Oct 14, 2011 IN FOCUS "Nothing is more hopeless than a scheme of merriment."– Johnson, Samuel. Weekly Indicators OPEC again cuts demand forecast for 2011, 2012 Indicators Current Last Week The Organization of the Petroleum Exporting Countries has revised downwards the Sensex 17,083 16,233 global crude oil demand forecast for 2011 to 87.81 mn barrels per day from its Nifty 5,132 4,888 previous estimate of 87.99 mn bpd in Sep and up 0.88 mn bpd from 2010. "The Food Inflation 9.32% 9.41% economic downturn is taking its toll on world oil demand, especially in the OECD. The

Exchange Rates decelerating US economy, high unemployment rate and feelings of uncertainty among Currency Current Last Week consumers, has damped (dampened) US oil demand," OPEC said. Debt problems in US$1 Rs.49.0675 Rs.49.1355 the Eurozone and delay in Japan's rebuilding efforts are also contributing to the lower- than-expected oil demand. OPEC has also lowered the forecast for world oil demand € 1 Rs. 67.7248 Rs. 65.9981 growth in 2012 due to the weak economic outlook. The organisation has pegged JP¥ 100 Rs. 63.78 Rs. 64.11 average world oil demand in 2012 at 89.01 mn bpd, down from 89.26 mn bpd in the £ 1 Rs. 77.4187 Rs. 75.9733 previous month's report and 1.19 mn bpd higher from 2011. According to the report, debt problems in the Eurozone, deterring government policies in China, and increase Global Economic and Corporate News in retail prices in India would play a major role in restricting oil demand next year. • Hyundai Heavy starts building plant in Brazil Hyundai Heavy Industries Co. started building its S&P cuts Spain's long-term sovereign credit rating planned construction equipment plant in Brazil, which Standard & Poor's said that it has lowered its long-term rating on Spain's sovereign the company hopes will help it secure a bridgehead credit to AA- from AA. The firm said that the outlook for Spain is negative. "Despite to expand presence in Central and South America. signs of resilience in economic performance during 2011, we see heightened risks to • Sinopec to buy Canada's Daylight for $2.1 billion Spain's growth prospects due to high unemployment, tighter financial conditions, the Canadian oil and gas producer Daylight Energy Ltd. still-high level of private sector debt, and the likely economic slowdown in Spain's said it will be acquired by China Petrochemical Corp. main trading partners," S&P said. (600028.SH) for 2.2 bn Canadian dollars ($2.12 bn). Bank Indonesia cuts benchmark interest rate • Celesio buys 60% of Brazil pharma wholesaler Bank Indonesia cut its benchmark rate by 25 basis points to 6.50%, as it is concerned German pharmaceutical retailer Celesio AG said it has bought 60% of the Brazilian Oncoprod Group, a about the impact of the global slowdown on its economy and deems that inflationary wholesaler for specialty pharmaceuticals. Financial pressures are receding. "As we expect inflation next year will be below 5%, we details weren't disclosed. decided to bring down the policy rate to 6.5%, which is reasonable and justified," • JP Morgan invests $565M to expand Brazil Bank Indonesia Governor Darmin Nasution said in a press conference after a monthly business rate-review meeting. Bank Indonesia Deputy Gov. Hartadi Sarwono indicated last J.P. Morgan has invested 1 bn Brazilian reais ($565 mn) of fresh capital to expand its business in Brazil, month the central bank's concerns have shifted from the threat of inflation to fears of local newspaper O Estado de S. Paulo reported. an economic slowdown due to prolonged euro-zone debt problems. Most economists • Morgans Hotel Group to sell 2 London-hotel had expected the central bank to keep its policy rate steady at least until the end of stakes the year as they expect global economic turmoil to persist. They said cutting the rate Morgans Hotel Group Co. and its joint venture partner plan to sell two London hotels for roughly would further weaken the rupiah & destabilize the country's financial market. $295 mn in a move it said will give it capital for BRICS bourses form alliance, to cross-list shr indices derivatives growth. 7 stock exchanges from five emerging nations--Brazil, Russia, India, China and South • Superior Energy to buy Complete Production Africa, also known as BRICS--have formed an alliance that will begin by cross-listing of Superior Energy Services Inc.'s acquisition of derivatives of their benchmark equity indices. "Following that, the alliance will develop Complete Production Services Inc. will enable the enlarged company to become a major player in the innovative products to track the BRICS exchanges," it added. The cross listing of international expansion of shale drilling activity, equity indices derivatives will enable trade in these contracts in local currency, & is Superior Energy Chief Executive David Dunlap said. likely to take place by Jun 2012. BSE and NSE will represent India in the alliance, • Toyota idles operations in Thailand due to which includes BM&F BOVESPA of Brazil, MICEX of Russia, and the Johannesburg floods Toyota Motor Thailand said it suspended production Stock Exchange of South Africa. China will initially be represented by the Hong Kong at its three local plants after the country's worst Exchanges and Clearing Ltd. NSE and BSE have signed letters of support and will join floods in decades disrupted its suppliers' operations. the alliance after finalising "outstanding requirements". • IBM to buy software provider Platform FICCI says India-Africa bilateral trade may double in 5 years Computing Bilateral trade between India and Africa is expected to double in the next five years International Business Machines Corp. agreed to buy software company Platform Computing, helping the from $53 bn now, driven by the transport equipment, services, healthcare and technology heavyweight to accelerate its growth into agriculture sectors, Rajiv Kumar said. "Bilateral trade has more than doubled from $25 technical and high-performance computing. bn in 2006-07 (Apr-Mar) to $53.3 bn in 2010-11," he said on the sidelines of the • First Financial to buy Freestar Bank for $47M India-Africa Business Partnership Summit here. "I see a faster growth in the next five First Financial Corp. agreed to acquire Freestar Bank from PNB Holding Co. for $47 million in cash, years," Kumar said. He said imports from Africa have more than doubled from $14.7 increasing its presence in Illinois. bn to $32.2 bn in the last five years, while exports to Africa rose from $10.3 bn in • BHP Billiton approves $1.2 billion for Olympic 2006-07 to $21.1 bn in 2010-11, mainly because of the increase in exports of Dam transport equipment and petroleum products. BHP Billiton Ltd. approved US$1.2 billion in advance Telangana impasse continues as talks fail; strike into 30th day spending on its Olympic Dam copper and uranium mine in South Australia state, an expansion that The ongoing strike in the Telangana region of Andhra Pradesh entered the 30th day as could become one of the world's largest ongoing talks between the state government and Telangana Employees' Joint Action mining projects. Committee did not yield any results. Around 820,000 state government employees, including teachers and judicial staff, are participating in the strike for a separate Nishita Shah Parsekar Telangana state. According to the Federation of Chamber of Commerce and Industry [email protected] of Andhra Pradesh, total revenue loss due to the strike is over Rs.10 bn so far. 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. Regd. 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 08-15

3. Infrastructure 16-26 4. Sectors 27-58 A. IT & ITeS 27-28 B. Pharma & Healthcare 29-31 C. Telecom 32-36 D. Banking & Financial Services 37-40

E. Steel, Metals & Minerals 41-44 F. Auto & Auto Ancillaries 45-48 G. Miscellaneous 49-58 5. IPO Watch 59-60

6. Mergers & Accquistion 61-62

7. Ratings 63-70

8. Global Economy & Business 71-78

A. Global Economy 71-75 B. Global Business 76-78

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INDIA’S DATA WATCH India Aug industrial output grows 4.1% vs 4.5% yr ago India's industrial output in Aug rose to 4.1% from 3.8% a month ago, but was lower than 4.5% a year ago. The industrial output for Apr-Aug--the first five months of 2011-12 (Apr-Mar)--was at 5.6% compared with 8.7% a year ago. While electricity output in Aug rose sharply by 9.5% against 1.0% a year ago, the mining sector contracted 3.4% compared with a growth of 5.9% a year ago. The capital goods sector, which had contracted a massive 13.7% in Jul, grew 3.9% during the period of review compared with 4.7% a year ago. For Apr-Aug, growth in the capital goods segment fell to 7.2% from 18.9% a year ago, indicating that the Reserve Bank of India's series of rate hikes and turmoil in global economy is now hurting demand and slowing down investments in new plant and machinery. The data, released by the Central Statistics Office, takes 2004-05 as the base year. Since Apr, the government has been releasing the IIP series with a new base year of 2004-05. The new series has up to 600 items, 200 more than the old one, and includes mobile phones, computers, and iPods. The growth in intermediate goods was also down to 1.3% in Aug, against 5.8% a year ago. The manufacturing sector registered growth of 4.5%, down marginally from 4.7% a year ago. Growth in the consumer durables segment slowed down sharply to 4.6% from 8.1% a year ago. The CSO raised industrial growth number for Jul to 3.8% from the provisional estimate of 3.3%. The CSO detailed the IIP for Aug as follows (year-on-year change, in per cent) with 2004-05 as base year: Aug 2011 Jul 2011 Aug 2010 Total industry output 4.1 3.8 4.5 Mining (-)3.4 1.4 5.9 Manufacturing output 4.5 3.1 4.7 Electricity 9.5 13.1 1.0 Basic Goods 5.4 10.1 3.8 Capital Goods 3.9 (-)13.7 4.7 Intermediate goods 1.3 (-)1.1 5.8 Consumer goods of which 3.7 6.2 4.6 Consumer durables 4.6 8.6 8.1 Consumer non-durables 2.9 4.1 1.8

Apr-Aug Apr-Aug

2011-12 2010-11 Total industry output 5.6 8.7 Mining 0.2 4.1 Manufacturing output 9.5 4.1 Electricity 6.0 9.2 Basic Goods 7.4 4.9 Capital Goods 7.2 18.9 Intermediate goods 1.0 9.2 Consumer goods of which 4.8 8.9 Consumer durables 4.3 16.3 Consumer non-durables 5.1 3.4 The following table gives the month-wise trend in 2011-12 as per 2004-05 base for mining, electricity, manufacturing, and overall industry, in percentage terms: Mining Electricity Manufacturing General 11-12 10-11 11-12 10-11 11-12 10-11 11-12 10-11 Apr 1.3 9.2 6.5 6.5 6.3 14.4 5.8 13.1 May 1.3 7.9 10.3 6.1 6.1 8.9 5.9 8.5 Jun 1.1 7.0 7.9 3.6 10.3 7.9 8.8 7.4

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Jul 1.4 8.7 13.1 3.7 3.1 10.8 3.8 9.9 Aug (-)3.4* 5.9 9.5* 1.0 4.5* 4.6 4.1* 4.5 Sep 4.3 1.8 6.8 6.2 Oct 6.1 8.8 12.4 11.4 Nov 6.9 4.6 6.5 6.4 Dec 5.9 5.9 8.7 8.1 Jan 1.7 10.5 8.1 7.5 Feb 0.9 6.8 7.2 6.5 Mar 0.3 7.2 10.4 8.8 * Provisional India Sep export up 38% at $25 bn; govt hopes for $300 bn in FY12 The government said India's exports for Sep were at $24.8 bn, up a robust 37.8% from $18.0 bn a year ago, but rising only marginally from $24.3 bn in the previous month. The country's imports for Sep were at $34.6 bn, compared with $27.1 bn a year ago. The trade deficit for Sep is thus $9.8 bn. Commerce Secretary Rahul Khullar said while there were clear signs of slowdown in both exports and imports, he was hopeful that India's exports for the current financial year ending Mar will touch $300 bn. India's exports in the last financial year were at $246 bn. India's exports for Apr-Sep--the first six months of the fiscal--were at $160 bn. Khullar said if exports remained at $23 bn-$24 bn a month for the remaining part of the year, the overall number for the year would be close to $300 bn. He said imports for the first six months were at $233.5 bn, leading to a trade gap of $73.5 bn. India's exports had touched $29 bn in both Jun and Jul, but the number has since dropped to $24 bn as the global economic turmoil, especially in key destinations like Europe and the US, is hurting demand. India Apr-Sep freight traffic at major ports up 3.1% Freight traffic handled by major ports in the country rose 3.1% in Apr-Sep, the first half of 2011-12, to 279.73 mn tn, the Indian Ports Association said. The 12 major ports had handled 271.30 mn tn traffic in the same period of last year. The growth in freight traffic is despite a sharp decline in iron ore exports handled by the ports. Iron ore traffic fell 12.3% on year to 31.59 mn tn in Apr-Sep, the association said. Iron ore exports from India have been falling ever since Karnataka, the second-largest producer of the ore in the country, stopped issuing transport permits to miners last year. Since then, the Supreme Court has banned mining in three districts of Karnataka--Bellary, Tumkur, and Chitradurga. Petroleum products, which account for nearly one-third of the traffic handled by the major ports, rose 3.9% on year to 90.70 mn tn, it said. Thermal coal traffic in Apr-Sep rose 22.0% to 24.69 mn tn, while coking coal declined 0.4% to 14.84 mn tn. Container traffic in the first half rose 4.3% to 3.89 mn TEU from 3.73 mn TEU, the association said. Among the major ports, Kandla handled the maximum traffic in Apr-Sep at 41.57 mn tn, followed by Visakhapatnam at 36.10 mn tn and Jawaharlal Nehru Port at 32.35 mn tn. Following are the commodity- wise freight handled by the 12 ports during Apr-Sep (in mn tn): Apr-Sep Apr-Sep Yr-on-Yr

2011-12 2010-11 % change Petroleum products 90.70 87.29 3.9 Iron ore 31.59 36.03 (-)12.3 Fertiliser fine 4.53 7.48 (-)39.5 Fertiliser raw 3.84 3.37 13.8 Coal thermal 24.69 20.24 22.0 Coal coking 14.84 14.89 (-) 0.4 Container tonnage 59.33 54.59 8.7 Other cargo 50.22 47.41 5.9 Total 279.73 271.30 3.1 India Sep passenger car sales dn 1.8% on yr; CV up 18% India's domestic passenger car sales fell 1.8% on year in Sep to 165,925 units, the Society of Indian Automobile Manufacturers said. This is the third consecutive month where domestic sales of passengers cars have declined on year. Sep car sales were 14.8% higher than the 144,516 units sold a month ago, the

Weekly Newsletter 4 Info-Spectrum Bridging the Information Gap in Corporate Landscape association said. India's passenger car sales had grown 29.7% in 2010-11 (Apr-Mar) to 1.982 mn units, bettering the industry's projection of 25%. Commercial vehicle sales in Sep rose 18.05% to 70,634 units from 59,836 units a year ago. Sales of two-wheelers rose 24.27% to 1.23 mn units during the month under review, while those of motorcycles grew 19.93% on year to 933,465 units. Indian automobile companies exported a total of 255,971 vehicles in Sep, up 39.62% from 183,332 units a year ago, the association said. More . India Apr-Sep freight traffic at major ports up 3.1% Freight traffic handled by major ports in the country rose 3.1% in Apr-Sep, the first half of 2011-12, to 279.73 mn tn, the Indian Ports Association said. The 12 major ports had handled 271.30 mn tn traffic in the same period of last year. India Sep cement despatches rise 0.2% on yr, output up 0.4% on yr Indian cement companies' cumulative despatches rose marginally by 0.2% to 12.71 mn tn in Sep from the same period last year, according to the Cement Manufacturers' Association. The total cement output also rose by a slight 0.4% year-on-year in Sep to 12.72 mn tn, according to data released by the Cement Manufacturers' Association. The cement despatches in Sep fell 6.8% and output fell 5.3% as compared with Aug. Cement despatches during Apr-Sep rose 1.9% on year to 83.24 mn tn and output rose 1.8% to 81.22 mn tn. India’s Oct 1 primary articles inflation falls further to 10.60% India's primary articles inflation, while still in double digits, continued to move downhill for the fifth consecutive week and fell to 10.60% for the week ended Oct 1 from 10.84% a week ago due to the statistical impact of a high base. The primary articles index was at 203.4 for the Oct 1 week, up 0.5% from a week ago, but down from 0.7% a year ago. The impact of the fall in non-food articles index on primary articles was more than offset by the rise in food articles index. Non-food articles inflation fell sharply to 9.59% from 10.77% a week ago due to lower prices of raw cotton, castor seed, and soybean. The index declined 0.9% to 180.5. Meanwhile, food articles inflation eased marginally to 9.32% from 9.41% a week ago on the back of a high base even as the index climbed 0.9% on week to 199.5. Prices of fruits and vegetables, rice, and tea rose during the week. Fuel group inflation rose sharply to 15.10% from 14.69% a week ago, while its index climbed 0.4% on week to 170.0 due to higher prices of bitumen, aviation turbine fuel, and furnace oil. The headline inflation rate based on Wholesale Price Index for Aug rose to a near one- year high of 9.78%, compared to 9.22% in Jul. The Reserve Bank of India estimates headline inflation rate at 7% by the end of the current financial year. Inflation data shows indices for primary articles, and fuel and power were as follows in the week ended Oct 1: --Primary articles index up 0.5% to 203.4 from 202.4 in the previous week; food articles index rose 0.9% to 199.5 from 197.7; non-food articles index was down 0.9% at 180.5 from 182.1 a week ago. --Fuel and power group index rose 0.4% to 170.0 from 169.4. Below are the provisional levels, week-on-week and year-on-year changes, in per cent, of the indices of key commodity groups: Oct 01 wk-on-wk Yr-on-Yr Commodity groups Weight 2011 % change % change I. PRIMARY ARTICLES 20.12 203.4 0.49 10.60 Food articles 14.34 199.5 0.91 9.32 Cereals 3.37 177.4 0.68 5.41 Rice 1.79 177.1 1.90 5.86 Wheat 1.12 167.6 0.36 (-)0.24 Pulses 0.72 211.5 0.86 6.87 Vegetables 1.74 235.4 6.23 13.01 Potatoes 0.20 156.0 (-)1.33 3.79 Onions 0.18 235.4 (-)8.80 (-)10.15 Fruits 2.11 177.6 1.25 12.19 Milk 3.24 196.1 0.00 10.35 Egg, Meat & Fish 2.41 211.7 (-)1.85 9.92

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Non-food articles 4.26 180.5 (-)0.88 9.59 Fibres 0.88 217.2 (-)3.64 14.32 Oilseeds 1.78 157.9 (-)0.25 12.71 Minerals 1.52 303.6 0.00 21.05 II. FUEL & POWER 14.91 170.0 0.35 15.10 Liquefied petroleum gas 0.91 147.3 0.00 14.27 Petrol 1.09 181.1 0.00 29.17 High speed diesel 4.67 167.8 0.00 9.32

India WPI inflation at 9.72% in Sep vs 9.78% Aug India's headline inflation rate fell marginally to 9.72% in Sep, from an over 1-year-high of 9.78% in the previous month, primarily due to the high statistical base, even as sub-indices of primary articles, food, fuel and manufacturing products rose. The inflation rate based on the Wholesale Price Index was 8.98% a year ago. The index for all commodities rose 0.6% on month to 155.8 in Sep. A year ago, the index has risen 0.63% for the same period. The primary articles index was up 1.3% at 202.2, led by higher prices of food articles and non-food articles. However, primary articles inflation rate eased to 11.84% from 12.58% a month earlier due to high base effect. Fuel price inflation for the month rose to 14.09% from 12.84% in Aug, while the index was up 0.8% at 168.4 due a rise in prices of lubricants, electricity (agricultural), bitumen and petrol. State-owned oil marketing companies had raised petrol prices by 3.14 rupees per ltr with effect from Sep 16. The inflation rate for manufactured products was 7.69% in Sep compared with 7.79% a month earlier. The index for this segment was up 0.2% at 138.6. The inflation rate continues to remain well above the Reserve Bank of India's comfort level. The central bank has projected inflation rate to decline to 7% at the end of the current financial year in Mar. Since Dec, the headline number has remained well over the 9% mark. In a bid to curb inflationary pressures, the RBI has already increased its key repo rate a dozen times by a total 350 basis points since Mar 2010. Following today's data, the central bank is widely expected to raise repo rate by another 25 bps in its second quarter review of monetary policy on Oct 25 before it pauses. Meanwhile, the Jul inflation rate was marginally scaled up to 9.36% from provisional 9.22%, with index for the month at 154.2 compared with the earlier estimate of 154.0. In September, the indices for all commodities and the three main groups were as follows: --All commodities rose 0.6% to 155.8 from 154.9 a month ago. --Primary articles rose 1.3% to 202.2 from 199.6 a month ago. --Fuel & power group index rose 0.8% to 168.4 from 167.0. --Manufactured products rose 0.2% to 138.6 from 138.3. Below are the provisional levels, month-on-month and year-on-year changes, in per cent, in the indices of key commodity groups: Sep M-on-M Yr-on-Yr Commodity groups Weight 2011 % change % change All Commodities 100.0 155.8 0.58 9.72 I. PRIMARY ARTICLES 20.12 202.2 1.30 11.84 Food articles 14.34 196.5 1.45 9.23 Cereals 3.37 176.7 (-)0.62 4.37 Rice 1.79 173.3 0.23 4.02 Wheat 1.12 168.0 (-)1.18 (-)2.10 Pulses 0.72 202.0 4.61 2.80 Vegetables 1.74 216.1 9.70 14.04 Potatoes 0.20 159.7 6.47 14.64 Onions 0.18 253.1 5.77 23.58 Fruits 2.11 177.1 (-)3.80 15.98 Milk 3.24 195.3 1.14 10.28

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Egg, Meat & Fish 2.41 215.1 2.14 9.69 Non-food articles 4.26 184.4 1.82 14.82 Fibres 0.88 227.6 5.57 23.76 Oilseeds 1.78 160.3 (-)0.43 14.75 Minerals 1.52 306.1 (-)0.16 24.79 II. FUEL & POWER 14.91 168.4 0.84 14.09 Liquefied petroleum gas 0.91 147.3 (-)0.14 14.27 Petrol 1.09 176.8 2.55 26.29 High speed diesel 4.67 167.8 0.00 9.32 III MANUFACTURED PRODUCTS 65.0 138.6 0.22 7.69 Food products 10.0 151.1 0.86 8.05 Sugar 1.7 171.7 0.47 7.45 Edible oils 3.0 135.8 1.72 13.45 Beverages, Tobacco products 1.8 163.8 0.31 13.43 Cotton textiles 2.6 138.1 (-)2.81 12.55 Manmade textiles 2.2 118.7 (-)0.42 7.23 Wood products 0.6 161.3 (-)0.74 8.18 Paper products 2.0 131.6 0.46 4.78 Leather products 0.8 129.2 (-)0.54 0.78 Rubber & Plastic products 3.0 133.4 (-)0.15 7.49 Chemical products 12.0 133.5 0.38 8.71 Non-metallic mineral pdts 2.6 149.4 0.00 4.18 Cement & lime 1.4 151.3 (-)0.85 0.73 Basic Metals Alloys & Metal product 10.7 154.1 0.46 10.94 Iron & semis 1.6 149.7 0.54 20.73 Machinery & machine Tools 8.9 125.0 0.56 3.22 Transport Equipment & parts 5.2 124.3 0.00 4.19

INDIA DATA CALENDAR Oct 11-14 Cement production, despatches in September, by CMA Oct 11-14 Foreign tourist arrivals in Sep, by tourism ministry Oct 11-14 Power generation for September, by Central Electricity Authority 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 20-25 Crude, refinery output for Sep, from petroleum ministry Oct 25-30 Core sector growth for September, by commerce ministry Oct 30 Government finances for Sep, Apr-Sep, by CGA Nov 01 Manufacturing PMI for October, by HSBC Nov 01 Trade data for September, by commerce and industry ministry Nov 05 Services PMI and composite PMI for October, by HSBC Nov 30 GDP growth estimate for Jul-Sep, and Apr-Sep, by CSO Dec 30 Balance of payments for Jul-Sep, by RBI Sources: Government of India, Reserve Bank of India, Securities and Exchange Board of India, stock exchanges, and various industry and trade bodies.

