. is engaged in "very advanced discussions" with Chinese airlines to revitalize sales there of its 787 Dreamliner, according to a senior sales executive, as the U.S. plane maker competes with rival Airbus for a greater share of the growing market. Chicago-based Boeing currently has orders for 60 Boeing 787 Dreamliner jets from China Southern Airlines Co. and other Chinese customers. Those orders came in 2005, and Boeing hasn't received any additional orders since. Exxon Sells U.K. North Sea Assets to Apache Apache Corp. is substantially expanding its U.K. presence by buying a number of Exxon Mobil Corp.'s assets there for $1.75 bn. The deal, expected to close by year end, highlights Apache's strategy of acquiring mature oil fields and increasing their production further, while generating extra cash. Moody's Downgrades Fiat's Debt Moody's Investors Service downgraded Fiat SpA's credit rating one notch to Ba2, citing growing credit risks from the Italian auto maker's tie-up with Chrysler Group LLC and Europe's sluggish car market. Moody's mentioned several headwinds facing Fiat, such as the slow update of its models, expenses in revamping its manufacturing and its vulnerability to increased competition in Brazil, where it recently has earned most of its profits. Manchester United May Delay IPO U.K. soccer club Manchester United Ltd. may delay its planned $1 bn initial public offering in Singapore as global markets remain subdued, people familiar with the situation said. The club remains intent on a flotation and on Friday received approval from Singapore Exchange Ltd. to list on the city-state's bourse. However, gloomy markets and the fragile economic environment may push the IPO into next year. The club originally had hoped the IPO would take place in the fourth quarter. Foster's Accepts Big Bid SABMiller Wins Over Australian Brewer With Sweetened $10 Bn Offer Iconic Australian brewer Foster's Group Ltd. dropped its resistance to a takeover by SABMiller PLC and agreed to a sale to its U.K. rival for a sweetened price of more than $10 bn. The deal values Foster's at 5.10 Australian dollars a share, or A$9.9 bn (US$10.17 bn), 4% above what SABMiller offered when it kicked off its pursuit of the company in Jun. Foster's said that as part of the deal, it would return 30 Australian cents a share to its shareholders and that Foster's shareholders owning the stock as of Sept. 7 would be entitled to a dividend of 13.25 Australian cents in October. That would bring the value of the offer to A$5.53 a share, or 13% above SABMiller's first offer.

Weekly Newsletter 96 Info-Spectrum Bridging the Information Gap in Corporate Landscape