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ECONOMY ECONOMY: • Raja's plea to attend SC hearing on Oct 10 rejected. • RBI planning to change design of currency note. • Hazare appeals to Hisar electorate not to vote for Congress. • Anna denies RSS link, Cong says told you so. • Gadkari praises Modi, says Gujarat role model for country. • FIR against Shiv Sena for another noisy rally. • Telangana: Andhra CM to meet Cong high command. • India-Bangladesh hold first-ever joint military exercise. • Cash-for-vote: Jaitley may be examined as witness. • Govt to appoint panel to allay fears over Kudankulam nuclear plant. • Agni-5 to fly halfway to Antarctica. • Source says India Apr-Sep indirect tax mop-up Rs.1.69 trn. • Trade minister says to announce export incentives on Oct 13. • India Sep 24 food articles inflation 9.41% vs 9.13% week ago. • Govt may allow reopening of I-T returns up to 16 years. • Over 7,000 people fast against nuclear project. • Advani to raise issue of black money during yatra. • Advani launches theme song ahead of 38-day road show. • Mayawati woos voters with Rs.60 bn bonanza. • Jha defends BJP's protest against arrest of Kulaste. • RTI effect: Govt to release Lokpal tapes. • RTI activist couple attacked in Delhi. • Mamata ends 20-year stint at member of Parliament. • After a year's lull, Red terror strikes Karnataka, constable killed. • Nuclear deal onus on India, says US. • Bribery law to soon cover private sector. • Finance min seeks hike in post office savings, provident fund rates. • Services negative list likely in next Budget. • Officers in public sector oil cos fear slippage in effective pay. • Controversy brewing over coffee production numbers. • Falling demand, higher interest rates and slowdown in exports are causing a rise in debt restructuring by companies. • The government has indicated it would announce incentives for exporters by Oct 17 to counter flagging international demand. • US has appealed to the World Trade Organization against India and China over their subsidy programmes. • Finance ministry has decided to fast-track reforms of the National Small Savings Fund; savers to earn more. • Government will extend interest rate subvention of 2% on rupee export credit to handicrafts, handlooms, carpet, and small and medium enterprises. • The government is considering raising FDI cap in single-brand retail from 51% currently. • Singapore-based Parkway Holdings has emerged the favourite bidder for Ahmedabad-based Sterling Hospitals. • India will pay for at least half of the oil and non-oil imports from Iran in Rs., and the rest through dollar payments routed via foreign banks. • Yahoo has exited Consim Info by selling its 12% stake to three separate entities for Rs.1 bn.

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• The Reserve Bank of India plans to bring in new norms to keep tabs on the increasingly popular foreign currency convertible bonds. • The government has asked Defence Research and Development Organisation to take its products meant for civilian use to Africa to boost India's engagement with African countries. • India and Vietnam have signed a pact to expand their partnership in oil and gas exploration, refining, transportation, and supply. • India and Vietnam have set a target of achieving bilateral trade of $7 bn by 2015 from $2.7 bn currently. • World powers preoccupied; India must stand on own feet, says PM. • 70% home damage compensation for earthquake victims disbursed in Sikkim. • Dawood aide Iqbal Mirchi held in London. • 10 Indians freed from hijacked ship in Somalia. • NIA Act, UAPA Act up for review, to be tweaked. • Krishna calls for probe into Lanka project allegations. • Govt credibility at its lowest, governance below par, says CAG. • Govt gets 4 weeks for price control of essential drugs . • Sibal led charge against activists, show Lokpal tapes. • EU starts new Schengen visa for Indians. • End riot probe vigil, Gujarat tells SC. • 'Upset with desk job', HAL director hangs himself. • Montek says 32 Rs. a day benchmark not all that ridiculous. • Food security: India worse than Rwanda. • State apathy leads to rise in Red terrorism, says Ramesh. • J&K autonomy formula to please both govt, opposition. • Nuclear arsenal in neighbourhood a threat, PM says. • Plan panel says unique ID project has no independent financial power. • PM says taming inflation short-term challenge; econ fundamentals strong. • RBI study says loose fiscal policy can hit output in medium-term. • Food minister says mulling 80 rupee/100 kg bonus on paddy buys this yr. • Govt official sees year to Sep 2012 cotton output up 4 mn bales. • Interest subvention of 2% for small exporters is back. • Direct tax internal target raised to Rs.5.85 trn. • India may join mega telescope project with Rs.8 bn aid. • Hindujas want big slice of defence pie. • Rain forecasts were off mark, admits India Meteorological Department. • PM tells Tamil Nadu CM scrapping nuclear plant to hurt state industry. • Kashmir interlocutors submit report to Home Minister Chidambaram. • Lawyer-activist Prashant Bhushan attacked for his Kashmir statement. • Legal fraternity, politicos flay attack on Bhushan. • Ex-IPS officer Sharma acquitted in Shivani Bhatnagar murder case. • Sibal pitches for US varsities to open shop in India. • SC takes exception to Law Minister Khurshid's remarks. • Strictures against ex-CM Joshi in Pune plot case to stay. • SC bars property sales through power of attorney. • Govt's Lokpal proposal finds no support. • Digvijay writes to Anna again, Congress unhappy. • Cops to make new dossier on Iqbal Mirchi. • Centre to dump toxic waste from Bhopal plant in Nagpur.

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

• China presence in Pakistan-occupied Kashmir worrying, says Antony. • Court asks ministry to explain Air India mess. • Gujarat cop Bhatt's wait for bail gets longer. • PSLV soars as Isro dodges space jam with 1-minute delay. • Court order on Bhatta-Parsaul a boost for Rahul in Uttar Pradesh. • Report wants council for 3 J&K regions. • India, Vietnam start security dialogue. • RBI Subbarao says making India a low rate regime will take time. • RBI Gokarn says may further raise rates if high inflation persists. • India Aug industrial output grows 4.1% vs 4.5% year ago. • India Sep export up 38% at $25 bn; govt hopes for $300 bn in FY12. • Source says tax dept raided Pipavav Defence, CMD Gandhi's premises. • Tea Board official says India tea output may top 1 bn kg in FY12. • Tax tribunal ruling may lead to flood of stock options. • India, Vietnam ink pact for oil exploration. • Many BJP leaders capable of becoming PM, says Yashwant Sinha. • Lawyer Prashant Bhushan's attackers arrested in Delhi. • Yatra is not aimed at projecting myself, says Advani. • SC halves compensation to Uphaar fire tragedy victims. • Uma Bharti roots for Advani as Prime Minister. • RDX-laden car was headed to Delhi for terror strike, say police. • 10,000 activists protest outside nuclear plant in Tamil Nadu. • RSS defaming me by claiming proximity, says Anna. • Sri Ram Sene activists thrash Anna supporters. • Uma virtually backs Advani for PM's post. • Air India Express flight safety chief quits over probe. • BJP to take Goa mining case to Central agencies. • Why didn't govt act in time to stop 2G scam, asks SC. • Order on general power of attorney seen hitting realty sales. • 70% turnout in Hisar bypoll. • Fuel dues hit 6 Kingfisher flights. • 2G scam: CBI says Maran sat on Siva's file for 44 days. • India to seek review of tax info sharing at G20 meet. • China says will not divert Brahmaputra river. • Five key military reform reports lost. • Advani's yatra under 'cash for coverage' cloud. • The government has planned a 17-bln-rupee incentive package for exporters to help them cope amid global economic uncertainty. • The commerce ministry has asked the Export and Import Bank of India to chalk out a loan package for small and medium exporters in the pharmaceutical sector. • Cabinet has approved a policy for acquisition of raw material assets abroad by public sector companies with a three-year record of making profit. • Subbarao says sensitive to econ slowdown but inflation still sore point. • Cabinet OKs raw material buys abroad for PSUs in profit for 3 yrs. • Govt announces sops worth 9 bln rupees to fire up slowing exports. • Govt source says Oct-Mar extra borrow factors in some fisc slippage. • India Oct 1 food articles inflation 9.32% vs 9.41% week ago. • Ex-India dry bulk shipping freights seen 15% up Nov on rice export.

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

• Govt ups 2011-12 kharif grain output estimate to 123.95 mln tn. • Food minister says govt may soon announce bonus for rice buys. • Railways increases freight charges, move may stoke inflation. • Montek for power tariff hike soon to save distribution cos. TAXATION: • The government is likely to amend the Income Tax Act to allow reopening of returns up to 16 years old to track money trails abroad. • Customs and central excise collections, hit by slowdown and reduction of duty on petroleum goods, declined during September. • Finance ministry may announce negative list for services in next Budget. • The Central government has revised its direct tax collection target for the year to 58.5 trln from 53.2 trln. • Tax deducted at source mop-up in Apr-Sep has risen 33% from a year ago to over 1 trln rupees, indicating higher tax receipts by Mar. CRISIL cuts FY12 GDP estimate for 2nd time to 7.6%, ups WPI view For the second time in nine months, rating agency CRISIL has cut its estimate of India's gross domestic product growth for 2011-12 (Apr-Mar). CRISIL cut the country's GDP growth estimate to 7.6% from 7.7- 8.0% estimated in May. India's GDP grew 7.70% in Apr-Jun, down from 9.30% a year ago. Deteriorating global economic situation and a weak domestic investment climate may weigh on economic growth. CRISIL said the slowdown in advanced economies has been sharper than it had expected. This slowdown will show an adverse impact on exports and foreign investment into India going forward. "Export growth too, is likely to moderate in the coming months due to slowing growth in export destinations. The depreciation of the rupee will cushion exports a bit," the agency said. Exports so far have showed strong year-on-year growth of around 40% but most economists have pointed out to the imminent slowdown in exports due to fears of a recession in US and Europe. These two countries account for more than 80% of the demand for Indian goods. "CRISIL's forecasts for the Indian economy are based on the assumption that developed economies will witness a slowdown, but avoid another recession." A sluggish industrial growth would also slow overall economic growth, the agency said. It expects industrial growth for the current fiscal year to be 6.5%, much lower than 7.3% it had estimated earlier. Moreover, this slowing industry growth could spill over to the services sector as well, CRISIL added. "Overall, we now expect services to grow at 9.2% this year as compared to our previous estimation of 9.4%," the release quoted CRISIL's Managing Director and Chief Executive Officer Roopa Kudva as saying. RBI study says loose fiscal policy can hit output in medium-term An expansionary fiscal policy, despite its potential to raise output in the short run, has a significant negative impact on output over the medium- and long-term, a Reserve Bank of India working paper said. "It seems fiscal deficit leads to decline in savings and investment in the economy over the medium term, besides crowding-out (the) more efficient private sector investment by government consumption," the paper said. Fiscal policy continues to have a strong influence on monetary policy despite enactment of disciplinary measures such as the Fiscal Responsibility Budget Management Act in 2006, the paper said. The Act prohibits the RBI from buying government bonds in the primary market to ensure fiscal prudence by the government. The paper also said monetary policy is highly sensitive to shocks in inflation and responds in a counter-cyclical manner to the same, while fiscal policy measures are typically pro-cyclical in nature. "Specifically, the reaction of the two policies to shocks in inflation and output is mostly in the opposite direction," the paper said. The working paper has been authored by Janak Raj, adviser-in-charge of the Monetary Policy Department, J.K. Khundrakpam, director and Dipika Das, assistant adviser in the department. The views and findings of the working paper do not necessarily reflect those of the RBI, the central bank release said. Industry officials ask RBI for a pause on rate hikes Industry officials have requested the Reserve Bank of India to pause on its policy rate hike cycle, Niranjan Hiranandani, managing director, Hiranandani Constructions, said after attending a pre-policy meeting between industry and RBI officials. "We do not agree for an interest rate hike and we have suggested that it should be moderated...our view is that there should be no interest rate hike in the economy," Hiranandani said. "In fact where home loans and housing is concerned and other sectors of the economy, I think we need now is a reduction in the rate of interest because our anticipation is that inflation will come under control." The central bank is scheduled to detail the second quarter review of its monetary policy on Oct 25.

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

RBI says govt to give 2% rate subvention on some rupee export loans The Reserve Bank of India said the government has decided to extend interest rate subvention of 2% on rupee export credit to handicrafts, handlooms, carpet, and small and medium enterprises. The rate subvention will be available till Mar 31. The RBI notified that banks can pass on the subvention to eligible exporters in these sectors and thus reduce the rate chargeable, with a floor rate of 7%. Banks will have to claim the amount of subvention as reimbursement at the end of the respective quarter, with a certificate from the external auditor authenticating the claim. The subvention amount will be calculated from the date of disbursement, up to the date of repayment or up to the date beyond which the outstanding export credit becomes overdue, RBI said. FICCI says India-Africa bilateral trade may double in 5 years Bilateral trade between India and Africa is expected to double in the next five years from $53 bn now, driven by the transport equipment, services, healthcare and agriculture sectors, Rajiv Kumar, secretary-general, Federation of Indian Chambers of Commerce and Industry, said. "Bilateral trade has more than doubled from $25 bn in 2006-07 (Apr-Mar) to $53.3 bn in 2010-11," he said on the sidelines of the India-Africa Business Partnership Summit here. "I see a faster growth in the next five years," Kumar said. He said imports from Africa have more than doubled from $14.7 bn to $32.2 bn in the last five years, while exports to Africa rose from $10.3 bn in 2006-07 to $21.1 bn in 2010-11, mainly because of the increase in exports of transport equipment and petroleum products. Govt approves 11 FDI proposals worth Rs.1.83 bn The Foreign Investment Promotion Board has approved 11 foreign direct investment proposals worth Rs.1.83 bn, an official release said. Besides this, FDI proposals worth a total of Rs.81.38 bn of Energy Grid Automation Transformers and Switchgears India, Grid Equipments Ltd and Walt Disney Company (Southeast) Asia Pte have been recommended for consideration of Cabinet Committee on Economic Affairs. These proposals were sent to the Cabinet panel as each of them was worth over Rs.12 bn. The proposals cleared include that of Delsey India for induction of FDI to undertake single brand retailing. The Board deferred Vodafone Essar's proposal for transfer of shares from resident to non-resident to carry out telecom business. Ruchi Soya denies report co referred to corporate debt recast cell Ruchi Soya Industries Ltd denied reports that the company has been referred to the corporate debt restructuring cell for recasting loans of Rs.6 bn . Citing a report in the Business Standard newspaper, the company said in a notification to the exchanges that "Ruchi Soya Industries Ltd has not been referred to CDR mechanism." The newspaper had reported that "the corporate debt restructuring mechanism set up to help companies unable to repay liabilities has gone up over six times" in Apr-Sep and one of the companies named in the report was Ruchi Soya. SC admits 26/11 terrorist Kasab's appeal against death sentence The Supreme Court admitted 26/11 terrorist Ajmal Kasab's petition challenging his conviction and death sentence in the 2008 Mumbai terror attack. While staying Kasab's death sentence, awarded by a special anti-terror court and later upheld by the Bombay High Court, till his petition was heard, the apex court observed: "Your man does not deserve yet another appeal in this highest court of the land," but it was the duty of the judicial system to hear him. Issuing a notice to the Maharashtra government on Kasab's petition, the Supreme Court adjourned the hearing to Oct 14. MD says Shri Lal Mahal shipped out 8,000 tn non-basmati rice so far Shri Lal Mahal Ltd has shipped out about 8,000 tn non-basmati rice to African countries so far, Prem Garg, managing director of the company said. "...we are going to export non-basmati rice in a big way. We already have the orders for about 300,000 tn non-basmati rice," Garg told adding that the company has already shipped out 8,000 tn of the rice at a price ranging between $400 and $520 per tn, free-on-board. INTERVIEW: Kaushik Basu says small slip in fisc aim "not a calamity" 'Poster-boy economist' and an out-of-the-box thinker, India's Chief Economic Adviser Kaushik Basu has not only created ideas and designed policies, but has also stubbornly campaigned for their implementation. Basu has been vocal on allowing foreign direct investment in multi-brand retail, has suggested the Turkish way to control inflation and of late, he has more than indicated that the rate hike cycle must end. RBI working paper says inflation above 5.5% retards GDP growth rate An inflation rate above the threshold of 5.5% retards economic growth rate, according to a working paper of the Reserve Bank of India. The working paper was authored by Deepak Mohanty, executive director and officer-in-charge, A.B. Chakraborty, director, and Abhiman Das, research officer of department of statistics

Weekly Newsletter 12 Info-Spectrum Bridging the Information Gap in Corporate Landscape and information management. The paper said that inflation rate below the threshold level of 4.0-5.5% was supportive of economic growth. PM says econ fundamentals strong, sticks to 8% FY12 growth forecast A day after CRISIL Research and industry body FICCI scaled down their forecast for growth of India's gross domestic product in 2011-12 (Apr-Mar), Prime Minister Manmohan Singh tried to put up a brave show saying the "fundamentals of economy remain strong". "...Despite the global slowdown, we will still achieve a growth rate of close to 8% this year," the prime minister said while addressing Combined Commanders Conference of the Indian Armed Forces. RBI Gokarn says may further raise rates if high inflation persists Reserve Bank of India Deputy Governor Subir Gokarn said the central bank will raise interest rates further if high inflation persisted. "It depends on inflation situation," Gokarn told reporters when asked if RBI will further raise interest rates. "We raise rates not because it is not an end in itself...To the extent that we see the problem persisting, then there is a basis to raise rates. But if we see the problem is starting to ease off, then that would provide basis for a change," he said. Telangana impasse continues as talks fail; strike into 30th day The ongoing strike in the Telangana region of Andhra Pradesh entered the 30th day as talks between the state government and Telangana Employees' Joint Action Committee did not yield any results. Around 820,000 state government employees, including teachers and judicial staff, are participating in the strike for a separate Telangana state. According to the Federation of Chamber of Commerce and Industry of Andhra Pradesh, total revenue loss due to the strike is over Rs.10 bn so far. Trade min says to announce export incentives on Oct 13 Commerce and Industry Minister Anand Sharma said the government would announce a relief package for exporters on Oct 13. "Board of Trade will be meeting on 11th (Tuesday). Soon after that, government will be finalizing what incentives can be given and support in particular to the labour-intensive sector," Sharma told reporters. BJP's Advani to embark on 38-day yatra against corruption Principal Opposition Bharatiya Janata Party's patriarch Lal Krishna Advani will embark on a 38-day-long 'Jan Chetna Yatra' against corruption from Bihar later. The yatra, covering a distance of 12,000 km, will focus on issues of black money and cases of corruption that have dogged the ruling United Progressive Alliance government at the Centre. KRBL contracts 100,000 tn non-basmati rice exports till Dec KRBL Ltd has contracted exports for 100,000 tn non-basmati rice, Chairman and Managing Director Anil K. Mittal said. "We have concluded contracts for 100,000 tn non-basmati rice at price ranging from $455-485 per tn," Mittal told. Most of the rice is going to West Africa as demand is huge in the region, he said. India daily cotton arrival weak at 55,000 bales; to pick up by Nov Daily cotton arrival in India, so far in the new marketing year that started Oct 1, is lagging year-on-year due to various factors including late maturation of crop, dealers and industry sources said. The daily arrival currently, including from the old crop, is 50,000-55,000 bales ((1 bale = 170 kg) against 75,000-78,000 bales a year earlier. Minister Sharma says non-availability of dollar credit a concern Non-availability of dollar credit, large trade deficit with China, and deceleration in the manufacturing and mining sector are a cause for concern for the government, Commerce and Industry Minister Anand Sharma, who also holds the additional charge of textiles, said. Shree Renuka sells 25,700 tn sugar to Bangladesh at $725/tn, fob Shree Renuka Sugars Ltd has exported 25,700 tn of the sweetener to Bangladesh at $725 per tn (over Rs.35,500 a tn), free-on-board, trade sources said. The shipment sailed from the Kakinada port last month, they said. The commodity is fetching around Rs.27,750-29,950 a tn in the major domestic wholesale markets. Finance min may announce negative list of services in next Budget The finance ministry could announce a negative list for services in the Budget in Feb. This is despite suggestions from industry officials that negative list be introduced alongside Goods and Services Tax. In a negative lit approach, barring a few services listed by the government, all others will be taxed.

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

Source says Chief Economic Adviser Basu may quit after FY13 Budget India's Chief Economic Adviser Kaushik Basu may quit North Block after the 2012-13 Budget, a senior finance ministry official said. "We have informally asked him if he is interested in extension. The feedback we are getting is that he is not keen on continuing beyond the Budget," the official told. Govt may link interest rate on small saving plans to sovereign bond The government plans to raise the investment ceiling in Public Provident Fund to Rs.100,000 annually from the current Rs.70,000 by the month end and also link interest rates on small savings schemes to sovereign bonds of same maturity, a senior finance ministry official said. Rajesh Exports gets Rs.6.21 bn order from Dubai company Rajesh Exports Ltd has received orders worth Rs.6.21 bn for supplying branded gold jewellery to Dubai- based Excel Gold Smiths. The order will be executed at the company's jewellery manufacturing facility in Whitefield, Bengaluru, and will be completed by Dec 15, the company said. Govt source says gilt yld spike "temporary"; to cool dn near term The recent spike in govt bond yields is temporary, and will "cool down" in the near-term, a finance ministry official said. "The spike in yields is temporary," the official told. "We expect it to cool down. It's a reaction to government's announcement on additional borrowing," the official said. RBI to place 2.5 bn euros as initial corpus to clear Iran dues India is likely to pay for at least half of the oil and non-oil imports from Iran by depositing the equivalent rupees in accounts opened with Indian banks. The RBI will place 2.5 bn euros that India owes Iran as initial corpus in the rupee accounts of the Iranian central bank. Govt ups internal direct tax aim by Rs.530 bn The government has internally revised its direct tax collection aim for the current fiscal to Rs.5.85 trn, up from Rs.5.32 trn estimated in the Budget. The new target will be achieved by ensuring better compliance via tax deducted at source and focused approach on arrear collection. Food minister says India to decide 2011-12 sugar export Nov wk 1 Food Minister K.V. Thomas said India would decide on the quantum of sugar exports for the new season, that began Oct 1, by the first week of Nov. INDO-VIETNAM: India and Vietnam signed several bilateral pacts, including an extradition treaty. Vietnam President Truong Tan Sang, who is on a three-day visit to India, held comprehensive talks with PM Manmohan Singh. SATELLITE LAUNCH: PSLV-C18, the Indian rocket carrying Indo-French tropical weather satellite Megha- Tropiques and three other smaller satellites blasted off from the launch pad at the space port in Sriharikota in Andhra Pradesh. Subbarao says "deeply sensitive" to making India a low-rate regime Reserve Bank of India Governor D. Subbarao said the central bank was sensitive to the needs of the industry of making India a low-interest-rate regime but that can't take precedence over fight against inflation. RBI won't take falling-growth bait, Gokarn says inflation priority Making it clear there was no change in the Reserve Bank of India's stand on the inflation-growth debate, Deputy Governor Subir Gokarn said the main objective of the central bank would remain controlling inflation even if measures adopted for such purpose caused some disruption on growth front. Amid Anna's "defeat Congress" call, all eyes on Hisar by-poll The Hisar bye-election could have been like any other, but for social activist Anna Hazare and his team of "crusaders" against corruption, who have given a clarion call to the electorate to inflict a crushing defeat on Congress as they seek to project the verdict as a referendum on the United Progressive Alliance government at the centre led by the grand old party. FOCUS: High rates, global economic woes dry up banks' Tier-II funds Faced with rising yields in the domestic bond market and the reluctance of investors overseas, most Indian public sector banks are finding it tough to shore up capital through the debt route in the current financial year. India Sep export up 38% at $25 bn; govt hopes for $300 bn in FY12 The government said India's exports for September were at $24.8 bn, up a robust 37.8% from $18.0 bn a year ago, but rising only marginally from $24.3 bn in the previous month.

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

Source says India Apr-Sep indirect tax mop-up Rs.1.69 trn India's indirect tax collection in Apr-Sep was Rs.1.686 trn, up 20.7% on year, a senior finance ministry official said. Sep 24 primary articles inflation slides to 10-mo low India's primary articles inflation, although in double digits, slid to a 10-month low of 10.84%, primarily because of easing prices of non-food items and due to the statistical impact of a high base. India Apr-Jul sensitive items import up 38% at Rs.316.92 bn India imported sensitive items worth Rs.316.92 bn during Apr-Jul, up 38% from Rs.230.39 bn a year ago, the commerce and industry ministry said in a release. Govt announces sops worth 9 bln rupees to fire up slowing exports The government announced a series of sops to fire up slowing exports, including a 1% additional duty credit for select 50 products from pharmaceutical, engineering and chemical sectors for a period of six months starting Oct 1. About 70% electorate cast their votes in a peaceful Hisar by-poll Bye-election for the Hisar Lok Sabha seat, which fell vacant after the death of former Haryana Chief Minister Bhajan Lal, today registered a 70% voting, news agency Press Trust of India reported. PM says industrial unrest a concern, needs to be resolved quickly Concerned over frequent labour strikes, Prime Minister Manmohan Singh said that the issues needed to be resolved quickly in the larger interest of the country's progress. Dileep Chaudhary appointed secy in Department of Public Enterprises The government today appointed Dileep Raj S. Chaudhary as secretary, Department of Public Enterprises in the ministry of heavy industry and public enterprises, an official release said. India to raise black money, terror funding issue at G-20 Paris meet Finance Minister Pranab Mukherjee is leaving for Paris today on a three-day visit to attend the finance ministers' meeting of the Group of 20 Nations on charting out a strategy to combat the continued turmoil in the global economies. Oct 1 primary articles inflation falls further to 10.60% India's primary articles inflation, while still in double digits, continued to move downhill for the fifth consecutive week and fell to 10.60% for the week ended Oct 1 from 10.84% a week ago due to the statistical impact of a high base. Govt source says Oct-Mar extra borrow factors in some fisc slippage The government's decision to borrow an additional Rs.530 bn in Oct-Mar factors in some fiscal slippage, a senior government official said. EID PARRY (INDIA): • Has completed acquisition of US-based firm Valensa International for around Rs.705 mn. • Has completed the acquisition of US-based nutraceutical company Valensa International for Rs.224 mn. PIPAVAV DEFENCE: Income tax officials have raided the company's premises in Mumbai; promoter Nikhil Gandhi is being questioned by the officials. DIANA TEA COMPANY: Plans to sell its Ambari Tea Estate in Jalpaiguri, West Bengal, to Maxwell Golden Tea.