UBS Says Investment-Bank Operations Won't Be Sold UBS AG Chief Executive Oswald Grübel has ruled out a sale of the bank's investment-banking division, people familiar with the situation said, while its chairman said the bank's fundamentals remain "solid." The comments come at a time when some Swiss politicians are putting pressure on UBS—which said last week that a rogue trading incident had cost the bank US$2.3 bn in losses—to scale down or even spin off its investment bank. Moody's Downgrades BofA, Wells Fargo, Citi Moody's Investors Service cut the debt ratings of Bank of America Corp., Citigroup Inc. and Wells Fargo & Co., warning that bond investors shouldn't expect a full-fledged government bailout the next time a big bank runs into trouble. The U.S. government is likely to continue to provide some support to giant institutions, the ratings firm said Wednesday, pointing to the catastrophic aftermath of the 2008 failure of Lehman Brothers Holdings Inc. SABMiller Buys a Pricey Australian Round SABMiller can finally down its pint of the amber nectar. The South African brewer agreed to a 9.9 bn Australian dollar (US$10.2 bn) cash takeover of peer Foster's Group, which the Australian company's board will now recommend to shareholders. SABMiller will pay only 4.1% more per share than it offered for Foster's three months ago, a bid the Foster's board roundly rejected. UTC Deal Reached to Acquire Goodrich United Technologies Corp. agreed to buy aircraft-components maker Goodrich Corp. for $16.4 bn in cash, the company's biggest-ever acquisition and a signature deal for Chief Executive Louis Chênevert. The acquisition will strengthen United Technologies' exposure to the commercial aviation business at a time when the industry's order books are full, and it fulfills Mr. Chênevert's desire to find a deal big enough to add measurably to a company that expects $58 bn in revenue this year. Nissan: Two domestic plants stopped due to typhoon Nissan Motor Co. (7201.TO) said it has halted operations at two of its domestic plants due to an approaching typhoon. Its engine plant in Yokohama and an auto assembly plant in Oppama, both in Kanagawa Prefecture, south of , halted operations at 0500 GMT. The car maker also told its employees working at its headquarters in Yokohama to return home for safety reasons. Teliasonera to buy stake in GSM Kazakhstan Swedish telecommunications firm TeliaSonera AB (TLSN.SK) said it has signed a deal with Kazakhtelecom regarding Kazakhtelecom's intention to conduct an IPO of GSM Kazakhstan LLP, operating under the brand Kcell. The contemplated final outcome of the transactions is that Kazakhtelecom will sell its shares in an IPO, apart from 24% plus one share that will be acquired by TeliaSonera (or its Fintur Holdings unit). Apache to pay $1.75B for Exxon North Sea assets Apache Corp., the Houston energy firm, agreed to pay $1.75 bn for Exxon Mobil Corp.'s U.K. North Sea assets, including the Beryl field and associated properties. Exxon Mobil is the Irving, Texas, integrated energy firm. Apache said that at the end of 2010, the properties had proved reserves estimated at 68 mn barrels of oil equivalent. The deal increases Apache's North Sea production by 54% and proved reserves by 44%. Apache said it would fund the deal with cash on hand.

Norway central bank leaves key rate at 2.25% Norway's central bank left its key lending rate unchanged at 2.25%, as expected, citing weaker prospects for the world economy and the impact of turbulence in global financial markets on the domestic outlook. In a statement on its website, the Norges Bank said turbulence linked to the European debt crisis has intensified. And while developments in the Norwegian economy remain favorable, output and demand for goods has been "somewhat weaker than expected," while consumer price inflation has slowed. "Our analysis in June implied a gradual increase in the key policy rate through the final half of the year. The turbulence and uncertainty abroad, combined with lower inflation and weaker prospects at home, suggest that the key policy rate should be kept low for a longer period than expected in June," said Deputy Gov. Jan F. Qvigstad. Chile court OK's LAN's merger with Brazil's TAM Chile's TDLC antitrust court gave the go-ahead to flagship carrier LAN Airlines SA's (LFL, LAN.SN) proposed merger with Brazilian airline TAM S/A (TAM, TAMM4.BR). The TDLC's approval was the last major hurdle for