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

INFRASTRUCTURE INFRASTRUCTURE: • Maharashtra utility bars Tata Power arm, 1 more for supply default. • Panel clears offsets report on $10.4-bn jet plane deal. • Govt, pvt players to jointly navigate foreign port buys. • States scramble to raise power tariffs as bank finance dries up. • L&T in talks with Japan cos for stake sale in L&T Infotech. • Hindustan Petroleum may buy Africa oil and gas block. • Gas swapping norms on the anvil. • Air India to get $1.3 bn guarantee from US Exim Bank for Boeing buys. • Power Fin Corp plans to raise Rs.168 bn. • Projects in key infrastructure sectors such as coal, fertilisers, natural gas, highways and railway slowed in Apr-Jul. • The National Highways Authority of India plans to raise Rs.100 bn through tax-free infrastructure bonds by mid-Nov. • The government has received Rs.156.29 bn in premiums from winning bidders of 16 big-ticket highway contracts since Apr, much higher than estimated Rs.6.6 bn. • OPEC sees 2011 world oil demand 87.81 mn bpd vs 87.99 mn earlier. • CMC Jul-Sep consol net profit Rs.326.26 mn vs 436.27 mn. • Source says Punj Lloyd got $126.8 mn fuel pipe, terminal order. • BEML sees dredging ops revenue Rs.2.2 bn in next 2 years. • Airports Authority takes discount route to promote non-metro airports. • Power crisis looms in West Bengal as utilities run out of cash for coal. • Karvy arm to soon float Rs.3-bn realty fund. • Tata Projects has signed a pact with Balfour Beatty India to jointly work on infrastructure projects in India and Africa. • The Maharashtra government has signed memorandums of understanding with six companies to build six projects in the state for Rs.64.55 bn. • The road transport ministry has undertaken an Rs.80-bn plan to develop highways in northeast India. • Power secy says ministers' panel cleared periodic tariff revision. • ONGC Videsh in pact for 25% shr in Kazakh Satpayev oil block. • DB Realty's south Mumbai project in trouble. • Tax dept searches Pipavav Shipyard premises. • Ashoka Buildcon to dilute stake in arm, raise $150 mn. • ONGC Videsh buys 25% in Kazakhstan blocK. • Oil ministry allots 60% of 7.23 mscmd gas from ONGC to power cos. • Oil India seeks advisers for Africa assets. REAL ESTATE: • Inorbit Malls India plans to buy under-construction malls in Pune, Delhi and Kochi. • Prices of luxury and premium flats in Mumbai have fallen because of rising interest rates and concerns of an economic slowdown. • The Enforcement Directorate is seeking to finally attach assets worth 2.23 bn Rs. of five real estate companies. • Lodha group will invest more than Rs.100 bn for developing a project on 22.5 acres at Wadala in central Mumbai over five-seven years.

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

POWER: • GE Energy Financial Services, a GE subsidiary, is investing $50 mn in renewable energy company Greenko to expand its presence in India's wind energy sector. • Moser Baer Clean Energy will commission Asia's largest solar farm in Gujarat with 30 MW installed capacity. • A group of ministers has accepted the power ministry's suggestion to allow power distribution utilities to undertake tariff revisions periodically. • The coal ministry has agreed to the power ministry's demand to divert some of the coal currently being sold through auctions to power stations starved of the raw material. • 29 thermal power stations are operating with coal stocks of less than four days, much lower than the normal stocks of 15-30 days. • Nuclear Power Corp will form joint ventures with state-owned undertakings to set up a series of nuclear power projects. ENERGY: • Power majors including TATA POWER, Videocon, RELIANCE POWER, and Essar have shown interest in setting up three super-critical plants in Bihar. • Brihan Mumbai Electric Supply and Transport Undertaking is likely to propose a 15% hike in electricity tariff for Mumbai city. SHIPPING: • Indian Ports Global, a special purpose vehicle for foreign port buys, may have private players holding 50% stake. • Spot tanker freight rates declined 3-8% month-on-month in September across all vessel categories, according to OPEC. OIL & GAS: • OPEC has revised downwards its forecast for 2011 global crude oil demand to 87.81 mn barrels daily from 87.99 mn barrels estimated in Sep. • Domestic crude oil refiners have been meeting short-term funding requirements largely through buyers' credit. AVIATION: • British Airways is looking to introduce first-class flights on major global routes. • US Exim Bank has given loan guarantees of $1.3 bn to Air India to support its purchase of planes from Boeing. • Private carriers are facing problems getting clearances to fly abroad as the civil aviation ministry is focusing on Air India's revival. CEMENT: • Manufacturers have started increasing prices due to low production numbers. L&T in talks with Japan cos for stake sale in L&T Infotech Engineering major Larsen & Toubro is in talks with Japanese conglomerates to sell stake in its fully owned subsidiary, L&T Infotech. The report, quoting two people in the knowledge of the development, said the engineering company is in discussions with firms such as Hitachi, Mitsubishi and Fujitsu, and negotiations with at least one Japanese player have reached an advanced stage. According to bankers, the sale of infotech business could fetch L&T around $700 mn-$1 as compared to the $3 bn the electrical business was expected to fetch. The sale of L&T's electrical business was close to being finalised with US-based industrial firm, Eaton, but opposition from employee unions and financial institutions, which hold over 30% stake in L&T, dashed the deal, the report said. "There is also a possibility of a quid pro quo if the company is partnering with L&T on any of its other businesses," the newspaper said. Sujana Towers shrholders OK raising up to Rs.15 bn Sujana Towers Ltd has informed that the following resolutions had been passed by the members of the Company through Postal Ballot on Oct 08, 2011. 1. Increase of Authorized Share Capital of the Company from Rs.100.00 Crores to Rs.125 Crores as a Special Resolution. 2. Issue of such number of equity shares and/or any securities linked to convertible into or exchangeable for equity shares including without

Weekly Newsletter 17 Info-Spectrum Bridging the Information Gap in Corporate Landscape limitations through CCPS and/or OCPS and/or PCPS and/or NCPS and/or NCDs with or without attached share warrants and/or PCDs and/or OCDs and/or FCDs/GDRs and/or ADRs and/or FCCBs/QIP for an aggregate amount not exceeding Rs.1500 Crores, as a Special Resolution. 3. Increase in the borrowing powers of the Company from the existing limit of Rs.2000 Crores to Rs.3000 Crores. And 4. Amendment of Articles of Association of the Company by inserting two new Articles regarding participation of the Members and Directors in General and Board Meetings respectively, through electronic mode as a Special Resolution. Reliance Infra buys back 125,000 shares more for Rs.50.1 mn Reliance Infrastructure Ltd has bought back another 125,000 shares for Rs.50.1 mn between Sep 24 and Oct 7. In the period, the company bought back 7,000 shares on the BSE, and 118,000 shares on the National Stock Exchange, it said. Reliance Infrastructure had launched a Rs.10-bn share buyback offer on Apr 11. In the last announcement before's, the company had said on Sep 9 it bought back 3.65 mn shares for Rs.2.01 bn between Apr 11 and Sep 8. This was around 20.6% of the total offer size. Mahanagar Gas hikes PNG prices for domestic users by up to 15.6% Mahanagar Gas Ltd has raised prices of piped natural gas by up to 15.64% for domestic consumers in Mumbai and adjoining areas from. This is the second price increase so far this financial year. The earlier hike was on Apr 1. The company, in a newspaper advertisement, attributed the price rise to increase in overall costs. Mahanagar Gas has hiked PNG prices by Rs.2.50-3.50 a cu mtr in Mumbai, by Rs.2.62-3.54 in Mira- Bhayander, by Rs.2.57-3.53 in Thane, and by Rs.2.51-3.53 in Navi Mumbai. Mahanagar Gas, a joint venture between GAIL (India) Ltd and UK-based BG Group, supplies gas to over 500,000 households, 1,100 small commercial and industrial establishments, and more than 200,000 vehicles in Mumbai, Thane, Mira- Bhayander and Navi Mumbai. Its counterpart Indraprastha Gas Ltd, which supplies gas in the National Capital Region, has been raising prices of PNG and compressed natural gas more frequently. The city gas companies are facing cost pressures due to shortage of gas supply from Reliance Industries Ltd's D6 Block in Krishna-Godavari Basin, which is forcing them to buy costlier gas from other sources. Ansal Properties sells 730,000 sq ft in Sep for Rs.933 mn Ansal Properties & Infrastructure Ltd sold 730,000 sq ft of residential and commercial space in September generating revenue of Rs.933 mn. "Major chunk of the sales (were) booked in Golf Links-1, Mohali, and in Phase II of Sushant Golf City, Lucknow, across various asset classes," the release said. The company's average realisation rose marginally to Rs.1,280 per sq ft from Rs.1,245 in Aug. The company's total area sold in Jul-Sep was 2.64 mn sq ft, compared with 7.99 mn sq ft sold in Jul-Sep 2010. Ansal Properties also received Rs.700 mn as the final tranche of its private equity deal with Red Fort Capital. The company had entered a Rs.2-bn deal with Red Fort Capital for a residential project in Gurgaon. GE arm to invest $50 mn in Greenko's India wind energy projects GE Energy Financial Services will invest $50 mn in Greenko Wind Project Pvt Ltd's proposed 1,000 MW wind energy project across India. Greenko Wind Project is a subsidiary of the London-listed Greenko Group Plc, which will invest $65 mn in the project. Greenko Wind Project will set up wind projects in Maharashtra, Andhra Pradesh, Karnataka and Rajasthan. The first project of 65 MW is coming up in Ratnagiri, Maharashtra, and is due for completion in Dec. This farm will use 1.6 MW turbines made by GE at Pune. Power cuts, production halts on Telangana stir hit Andhra industry As the stir for a separate state of Telangana intensifies in Andhra Pradesh, industries in the state, already hit by production halts due to power cuts, are faced with bigger losses as raw materials become scarce. The state is currently is facing power cuts as five state-owned thermal plants and two units of NTPC Ltd are running at less than half their installed capacity due to coal shortage after workers at the Singareni Collieries stopped mining work in support of the Telangana agitation. This has resulted in a drop in coal production to 37,000 tn a day from 150,000 tn. As a result, power utilities have imposed a two-day power holiday on industrial use, and six-hour power cuts in rural, and four hours in urban areas to meet the demand-supply gap. Varun Ind seek shrholders' OK to continue loan guarantee Varun Industries Ltd has informed that the Board of Directors of the Company at its meeting held on Oct 03, 2011, have decided to seek the approvals of the members by two special resolutions for the following matters: 1. Consent and approval of the Company for inter-corporate loans and / or investments and / or guarantees and / or securities that can be given or made or furnished by the Board of Directors as per the provisions of Sections 292 and 372A of the Act, subject to an overall limit of 200% of the paid up share capital and free reserves or 200% of the free reserves of the Company, whichever is higher. 2. Consent and

Weekly Newsletter 18 Info-Spectrum Bridging the Information Gap in Corporate Landscape approval of the Company for continuation of the guarantee of Rs.12 crore furnished by the Company in favour of UCO Bank, as a security for the working capital facilities availed of from that bank by K. K. Enterprises, upto the date of the repayment of the principal loan amount, interest and other amounts, or five years w.e.f. Jul 09, 2011, whichever is earlier. The approval of the members for the aforesaid matters will be sought through Postal Ballot. Courts OK restructuring of Suzlon Energy subsidiaries Suzlon Energy Ltd has informed BSE that the Honourable High Court of Gujarat and Honourable High Court of judicature at Bombay have approved the Composite Scheme of Arrangement and Restructuring (De- merger And Amalgamation) ('Scheme') of the Company and its certain wholly owned subsidiaries and accordingly effective Oct 10, 2011: - Power Generation Division of Suzlon Towers And Structures Ltd. stands de-merged and transferred to Suzlon Engitech Ltd. - Project Execution Division of Suzlon Infrastructure Services Ltd. stands de-merged and transferred to Suzlon Gujarat Wind Park Ltd. - Suzlon Towers And Structures Ltd. stands amalgamated with the Company (after the above referred de-merger), and - Suzlon Infrastructure Services Ltd. stands amalgamated with the Company (after the above referred de-merger). All the above takes place from the appointed date i.e. Apr 01, 2010. Tata Power crosses 300 MW in wind power, will add 64.5 MW by Dec Tata Power Co Ltd said its domestic wind power generation capacity has crossed 300 MW, and will add 64.5 MW in Maharashtra by Dec. The company is also buying 20.95 MW operating wind assets from Niskalp Energy Ltd in Maharashtra. The company also plans to place orders for wind power projects aggregating 150 MW in Maharashtra and Rajasthan shortly. These projects are planned for commissioning in 2011-12 (Apr- Mar) and 2012-13. Tata Power generated 349 mn units from its operational wind farms during the previous financial year. While wind power generated in Gujarat, Tamil Nadu and Karnataka is sold to the respective state distribution companies, the Maharashtra farms sell the power to Tata Power's distribution business unit in Mumbai. Suzlon gets Bombay, Gujarat court OK to merge 2 arms with self Suzlon Energy Ltd said the high courts of Bombay and Gujarat have approved the company's restructuring scheme that includes merging two wholly owned subsidiaries--Suzlon Towers and Structures Ltd and Suzlon Infrastructure Services Ltd--with itself. However, the power generation division of Suzlon Towers will be demerged and transferred to another group company Suzlon Engitech Ltd, while the project execution division of Suzlon Infrastructure will be transferred to Suzlon Gujarat Wind Park Ltd. The effective date of the restructuring is Oct 10, 2011. Tata Projects inks MoU with Balfour Beatty arm for infra projects Tata Projects Ltd has signed a memorandum of understanding with Balfour Beatty India Pvt Ltd, the arm of British construction major Balfour Beatty Plc, to jointly work on infrastructure projects in India and Africa. Tata Projects is Tata group's infrastructure engineering, and construction business company. The company, along with Balfour Beatty India, will initially focus on power generation and transmission, railways, mining, and water and waste-water management projects in India and Sub-Saharan Africa. "Tata group looks forward to synergetic collaboration with Balfour Beatty in more diverse fields in the years to come," Prasad R. Menon, director, Tata Projects was quoted as saying in the release. Tanker spot freight rates continue to decline in Sep on oversupply Global crude oil tanker rates continued to remain under pressure in Sep across all sizes of vessels because of higher tonnage availability, the Organization of the Petroleum Exporting Countries said in its monthly oil market report for Oct. The decline in freight rates will possibly lead to losses for tanker operators as current levels are not enough to cover even operational costs and may even lead to idling of ships. According to OPEC, spot freight rates for very large crude carries declined by 5% in Sep from their Aug levels. BEML ropes in Netherlands co for foray into dredger manufacturing State-owned BEML Ltd has roped in Netherlands-based Vosta LMG for foray into manufacturing of dredgers and other vessels and marketing these in India and South East Asia. "Through this diversified business, BEML is expected to generate an additional volume of around Rs.220 crore (2.2 bn) business in the next two years," the release said. Under the memorandum of agreement signed between the two companies, Vosta LMG will transfer the technology and BEML will manufacture and market dredgers. BEML in currently engaged in manufacturing of equipment for sectors such as mining and construction, railways, defence and aerospace. The company said the foray into the dredging business is aimed at exploiting the opportunities arising from the government's maritime agenda that emphasises on navigable depths of waterways.

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

Power secy says ministers' panel cleared periodic tariff revision Power Secretary P. Uma Shankar said a Group of Ministers had accepted the power ministry's suggestions to allow utilities to undertake tariff revision periodically, rather than as a one-off exercise. Currently, while cost of coal is a pass-through and borne by consumer on an ongoing basis, distribution utilities are allowed to raise tariff only after five years or more, based on their expenditure. Even then, regulators are not able to permit tariff hikes when due because of political pressures. The ministerial panel, headed by Finance Minister Pranab Mukherjee, was set up by the government to suggest ways to augment domestic fuel availability for power projects and improve the financial conditions of the distribution utilities. The panel has also made concrete suggestions for fast track clearances for allocation of coal blocks to the private sector and simultaneous forest and environment clearances to expedite the availability of coal to the power sector, a release, quoting the power secretary said. Industry body Federation of Indian Chambers of Commerce and Industry issued the release. Earlier, speaking to the gathering at a conference on issues concerning the sector, Power Minister Sushilkumar Shinde said the government is pursuing a fivefold strategy to tone up the distribution segment. This includes improving governance standards and transparency across the power value chain, reducing losses, technology upgrades, tariff rationalisation and strategic investment. He emphasised the imperative need for a fundamental restructuring of distribution governance structures by making adequate investments to modernize and upgrade infrastructure, 100% metering, application of IT and other modern technologies for energy auditing and accounting. Moser Baer Clean Energy aims 1,500 MW solar power capacity by 2015 Moser Baer Clean Energy Ltd, a subsidiary of Moser Baer Projects Pvt Ltd, plans to have a total installed solar energy capacity of 1,500 MW in India by 2015 The company has set up a 30 MW solar farm in Banaskantha district in Gujarat, which will be inaugurated on Oct 13. "The 30 MW solar farm has been set up using 2,36,000 Thin Film modules with an approximate investment of Rs.465 crore (Rs.4.65 bn)," the company said in a release. "As solar power is clean, abundantly available and reduces carbon emission, the company is incessantly working towards commissioning of 300 MWs of solar projects in the next 12 months in India, Germany, Italy and UK," Ratul Puri, Chairman of Moser Baer Projects, said. "We shall have 100 MW operational capacity by the end of Oct, 2011 and plan to install more than 5 GWs by 2020," he added. ONGC Videsh in 3-yr co-op pact with PetroVietnam to boost invest ONGC Videsh Ltd, the subsidiary of Oil and Natural Gas Corp Ltd, set up for exploring and acquiring oil and gas assets abroad, has signed a pact with Vietnam's state-owned Oil and Gas Group (PetroVietnam) to develop cooperation between the two companies. The agreement will be in force for three years, a company release said. OVL, whose cooperation with PetroVietnam dates back to 1980s, is keen to enhance its investments in Vietnam offshore for exploration and production of oil and gas, it said. Some of the key areas in which both the companies will cooperate are related to the exchange of information on the petroleum industry and working visits of authorities and specialists in various domains of the sector. The two companies will also cooperate in new investments, expansion and operations of oil and gas exploration and production including refining, transportation and supply in Vietnam, India, and other countries, the release said. ONGC Videsh in pact for 25% share in Khazakh Satpayev oil block ONGC Videsh has signed an agreement with Kazakhstan's KazMunaiGas to acquire 25% stake in its Satpayev offshore exploration block in the Caspian Sea. "The potential oil resources jointly estimated for this block is 1.8 bn barrels. Oil is expected to flow by 2020," the statement said. The agreement was signed in Kazakhstan capital, Astana. Minister of State for Petroleum and Natural Gas R.P.N Singh is leading a delegation to the central Asian nation for the ninth meeting of the India-Kazakhstan inter-governmental commission on trade, economic, scientific, technological, industrial and cultural co-operation. ONGC Videsh and KazMunaiGas had agreed to the acquisition during Prime Minister Manmohan Singh's visit to Astana in April. The Satpayev exploration block is situated in a highly prospective region of North Caspian Sea. The block contains two prospective structures with 256 mn tn in estimated hydrocarbon resources. ONGC Videsh already has the approval of the Cabinet to invest $400 mn in the block. Jet Air, Vietnam Air ink MoU for commercial, technical cooperation Jet Airways India Ltd and Vietnam Airlines have inked a memorandum of understanding for strategic cooperation, which may lead to introduction of direct flights between the two countries by these airlines. The cooperation between India's largest airline and the Vietnamese national carrier will be in the areas of commercial operations, services, technical and training, the companies said. "Subject to the approval of respective governments, Jet Airways and Vietnam Airlines will jointly evaluate and implement services between India and Vietnam," it added.

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

Kingfisher Air to use up to $120 mn lying with lessors to cut debt Kingfisher Airlines Ltd plans to use part of the $200 mn lying with its lessors to repay part of its debt, Ravi Nedungadi, the chief financial officer of the airline company's parent, United Breweries Group, said. At the end of June, the company had a 60.07-bn-rupee debt on its books. "The money is lying idle with the lessors. It is kept as safety deposit for maintenance of plane and other such things," he said on the sidelines of a conference. He said the airline intended to talk to banks to issue letters of credit to the lessors after which the company expected to get at least 50%-60% of the $200 mn. Kingfisher has been making effort to cut its high debt. It has plans for a global depositary issue and a 20-bn-rupee rights issue. BHEL gets Rs.40.71-bn order from Singareni Collieries Bharat Heavy Electricals Ltd said it has got a Rs.40.71 bn order from Singareni Collieries Co Ltd. The order is for supply and installation of the main plant package for a power project in Andhra Pradesh that involves two thermal power units of 600 MW each, the company said in a release. Under the contract, BHEL will design, engineer, manufacture, supply, and commission steam turbines, generators and boilers among others. It will also be responsible for some associated civil work. Preqin says realty PE funds raise $11 bn Jul-Sep, dn 16% on qtr With fundraising conditions continuing to be challenging, real estate-focused private equity funds are feeling the heat of the global economic slowdown. According to a report by UK-based research firm Preqin, 17 realty PE funds raised $11 bn globally in Jul-Sep, a 16% sequential decline from $13.1 bn raised by 27 funds in the quarter ended Jun 30. The data on year-ago period was not available. ARSS Infrastructure gets Rs.368.2-mn order from Odisha govt ARSS Infrastructure Projects Ltd has received an order worth Rs.368.2 mn from the Odisha government for various development works under the Integrated Anadpur Barrage project, the company said in a notice to the exchange. Four promoters revoke pledge on 40 mn Parsvnath Developers shrs Four promoters of Parsvnath Developers Ltd, Nutan Jain, Pradeep Kumar Jain & Sons (HUF), Parasnath and Associates Pvt Ltd, and Pradeep Kumar Jain, have revoked their pledge on 40 mn shares during Sep 27-30. Source says Punj Lloyd got $126.8 mn fuel pipe, terminal order Punj Lloyd Ltd has got a $126.86-mn order from Emirates National Oil Co to build a jet fuel pipeline and a bulk terminal, an official familiar with the development told. "The order has to be executed over 18-19 months, and involves building a 60-km-long jet fuel pipeline and 141,000 cu mtr terminal," the source said. Suzlon wins repeat order from Sri Lankan co for 21 MW wind project Suzlon Energy Ltd has won a repeat order from Sri Lanka's Senok Group to supply wind turbines for a 21 MW project likely to be completed by May. Suzlon did not disclose the deal size, but according to an industry thumb rule the contract value for every megawatt of wind turbine is Rs.60 mn. Under the contract, Suzlon will supply 10 units of S88 turbines of 2.1 MW wind turbine generators each, aggregating to 21 MW capacity. Suzlon has already supplied turbines for a 10 MW wind project of Senok Group in the Puttalam district of Sri Lanka. NTPC inks pact with Birla Institute of Management and Technology NTPC Ltd has signed a Memorandum of Understanding with the Birla Institute of Management and Technology to explore possibilities in capacity building, institution development and training and to strengthen ties between industry and management education. The scope of the pact includes research and consultancy projects, case studies and continuing education, according to a press release issued by the state owned power major. Vikas WSP says new oil-exploring technology may hit guar gum export Export demand for guar gum is likely to be hit severely in the coming months as high gum prices is leading players in the Europe and US to shift to alternative technology for oil and gas exploration, said B.D. Agarwal, chairman and managing director, Vikas WSP Ltd. Rising prices of guar gum has started becoming a problem as it has increased the cost of production for the oil and gas exploration industry, Agarwal added. The Bombay Stock Exchange-listed Vikas WSP is one of the largest guar gum producers and exporters in the country, accounting for nearly 22% of the total gum exports.

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

Merrill Lynch ups stake in Arshiya International to 5.10% vs 4.93% Merrill Lynch Capital Markets has raised its stake in Arshiya International Ltd to 5.10% from 4.93%. Merrill Lynch bought 100,000 shares of Arshiya from the open market. The investment banker now holds nearly 3 mn shares of the company. KS Oils says not in pact to sell ops so far With reference to news item appearing in leading financial daily titled "US Co may Buy KS Oils' Plants", K S Oils Ltd has clarified to BSE that the Company has not entered into any agreement with any party for sale of its business so far. The Company is not aware of the sources from where the news published. Suzlon arm REpower wins order for 23 wind turbines from French co REpower Systems SE, a subsidiary of Suzlon Energy Ltd, has received a contract to supply 23 wind turbines for two wind farms in France. The contract was awarded by La Compagnie du Vent, part of the GDF SUEZ Group, which is setting up the two farms in the Burgundy region with a combined generation capacity of 47MW, a Suzlon release said. Construction for the project will start during summer 2012 and the commissioning is planned for Dec 2012. OPEC sees 2011 world oil demand 87.81 mn bpd vs 87.99 mn earlier The Organization of the Petroleum Exporting Countries has revised downwards the global crude oil demand forecast for 2011 to 87.81 mn barrels per day from its previous estimate of 87.99 mn bpd in September and up 0.88 mn bpd from 2010. Govt to appoint panel to allay fears over Kudankulam nuclear plant The Central government said it would appoint a panel of experts to interact with protestors and the public in Tamil Nadu to allay their fears over the safety of the Kudankulam nuclear power project. Unity Infraprojects gets four orders totalling Rs.4 bn Unity Infraprojects Ltd has received four orders aggregating to Rs.4 bn. The orders include a Rs.1.35 bn contract from Rail Vikas Nigam Ltd for construction of roadbeds, bridges, tunnels, and electrical works on the 15.9-km long Goelkera-Posoita route in Jharkhand. The work is scheduled to be completed in two years. ONGC sees marginal field output up nearly 14% at 28 mn tn by FY14 Oil & Natural Gas Corp Ltd plans to gradually start production at its 34 marginal fields, ONGC Chairman Sudhir Vasudeva said. Suzlon Energy to get $187 mn Hansen stake sale proceeds by Oct 11 ZF International BV said it will pay all shareholders of Hansen Transmissions NV, in which Suzlon Energy's subsidiary AE-Rotor Holding BV has a 26.06% stake, for acquiring their stake by Oct 11. Maharashtra utility bars Tata Power arm, 1 more for supply default Maharashtra State Electricity Distribution Co Ltd, also known as Mahavitaran, has issued a fresh tender for purchasing 500 MW power for Oct 10-31 period, as Tata Power's arm Tata Power Trading Co Ltd and Global Energy Pvt Ltd have defaulted on supply. ABG Shipyard pledges 97.3% of its holding in Western India Shipyard ABG Shipyard Ltd has pledged almost its entire holding in Western India Shipyard Ltd as security to the lenders of the latter, Dhananjay Datar, chief financial officer of ABG told. Kingfisher Airlines starts three flights from S India to Colombo Kingfisher Airlines has launched three new flights from Tiruchirapalli, Kochi and Thiruvanathapuram to Colombo, the company informed in a release. Promoter Essar Ship cuts stake in Essar Ports to 75.4% from 83.05% Essar Ports Ltd said one of its promoters Essar Shipping & Logistics Ltd has reduced its stake in the company to 75.4% from 83.05%. McNally Bharat Engineering gets 3 orders worth Rs.1.97 bn McNally Bharat Engineering Co Ltd has received three orders worth a total of Rs.1.97 bn, the company said in a notice to the stock exchanges.

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

Triveni Engineering gets 87,860 carbon credits from UN body Triveni Engineering and Industries Ltd has received 87,860 certified emission reductions, or carbon credits, for its 22 MW power project at Deoband in Uttar Pradesh, the United Nations Framework Convention on Climate Change said in a release. Head says Lloyd Electric to up air conditioner price 10-20% in Dec Lloyd Electric & Engineering Ltd is set to hike prices of its air conditioners by 10-20% in Dec owing to spiralling price of copper and weakening of the rupee vis-a-vis the dollar, President Nipun Singhal told. Sobha Developers says confident to meet Rs.15 bn sales aim FY12 Despite the slump in the real estate sector, Sobha Developers Ltd is confident of meeting its sales guidance of Rs.15 bn for the current financial year to Mar on the back of higher realisation, the company said in a filing to the Bombay Stock Exchange. Dealers say cos up retail, institutional price of cement in Gujarat Cement makers have increased prices of the commodity by Rs.10 per 50 kg in the institutional segment, and Rs.5 in the retail segment in Gujarat, local stockists and dealers told. BHEL defers plan to set up non-banking finance company Power equipment maker Bharat Heavy Electricals Ltd has deferred plans to set up a non-banking finance company to fund power projects, according to a report in Mint newspaper. Govt, private players to jointly explore foreign port acquisitions Indian Ports Global, the proposed special purpose vehicle for foreign port acquisitions, is likely to be set up as a private company. Major ports could hold up to 50% equity in the company, with financial institutions and other investors holding the rest. PFC plans to raise Rs.168 bn through securities State-owned Power Finance Corp plans to raise around Rs.168 bn in the coming months through issue of securities, including tax-free bonds. The company has also received regulatory approval for $1 bn medium term note programme. HPCL likely to acquire oil and gas block in Africa State-owned Hindustan Petroleum Corp Ltd is likely to acquire an oil and gas block in Africa through its subsidiary, Prize Petroleum. Prize Petroleum was set up in 1998 as a joint venture. HPCL is in talks with a local player for a discovered asset. NHAI plans to raise Rs.100 bn via public issue National Highways Authority of India plans to raise tax-free infrastructure bonds worth Rs.100 bn through public issue by middle of Nov. This is part of NHAI's financial plan to raise Rs.630 bn in the next 20 years. Oil minister says cos' fincl health hit by subsidised sale of fuel State-owned oil marketing companies' burgeoning revenue loss because of subsidised sale of fuels is affecting their financial health as well as expansion and modernisation plans, union oil minister Jaipal Reddy said here. Shipping Corp seeks Indonesia JV as country tightens cabotage laws Shipping Corp of India Ltd is seeking to form a joint venture with an Indonesian company to safeguard its dry bulk operations in that country amid growing protectionism there, Chairman and Managing Director S. Hajara told. IOC likely to set up business in more than 15 African nations State-owned Indian Oil Corp plans to set up businesses in over 15 hydrocarbon-rich African nations. IOC is likely to take stakes in various oil and gas blocks and buy equity in local energy companies. It is also looking to build refineries and city gas distribution networks and operating pipelines. Sudhir Vasudeva appointed Mangalore Refinery chairman Mangalore Refinery and Petrochemicals Ltd has informed BSE that ONGC has nominated Shri Sudhir Vasudeva, CMD ONGC and Director MRPL as Chairman on the Board of Mangalore Refinery and Petrochemicals Ltd. with immediate effect in place of Shri A. K. Hazarika.

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

Shipping Corp says no concern on financial health; capex curtailed The Shipping Corp of India Ltd said there is no reason to be concerned about its financial health, as suggested by some recent media reports, but added it has deliberately decided to go slow on its vessel acquisition plan because of a severe downturn in the industry. Sikozy Realtors board OKs issue of 5 mn shrs, warrants Sikozy Realtors Ltd has informed BSE that the Board of Directors of the Company at its meeting held on Oct 10, 2011, has agreed to raise the funds for the Company by issue to the extent of 50,00,000 Equity Shares and/or Convertible Warrants. INTERVIEW: BG India says even two KG-D6 not enough for local demand The growing demand of natural gas in the country has opened the floodgates of investments in developing the market for the cleaner fuel. India Sep cement despatches rise 0.2% on yr, output up 0.4% on yr Indian cement companies' cumulative despatches rose marginally by 0.2% to 12.71 mn tn in Sep from the same period last year, according to the Cement Manufacturers' Association. Source says Punj Lloyd got $126.8 mn fuel pipe, terminal order Punj Lloyd Ltd has got a $126.86-mn order from Emirates National Oil Co to build a jet fuel pipeline and a bulk terminal, an official familiar with the development told. Power Grid eyes transmission JVs in Bangladesh, Sri Lanka Power Grid Corp of India Ltd plans to enter power transmission business in Bangladesh and Sri Lanka by setting up joint ventures with local partners. The company has proposed to the government its plan to set up companies in Bangladesh and Sri Lanka for power evacuation within their local markets. Govt planning Rs.80 bn invest in highways in northeast states The Ministry of Road Transport and Highways is working on a plan to help turn around the financial health if India's northeastern states by restoring, widening or building 1,500 km of highways. The total investments in the plan are likely to be around Rs.80 bn. Promoter Ideal Toll sold 2.75% stake in IRB Infra Oct 11 IRB Infrastructure Developers Ltd said its promoter Ideal Toll & Infrastructure Pvt Ltd has sold 2.75% stake in the company. Ideal Toll & Infrastructure sold the shares in the open market on Oct 11 for 1.5 bln rupees, IRB Infrastructure said in a statement to the exchanges. The promoter entity now holds 4.96% in IRB Infrastructure. SpiceJet allots 35.9 mln shrs to promoter Maran at 36.48 rupee/shr SpiceJet Ltd has allotted 35.9 mln shares to promoter Kalanithi Maran at 36.48 rupees a share of face value 10 rupees, the company informed the Bombay Stock Exchange. Oil ministry allots 60% of 7.23 mscmd gas from ONGC to power cos The government has allocated to power and fertiliser companies 7.23 mscmd gas from various fields of Oil and Natural Gas Corp Ltd, an oil ministry official told NewsWire18 today. This will bring relief to power companies hit by the fall in gas production at Reliance Industries Ltd's D6 block in the Krishna-Godavari basin. Suzlon Energy receives Rs.8.9 bn for 26.06% Hansen stake sale Suzlon Energy Ltd has received Rs.8.9 bn for selling its entire 26.06% stake in Belgium's Hansen Transmissions International NV to ZF International BV in an open offer. Jet Airways' Saroj Datta completes service tenure with airline Jet Airways Ltd said its executive director and board member Saroj Datta completed his service tenure with the airline on Sep 30. INTERVIEW: Godrej Prop beats competition with brand, business model At a time when large real estate developers are looking to exit projects and sell land to cut mounting debts and rising interest costs, Godrej Properties Ltd is betting big on its joint venture business model and brand name to drive growth.

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

Ashok Piramal Group pledges 600,000 Peninsula Land shares Sep 29 Ashok Piramal Group Real Estate Trust pledged 600,000 shares of Peninsula Land Ltd with its lenders on Sep 29, taking the percentage of shares pledged by the promoter entity to 27.94% of its holding. Ideal Toll revokes pledge on 4.1 mn IRB Infrastructure shrs Oct 11 IRB Infrastructure Developers Ltd said promoter Ideal Toll & Infrastructure Pvt Ltd has revoked pledge on 4.15 mn shares of on Oct 11, the former said in a notice to the stock exchanges. LARSEN & TOUBRO: • Is in talks with Japanese companies to sell stake in its information technology arm L&T Infotech. • Chief Financial Officer R. Shankar Raman says slowdown in investment and order book growth is a worry. • Will infuse up to Rs.5 bn into arm L&T General Insurance Co over the next three to four years. KINGFISHER AIRLINES: • Plans to use some of the $200 mn lying with its lessors to repay part of its Rs.60.07 bn debt. • The company has delayed payment of salaries to employees for the second month in Oct. • Oil companies have halted fuel supply to the company at the New Delhi airport. GODREJ PROPERTIES: • Is looking to enter project development joint ventures with small realtors. • Chairman and Managing Director Adi Godrej said property prices would not come down due to high costs. • Plans to add 5 mln sq ft projects by March. Sees current realty demand a "bit sluggish", bullish in 2012. SHIPPING CORP OF INDIA: • Has cancelled plans to buy three container ships from Cochin Shipyard to deal with downturn in shipping industry. • Has said it would delay its expansion and diversification plans because of slowdown in the global shipping industry. OIL AND NATURAL GAS CORP: • Arm ONGC Videsh has signed a pact with KazMunaiGas to buy 25% stake in its Satpayev offshore exploration block in Kazakhstan. • The government has allocated 7.23 mmscmd gas to power and fertiliser companies from various oil fields of the company. NTPC: Fresh coal supplies from eastern and northern regions have boosted the performance of the company's Ramagundam super thermal power station, which is utilising 2,150 MW of the installed capacity of 2,400 MW. RELIANCE INDUSTRIES: The Securities and Exchange Board of India's consent order on the insider trading case could be delayed. The company could face a fine of Rs.15 bn in the case. SIKOZY REALTORS: Board has approved raising funds through issue of 5 mn shares or convertible warrants. SUZLON ENERGY: The high courts of Bombay and Gujarat have approved its restructuring scheme that includes merging two subsidiaries with the company. TATA POWER CO: Its domestic wind power generation capacity crossed 300 MW, and the company will add 64.5 MW capacity in Maharashtra by Dec. ASHOKA BUILDCON: Is close to striking a deal with a strategic investor to raise up to $150 mn in its newly formed road development projects subsidiary. DB REALTY: An expert appraisal committee will recommend the state environment department reject the company's residential project in south Mumbai. AEGIS LOGISTICS: Has opened a new centre in Chhindwada in Madhya Pradesh as part of its strategy to expand into smaller towns.

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

DLF: Has appealed to the Competition Appellate Tribunal, challenging the recent Rs.6.3 bn penalty by India's competition watchdog. ELECON ENGINEERING: Has bagged a Rs.330 mn order for supply of wagon tippler sets to BHARAT HEAVY ELECTRICALS. GUJARAT STATE PETRONET: Plans investment of Rs.30 bn on expanding the gas pipeline network in Gujarat over five years. HINDUSTAN PETROLEUM CORP: May acquire an oil and gas block in Africa through subsidiary Prize Petroleum. MAN INDUSTRIES INDIA: SEBI has fined the company and promoters Rs.105.7 mn on alleged charges of insider trading. POWER FINANCE CORP: Plans to raise nearly Rs.168 bn in coming months through issue of securities, including tax-free bonds. SOBHA DEVELOPERS: Targets Rs.15-bn sale in 2011-12 (Apr-Mar), with launches of 13-mn-sq-feet development. CMC: Jul-Sep consolidated net profit fell 6.5% on quarter to Rs.326.26 mn, while consolidated net sales grew 17% sequentially to Rs.3.57 bn. INDIAN OIL CORP: To increase research and development expenditure by 40% from current levels to Rs.3.5 bn in the next three-four years. KARUTURI GLOBAL: Is looking to outsource 20,000 ha farm land in Ethiopia to Indian agriculture companies on a revenue-sharing basis. LANCO INFRATECH: Promoter Lanco Group pledged 77.4 mn shares in the company between Oct 3 and Oct 5. UNITECH: Has offered to buy partner Telenor's 67.25% stake in their mobile joint venture for Rs.2.69 bn. UNITY INFRAPROJECTS: Has won orders worth Rs.4 bn for various construction projects in the country. JET AIRWAYS (INDIA): Has signed a pact with Vietnam Airlines for flights between India and Vietnam. BHARAT HEAVY ELECTRICALS: Will develop power projects in Uganda and Nigeria as part of India's plans to broaden economic engagement with African countries. HINDUSTAN PETROLEUM CORP: Has agreed to resume supply of aviation turbine fuel to KINGFISHER AIRLINES after negotiations late on Thursday. IRB INFRASTRUCTURE DEVELOPERS: Promoter Ideal Toll & Infrastructure has sold shares representing 2.75% stake in the company in the open market. JET AIRWAYS: Executive Director and Board Member Saroj Datta has stepped down on completion of his tenure. KRISHNA VENTURES: Board has approved merger of Rudra Mahima Business Venture with the company. NITESH ESTATES: Plans to launch projects of 4 mln sq ft by February with outlay of 8 bln rupees. OIL INDIA: Plans to name eight advisers for acquisition of crude oil assets in African nations. RELIANCE INFRASTRUCTURE: Is in talks to acquire highway road projects worth 20 bln rupees in Tamil Nadu and Karnataka. ULTRATECH CEMENT: Will merge the cement business of CENTURY TEXTILES AND INDUSTRIES with itself after the latter's owner Kumar Managlam Birla gave his nod.

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

IT & ITeS INFORMATION TECHNOLOGY: • Govt to mull sops for IT cos after Direct Tax Code is in place. • Minister says aiming $300 bn turnover for IT sector by 2020. • Sibal unveils new IT policy, sees $300-bn revenues by 2020. • Government's drafts policy to attract investment in the sector to small cities, impetus to software exports. • Oracle launches Oracle Public Cloud and Oracle Social Network—an internal social network for enterprises. • Infosys Jul-Sep net tops street view at $411 mn, up 9.9% on yr. • Infosys ups FY12 rupee EPS view, marginally cuts dlr sales growth. • Hope for Satyam founder Raju as five accused get bail. • IBM has asked 600-1,000 contract employees to leave since Aug, apparently due to global economic uncertainty and project completions. • Head says HCL Info hiked product prices Jul-Sep as rupee weak. • Zenith Infotech says co defaulted on $33 mn FCCB payment. • Facing uncertainty, IBM India sacks 1,000 contract employees. Salary hikes, foreign exchange loss hit CMC Jul-Sep consol profit Salary hikes and foreign exchange losses due to the sharp fall in the rupee against the dollar resulted in Tata group-owned CMC Ltd posting a near 6.5% sequential fall in its Jul-Sep net profit. For the quarter ended Sep, CMC posted consolidated net profit of Rs.326.26 mn as against Rs.348.83 mn in Apr-Jun. Consolidated net sales grew 17% sequentially to Rs.3.57 bn. On a year-on-year basis, the net profit was down 25.2% while net sales were up 31.6%. The information technology company's staff cost rose 13% on quarter to Rs.1.08 bn in Jul-Sep as it gave a salary hike of 9% to offshore employees and 2% to onshore staff. CMC added 700 employees during the quarter. The Tata Consultancy Services Ltd arm incurred a foreign exchange loss of Rs.36 mn in Jul-Sep due to the around 10% depreciation in the rupee. Rupee touched an over two year low of 49.89 rupees per dollar on Sep 23. "Nobody predicted this kind of volatility (in rupee) which was seen in Sep. We took most of the covers at around 46 (rupees against dollar), and we ended...the quarter with about 48.9 (rupees) so there is almost 3 rupees loss on mark to market," Chief Financial Officer J.K. Gupta said. Salary hikes and foreign exchange losses also hit the company's operating margin during the quarter, which declined to 14.74% from 16.45% in Apr-Jun. CMC hopes to maintain operating profit margin at 16-18% in 2011-12 (Apr-Mar). Gupta said the company is adequately hedged for the current financial year and does not see margins declining further due to rupee-dollar movement. "We are hedged to the extent of 75% for the remaining part of the year," he said. CMC's revenue from the domestic market grew 14% sequentially, while that from overseas operations was up 17%. The company continued to maintain 19% on quarter growth in revenues from the US market. The company added 23 new clients during the quarter and is actively pursuing more clients in emerging markets such as West Asia, Africa, and the South Asian Association of Regional Cooperation region. Valuation play favours Infosys but TCS remains 'must buy' Infosys Ltd may have lost its position of the sector bellwether to Tata Consultancy Services Ltd three quarters ago as its earnings consistently disappointed, but relatively cheaper valuations have now prompted analysts to recommend buying the stock even as earnings still need to catch up. Infosys currently trades at around 17 times its 2011-12 (Apr-Mar) earnings as per consensus estimates, while TCS trades at around 20 times. Prabhudas Lilladher recommends investors switch to Infosys from TCS due to the former's lower exposure to Europe. Nomura Financial Advisory & Securities (India) shares the view on three counts: "1) We expect Infosys to outperform TCS on operational results this (Jul-Sep) quarter; 2) we see higher risks at TCS on high BFSI (banking, financial services, insurance) /Europe/client concentration exposure; and 3) we are more comfortable with the valuations at Infosys." Both brokerages have reiterated their "buy" ratings on Infosys' stock. TCS' valuation premium to Infosys is justified, analysts said, but some believe there is room for the differential to narrow a bit. Having said that, there are still some loyalists who maintain TCS as their top pick in the sector even as some brokerages raised their 2011-12 earnings per share estimates for Infosys in line with its revised guidance today.

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

Kale Consultants to offer interline billing software package Kale Consultants Ltd today said it would provide a simplified interline settlement compliance package along with its existing billing software products such as REVERA and FINESSE MBS. Simplified interline settlement is trade body International Air Transport Association's initiative for migrating airline industry to electronic billing from paper invoices. "IATA estimates that over 200 tn of invoices and supporting documents are being shipped between airlines around the world each year to support the airlines' interline billing and settlement process," Kale Consultants said in a release. The Mumbai-based company, which specialises in software solutions for the airline and travel industry, is the key technology supplier for this initiative. Kale Consultants said it will offer the simplified interline settlement compliance package as a hosted as well as an outsourced solution. In Sep, the company had received an order from South American airline LAN for its REVERA product. Firstsource Solutions cancels repurchase of conv bonds With reference to the earlier announcement dated Oct 05, 2011, regarding the repurchase of Zero Coupon Convertible Bonds due 2012 ("Bonds"), Firstsource Solutions Ltd has now informed BSE that bonds aggregating USD 21.0 mn have now been cancelled. Firstsource Solutions Ltd (the "Company) had issued Bonds aggregating to USD 275.0 mn face value. With this cancellation the Company has, in all, repurchased and cancelled Bonds of the face value of USD 83.6 mn. Technology loses its Jobs, Apple its 'i' and people their torch There are few people in the world you would have never met, but their demise leaves a hollow inside. The death of Steve Jobs, the co-founder of Apple Computers Inc and more importantly the man behind iMac, iPod, iPhone, iPad and many revolutionary innovations, did just that to millions of admirers. Crest Animation says co sale report speculative With reference to the news item appearing in a leading financial daily titled "MNC Buyout Buzz Lifts Crest Animation 30% in 2 Days", Crest Animation Studios Ltd has clarified to BSE that the above mentioned article is speculative in nature and the Company and its officials do not wish to comment on such matters. Polaris Software to mull amalgamation of arms Oct 22 Polaris Software Lab Ltd has informed that a meeting of the Board of Directors of the Company will be held on Oct 22, 2011, inter alia, to consider the followings: 1. To consider, approve and take on record the audited financial results of the Company for the 2nd quarter ended Sep 30, 2011 and 2. To consider a draft Scheme of Amalgamation of subsidiary(ies). Govt to mull sops for IT cos after Direct Tax Code is in place The government may next year offer some fiscal sops to information technology firms, whose 10-year tax incentives under the Software Technology Parks of India scheme ended in Mar. Prism Informatics gets software order from Gujarat co Prism Informatics Ltd has received an order from a Gujarat-based elevator manufacturing company to deliver software solutions, the company said in a notice to the exchanges. Infosys ups FY12 rupee EPS view, marginally cuts dlr sales growth Infosys Ltd surprised the Street today with its lower-than-anticipated cut in 2011-12 (Apr-Mar) dollar- denominated revenue guidance, and higher estimated earnings per share in rupee terms. Head says HCL Info hiked product prices Jul-Sep as rupee weak Hit by the weakening of rupee against the dollar, Noida-based information technology company HCL Infosystems Ltd raised prices of most products in Jul-Sep, Chief Executive Officer Harsh Chitale said. SATYAM: The Supreme Court granted bail to five of the 10 accused in the over Rs.70 bn Satyam scam Oct 12. TECH MAHINDRA: Private equity players Carlyle Group and Advent International are looking to buy BT's 23.2% stake in the company. ZENITH INFOTECH: Defaulted on redemption of $33 mn foreign currency convertible bonds due on Sep 21; in talks with bondholders to extend repayment.