Weekly Newsletter 97 Info-Spectrum Bridging the Information Gap in Corporate Landscape the merger in Chile, although a ruling from Brazil's top antitrust regulator, CADE, is pending. The merger looks to create Latin America's largest airline and one of the 10 biggest in the world. The TDLC will require the companies to implement additional mitigation measures. "The measures look to foster real competition in the Chilean airline industry...and to protect consumers from the merger's impact," the TDLC said in a statement. Moody's downgrades Bank of America debt Moody's Investors Service on Wednesday downgraded its ratings on Bank of America Baa1 from A2 for long- term senior debt while short-term debt was knocked to Prime-2 from Prime-1 and long-term deposit ratings went to A2 from Aa3. The outlook on the long-term senior ratings remains negative. Moody's said the downgrades "result from a decrease in the probability that the U.S. government would support the bank, if needed." However, the moves "do not reflect a weakening of the intrinsic credit quality of Bank of America [which] has made significant progress in improving in its capital and liquidity positions, in shedding legacy and noncore assets, in measuring and monitoring risk, and in managing its risk appetite." Moody's downgrades Wells Fargo Moody's Investors Service downgraded the long-term ratings of Wells Fargo & Co.'s senior debt to A2 from A1 while moving the rating on its deposits to Aa3 from Aa2 and keeping its outlook on the company's long- term senior ratings at negative. The actions stem from "a decrease in the probability that the U.S. government would support the bank, if needed," Moody's said. While Moody's noted that "the government is likely to continue to provide some level of support to systemically important financial institutions," the ratings service said that "it is also more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute." Moody's also downgraded both Bank of America and Citigroup. Moody's cuts Citigroup to P-2, affirms P-1 Moody's Investor Service said that it has downgraded its short-term rating on Citigroup to Prime-2 from Prime-1. Moody's cited "a decrease in the probability that the U.S. government would support the bank, if needed." On the other hand, Moody's noted an improvement in Citibank's stand-alone credit profile, and said Citigroup's liquidity profile has been "strengthened significantly in the past two years and is robust." Given those factors, Moody's confirmed Citigroup's long-term rating of A3 and its Prime-1 short-term rating on Citibank N.A. Moody's also downgraded Bank of America and Wells Fargo. S&P lowers ratings on several Italian banks Standard & Poor's lowered ratings on several Italian banks Wednesday following the credit rating agency's recent cut of the country's sovereign rating. S&P lowered the long-term counterparty credit ratings of Mediobanca SpA, Findomestic Banca SpA, and Intesa Sanpaolo SpA to A from A+. The agency also cut the long-term counterparty credit ratings on BNP Paribas' Italian unit Banca Nazionale del Lavoro SpA to A+ from AA-. Also, S&P lowered the long-term issuer credit ratings on Cassa Depositi e Prestiti SpA to A from A+. The ratings outlooks are negative. KDDI reportedly to sell iPhone5 in Japan KDDI Corp. has snagged the rights to sell Apple Inc.'s iPhone 5 in Japan, a Nikkei publication reported on its web site. In a blow for the Japanese cell phone carrier's rival Softbank Corp. (9984.TO), Apple and KDDI have already entered into a sales pact for the upcoming phone, Nikkei Business said, citing sources close to the matter. The publication said that KDDI was making preparations to sell the iPhone5, which is expected to be released in October, at its au shops throughout the country starting in around Nov. Sage Group to sell health-software unit for $320M Sage Group PLC (SGE.LN), the supplier of business management software and related products, announced that it has reached a definitive agreement to sell Sage Software Healthcare LLC, its subsidiary offering practice management and electronic health record solutions to U.S. physician practices, to Vista Equity Partners, adding that the cash proceeds for the sale are $320 mn. Nissan, Mitsubishi Motors detail expanded tie-up Nissan Motor Co. (7201.TO) and Mitsubishi Motors Corp. (7211.TO) said they have decided on which models to provide each other in Japan, fleshing out the details of broader cooperation agreed upon last year. Nissan will begin supplying its Fuga luxury sedan to Mitsubishi Motors from summer 2012, which Mitsubishi will sell under a different name under the original equipment manufacturer deal. Likewise, Mitsubishi will start

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providing Nissan with its electric mini-commercial van, the Minicab-MiEV, sometime in the next fiscal year through March 2013. Google opens Plus social network to everyone Google Inc has opened up its Google Plus social network to everyone after testing it with a limited audience for 12 weeks. Oracle Q1 net income climbs 36% to USD 1.8 bn Software major Oracle Corp has reported a 36% jump in net income to USD 1.8 bn for the three-month period ended Aug 31, 2011, on account of strong sales from its core software business. FDA clears Amgen's Prolia as bone-loss therapy Amgen Inc. said the U.S. Food and Drug Administration approved two new indications for its Prolia osteoporosis treatment, making it the first drug for cancer treatment-induced bone loss. The expanded approval allows the use of Prolia in women being treated for breast cancer and in men being treated for non- metastatic prostate cancer. The biotechnology giant launched sales of Prolia in June 2010 for the treatment of postmenopausal women with osteoporosis. Amgen reported in July its second-quarter earnings fell 2.7% as higher expenses masked a 4.1% revenue increase. Sales of Prolia were a better-than-expected $44 million. The initial performance of the drug had disappointed some on Wall Street, as its sales were below expectations for the three prior quarters.

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