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

PHARMA & HEALTHCARE PHARMACEUTICALS & HEALTHCARE: • Unichem Lab gets US FDA for lamotrigine tablets. • Pharma cos favour multi-brand retail formula for FDI. • PM to discuss pharma FDI with key ministries. • A new regulation will make it mandatory for drug makers to sell single-drug formulations only under their generic names. • Companies say foreign direct investment in the sector should emulate policy approach of proposed multi-brand retail foreign direct investment. • Prime Minister Manmohan Singh may hold a meeting to review foreign direct investment in pharmaceuticals sector. • Aurobindo Pharma gets US FDA final OK to market Gabapentin tablets. • Panel moots cheap drugs undertaking from pharma cos. • Special CCI regime for pharma M&As may need change in act. • Clear all dues to bondholders by Aug, court tells Wockhardt. • South African chain to buy 26% in Max Healthcare. • Parkway set to buy Sterling Hospitals. • Hospital beds crunch ails India. • Japan-based Nipro Corp is setting up a manufacturing facility for making medical equipment in India for Rs.6.5 bn. • DB Hospitality plans to raise over Rs.10 bn by selling stake in the company, or through the sale of its properties, by the end of this financial year. • Ranbaxy Labs arm recalls all unused stocks of three drugs from UK. • DB Hospitality to raise Rs.10 bn via stake sale. • Lupin rolls out generic version of diabetes drug. CBI raids Apollo Hospitals dy MD Reddy, co denies link with Aircel The officials of Central Bureau of Investigation raided the Chennai residence and offices of Suneeta Reddy, deputy managing director, Apollo Hospitals Enterprise Ltd in connection with the Aircel-Maxis deal. Reddy, who is also the chairman of Aircel Ltd, and her husband, P. Dwarakanath Reddy had purchased a stake in the telecom company through Sindya Securities and Investments Pvt Ltd. The raids in the city were part of the search operations carried out by the agency in Chennai on top officials of Sun TV Network Ltd and Dayanidhi Maran, former telecom minister, in connection with the Aircel-Maxis deal. In 2004-07, during his tenure as telecom minister, Maran is alleged to have shown "undue favour" to Maxis Communication, which led to the latter buying Aircel from its founder C. Sivasankaran for $800 mln. Sivasankaran, in his statement to the CBI, had alleged that it was Maran, who forced him to sell out his stake to Maxis, the Malaysian-based telecom major. However, sources close to the development said, today a CBI team had met Reddy at her Chennai-based residence to collect some documents related to Aircel-Maxis deal. Reacting to the news of the raid, Apollo Hospital said in a statement that neither the group companies nor Chairman Prathap C. Reddy had any investment in mobile telecom services company Aircel. "...this is to unequivocally state that Apollo Hospitals or its Chairman have nothing to do with Aircel," the release said. The company maintained that there was a misconstrued belief that Apollo Hospitals was an investor or a participant in the Aircel equity. "...the investments made in Aircel were made by Deccan Digital in which the only investors are Suneeta Reddy, P. Dwarakanath Reddy (daughter and son-in-law of Prathap C. Reddy) and the Maxis Group," the company said. Sindya Securities and Investments Pvt Ltd., a company founded by Suneeta Reddy and her husband P. Dwarakanath Reddy in their personal capacity also holds a stake in Aircel, the release said. Govt puts FDI in existing pharma units under approval route The government put foreign direct investments in existing pharmaceutical companies under the approval route to ensure a balance between public health concerns and attracting investments in the sector. In a statement, the government said, "In case of brown-field investments in the pharma sector, FDI will be allowed through the FIPB approval route for a period of up to six months." During this period, necessary enabling regulations will be put in place by the Competition Commission of India for effective oversight on

Weekly Newsletter 29 Info-Spectrum Bridging the Information Gap in Corporate Landscape mergers and acquisitions. Currently, 100% foreign direct investment is allowed in both green-field investments and in existing Indian pharma companies through the automatic route. The government has allowed continuation of green-field investments through the automatic route for facilitating addition of manufacturing capacities, technology acquisition and development in the sector. The meeting to discuss the changes in FDI policy for the pharmaceutical sector was chaired by Prime Minister Manmohan Singh. Jubilant Life Sciences starts ops at mfg facility in Gujarat SEZ Jubilant Life Sciences Ltd said it has begun commercial production at its manufacturing facility in a special economic zone in Gujarat. The company has already commenced production of Niacinamide and 3- Cyanopyridine at the facility that has an annual capacity of 10,000 tn. Niacinamide, a form of Vitamin B3, is used to make multi-vitamins, enrich foods and for anti-cholesterol and anti-diabetes drugs. It is also used to make animal nutrition products. 3-Cyanopyridine is an intermediate for the manufacture of Niacinamide. It is also used in the manufacture of various life science intermediates used for pharmaceuticals and agrochemicals. "This (new unit) would strengthen our position in the global Vitamin B3 market and will enable us to provide consistent supplies to our customers globally by leveraging our vertical integration strength." Chief Executive Officer - Advance Intermediates & Nutritional Products, Pramod Yadav said. Max Healthcare to sell 26% stake to S Africa co for 5.16 bln rupees Max Healthcare Institute Ltd has entered into a non-binding agreement with South Africa's Life Healthcare Group (Proprietary) Ltd for selling a 26% stake for Rs.5.16 bn. Max India holds 91% stake in Max Healthcare Institute, which is a healthcare service provider operating eight hospitals in Delhi and National Capital Region. Max India said in a notice to stock exchanges that its board today gave an in-principle approval to Max Healthcare Institute Ltd to go ahead with the transaction. "The aforesaid transaction is subject to completion of due diligence and necessary regulatory approvals to the investor (Life Healthcare Group) at South Africa," the notice said. Life Healthcare Group too is a leading healthcare service provider in South Africa and has a network of 63 hospitals with over 8,000 beds with a 27% market share in healthcare industry in South Africa, the notice said. Max Healthcare Institute plans to extend its footprint by opening a super speciality hospital in Dehradun and two public private partnership projects in Punjab. Lupin gets US OK to mkt hypertension drug irbesartan in 3 strengths Lupin Ltd has got a tentative approval from the US Food and Drug Administration to market the generic version of the hypertension drug irbesartan in strengths of 75 mg, 150 mg, and 300 mg, the US drug regulator said on its website. Among other companies that have the approval to market the drug are Cipla Ltd, Teva Pharmaceutical Industries Ltd, Sandoz, Zydus Pharmaceuticals, Alembic Ltd, and Mylan Pharmaceuticals. Sanofi Aventis developed the drug and jointly markets it with Bristol-Myers Squibb under the trade names Aprovel, Karvea, and Avapro. Patent on the drug expires in Mar 2012. Transgene Biotek starts production of Omega-3 fatty acid DHA Transgene Biotek Ltd said it has started commercial production of DHA, an Omega-3 fatty acid, used in health foods and supplements. This is the company's foray into manufacturing the recently developed molecule Docosahexaenoic Acid which it will manufacture at a third-party plant. The release said Transgene aims to raise the production to its optimum capacity but did not disclose any further details of the third-party plant. Global Organisation for EPA and DHA, an association of manufacturers and marketers, has valued the Omega-3 market at $18.6 bn. The Andhra Pradesh-based company said it also plans to expand manufacturing capacity of its own plant in Hyderabad by the end of current financial year. Strides Arcolab arm gets US FDA OK for cladribine injection Strides Arcolab Ltd's arm Onco Therapies Ltd has received the US Food and Drug Administration approval for oncology injection cladribine. "The product is expected to be launched shortly," Strides Arcolab said in a release today. Cladribine is used to treat hairy cell leukemia, a type of blood cancer. The FDA approval is for cladribine injection in 1mg/ml strength. Pfizer will manage sales of the drug in the US on behalf of the Indian drug company. Aurobindo Pharma gets US FDA final OK to market Gabapentin tablets Aurobindo Pharma Ltd has received the US Food and Drug Administration's final approval to manufacture and market gabapentin tablets in 600 mg and 800 mg dosages. Gabapentin, which is used to treat nervous system disorders, is a generic version of Pfizer Pharmaceuticals' Neurontin, with annual sales in US estimated at $220 mn as of Jun. Aurobindo Pharma said it would launch gabapentin tablets in the US shortly. The Hyderabad-based pharmaceutical company currently has US FDA approval for 139 abbreviated new drug applications.

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

Lupin launches authorised generic of Femcon Fe tablets in US Lupin Ltd launched the authorised generic version of contraceptive Femcon Fe tablets in the US. In Oct last year, the company reached a settlement with Warner Chilcott Plc regarding its patents on two oral contraceptive products--Femcon Fe and Loestrin 24 Fe. As per the agreement, Lupin got a non-exclusive license to market the authorised generic version of Femcon Fe supplied by Warner Chilcott 180 days after Teva Pharmaceutical Industries Ltd launched its generic version of the product. Teva, which had a first-to-file status on the product and hence got a 180- day marketing exclusivity, launched generic Femcon Fe tablets in March. US-based Akorn to buy part of Kilitch Drugs ops for Rs.2 bn Kilitch Drugs (India) Ltd will sell two Himachal Pradesh-based units, and a part of its Navi Mumbai unit to Akorn Inc for nearly Rs.2 bn. Transgene Biotek starts commercial production of DHA Transgene Biotek Ltd has informed BSE regarding "Transgene Biotek commences commercial production of DHA". Country Condos OKs raising funds via GDR, QIP issue Country Condos Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 05, 2011, inter alia, has approved to raise funds by issue Global Depository Receipts, issue of Equity Shares under Qualified Institutional Placement mechanism. Orchid Chemicals promoters bought 511,124 shares of co Oct 5 Six promoter group entities of Orchid Chemicals & Pharmaceuticals Ltd together bought 511,124 shares of the company through open market operations on Oct 5. With this transaction, stake of these six entities has risen to 7.82% from 7.09%, it said. Overall promoter stake in the company was 30.53% as on Jun 30. Ranbaxy Labs arm recalls all unused stocks of three drugs from UK Ranbaxy Laboratories Ltd's UK arm has recalled all unused stocks of three different drugs--Aciclovir 200 mg tablets, Fluconazole 150 mg capsules and Tramadol 150mg PR tablets--from the country, a statement by Medicines and Healthcare products Regulatory Agency said. AUROBINDO PHARMA: Gets royalty-free production and supply rights for five medicines used in the treatment of AIDS through an agreement with Geneva's Medicines Patent Pool. JUBILANT LIFE SCIENCES: Has begun commercial production at its plant in a special economic zone in Gujarat. MAX INDIA: Arm Max Healthcare Institute has inked a non-binding pact to sell 26% stake to South Africa's Life Healthcare Group for Rs.5.16 bn. LUPIN: Has launched the generic version of Watson's Fortamet, which could contribute Rs.350-450 mn to operating profit in 2011-12 (Apr-Mar).

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

TELECOM TELECOMMUNICATION: • GSM body raises concerns over reservation of spectrum in some bands. • DoT to unveil draft of National Telecom Policy on Oct 10. • Doubts over telecom policy success as probes, litigation shroud sector. • Sibal to unveil big-ticket telecom policy. • Handset sales fall, weak rupee may boost prices. • New Telecom Policy 2011 will be unveiled by Communications and IT Minister Kapil Sibal. • The draft of the National Telecommunications Policy-2011 is expected to include rules on pricing of second-generation radio airwaves. • Ericsson has signed India's first equipment contract for a wireless broadband network based on fourth generation TD-LTE technology. • Cellular Operators Association of India is concerned about the government's move to reserve spectrum in 900 MHz, 1400 MHz and 1800 MHz bands. • Mobile handset sales in India are falling, forcing Indian manufacturers to look towards exports to sustain margins. • Unitech moves Company Law Board against Telenor. • TRAI to issue show-cause notices to telecom cos over 3G. • Augure Wireless to invest Rs.2.93 bn for 4G launch. • Telecom dept arm says 3G roaming deals by cos without spectrum illegal. • Telenor Group has hinted the case filed against it by Unitech group may be an attempt to block the rights issue of their joint venture telecom company. • The telecom department has called 3G roaming agreements between BHARTI AIRTEL, IDEA CELLULAR and Vodafone Essar illegal. The department will issue show-cause notices to the companies, and may impose fines on them. • Nokia will commercially launch its Windows phone in India before March 2012. • Augere Wireless Broadband India to invest up to $60 mn over the next three-five years to launch fourth generation mobile services. • The department of telecommunications has asked the Telecom Regulatory Authority of India to explain the cap on the spectrum a mobile operator can hold. • The department has directed TRAI to raise the revenue share payable by operators to 8.5% from 6.0% across the board. • Telecom dept asks TRAI to rethink pricing proposals on excess spectrum. • House panel wants all 2G scam documents by Oct 11. • SC to resume hearings in 2G case. • Telecom dept not for total ban on encrypted messages. • CBI looks to Apollo heiress to nail Marans in 2G scam. • 2G case: CBI says Maran got 5.5 bln rupees for Aircel sale. • Enforcement Directorate to go into pre-2007 telecom deals. • The department of telecommunication has offered to give one licence to US-based Qualcomm for offering broadband services. • Blackstone-Carlyle now lone bidder for Reliance Infratel's towers. • Telecom dept divided on 3G roaming agreements. • New telecom policy mum on M&As. FOCUS: Please-call policy wants telecom cos to pay, but not charge Few natural assets are invisible. Spectrum is one of them. And so on that feeble ruse, we shall pardon the two-decade-long time the government took to realise that it's actually a scarce asset that needs a treatment no different from the one meted out to others. With the Telecom Minister Kapil Sibal unveiling the draft of

Weekly Newsletter 32 Info-Spectrum Bridging the Information Gap in Corporate Landscape the new telecom policy at a press conference, the last one being set in 1999, one can say the government has finally realised that spectrum may be inexhaustible, but it is not infinite. There is a definite amount of spectrum that needs to be exploited judiciously and transparently. The draft leads one to believe that the new telecom policy will have something for everybody. Whether that will be the case will be known only by Dec when the final policy is unveiled. The draft talks about spectrum allocations being made at market- determined prices. It also aims to create one licence for all services. It aims to make India a manufacturing hub for telecom equipment and almost treble rural teledensity to 100% by 2020. It also promises to provide a route to companies wishing to exit the sector. "It focuses on utilisation of resources, whether it is spectrum or whether it is the network. It talks about financing. It talks about reducing charges through roaming for consumers. So, they are good from that perspective. But I think it doesn't really clarify things, how the spectrum will be issued, how the pricing will take place. Obviously, that will be decided through the spectrum act but it's not decided when the spectrum act will be enacted. So, it lacks details," Ashish Basil, partner at global advisory firm Ernst & Young, said. The new policy will have one big new-year gift for mobile users. It wants to do away with roaming charges. "From a consumer perspective, it looks positive in the sense that... roaming charges would perhaps not be there as and when the policy is implemented or number portability is being allowed all-India level. So, I think, overall, looks to be a positive impact on the sector," Jaideep Ghosh, partner at another global consulting giant KPMG, said. He said the cut in roaming would perhaps hit the topline of operators which have a significant number of post-paid roaming subscribers but the draft policy had incorporated the larger national objective of enhancing teledensity. Ghosh pooh-poohed the suggestion that cut in roaming charges would further dent the already eroded profitability of mobile companies. "There are people entering sector, at least in terms of the 4G services...and these all (are) entrants...Also (in) 3G all these entry happened after these price erosion started...Price erosion started and hence the profitability erosion started 2009. Still the people bid... 65,000 odd crores (Rs.650 bn) knowing fully well that profits are getting impacted," he argued. The draft policy also talks about de-linking spectrum from licences and creating separate licensing for network service operator and service delivery. "Delinking of spectrum from licences--the cost of spectrum will go up which will in turn increase customer servicing costs," Hemant Joshi, partner at Deloitte Haskins & Sells, said in a company release. The government aims to make 500 Mhz more spectrum available by 2020 including 300 Mhz by 2017. It also seeks to allow pooling, sharing and later trading of spectrum, a long-pending demand of mobile companies. "Freeing up of 500MHz of spectrum by 2020 is a very positive futuristic statement which will decongest networks and pave way for mobile broadband and promote convergence in a very big way," Deloitte's Joshi said. "...At least saying that the spectrum trading and sharing will be allowed though obviously it will be detailed out of the spectrum act. Those are positive sides that at least they are moving in that direction. The details are yet to be seen," Basil said. TELECOM FINANCE Perhaps induced by the lack of bank and institutional funding in the post-scam era, or maybe not, the new policy will also aim to create a Telecom Finance Corp to fund the needs of the sector. "I think Telecom Finance Corp is a good policy move because after the 2G scam, most of the financing has come to a standstill. Right. So I think that will enable. It's always initiator of financing. You know we have seen in the power...Power Finance Corp side...," Basil said. Ghosh too welcomed the move on Telecom Finance Corp. "It's a welcome move whenever it happens." BROADENING BROADBAND The policy will raise the criterion of defining broadband, doubling the minimum speed for being classified as broadband to 512 kbps. It also seeks a nearly 50-fold jump in broadband subscription to 600 mn by 2020 and make the service on-demand. The draft is silent on 'voice over Internet services'. It was left to Sibal to say that the policy would encourage voice over Internet. Nobody would want the policy to have the same silence, one that would speak volumes! Telecom policy aims to democratise spectrum with pooling, trading The government announced a draft telecom policy, proposing transparent, market-determined pricing of spectrum, and pooling, sharing and trading of the scarce resource. The policy aims "to permit spectrum pooling, sharing and later, trading for optimal and efficient utilisation of spectrum," Telecom Minister Kapil Sibal said unveiling the much-awaited draft policy. The government now plans to de-link spectrum from all future licences, compared with the current policy that bundles a minimum of 4.4 MHz spectrum with the licence. The price of spectrum, that was till now paid as part of the one-time fee paid by the operator, will be determined through market-related processes, including auctions. A periodic audit of spectrum utilisation

Weekly Newsletter 33 Info-Spectrum Bridging the Information Gap in Corporate Landscape would also take place to ensure efficient use, Sibal said. To ensure adequate availability of spectrum and its allocation in a transparent manner, the government plans to make available additional 300 MHz spectrum by the end of 2017 and another 200 MHz by 2020, Sibal said. To avoid any controversies around spectrum allocation, the telecom department plans a separate Spectrum Act that will deal with all issues connected with wireless service licences and their terms and conditions. Amid the ongoing controversies over the 2G licences that were granted to companies in 2007-08, the government also plans to offer exit options to operators. The final norms relating to the exit policy will be detailed in the policy document that is expected to be released before the end of December, the minister said. The policy proposes to scrap roaming charges for mobile services and put in place a framework to regulate carriage charges, which are content neutral and based on the bandwidth use. It also plans to regulate value-added services. Aimed at a "One Nation - One License" strategy, the draft policy said unified licences will be put into two categories--Network Service Operator and Service Delivery Operators. The policy also envisages a stronger customer grievance redressal mechanism. Highlights of draft of new telecom policy to be announced by Dec Telecom Minister Kapil Sibal announced the draft of the proposed new telecom policy, to be implemented before the end of the ongoing calendar year. Following are the highlights of the draft policy that he announced at a press conference: BROAD GUIDELINES * Aims to have one pan-India telecom licence * Aims to facilitate consolidation in telecom sector * Separate licence for network svc operator, svc delivery * Aims to have free roaming nationwide * To encourage voice over internet svcs * Revenue to play secondary role in new telecom policy * Aims to make India hub of telecom equipment * Aims to up rural teledensity to 60 by 2017 * To have corpus for indigenous tech in 12th 5-Yr Plan * Aim to give preferential treatment to local tech equipment * To have exit policy for telecom cos * To work on giving infrastructure status to telecom sector * To do critical review of issues related to telecom sector * To set up Telecom Finance Corp * To do comprehensive review of Indian Telegraph Act * Telecom sector must evolve new economic models * To review TRAI Act * To permit sharing of networks * Aim to have 100% teledensity by 2020 * Need seamless converged svc delivery in tech neutral environ SPECTRUM * Will enact a separate spectrum act * Spectrum to be made available at mkt-determined rates * To ensure mobile satellite svcs conform to security norms * To permit pooling, sharing, trading of spectrum * To delink spectrum from licence * To have framework to raise spectrum availability * 300 MHz spectrum to be made available by 2017 * Aim to make 500 MHz spectrum available by 2020 * To undertake regular audit of spectrum

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* To have roadmap for spectrum availability every 5 yrs BROADBAND * Vision is to have broadband svcs on demand * To revise broadband speed criteria to 512 kbps * Aims 600 mn broadband connections by 2020 CBI raids Sun TV offices, DMK Maran's houses over Aircel-Maxis deal The Central Bureau of Investigation raided houses and offices of former telecom minister Dayanidhi Maran and his brother Kalanithi Maran in New Delhi, Hyderabad and Chennai early in connection with the Aircel- Maxis deal. The main charges against the Maran brothers include conspiracy, misuse of official position, giving bribe and accepting bribe. Sources said the CBI had raided the Hyderabad office of Sun TV, owned by Kalanithi Maran, elder brother of the former union minister. The CBI spokesperson did not confirm the raid at the Hyderabad office, but said searches were conducted at Maran's houses and offices in Chennai and Delhi. According to news reports, the CBI Sunday filed an FIR against Dayanidhi Maran, Kalanithi Maran, Astro TV Chief Executive Officer Ralph Marshall and T. Anant Krishnan, under the Prevention of Corruption Act. An FIR was registered against Dayanidhi Maran, Ralph Marshall who is the CEO of Astra TV that invested in Sun TV, and T. Anandakrishnan owner of Maxis Communication on Sunday. According to news reports, the CBI alleged that Maran purposely delayed licences to Aircel and provided undue favours to Malaysian company Maxis and in return investments were made by the company in Sun TV, which is a sister concern of Astro Netwrok, a company owned by one of the Maran brothers and Ralph Marshall. According to media reports the CBI alleged that kickbacks of almost Rs.600 bn were given to Maran brothers after the Aircel-Maxis deal. Former Aircel chief C. Sivasankaran had alleged that Aircel's applications for telecom licences were rejected by the government when Maran was telecom minister in 2006, forcing him to sell his company to Maxis, whose owner is considered to be close to Maran and his brother Kalanithi, news reports said. News reports also said the investigation agency asked the telecom department to provide them with technical details of the alleged set-up connecting Sun TV office and Maran's residence. Citing sources, a report by Press Trust of India said, 323 residential lines were in the name of state-owned Bharat Sanchar Nigam Ltd general manager allegedly connecting the Boat House residence of Maran with the office of Sun TV through a dedicated underground cable during Maran's tenure as telecom minister. Telenor hints Unitech case attempt to block JV's rights issue Norway-based Telenor Group hinted that a case filed against it by Unitech group may be an attempt to block the rights issue of their joint venture telecom services company in India. Telenor Group and Unitech own 67.25% and 32.75%, respectively, in Unitech Wireless that operates the Uninor brand in India. The two partners have been at loggerheads over a planned Rs.90-bn rights issue in the joint venture. "The simple case here is that the Uninor board, having followed prescribed processes, has asked its owners to invest more in the company in the absence of bank loans," Telenor said in a statement. Unitech is reported to have moved Company Law Board alleging mismanagement of the joint venture by Telenor. The Indian company is said have sought an observer to attend all board meetings of the joint venture to protect its interest. Telenor, however, responded by saying: "We continue to urge Unitech Ltd to join us in meeting this shared responsibility towards the company." Firming its stand to not let any legal issues disrupt Uninor's growth in the country, Telenor said its Indian venture has already emerged as the most successful new operator in the country. Reliance Tele seeks protection against disclosures in 2G hearing Reliance Telecom Ltd, a unit of Anil Ambani's Reliance Communications, sought Supreme Court's protection against the 2G spectrum case status report naming the company being read out during court proceedings. Representing Reliance Telecom, senior attorney Mukul Rohtagi urged the court that the status report should not be read out in a manner that it may harm the parent company's share price. Responding to the request, the court bench comprising Justice G.S. Singhvi and Justice A.K. Ganguly asked the attorney to move a proper application on the issue. "We may consider moving appropriate application in the Supreme Court in this regard," Rohtagi told after coming out from the court. Last week, the Central Bureau of Investigation had told the apex court that three officials from the Anil Dhirubhai Ambani Group, currently in judicial custody, have turned approvers in the 2G case. The group had denied its officials were turning approvers. According to a report by the Comptroller and Auditor General, partisan allocation of 2G spectrum and telecom licences in 2008 had led to a huge loss to the exchequer.

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SAP Ventures invests $10 mn in mobile svcs co One97 Communications Mobile internet services company One97 Communications Ltd has received $10 mn funding from SAP Ventures. The funds would be used to expand One97's operations in emerging markets, a company spokesperson said. "This investment by SAP Ventures is a great reinforcement of One97's team and growth trajectory," said Vijay Shekhar Sharma, One97's chairman and managing director. "Mobility and emerging markets are both key focus areas for SAP, and One97 is right in the middle of exploding mobile usage among consumers in developing countries who are using their mobile phones to access internet, play games, buy content and shop online," said Jai Das, managing director, SAP Ventures. Besides SAP Ventures, One97 Communications has in the past received funding from various investors including Intel Capital, SAIF Partners, and Silicon Valley Bank. Head says MTNL completes raising Rs.15-bn long-term loans Mahanagar Telephone Nigam Ltd raised a Rs.10 bn loan from Indian Overseas Bank last month, achieving its target of Rs.15-bn long-term credit, Kuldip Singh, chairman and managing director of the state-owned telecom operator told. In July, MTNL had invited bids from banks for a seven-year secured loan of Rs.15 bn with a floating interest rate. The loan was to be raised in tranches as per the requirement within the discretion of MTNL without any penalty, the tender notice had said. GSM body raises concerns over reservation of spectrum in some bands Telecom service providers operating on the Global System for Mobile Communications platform raised concerns about the government's decision to reserve spectrum in 900 MHz, 1400MHz and 1800 MHz bands in its National Frequency Allocation Plan 2011, unveiled on Sep 30. Enforcement panel seeks to attach Rs.2.23-bn assets in 2G case Enforcement Directorate has filed a plea to an appellate tribunal for the provisional attachment of assets, including properties, bank accounts worth Rs.2.23 bn, of five real estate companies, including DB Realty in connection with an alleged bribe of Rs.20.9 bn paid to Kalaignar TV. SC reserves order on plea seeking probe into Chidambaram role in 2G The Supreme Court reserved its order on the petition filed by Janata Party President Subramanian Swamy, seeking direction to the Central Bureau of Investigation to probe the role of Home Minister P. Chidambaram in the 2008 scam in 2G spectrum allocation. DoT cell seeks action against "illegal" 3G roaming pacts by cos The telecom department's enforcement and resource monitoring cell has said action must be taken against those operators that have entered into roaming deals, whereby a mobile operator without 3G spectrum is able to offer services, adding that such deals are illegal. Blackstone-Carlyle now lone bidder for Reliance Infratel's towers The combine of private equity giants, Blackstone and Carlyle, is now the only entity in fray for buying Reliance Infratel Ltd, a subsidiary of Reliance Communications Ltd that operates telecom towers, a person familiar with the development told. TRAI sees new converged accounting norms hurting telecom co profits A study by telecom sector regulator has said that the implementation of new converged Indian accounting norms with International Financial Reporting Standards may have a "substantial impact" on the profit of the telecom service sector companies.

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BANKING & FINANCIAL SERVICES BANKING & FINANCE: • Source says South Indian Bank may reconsider QIP in Jan-Mar, FY13. • Rate hike, demand fall drive many cos to restructure loans. • Debt restructuring plans flood banks. • The finance ministry has asked state-owned banks to report their immediate capital fund requirements. • National Housing Bank is expected to decide soon on waiver on pre-payment charges on floating-rate loans. • Microfinance companies in Andhra Pradesh are mulling recasting distressed loans by halving interest to 15% to improve repayment. • Banking secy says govt to infuse Rs.30-45 bn in SBI FY12. • Fin min source says spike in gilt yields "temporary" trend. • The finance ministry is likely to seek Parliament's nod for Rs.100-120 bn more to recapitalise public sector banks in addition to the Rs.600 bn earmarked in Budget. • CRISIL expects home loan providers' non-performing assets to rise due to the increase in interest rates for borrowers. • Dhanlaxmi Bank says to raise funds Nov-Dec to boost capital adequacy. • New norms for foreign currency convertible bonds on the cards. • Govt may infuse Rs.45-80 bn in SBI by Mar 31, depending on need. • Cabinet brings IIFCL under RBI ambit; converts it into infra NBFC. • Cabinet OKs bill for winter session to improve bks' loan recovery. • Dhanlaxmi Bk shrs hit 52-wk low; CFO denies mismanagement charges. CRISIL sees NPAs of home loan providers up on interest rate rise Non-performing assets of home loan providers are expected to rise on account of the increase in interest rates for borrowers, but losses from such accounts will be limited, CRISIL Research said in a report. "The NPA levels are expected to go up by around 30 basis points to reach 1.9% by Mar 2013," Prasad Koparkar, head - industry and customized research, CRISIL Research said. "However, losses on this account are expected to increase only marginally." CRISIL expects rising interest rates to lead to an annual jump of Rs.60 bn in home loan borrowers' equated monthly instalments. Floating interest rates for home loan borrowers have increased by around 250 bps since Apr 2010, as a result of the 350 bps increase effected by the Reserve Bank of India through a dozen rate hikes. Although this corresponds to an average 15% rise in equated monthly payments, CRISIL actually pegs the increase in EMIs at 40%, with most floating rate borrowers preferring to extend the tenure of loans or make part prepayments. Customers who opted for teaser rate home loan schemes have so far been cushioned from the jump in interest rates, as their rates are fixed till the end of the current financial year. Nearly Rs.51 bn or about 25% of the home loan portfolio were from such loans as on Mar 31. On account of the upward revision in teaser rates by 300-350 bps to market-linked rates, the EMIs of such borrowers will increase by Rs.20-25 bn, but yields for lenders will rise. "Due to higher yields, we expect the net profit margin of housing finance players to increase by around 30 bps in FY 2012-13," said Ajay Srinivasan, head - industry research, CRISIL Research. Just 30% of the teaser loan portfolio is from home finance companies, as banks that were the first to launch such products have a greater share of 70% of such loans. Most bankers don't want RBI to hike rates in Oct 25 policy Heads of some of the leading banks have said they don't want the Reserve Bank of India to hike interest rates in its second quarter review of the monetary policy on Oct 25. The newspaper had organised a round table meeting that was attended by State Bank of India Chairman Pratip Chaudhuri, Bank of Baroda Chairman and Managing Director M.D. Mallya, ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar, Axis Bank Managing Director and Chief Executive Officer Shikha Sharma, Citi India Chief Executive Officer Pramit Jhaveri and Deutsche Bank India Chief Executive Officer Gunit Chadha. "If RBI does a rate hike, interest rates have to be raised because the input price increase has to find a reflection in output rates," the newspaper said quoting SBI head Chaudhuri. The bankers said liquidity would be a key factor

Weekly Newsletter 37 Info-Spectrum Bridging the Information Gap in Corporate Landscape that would shape banks' strategy in deciding future interest rates, it said. "Whether the lending rates go up or not will depend on how the liquidity situation pans out. Liquidity will be the big thing to watch in the coming two months because we are entering the festive season," the newspaper said quoting Kochhar. The report said bankers expect a slowdown in loan growth and don't see a large scale increase in non-performing assets. Dhanlaxmi Bank reiterates AIBOC charges "baseless" Dhanlaxmi Bank reiterated that all the allegations of mismanagement were baseless and represented a motivated attempt by one of the employee associations de-recognized by the bank. The bank's deposits grew to Rs.125.30 bn in 2010-11 (Apr-Mar) from Rs.36.08 bn in 2007-08, while loans rose to Rs.90.65 bn from Rs.21.02 bn in the same period. "This is an illegal and unscrupulous tactics to defame the franchise of the bank. We strongly take exception to the strong-arm tactics by this association which has started an illegal agitation outside the bank headquarters," the bank said in a press release. All India Bank Officer's Confederation had accused that the bank had borrowed high cost funds in the form of certificate of deposit of around Rs.25 bn, while the bank has a limit of raising Rs.15 bn through CDs. AIBOC's General Secretary, G.D. Nadaf, had also said that the very survival of the bank for the next three years was in question. The union's Kerala committee had appealed to the Reserve Bank of India to probe the issue and even demanded its merger with a state-owned bank. Indian Overseas Bk may hire agency to assess, boost loan portfolio Indian Overseas Bank is looking at recruiting a professional ratings agency to assess its loan portfolio to help improve asset quality and boost profitability, an official told. "We are looking for a rating agency to also study our portfolio, and suggest a strategy for future lending and disbursements, over a five-year horizon," the official said. The agency will study all loan accounts of the bank worth Rs.250 mn, and more. The agency is also expected to provide inputs on those sectors to which the state-owned bank can raise its lending so as to maintain a strong, diversified portfolio and prevent risk of sectoral concentration of loans. The ratings agency will have to study the bank's asset quality, capital position, and ability to lend, in comparison to its peer banks. The bank will also use the findings of the agency to improve and expand its loan product offerings. After selection, the agency will have about 90 days to provide feedback to the bank. Development Credit Bank Jul-Sep PAT up 176% as NPA, provision fall Development Credit Bank's Jul-Sep net profit surged over 176% year- on-year to Rs.133.3 mn, as improved asset quality helped reduce provisions while improved interest income shored up margins. On a sequential basis, Development Credit Bank Jul-Sep net profit rose 51%. Provisions declined by half to Rs.75 mn as gross non-performing assets eased to 5.75% from 7.61% and net non bad loans to 0.97% from 1.86% a year ago. The bank's coverage ratio stood at a healthy 87.89% as on Sep 30. Net interest margin rose to 3.41% from 3.14% a year ago, while net interest income was up Rs.130 mn on year at Rs.590 mn. The bank's balance sheet grew 16% on year to Rs.80.5 bn, while net advances grew 12% to Rs.43.15 bn. Current account and savings account ratio as on Sep 30, dipped slightly to 33.2% from 34.6%. The bank's capital position remains strong, with Tier-I capital comprising 11.23%, out of a total capital adequacy ratio of 13.10%. Fin min pushes for hiking PPF, post office deposit rates The finance ministry is moving a proposal to increase interest rates on small savings schemes such as Public Provident Fund and post office deposits. Finance Minister Pranab Mukherjee will decide on the proposal over the next few days as small savings instruments have lost out to bank deposits, which earn higher interest, the report said quoting official sources. The government is forced to borrow around Rs.530 bn more from the market by issuing bonds in the second half because inflows into small saving schemes--the other avenue to fund deficit--have come as a cropper so far this year. If agreed on the proposal, interest rates on PPF will increase to 8.2% from 8% now, while post office deposits will fetch 50-70 basis points higher, the report said. Apart from increase in interest rates, individuals will be permitted to park Rs.100,000 in PPF accounts instead of Rs.70,000 at present, the report said. Dhanlaxmi Bank to raise funds Nov-Dec to boost capital adequacy Dhanlaxmi Bank will look to raise funds during Nov-Dec to boost its capital adequacy ratio, Managing Director and Chief Executive Officer Amitabh Chaturvedi told. This will help us boost capital adequacy levels... It is too premature to discuss how much and the instrument we will employ," he said. A senior official of the bank said that the funds would be raised by Tier-II bond issuances; it was not conducive to raise funds through a volatile equity market.

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Govt may inject 30-45 bn rupee in SBI FY12; rights issue unlikely A week after Moody's Investor Services cut State Bank of India's rating citing the bank's inability to shore up capital as one of the reasons, the government said that it was likely to infuse Rs.30-45 bn in the country's largest commercial lender in the current financial year. Banking Secretary D.K. Mittal, however, said that SBI was unlikely to go in for a rights issue as the current market condition was not conducive. IDBI Bank offers fixed-floating home loans, cuts processing fees IDBI Bank is looking to offer special fixed-floating rate home loans, and concession fee waivers for auto and home loans to attract retail demand during the festival season. Customers can fix home loan rates for the initial period of one to two years, followed by floating rates. The fixed rate for loans up to Rs.2.5 mn is 10.75% for one year, and 11.00% for two years. Dhanlaxmi Bank reappoints Amitabh Chaturvedi as MD, CEO Dhanlaxmi Bank Limited has informed the Exchange that Reserve Bank of India vide letter No. DBOD.No.5377/08.37.001/2011-12 dated Oct 07, 2011 has conveyed their approval for re-appointment of Shri. Amitabh Chaturvedi as Managing Director and CEO of the Bank for a further period of 3 year w.e.f. Oct 13, 2011. Govt asks PSU bks to give details of capital raising, ratings The finance ministry has asked all state-owned banks to furnish details of internal and external ratings and indicate their near-term capital raising plans to get an idea about their capital adequacy ratio, Business Standard newspaper reported. Dena Bank cuts floating home, car loan rates by 25 bps Dena Bank announced a 25-basis-point reduction in new floating home and car loans, effective from Oct 10 until Dec 31, the bank said in a press release. On Sep 21, the bank had cut the rates on new housing, and car loans by 25 bps and also reduced the processing fee on these loans by 50%. SBI plans to raise Rs.50 bn via rights issue by Dec The country's largest lender, State Bank of India, is likely to raise Rs.50 bn through a rights issue of shares by Dec, Business Standard reported. This is expected to increase SBI's tier-I capital to above 8% for the current financial year that ends Mar, the report said. Source says South Indian Bank may reconsider QIP in Jan-Mar, FY13 South Indian Bank may reconsider raising funds through a qualified institutional placement issue in Jan-Mar or 2012-13 (Apr-Mar) if equity markets stabilise by then, a senior bank official told. PTC India sells 26% in Ind-Barath Powergen for Rs.690 mn PTC India Financial Services Ltd has offloaded its entire 26% stake in Ind-Barath Powergencom Ltd for Rs.690 mn to the latter's promoter, PTC India Financial said in a notice to the exchange. National Housing Bank to soon decide on pre-payment waiver for home loans Realty finance sector regulator, National Housing Bank, is expected to take a decision soon on whether or not there would be a complete waiver of all pre-payment charges on floating-rate home loans. Credit Information Bureau appoints Union Bank CMD Nair as chairman Credit Information Bureau (India) Ltd, has appointed M.V. Nair as its chairman. Nair is currently the Chairman and Managing Director of Union Bank of India, and his tenure ends in Mar. RBI asks banks to implement new credit rating symbols The Reserve Bank of India today asked banks to use revised rating symbols by credit rating agencies to assign risk weights to various exposures. RBI to consider Kisan Credit Card loans as direct farm finance The Reserve Bank of India has included loans provided under the Kisan Credit Card as direct finance for agriculture under priority sector lending, a notification said. Cabinet brings IIFCL under RBI ambit; converts it into infra NBFC The Cabinet approved a proposal to bring India Infrastructure Finance Co Ltd under the regulatory ambit of the Reserve Bank of India and convert it into a non-banking finance company that will lend to infrastructure projects, Information and Broadcasting Minister Ambika Soni said.

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

RBI governor says bank NPAs are high, but well within control Reserve Bank of India Governor D. Subbarao acknowledged that slowdown in growth was leading to increase in banks' non-performing assets, but said that the level of bad loans remained under control. Cabinet brings IIFCL under RBI ambit; converts it into infra NBFC The Cabinet brought India Infrastructure Finance Co Ltd under the regulatory ambit of the Reserve Bank of India and converted it into a non-banking finance company that will lend to infrastructure projects, Information and Broadcasting Minister Ambika Soni said. Cabinet OKs bill for winter session to improve bks' loan recovery The Union Cabinet today approved introduction of a bill in the winter session of Parliament aimed at strengthening banks' ability to recover debt. DHANLAXMI BANK: • The RBI has cleared the reappointment of Amitabh Chaturvedi as managing director of the bank. • Has reiterated all allegations of mismanagement are baseless and represented a motivated attempt by one of the employee associations. DENA BANK: Has cut interest rates on new housing and car loans by 25 basis points in the floating rate category as part of a festival offer. BAJAJ FINANCE: Will enter the credit cards business by launching a co-branded credit card with Standard Chartered Bank. STATE BANK OF INDIA: The government is likely to infuse Rs.30-45 bn in the bank in FY12, but a rights issue is unlikely. DEVELOPMENT CREDIT BANK: Jul-Sep net profit rose 176% on year to Rs.133.27 mn.

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

STEEL, METALS & MINERALS STEEL, METAL & MINERAL: • Tecpro Systems gets order worth Rs.4.05 bn from NTPC. • Sterlite Ind's Jul-Sep metal output rises 2% on year to 210,000 tn. • Govt to go for nomination route for some coal blocks. • Rio Tinto may get licence for diamond mining in Madhya Pradesh. • CAG plans Shimla retreat for govt brass. • After reshuffling brass, Wadias rejig business. • JSW Steel to raise Rs.6.5 bn debt for Chilean mine expansion. • Rio Tinto may soon get diamond mining licence in Madhya Pradesh. • Pisces Exim India has planned a Rs.10-bn expansion that includes acquisition of mines in India and abroad by Mar 2014. • Iron trade body sees domestic steel prices up 25% by end Dec. • Coal India staff back to work post 1-day strike; may halt ops again. • Minister Sharma says deceleration in mfg, mining sectors a concern. • Sops for foreign venture capital funds in mining on the cards. • Jindal Aluminium will invest Rs.4.5 bn to set up a new plant in Bengaluru to manufacture aluminium sheets and foils. • The government may relax entry and exit norms for foreign venture capital funds looking to invest in mining-related research and exploration. • Steel Minister Beni Prasad Verma wants POSCO to take STEEL AUTHORITY OF INDIA as a partner in its proposed steel project in Odisha. • Power cos may get part of e-auction coal if they lift from pithead. • Coal minister says supply crunch to power cos may be resolved in 48 hr. • Minister Jaiswal says may give priority to NTPC in sale of coal. • Power plants running out of coal. • Govt wants SAIL to partner POSCO. • The coal ministry has agreed to set aside some of the coal earmarked for spot sales for supply to power companies. • Steel makers plan to pass on the increase in raw material costs by hiking the price of steel supplied to original equipment manufacturers. • Essar Steel has commissioned a Corex module with annual capacity of 0.87 mln tn as part of the plan to increase production at its Hazira complex in Gujarat. • Coal India union says ministry to meet workers, mgmt Oct 17 on bonus. • Karnataka govt mulling to move SC over mining ban. • All mines in Goa told to display key info at site. Minister wants SAIL in POSCO Odisha project; Bokaro JV signing Nov Steel Minister Beni Prasad Verma said he wanted South Korea-based Posco to take state-owned Steel Authority of India Ltd as a partner in its proposed steel project in Odisha. With a proposed investment of Rs.520 bn, POSCO seeks to construct a fully integrated steel plant in Odisha with annual production capacity of 12 mn tn. A POSCO official said 2,200 acres had been acquired so far for the project. The project also includes iron ore mine development over 30 years (total 600 mn tn) at captive mines located in the Keonjhar and Sundergarh districts of the state, as well as development of related infrastructure. Yoon met Verma to invite him to visit Korea, a request that Verma said he would fulfil in Nov when he goes there to sign SAIL's joint venture agreement with POSCO for their proposed Rs.160-bn, 3 mtpa Bokaro steel plant in Jharkhand. "We have sorted out most of the issues, except pricing of iron ore to be supplied by SAIL for the (Bokaro) joint venture project," Verma said. Verma said POSCO was keen to partner SAIL in the company's proposed plans at Sindri in Jharkhand that include plants for producing steel, fertilizer and power. SAIL's plans are part of a package approved by the government for reviving Fertilizers Corp's Sindri unit.

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

Tata Steel to invest 2 mn sterling in Hartlepool tube works unit Tata Steel Ltd will invest 2 mn pound sterling to set up a tubular steel section at its Hartlepool tube works facility in England. The new unit will develop steel foundation structures for wind turbines known as jacket foundations, used at offshore wind farm located in deep waters. The steel maker said work on the new unit will start this month and will be completed by spring in next year. "This investment reinforces Tata Steel's commitment to establishing a significant presence as a supplier to the renewable sector as the drive to transform the energy supply scene in the EU gathers pace," Ramsay Ross, a director for the company's tube works business, said. Also, the company said it has signed a supply agreement with German steel pipe producer Eisenbau Kramer to increase its product offering for renewable energy sector. Under the supply agreement, Tata Steel and Eisenbau Kramer will produce tubes of more than 400 mm diameter from Tata Steel's plants in Scunthorpe. Minister Jaiswal says may give priority to NTPC in sale of coal In a relief for power producer NTPC Ltd, Coal Minister Sriprakash Jaiswal said the state-owned company may get priority in procurement of the fossil fuel. "We are discussing the proposal with power ministry to give priority to NTPC in e-auction," Jaiswal told reporters. "NTPC is a government company and is the largest power producer." However, he said, NTPC will have to pay prices discovered through e-auctioning of coal. "There is no question of relaxation in pricing," Jaiswal added. The problem of shortage in coal supply to power companies will be sorted out within the next 48 hours, Jaiswal said after a monthly review meeting of Coal India and its units. Power production in several NTPC plants, including Dadri and Vindhyachal, has taken a severe beating due to shortage of coal supply. According to reports, power generation in the NTPC units has come down by nearly 5,000 MW, which is almost 15% of the total power produced by it. Sterlite Ind's Tuticorin plant may get notice from Tamil Nadu govt The Supreme Court directed the Tamil Nadu Pollution Control Board to issue directions to Sterlite Industries (India) Ltd's Tuticorin copper smelting unit to implement pollution control measures. The apex court has also maintained its stay on closure of the Tuticorin unit and said the case will be heard in Jan. In Sep last year, the Madras High Court had ordered closure of Sterlite's copper smelting plant in Tuticorin due to environmental damage. The company however got a stay on the closure order from the Supreme Court. Sterlite Industries said its Tuticorin plant has been operating for more than 12 years and meets all global compliance norms. "The company is committed to employing environmentally friendly technologies and would work in close coordination with all the agencies to ensure proper implementation of improvement in measures suggested by them (the Supreme Court)," Sterlite Industries said. JSW Steel, Marubeni-Itochu form JV to set up steel unit in India JSW Steel Ltd said it has formed an equal joint venture with Japan-based Marubeni-Itochu to set up a state- of-the-art steel processing plant in North India. The joint venture entity will invest Rs.1.22 bn in setting up a steel plant with initial installed capacity of 180,000 tn per year. JSW Steel said the steel plant will be funded via 50% equity and 50% debt. The Mumbai-based company plans to commission the first phase of the steel plant in 2012-13 (Apr-Mar). The facility will produce hot rolled, cold rolled, and coated flat steel products for automobile, white goods, and construction industry. The partnership will allow JSW Steel to leverage the global sales network of Tokyo-based Marubeni-Itochu, Group Chief Financial Officer and Joint Managing Director Seshagiri Rao said. Hindustan Zinc, Gujarat Alkalies get carbon credits from UN body Hindustan Zinc Ltd and Gujarat Alkalies & Chemicals Ltd have been issued 89,848 and 166,096 carbon credits, respectively, from the United Nations Framework Convention on Climate Change, the UN body said. Based on the settlement price of 10.71 euros (Rs.714) per certified emission reduction of the benchmark Dec contract on the European Climate Exchange, credits of Hindustan Zinc are worth Rs.64.15 mn, while those of Gujarat Alkalies are worth Rs.118.60 mn. Hindustan Zinc was issued carbon credits for its 88.8 MW wind project at Samana in Gujarat, and Gujarat Alkalies for reducing greenhouse gas emissions by using natural gas as feedstock in its captive power plant at Dahej. Coal India staff resume work post 1-day tool down, may strike again Nearly 300,000 workers of Coal India Ltd, who had gone on a one-day strike demanding a higher annual bonus, resumed work. "However, the unions have said that they may go on a 72-hour strike again later," a company official told. The official said the strike is likely to have resulted in a revenue loss of around Rs.1.2 bn, and loss of production of around 1 mn tn for the company, which is the world's largest coal producer. Coal India's five affiliated workers' unions had given a strike notice to the company, demanding an annual bonus of Rs.25,000 per worker. The company had paid an annual bonus of Rs.17,000 on Oct 1.

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

Power cos may get part of e-auction coal if they lift from pithead Power Secretary P. Uma Shankar said the coal ministry has agreed to divert part of coal sold through e- auction to power companies if they agreed to lift the solid fuel from pitheads. "The coal secretary has told us that the coal ministry will be able to spare some of the coal which they would be selling through e-auction provided the developer accepts the coal from the pithead," Shankar told reporters on the sidelines of a sector conference. Gravita India, Saudi Arabia's Best Group in JV for lead, alloy unit Jaipur-based Gravita India Ltd has signed a joint venture agreement with Saudi Arabia's Best Group to set up a 7,200 tn per annum lead and lead alloy manufacturing unit, the former said in a release to the Bombay Stock Exchange. The joint venture, Best Gravita Saudi Ltd, will be set up in Dammam, Saudi Arabia. "Our...investment plans are a part of our aggressive expansion plans," Gravita President M.C. Mehta was quoted as saying in the release. Source says NMDC Jul-Sep iron ore sales 7.58 mn tn, up 47% on yr NMDC Ltd sold 7.58 mn tn iron ore in Jul-Sep, up 47% from a year ago due to increase in demand, a source in the know told. In the same period last year, the state-owned miner had sold 5.14 mn tn iron ore. "Chhattisgarh weather condition was favourable (for mining) during the quarter and demand (was) also significant (higher) for iron ore," the source said. In Jul-Sep, NMDC produced 7.10 mn tn iron ore at its three facilities in Chhattisgarh and Karnataka. Source says NALCO cut aluminium product prices by Rs.5,000/tn National Aluminium Co Ltd has slashed prices of all its aluminium products by Rs.5,000 a tn from Oct 5, a source close to the development told. The price cut follows a decline in global prices of aluminium in the past few sessions amid concerns over the global economy, the source said. State-owned NALCO, Asia's largest integrated aluminium producer, manufactures cast strips, wire rods, ingots, billets, and coils. NTPC cuts output at West Bengal, Bihar plants on poor coal supply Inadequate coal dispatches have forced NTPC Ltd to cut output at two of its plants in Bihar and West Bengal. Technical fault at Coal India Ltd's Lalmatia mine crushers has led to a shutdown of two 500-mw units of NTPC's Kahalgaon Thermal Generation Station in Bihar. Also, Eastern Coal fields, a CIL arm, has cut supplies to the Farakka Thermal Power Station in West Bengal to a fifth. Sterlite Ind's Jul-Sep metal output rise 2% on yr to 210,000 tn Sterlite Industries Ltd's metal production rose 2% on year to 210,000 tn in Jul-Sep as near normal production was restored at Rampura Agucha unit in Rajasthan, which was shut down for maintenance in Apr- Jun, the company said in a release. Tecpro Systems gets order worth Rs.4.05 bn from NTPC Tecpro Systems Ltd has received an order worth Rs.4.05 bn from NTPC Ltd for setting up an extended coal handling plant at Pakri Wardith coal mining block in Jharkhand, Tecpro said in a notice to the exchanges. Rio Tinto may get licence to mine diamonds in Madhya Pradesh Rio Tinto, the world's second largest mining group, is likely to get a licence to mine a diamond find in Madhya Pradesh. The Centre is waiting for a final approval from Bhopal government before it signs the Bunder diamond mining lease for Rio Tinto. Beardsell allots 450,000 conv warrants to promoters Beardsell Limited has informed the Exchange that the Preferential Issue Committee of the Company, in its meeting held on 10th Oct 2011, has allotted a total of 4,50,000 Fully Convertible Equity Warrants to the Promoters of the Company. (Source MSE). Govt mulls tax sops, easing norms for foreign VC funds in mining sector The mining ministry has proposed to relax entry and exit norms for foreign venture capital funds in high-risk mining-related research and development and exploration sector as well as offer them tax incentives similar to those given to pharmaceutical companies. SAIL raises prices of galvanised sheet by 2% across the country Steel Authority of India Ltd has increased prices of its flat product--galvanised corrugated steel sheets--by an average 2% across the country this month, the company said in a notice on its website.

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

Iron ore mining ban hits Sesa Goa's Jul-Sep production, sales The Supreme Court's ban on iron ore mining in Karnataka in Aug, and closure of the Thakurani mine in Odisha in Nov impacted Sesa Goa Ltd's iron ore production and sales in Jul-Sep, the company said. Hindustan Zinc Jul-Sep metal output 210,000 tn, up 2% on year Hindustan Zinc Ltd's metal mine production in Jul-Sep rose 2% on year to 210,000 tn during Jul-Sep, a company release said in a release. CMD says NMDC board to mull two new overseas acquisitions NMDC Ltd's board of directors will be meeting to discuss two new overseas acquisitions, according to Chairman and Managing Director Rana Som. NMDC to hold Karnataka ore e-auction Oct 14; co aims 1 mn tn sales State-owned NMDC Ltd will conduct the second round of iron ore e-auction in Karnataka on Oct 14, and aims to sell around 1 mn tn of the ore via this auction, Chairman and Managing Director Rana Som said. Govt to meet Coal India mgmt, unions Mon to break bonus impasse The coal ministry has summoned a meeting with the management and labour unions of Coal India Ltd in New Delhi on Monday to try end the impasse over annual bonus payment, All India Coal Workers' Federation General Secretary Jibon Roy told. Sterlite Ind says Tuticorin copper unit working at "rated capacity" Vedanta group company Sterlite Industries (India) Ltd said its Tuticorin-based copper smelter unit continues to operate as per "rated capacity". Pennar Ind sees consol revenue 15 bln rupee in FY12, 18 bln in FY13 Pennar Industries Ltd expects consolidated revenue of 15 bln rupees this financial year, and 18 bln rupees in the next, Chairman Nrupender Rao told analysts in post earnings conference call. Hindustan Zinc ups zinc price by 3,100 rupee/tn to 110,800 rupees Hindustan Zinc Ltd raised zinc prices by 3,100 rupees per tn to 110,800 rupees, according to the company's website. Essar Steel commissions 870,000 tn/yr iron making unit at Hazira Essar Steel Ltd's steel production capacity has increased to 9.5 mln tn per year, with the commissioning of an iron-making unit of 870,000 tn per year at its Hazria complex in Gujarat. Pennar Ind arm gets 61-mln-rupee order from ITC for 3 Nepal units Pennar Industries Ltd said its subsidiary Pennar Engineered Building Systems Ltd has got a 61-mln-rupee order from ITC Ltd to build three manufacturing units for the company in Nepal. World steel body says India's use of metal to grow by 4.3% in 2011 India's steel consumption is expected to grow by 4.3% to 67.7 mn tn in 2011 due to economic growth, the World Steel Association said in a report. COAL INDIA: • The government, at a meeting this week, will pull up the company for not meeting its output target. • Plans to e-auction 4 mn tn coal to power companies in Oct. • Coal ministry has called a meeting with the company's management and labour unions on Monday to try and end the impasse over annual bonus payment. • Coal Miners Officers' Association of India, which represents the company's management, has called for a nationwide strike Saturday to demand payment of salary arrears. STERLITE INDUSTRIES INDIA: • The Supreme Court has asked the company to solve the problems at its copper plant in Tuticorin in Tamil Nadu that are causing damage to the environment. • The company said it would overcome these problems by the end of 2012. PENNAR INDUSTRIES: Jul-Sep net profit fell 6.06% on year to Rs.160.20 mn, while Jul-Sep net sales declined 0.92% on year to Rs.2.38 bn. JSW STEEL: Plans to raise Rs.6.5-bn debt from the international markets to fund expansion of its Chile iron ore project. PENNAR INDUSTRIES: Expects consolidated revenue of 15 bln rupees in FY12, and 18 bln rupees in FY13.

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

AUTO & AUTO ANCILLARIES AUTOMOBILES: • Maruti says Suzuki Powertrain India workers on sit-in protest. • M&M says got over 5,000 units booking for XUV 500. • M&M to delay pan-India launch, export of XUV500. • Skoda Rapid to roll off from Chakan plant. • Hyundai pitches Eon against Alto. • Mercedes to unveil city bus line-up during Jan expo. • Maruti punishes 25 workers for Manesar unit strike. • The Society of Indian Automobile Manufacturers may cut growth forecast for the sector to 6-8% for 2011-12 (Apr-Mar) from its earlier estimate of a 16-18%. • Toyota Kirloskar Motor is mulling a powertrain-making unit in Bangalore with a capacity of 250,000 engines annually. • Honda Siel Cars India might infuse funds to expand capacity for meeting demand for its hatchback models. • Spectre of zero production looms at Maruti on row with workers. • To attract buyers, companies give discounts, re-launch models with fewer features at a lower price, and aggressively price new models. • M&M says deferred new bookings 'XUV 5OO'. • Head says Ashok Leyland plans around 1% hike in vehicle prices Nov. • Sahara buys stake in Force India for $100 mn. • Young leaders ready to fill shoes of retiring honchos at M&M. • Age drives rift among Maruti staff; older Gurgaon workers off strike. • Volvo Bus Corp plans to invest Rs.4 bn over the next five years on capacity expansion and product development. • Hyundai India launches hatchback Eon at Rs.269,999-371,869. • HC asks protesting Maruti workers at Manesar to leave plant. M&M launches Verito Executive at Rs.595,000-709,000 ex-Delhi Mahindra & Mahindra Ltd has launched Verito Executive, a special edition of its only sedan, at an aggressive pricing of Rs.595,000-709,000 ex-showroom Delhi. The limited edition car, an upgraded version of Verito, is available in four variants, and its launch is timed to coincide with the current festival season. The BS3 and BS4 diesel variants are priced at Rs.694,000 and Rs.709,000, respectively, whereas the BS3 and BS4 petrol variants are priced at Rs.595,000 and Rs.599,000, respectively. Verito is priced marginally lower at Rs.485,100-662,800 ex-showroom Delhi. Verito, earlier called Logan, was renamed after M&M's French partner Renault exited the joint venture, Mahindra Renault Ltd. M&M has received bookings for more than 5,000 XUV 500, the global sport utility vehicle it launched on Oct 1, the company said. Denso India board OKs restructuring of operations Denso India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on Oct 04, 2011, has examined and discussed alternatives to improve the profitability of the Company and decided that there is a need to re-align / restructures the business segments to address operational and economic constraints and to focus on areas of future growth. The Board decided to focus more on electrical parts business i.e. Alternator and Starter (in case of 4 wheelers) and CDI and Magneto (in case of 2-wheelers) businesses and to exit small motors business subject to valuation and requisite approvals. The Board authorized Mr. Koji Shiga, Managing Director, to initiate the necessary steps for consideration and decision by the Board in this regard in the next meeting. International Tractors' Sep sales up 35% on yr at 5,550 units International Tractors Ltd posted a 34.7% on year increase in sales during Sep at 5,550 tractors. "Going by the current demand in domestic and international market, a growth of 40% is expected in this financial year and we are all set to close the year (to Mar 2012) with...60,000 tractor sales," the release quoted Sonalika Group Vice Chairman A.S. Mittal as saying. Sonalika Group's tractors range between 20 horsepower and 90

Weekly Newsletter 45 Info-Spectrum Bridging the Information Gap in Corporate Landscape horsepower capacity. The company also retails other farm equipment. The Punjab-based Sonalika Group plans to launch a tractor priced below Rs.200,000 to target small and marginal farmers in the near future, Rajeev Wahi, president of international business, had told on Sep 27. Strike at Maruti Suzuki's Manesar unit enters fourth day The workers' strike at Maruti Suzuki Ltd's Manesar unit entered the fourth day with stray incidents of violence, said Kanwaldeep Singh, general manager, corporate communications. Production at the Manesar unit, that makes the company's popular Swift hatchback car, has been halted since Oct 7. The company is constantly apprising the Haryana government about the situation, which is increasingly becoming a law and order issue, Singh told. "How it goes from here, we will have to see...It is really difficult to give a timeline as to how long this (the strike) will continue," he said. Amtek India OKs 1-for-1 bonus share issue Amtek India Ltd has informed that the Board of Directors of the Company at its meeting held on Oct 12, 2011, inter alia, have considered and approved the followings:- 1. The issue of Bonus Shares to the Shareholders of the Company in the proportion of 1:1, i.e. 1 (One) Bonus Equity Shares of Rs.2 each for every 1 (One) existing fully paid Equity Share of Rs.2 each held by such members. 2. Increase in Authorised Share Capital of the Company and consequential alternations of Memorandum and Articles of Association of the Company. Sahara buys 42.5% shr in Force India, to be Mallya's equal partner The Subroto Roy-promoted Sahara Group has taken a 42.5% stake in Formula One team Force India owned by UB Group's Vijay Mallya for $100 mn. Roy and Mallya held a press conference to announce the same. Sahara will subscribe to new shares of the company for its stake. With the equity expansion, Mallya's stake will go down to 42.5%. The rest will lie with the Dutch entrepreneur Michiel Mol family. Force India was formed in 2007 when a consortium, led by Mallya and Mol bought the loss-making Spyker Formula One team and renamed it Force India. Maruti may halt production of Swift, Dzire, all diesel models Maruti Suzuki India Ltd may soon have to discontinue making diesel model of all its cars and even the petrol variants of the Swift and Dzire due to shortage of engines and transmission systems. Suzuki Powertrain India Ltd, which makes diesel engines and transmissions for Maruti Suzuki, has been shut down along with the car maker's Manesar factory since Oct 7 due to labour strife. Suzuki Powertrain India is a joint venture between Maruti Suzuki and Suzuki Motor Co. M&M defers new bookings of 'XUV 500'; 8,000 units booked in 10 days Mahindra & Mahindra Ltd has temporarily deferred new bookings for its new sports utility vehicle 'XUV 500' after over 8,000 units of the vehicle were booked in the first 10 days of its launch. Four months of global production of XUV 500 has been sold out. It added it will not launch XUV 500 beyond the current five cities-- Pune, Mumbai, Delhi, Chennai and Bengaluru--and expects the move to help meet the delivery dates already committed to customers. Toyota Kirloskar mulling powertrain manufacturing unit Toyota Kirloskar Motor Pvt Ltd is mulling a powertrain manufacturing unit in Bangalore that would have a capacity to make up to 250,000 engines per year. Toyota Kirloskar currently imports engines for all its models from Japan. Toyota Kirloskar, which is 89% owned by Toyota Motor Corp of Japan, will initially begin by making petrol engines for the Etios entry-level sedan and Liva hatchback models. M&M gets bookings for over 5,000 units of XUV5OO Mahindra & Mahindra Ltd said it has received bookings for over 5,000 units of its recently-launched sports utility vehicle model XUV5OO. Bookings for the XUV500 had opened across five cities - Mumbai, Pune, Delhi, Bengaluru and Chennai from Oct 1. Mahindra & Mahindra launched the global sports utility vehicle XUV500 at Rs.1.08-1.29 mn, ex-showroom Delhi, on Sep 29. M&M resumes production at Rudrapur plant on curfew relaxation Mahindra & Mahindra Ltd has resumed production at its tractor-making unit in Rudrapur, which was stopped on account of curfew imposed by the Uttarakhand government following communal violence in the area on Oct 2. M&M had said the break in production would not have any material impact on sales, as current inventory was sufficient to meet near-term demand.

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

Honda plans to use more local parts in volume models Japanese car maker Honda Motor Co plans to use more local parts in its models that sell in large numbers, which will help the company to price the vehicles more competitively. Honda aims to have 100% local parts in its volume models, including small car Brio, City sedan, and premium hatchback Jazz, in the coming years. SIAM likely to cut car sales growth forecast to 6-8% vs 16-18% earlier The Society of Indian Automobile Manufacturers is likely to cut its growth forecast for cars for the third time this year due to a slowdown in demand. SIAM now expects passenger car sales to grow 6-8% in 2011-12 compared with its earlier estimate of a 16-18% rise. M&M to delay pan-India launch, export plans for XUV5OO SUV Mahindra & Mahindra Ltd will delay the pan-India launch and export plans of its sports utility vehicle model XUV5OO launched in five cities on Oct 1. The delay comes due to better-than-expected response and limited production capacity of the vehicle at the moment. ANALYSIS: Labour strife-hit auto industry fast running out of gas The domestic auto industry, which was already roiling under the double whammy of high loan rates and rising fuel prices, has now been stretched to the seams with labour strife at many automakers marring production figures. Maruti's Manesar unit sees fresh trouble; workers observe sit-in Maruti Suzuki India Ltd said production at its Manesar factory was again halted after a group of workers resorted to a "sit-in" inside the factory premises. Ashok Leyland, City Union Bank sign MoU for financing of CVs To attract consumers deterred by the current high interest scenario, Ashok Leyland Ltd has tied up with City Union Bank to provide financing options for purchase of its commercial vehicles across India. Tata Motors launches Manza sedan, Prima CV models in South Africa Tata Motors Ltd has launched its sedan, Manza, and its premium range of international commercial vehicles, Prima, in Johannesburg, South Africa. Maruti's Gurgaon unit output falls further on shortage of supplies Maruti Suzuki India Ltd's production fell further today with supply of critical components such as engines and transmission systems coming to a halt due to the ongoing strike at Suzuki Powertrain India. Head says Ashok Leyland plans around 1% hike in vehicle prices Nov Ashok Leyland Ltd is planning to raise vehicle prices by around 1% next month due to an increase in input costs, Managing Director Vinod K. Dasari said. Local administration asks Maruti Manesar staff to vacate premises The local district administration and the labour department have advised the striking workers at Maruti Suzuki India Ltd's Manesar factory to immediately vacate the company's premises, a company statement said, quoting officials. FOCUS: Analysts say no panic on Maruti, labour unrest one-off event Analysts have not pushed the "sell" button on Maruti Suzuki India, even though labour unrest at its Manesar plant has now spilled to its component unit, as they believe the problem is one-off and will not alter the fundamental strengths of the automaker. Hyundai takes leaf out of competition; prices Eon at Rs.269,000 Hyundai Motor India Ltd today launched the Eon, its least expensive and the lowest powered car ever, in order to further expand the company's portfolio in the volume segment. Volvo Bus Corp to invest Rs.4 bn in India over next 5 years Volvo Bus Corp will invest Rs.4 bn over the next five years in capacity expansion and product development. The investment is as part of the company's plan to achieve $1 bn turnover and sell 5,000 buses in 2015, the release said. Maruti Suzuki launches limited edition Alto Xplore Maruti Suzuki India Ltd introduced a limited edition of its best-selling car Alto under the brand name Alto Xplore.

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

Garware Motors launches GT 650N sports bike at Rs.439,000 Garware Motors Ltd, which assembles and markets South Korea-based S&T Motors' motorbikes in India, launched the Hyosung GT 650N sports motorbike at Rs.439,000 ex-showroom Delhi. MARUTI SUZUKI: • Workers at the company's Manesar plant go on a 'flash strike' after the company bars around 1,000 casual workers from entering the premises. • Took action against 25 workers for the agitation at its Manesar plant. • Production declined further with supply of critical components coming to a halt due to a strike at Suzuki Powertrain plant. • Strikes at the company's Manesar plant since June have resulted in excise revenue losses worth Rs.3.5 bn for the government, and up to Rs.15.4 bn for the company. • Said no production took place at its Manesar unit, while the Gurgaon plant produced 600 vehicles. MAHINDRA & MAHINDRA: • Will delay its pan-India launch and export plans for its recently launched XUV500 on better-than- expected response. • Company received orders for 5000 XUV500s since Oct 1. • Has temporarily deferred new bookings for sports utility vehicle XUV 500 as global production for four months has been booked. BAJAJ CORP: Jul-Sep net profit rose 90.28% on year to Rs.287.45 mn, while net sales were up 31.43% on year to Rs.1.07 bn. ATUL AUTO: Plans to invest Rs.2 bn in the four-wheeler commercial vehicle segment. BAJAJ AUTO: Aims to produce 10 mn vehicles by 2014-15 (Apr-Mar).

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

MISCELLANEOUS MISCELLANEOUS: • Cabinet OKs hike in minimum net worth norm for TV channel companies. • Hermes seeks to open a high street outlet in India. • Cooked books to haunt cos in restated accounts. • Dina Thanthi group buys NDTV Hindu. • No takers for BCCI's new media rights. • Govt to decide LIC chairman next week. • Gold imports may cross 1,000 tn this year. • Fiery shareholders force Crompton to sell off plane. • Tighter GDR rules to check fraud on the cards. • Nifty cos to record fall in profits first time in 2 years. • Andhra businesses against formation of Telangana. • Nilekani unfazed over unique ID project criticism, says on track. • UTI Mutual Fund set to name Khosla its chairman. • Indian group's London B-school shuts shop. • Nippon may buy 26% in Reliance Capital's MF arm. • Fabindia buys UK's EAST. • Bengal land woes miff Videocon, co mulls shifting projects. • M&M Finance gets in-principal SEBI approval for mutual fund ops. • Survey shows 70% Indian cos plan to up headcount in 2 years. • New investment falls to 9-quarter low as caution reigns. • Dabur's Burmans to enter investment banking, broking. • Rajesh Exports to raise debt for retail expansion. • $5 bn play for India Inc if Sri Lanka wins Commonwealth Games 2018 bid. • Bosch strike enters third week; management seeks govt's assistance. • Reliance Broadcast sees FY13 marketing spend on TV ops 200 mn rupee. • Textile ministry to formulate debt-restructuring plan for sector. • Dunlop India transferring trademarks to Ruia flagship. • SEBI questions BSE on Sahara case. • Insurance cos mulling 'job loss covers'. • PE funds say Lilliput owner fudged accounts. • HRD ministry plans Rs.950 mn grant for 5 IIMs as global ranking down. • News broadcasters slam new TV norms. • Prime Minister Manmohan Singh has said issues causing frequent labour strikes need to be resolved quickly. • Railways has hiked freight rates by more than 15%, which will put increase the industry's costs by 60-70 bln rupees. • Cabinet approves ordinance for cable network digitization. • SEBI fines Pantaloon for delay in redressing investor complaints. RETAIL: • Promoters of Lilliput Kidswear have moved court to prevent private equity investors from a possible exit from the company. • Ethnic wear chain Fabindia has acquired majority stake in UK-based women's wear retailer EAST for Rs.350-400 mn. • Sequoia Capital will invest $5 mn in Pune-based fast food vendor Faaso's for an undisclosed minority stake.

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

• Lilliput Kidswear has deferred filing the prospectus for its IPO as private equity investors Bain Capital and TPG have raised doubts over the company's audited financial statements. • Six directors and the external auditor of Lilliput Kidswear resigned after private equity investors accused founder Sanjeev Narula of fudging accounts. REGULATORY: • ICICI Prudential Mutual Fund has sought approval of the Securities and Exchange Board of India to launch a capital protection fund to invest in debt securities, money market instruments and equity. • Institute of Chartered Accountants of India wants the Reserve Bank of India to appoint statutory auditors in state-owned banks. • The RBI may consider one-time cut in statutory liquidity ratio or cash reserve ratio to inject liquidity in banking system. • Institute of Chartered Accountants of India has asked the government to standardise auditing procedures for domestic companies. • RBI Governor D. Subbarao said the central bank is sensitive to the industry's need of a low interest rate regime in India but that cannot take precedence over its fight against inflation. HOSPITALITY: • Starbucks Coffee Co to form joint venture with Tata group for opening coffee shops in India. • Toshali Resorts plans investment of Rs.1.15 bn by Mar 2015, might sell about 20% stake to fund expansion. MEDIA: • The government has tightened norms for new television channels, including raising net worth limits. • The government is mulling setting up a regulatory body to curb misleading advertisements on television and in the print media. FOOD BUSINESS: • Dairy product brand Amul opened two quick-service cafes in Bangalore and Ahmedabad; will add eight more by end of 2011-12 (Apr-Mar). HOME APPLIANCES: • Orient Fans is entering the 52-bn-rupee home appliances segment, with a target of gaining 10% market share in the next three years. INSURANCE: • The government is likely to decide on the chairman of Life Insurance Corp of India next week. PRIVATE EQUITY: • Private equity deals in India are likely to slow down due to Department of Industrial Policy and Promotion guidelines restricting foreign investors' exit options. TRADEMARKS: • The government is mulling separate establishments for handling claims of trademarks and patents as there has been a pile-up of applications. CONSUMER DURABLES: • LG India may hike prices of its mobile handsets by 5% in Nov due to rising input costs and rise in the dollar against the rupee. EDUCATION: • The human resource development ministry has decided to give the Indian Institutes of Management grants of Rs.950 mn to increase their research output fivefold. MANUFACTURING: • Elevator-maker Kone Elevator India plans to set up a second production unit near Chennai. TEXTILES: • Textile ministry will formulate a debt recast plan for the industry in consultation with the RBI and the finance ministry.

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

VENTURE CAPITAL: • Intel Capital plans to set up a second $250-mn venture capital fund in India. BROADCASTING: • The Cabinet has given its nod to digitise the cable and satellite television industry in India by 2014. FINANCIAL SERVICES: • Cabinet has approved a proposal to convert India Infrastructure Finance Co into a non-banking finance company and bring it under the regulatory ambit of the Reserve Bank of India. • Changes in the SARFAESI and Debt Recovery Acts will allow banks to recover loans from defaulters more easily and help reduce their non-performing assets. MERGERS: • Mumbai-based Tag Offshore is in talks with Hyderabad-based Ocean Sparkle to enter into a $100- mln merger of the two companies. MUTUAL FUNDS: • The Securities and Exchange Board of India is investigating HDFC Asset Management Co for alleged front-running. BRICS bourses form alliance, to cross-list shr indices derivatives Seven stock exchanges from five emerging nations--Brazil, Russia, India, China and South Africa, also known as BRICS--have formed an alliance that will begin by cross-listing of derivatives of their benchmark equity indices. "Following that, the alliance will develop innovative products to track the BRICS exchanges," it added. The cross listing of equity indices derivatives will enable trade in these contracts in local currency, and is likely to take place by Jun 2012. BSE and NSE will represent India in the alliance, which includes BM&FBOVESPA of Brazil, MICEX of Russia, and the Johannesburg Stock Exchange of South Africa. China will initially be represented by the Hong Kong Exchanges and Clearing Ltd. NSE and BSE have signed letters of support and will join the alliance after finalising "outstanding requirements", the release said. The exchanges accounted for over 18% of all exchange-listed derivative contracts traded by volume worldwide as of June this year, BSE said. According to the release, these exchanges represent a combined listed market capitalisation of $9.02 trn, equity market trading value of $422 bn per month and 9,481 listed companies. The alliance was announced at the 51st annual general meeting of the World Federation of Exchanges in Johannesburg. "As a logical second phase in the alliance, the exchanges have agreed to work together to develop new products for cross-listing on the respective exchanges," Russell Loubser, chief executive officer of the Johannesburg Stock Exchange was quoted as saying in the release. The second phase will also include development of products combining exposures to equity indices of all alliance partner exchanges, which would then be cross listed and traded in local currencies. "Apart from cross-listing products, there are other opportunities which can be explored which have great potential and will promote greater development and understanding of the respective markets," Ruben Aganbegyan, president of MICEX was quoted as saying. The third phase of cooperation may include product development and cooperation in additional asset classes and services, it added. Archidply Ind seeks shareholders' OK to sell Mysore unit Archidply Industries Limited has submitted to the Exchange a copy of Notice of Postal Ballot pursuant to Section 192A of the Companies Act, 1956 read with the Companies (Passing of the Resolution by Postal Ballot) Rules, 2011 in respect of the special resolutions to be passed through postal ballot : (1) GRANT OF POWER TO BOARD OF DIRECTORS OF THE COMPANY TO SALE OF MYSORE UNIT - "RESOLVED THAT the consent of the Company pursuant to the provisions of Section 293 (1)(a) of the Companies Act, 1956, be and is hereby given to the Board of Directors to sell/ disposing of the whole, or substantially the whole of the undertaking and assets of the Mysore Unit which includes land, plant and machinery. Natraj Financial to be renamed Royal India Corp Natraj Financial & Services Ltd has informed BSE that as decided in the Meeting of Board of Directors of the Company held on Oct 05, 2011, it is proposed to: 1. Conduct Postal Ballot for change in the name of the company from 'Natraj Financial & Services Ltd' to 'Royal India Corporation Ltd' subject to the approval of shareholders of the Company. 2. Appoint Mr. Deep Shukla, Practicing Company Secretary, Mumbai as Scrutinizer for conducting the aforesaid Postal Ballot process of the Company. 3. Appoint Mr. Kumar Pal Punamiya, Whole Time Director of the Company and authorize him individually to take such steps as may be

Weekly Newsletter 51 Info-Spectrum Bridging the Information Gap in Corporate Landscape necessary for obtaining approvals, statutory, contractual or otherwise, in relation to business of the Company in the State of Jharkhand for and on behalf of the Company. Source says FIRE Capital Fund to turn developer, launch projects Gurgaon-based FIRE Capital Fund, a realty focused private equity fund, is likely to announce a foray into setting up real estate projects, a person familiar with the development told. The fund, which has been primarily investing at project level is likely to announce projects in Ludhiana and Panipat, the person added. The investment in these projects could not be ascertained. FIRE Capital will announce the plans Oct 11. Not many India-based realty funds have turned developers till now. Aegis inaugurates 3,000-seat outsourcing centre in Philippines The Essar Group-owned Aegis Ltd inaugurated a 3,000-seat business process outsourcing centre, Aegis Tower, at Cebu in Philippines. Aegis, which has operations in the Philippines since 10 years, sees it as a key market and plans to increase its operations there "due to the significant and continuing demand for experience-driven customer support from both local and international clients," the company said. Aegis currently has a headcount of over 12,000 employees in Philippines and plans to hire additional 3,000 by March. "We aim to become a $1 bn company, crossing the 60,000-mark in headcount by Mar 2012," the release quoted Managing Director and Global Chief Executive Officer Aparup Sengupta as saying. "The Philippine market plays a big part in helping us achieve our goals." Rajapalayam Mills to buy 6 mn Rajapalayam Spinners shrs Rajapalayam Mills Ltd has informed BSE that the Board of Directors of the Company at its meeting held on Oct 10, 2011, has approved the following: 1. To acquire entire 60,00,000 Equity Shares of Rs.10 each of Rajapalayam Spinners Pvt. Ltd. (RSPL) from the Shareholders of RSPL @ Rs.8.76 per Share. 2. To issue, offer & allot 3,51,000 Equity Shares of Rs.10 each of the Company to Shri P. R. Ramasubrahmaneya Rajha, Chairman on Preferential basis at a premium of Rs.223 calculated on the basis of SEBI Guidelines. It is proposed to convene an Extra-ordinary General Meeting on Nov 09, 2011 to get the approval of the members of the Company for the above subjects by way of Special Resolutions. Compact Disc plans foray into film making, financing Compact Disc India Ltd plans to foray into film making, financing, and infrastructure related to film production and may start by buying some under-production films of Mumbai-based Naksh Media Pvt Ltd. The media and animation company will issue shares to Naksh Media to buy the under-production movies. Compact Disc will transfer its animation films business to its subsidiary CDI Media Pvt Ltd but will continue with its outsourcing business. The company plans to change its name to CDI Ltd to reflect its new business orientation, and shift its registered office from Chandigarh to Maharashtra. All these proposals were approved by the company's board and will now need the approval of its shareholders and registrar of companies, among others. Wyndham Hotel expands ops to Agra, Alleppey, Ghaziabad The Wyndham Hotel Group said it has signed agreements with three hotels in the country for expanding operations of its 'Wyndham Hotels and Resorts', and 'Ramada' brands. The group currently has 14 hotels operation and 15 properties currently under development in the country, the company said in a release. A part of Wyndham Worldwide Corp, the group will expand a Wyndham Grand property--operated under Wyndham Hotels and Resorts--in Agra, and two newly constructed Ramada properties in Alleppey and Ghaziabad. The New York Stock Exchange-listed company said it has signed a pact with Shekhar Resorts Ltd for its property in Agra, which will be managed under the the Wyndham Hotels and Resorts brand. Under the Ramada brand, the group has tied up with Reji Cheriyan, the owner of a hotel in Alleppey, and with Global Enterprises for a property in Ghaziabad. The properties are expected to start between by end of 2011, and Mar 2016. Wyndham Hotel Group currently has 425 properties with over 61,700 rooms under the brands of Wyndham Hotels and Resorts, Ramada, and Days Inn. Source says tax dept raided Pipavav Defence, CMD Gandhi's premises The Income Tax Department's Investigation Wing raided the offices of Pipavav Defence and Offshore Engineering Co Ltd in Mumbai and Gujarat, and the residence of Chairman and Managing Director Nikhil Gandhi in Mumbai, a source in the department told. The raids were conducted at around 16 premises of the group, including at the offices of SKIL Infrastructure Ltd in Mumbai, Pipavav and Ahmedabad, the source said. The company, known as Pipavav Shipyard Ltd until recently, had announced a strategic partnership with state-owned Mazagon Dock Ltd on Sep 12. The deal was later put on hold by the defence ministry after some rival shipyards criticised the process, but has now been cleared. Pipavav Defence is India's youngest

Weekly Newsletter 52 Info-Spectrum Bridging the Information Gap in Corporate Landscape shipbuilding company but has been facing significant delays in delivering its first vessel, because of which the company has faced order cancellations and price reduction. L&T to infuse Rs.5 bn into L&T General Insurance in 3-4 years Larsen & Toubro Ltd will infuse up to Rs.5 bn into arm L&T General Insurance Co Ltd over the next three to four years, said N. Sivaraman, president and whole-time director of group company L&T Finance Holdings Ltd. The fund infusion would be required to help sustain growth in the capital- intensive insurance business, Y.M. Deosthalee, chairman and managing director, L&T Finance Holdings, said. Deosthalee said L&T General Insurance was looking to establish itself in the general insurance business, and is not seeking partners at the moment. "We have no plan to venture into life insurance at the moment," he said. Speaking on another group company L&T Infrastructure Finance Ltd, Deosthalee said delay in infrastructure projects, and lack of coal and power availability had slowed down investments into the sector. "These are structural issues, that need to be resolved to give a boost to the sector," he said. NRB Bearings shareholders to get 1 NRB Industrial share for 4 held NRB Bearings Ltd's board approved demerging its industrial bearings arm into the newly formed entity NRB Industrial Bearings Pvt Ltd. NRB Bearings' shareholders will get one share of NRB Industrial Bearings Pvt Ltd for every four held, the former informed the stock exchanges. The appointed date of the demerger is Apr 1, 2012. The new entity will be listed on the Bombay Stock Exchange and the National Stock Exchange. Cabinet OKs hike in minimum net-worth norm for TV channel cos To weed out "non-serious players" from the television media industry the Union Cabinet approved amendments to the "Policy Guidelines for Uplinking and Downlinking of TV channels", including raising the minimum net-worth requirement for companies seeking to operate such channels. Assocham says Mumbai malls expect footfalls to rise 120% in Diwali Malls and shopping complexes in Mumbai expect footfalls to rise 115-120% this festive season compared to regular days, with consumer durable manufacturers offering discounts and gifts, financing options to lure buyers, according to a survey by Associated Chambers of Commerce and Industry of India. Dabur sees beauty retail ops profit in 2 yr; eyes ready-to-eat pdts Dabur India Ltd expects its beauty retail business to clock its maiden profit in 2013-14 (Apr-Mar) financial year, according to Chief Executive Officer Sunil Duggal. Navin Fluorine International ups NOCIL stake to 2.23% from 1.82% Navin Fluorine International Ltd has increased its stake in NOCIL Ltd to 2.23% from 1.82% on Sep 28, the former informed the Bombay Stock Exchange. Pvt equity investments in India cos declines 4.6% on yr in Jul-Sep Investments by private equity firms in Indian companies declined 4.6% on year in Jul-Sep to around $2.25 bn, mirroring a slowdown in deal flow across sectors, according to a report by Chennai-based research firm Venture Intelligence. Essel Corporate to get 31.04% Dish TV stake via inter se transfer Essel Corporate Resources Pvt Ltd will acquire 31.04% stake in Dish TV India Ltd via off-market inter-se transfer of shares between promoters from Oct 13-Jan 13, the former said in a notice to the Bombay Stock Exchange. Reliance Capital ups stake in Reliance Broadcast to 6.76% vs 6.70% Reliance Broadcast Network Ltd's promoter Reliance Capital Ltd has raised its stake in the company to 6.76% from 6.70% through open market purchase, the former said in a regulatory filing to the Bombay Stock Exchange. Fabindia acquires 62% stake in UK-based retailer "EAST" Indian apparel maker Fabindia has acquired 62.5% stake in UK-based women's wear retailer "EAST", which is estimated at about Rs.350-400 mn. Fabindia also has an option to buy the balance stake and take full control of the foreign retailer within a year. Videocon may shift proposed projects from Burdwan in Bengal The Videocon Group is considering the relocation of its proposed steel and power plants in Burdwan district of West Bengal to a different site due to land acquisition hurdles. Videocon Industries has also bid for a 1,320 MW power project in Bihar.

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

Dunlop India suspends ops at Sahaganj unit from Oct 8 Dunlop India Ltd has submitted to BSE a Copy of the Company's Notice dated Oct 08, 2011 regarding suspension of operations of the Company's Factory at Sahaganj, West Bengal w.e.f. Oct 08, 2011 at 6.00 am. Pudumjee Pulp completes Global Boards' asset acquisition Pudumjee Pulp & Paper Mills Limited has informed the Exchange that the Company has completed the acquisition of all assets including Land and Buildings, Plant & Machinery of Global Boards Limited lying at Mahad, Dist. Raigad, Maharashtra. Dunlop India suspends operations at Sahaganj unit in West Bengal Dunlop India Ltd has suspended operation at its factory in Sahaganj, West Bengal, from Oct 8 due to indiscipline and detrimental activities by workers. The period of suspension of operation will be treated as "No Work No Pay", the tyremaker said in a release. UTV Software to up stake in Indiagames; plans to buy 30% more UTV Software Communications Ltd plans to raise its stake in Indiagames to 86.02% by acquiring 30.02% shares of the company for Rs.945.6 mn. The company entered a definitive agreement with Indiagames for buying the additional stake. It is also negotiating with Indiagames' promoters and employee shareholders to acquire 100% stake, the notice said. Adobe Inc and Cisco Systems Inc also hold a stake in Indiagames, which develops and distributes games for online and mobile platforms. Brokerage Bonanza to enter gold coin distribution by month-end Bonanza, the New Delhi-based brokerage offering services across financial and commodity markets, plans to enter into the distribution of gold coins by the end of Oct, President Rakesh Goel told. "We have diversified into many businesses...gold coin distribution will only add to our production diversification, and we expect high revenues from this business as gold prices have been escalating this year," Goel said. FOCUS: Cost cutting new mantra for brokerages as equities lose sheen The Eurozone and US economic crises may have had far reaching consequences for global markets, be it equity, debt or commodity, but that is not where the mayhem ends. INTERVIEW: Forexserve CEO says cos' poor hedges spurred rupee fall Turning a blind eye to the risks involved in currency trading, several banks and companies had entered into one-sided deals. But with the rupee starting to lose ground against the dollar from August, those deals came crashing down on balance sheets, said Satyajit Kanjilal, chief executive officer, Forexserve. Wipro plans to re-launch Aramusk soap in a few months The consumer products arm of Wipro Ltd plans to re-launch Aramusk, one of the oldest male deodorant soaps in a few months. Wipro had acquired Aramusk from Mumbai-based manufacturer VVF Ltd in Jun. With brands like Santoor and Chandrika, Wipro has a share of 8.2% in the soap segment. Employee strike at Bosch's Bengaluru plant continues as talks fail The second round of talks between the employee union at the Bengaluru plant of Bosch Ltd and the management has failed to break the 14-day deadlock, Lokesh N., general secretary of the MICO Employee's Association told. "No production is taking place at the factory," Lokesh said. The workers have been sitting on a relay hunger strike since Oct 2. The labour union is protesting the management's decision to outsource some non-core activities and support processes, saying that such a move was a violation of the Oct 2010 wage settlement pact. Ricoh India to mull buying InfoPrint Solutions Oct 24 Ricoh India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on Oct 24, 2011, inter alia, to consider and give in principle approval to acquire 100% Shareholding in InfoPrint Solutions India (P) Ltd., so as to make InfoPrint Solutions India (P) Ltd., a wholly owned subsidiary of Ricoh India Ltd. Krishna Ventures to mull Rudra Mahima merger Oct 12 Krishna Ventures Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on Oct 12, 2011, to consider and approve the scheme of amalgamation of Rudra Mahima Business Ventures Ltd. with Krishna Ventures Ltd.

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

Survey shows 70% Indian cos plan to up headcount in 2 years Indicating positive growth sentiment in India corporate sector, a research report by Regus Plc said 70% of domestic companies plan to increase their headcount in the next two years compared with 64% globally. According to Regus global business confidence index, 51% of companies globally are reporting revenue growth compared with India's 63%. Globally, 42% of the companies have reported rise in profits against 59% in India. The survey found that business confidence has dropped globally since April. M&M Finance gets in-principal SEBI approval for mutual fund ops Mahindra & Mahindra Financial Services Ltd has got in-principal approval from the Securities and Exchange Board of India to launch mutual fund operations, Managing Director Ramesh Iyer told. "The final approval will take another 12 months," Iyer said. Mahindra & Mahindra Financial Services, a non-banking finance company, is a part of the Mahindra Group. The company had applied for a mutual fund license last year. Currently, there are 44 mutual fund houses in the domestic industry, with total average assets of over Rs.7 trn as on Sep 30. EPC cos' revenue seen moderate on slow order inflow, execution Revenue growth of capital goods and heavy engineering companies is likely to have moderated in the quarter ended Sep due to slowdown in order inflow and execution, according to two domestic brokerages. High cost of capital investment, elevated inflation, and lack of policy reforms have slowed down the pace of order inflow and order execution, Religare Capital Markets said. Ravinay Trading OKs merger of arm with self Ravinay Trading Company Ltd has informed BSE that the Board of Directors of the Company at its meeting held on Oct 08, 2011, have approved the Scheme of Amalgamation of M/s. Vinaykumar Family Trading and Holding Company Ltd. (wholly owned subsidiary of the Company) into the Company. Interviews to select new LIC chief postponed to Oct 21 from Oct 12 The interviews to select a new chairman for Life Insurance Corp of India will be conducted on Oct 21, a finance ministry official said. The interviews were earlier scheduled for Oct 12. The official didn't give any reason for the postponement. Vertex Securities OKs demerger of merchant banking ops Vertex Securities Ltd has informed BSE that the Board of Directors of the Company at its meeting held on Oct 11, 2011, inter alia, has transacted the following: 1. Subject to the approval of the Members of the Company, the Board has approved the scheme of demerger of its Merchant Banking Division into a new company. 2. The Board has approved the allotment of shares vested under the Scheme Vertex Employees Stock Option Plan, 2010 ('Plan'). Rajesh Exports gets Rs.6.21-bn order from Dubai company Rajesh Exports Ltd has received orders worth Rs.6.21 bn for supplying branded gold jewellery to Dubai- based Excel Gold Smiths, the company said in a notice to the Bombay Stock Exchange. MMTC Sep gold import 19 tn, dn 15%; silver import 149 tn, up 157% MMTC Ltd's import of gold in Sep declined 15% on year to 19.38 tn, a senior company official told. In Apr- Sep, the import of the yellow metal, however, rose 15% on year to 123.23 tn, the official said. MMTC is the second largest gold importer in India, after ScotiaMocatta, a division of The Bank of Nova Scotia. In Aug, MMTC's import of gold had fallen 58% on year to 19.38 tn. The company silver imports surged 157% on year to 149 tn in Sep, the official said. In Apr-Sep, MMTC imported 712 tn of silver, sharply up from 456 tn during the same period last year, he said. MMTC imported 52.8 tn silver in Aug, down 25% on year. Promoter Leela Lace pledges 3 mn Hotel Leelaventure shares Sep 29 Leela Lace Holdings Pvt Ltd, one of the promoters of Hotel Leelaventure Ltd, has pledged 3 mn shares of the company on Sep 29. The same day, Leela Lace revoked pledge on 571,500 shares. Currently, 24.36% of the company's shares are pledged. Textile ministry to formulate debt restructuring plan for sector The textile ministry will formulate a debt restructuring plan for the industry in consultation with the finance ministry and Reserve Bank of India, Commerce and Industry Minister Anand Sharma said. Reliance Broadcast eyes 25% of TV sales from subscriptions by 2013 Reliance Broadcast Network Ltd plans to increase the share of subscription fee in its television business revenue to 25% by Jan 2013 from 10% now, Business Head - Television Nikhil Mirchandani said. The

Weekly Newsletter 55 Info-Spectrum Bridging the Information Gap in Corporate Landscape company plans to launch its high-definition channel Best of BIG CBS in the current quarter ending December, Mirchandani said. The company also plans to launch a slew of new television programmes on its existing channels BIG CBS Prime, and BIG CBS Love. Reliance Broadcast will spend Rs.200 mn on marketing its television business in 2012-13 (Apr-Mar), Mirchandani said. Bosch strike enters third week; management seeks govt's assistance Bosch Ltd's management has approached the Karnataka government to end the employees' strike at its Bengaluru plant, which entered its 15th day. The last two rounds of talks between the management and the employees, led by MICO Employee's Association, failed to solve the dispute and the matter is being referred to the government for a final decision, the company said. The employees continue to protest the management's decision to outsource certain non-core activities and processes on the grounds that it is in violation of the company's Oct 2010 wage settlement pact. L&T General Insurance launches first health insurance product L&T General Insurance Co Ltd, a wholly-owned subsidiary of Larsen & Toubro, announced the launch of its first health insurance product, my:health Medisure Prime Insurance. Milkfood says Pinnacle ups stake in co to 6% but Pinnacle says 10% Dairy products maker Milkfood Ltd said Pinnacle Trades & Investments Ltd's stake in the company has risen to 6.01% from 1.93%. On Sep 26, Pinnacle Trades & Investments bought 199,500 shares of Milkfood from the open market for Rs.19.43 mn. However, in a separate disclosure, Pinnacle Trades & Investments said its stake in Milkfood has increased to 10.01% from 5.93%. NRB Bearing OKs scheme of demerger of NRB Industrial NRB Bearing Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on Oct 12, 2011, has considered and approved the Scheme of Arrangement between NRB Bearings Ltd. ('NRB' or 'the Demerged Company') and NRB Industrial Bearings Private Ltd. ('NIBL' or 'the Resulting Company') and their respective shareholders and creditors ('the scheme') under section 391 to 394 read with Sections 100-103 and other applicable provisions of the Companies Act, 1956. Religare Enterprises acquires Shreyas Stocks Religare Enterprises Ltd has informed BSE that the Company had acquired 100% equity shares of Shreyas Stocks Private Limited and Shreyas Advisory Services Private Limited, entities based in Chennai. By virtue of aforesaid acquisition, Shreyas Stocks Private Limited and Shreyas Advisory Services Private Limited have become wholly owned subsidiaries of the Company with effect from on Oct 12, 2011. Godrej Consumer completes 51% stake buy in Darling Group Godrej Consumer Products Ltd has completed the acquisition of 51% stake in Darling Group Holdings, a leading African hair care company, the Indian fast moving consumer goods major said in a statement to the stock exchanges. Employees of Bosch end tool down strike Bosch Ltd's employees ended the tool down strike at its Bengaluru plant today, a CNBC TV18 report said, quoting sources. SEBI fines Pantaloon for delay in redressing investor complaints The Securities and Exchange Board of India has fined Pantaloon Retail India Ltd 500,000 rupees for delays in redressing investors' grievances, an order posted on the regulator's website said. Cable TV cos see revenue boost on mandatory digitalisation law Cable television companies, such as Den Networks Ltd and Essel Group, see their earnings growing in the near future with the digitisation ordinance coming into effect. Cabinet approves ordinance for cable network digitisation The Union Cabinet today cleared an ordinance to facilitate faster digitisation of cable television networks in the country. Cabinet OKs raw material buy abroad for PSUs in profit for 3 yrs The Cabinet today approved the policy for acquisition of raw material assets abroad by Central Public Sector Enterprises with a three-year record of making net profit, Information and Broadcasting Minister Ambika Soni said.

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

DQ Ent inks marketing, distribution pacts for animated films DQ Entertainment (International) Ltd has entered into several marketing and distribution tie-ups for its animated films and related merchandise, the company said in a release. Somany Ceramics inks MoU to acquire 26% stake in Vintage Tiles Somany Ceramics has signed a memorandum of understanding with Vintage Tiles Pvt Ltd and its promoters to buy 26% stake in the company, the former said in a regulatory filing. Thomas Cook India opens franchise outlet at Panipat in Haryana Thomas Cook India Ltd has opened an outlet in Panipat under the franchise route to expand its business, the travel company said in a notice to the Bombay Stock Exchange. INTERVIEW: Eros eyes more regional flavour; films in 3 new languages Blockbuster Bollywood movies are not enough to satisfy the appetite of a company that comes with a 77- year-old legacy. To tap the high-revenue industry in the south and east, movie production and distribution major Eros International Media Ltd is now planning a foray into more regional languages such as Telugu, Malayalam, Bengali. BOSCH : • The next round of talks between employees and management will be held on Oct 10 as strike at Adugodi facility entered the 11th day Saturday. • Striking workers at Bengaluru plant prevented company officials from entering the factory premises Oct 11. • Management has approached the Karnataka government to end the employee strike at its Bengaluru plant, which entered its 15th day. • Employees at the company's Bengaluru unit have ended their 16-day tool down strike. RELIANCE CAPITAL: • Has completed sale of 26% stake in Reliance Life to Japan-based Nippon Life for Rs.30 bn. • Nippon Life may buy 26% stake in company's mutual fund arm Reliance Capital Asset Management for up to Rs.40 bn. TITAN INDUSTRIES: • Has hiked the prices of its watch brands by 5-20% due to increasing raw material costs. • Plans to foray into marketing of leather accessories including belts and wallets. COMPACT DISC INDIA: Plans foray into film-making, financing and infrastructure related to film production, and may start by buying some under-production films. DABUR INDIA: Promoter Burman family may buy up to 26% in the Indian unit of Portuguese investment banking and securities firm Espirito Santo. VIDEOCON: Is mulling relocation of its proposed steel and power plants in Burdwan in West Bengal due to land acquisition problems. UTV SOFTWARE COMMUNICATIONS: Has challenged in the Supreme Court the Bombay High Court's order on violation of production rights for the movie 'A Wednesday'. VERTEX SECURITIES: Board has approved demerger of its merchant banking division into a new company. NEW DELHI TELEVISION: The company, along with Kasturi and Sons of The Hindu newspaper, to sell joint venture NDTV Hindu to Daily Thanthi group. MAHINDRA & MAHINDRA FINANCIAL SERVICES: Got in-principle approval from SEBI to launch mutual fund operations. DUNLOP INDIA: Is transferring its rights to around 100 trademarks, including Dunlop, Falcon and Monotona, to Ruia Sons, who acquired the company in 2005. NRB BEARINGS: To demerge industrial bearings arm NRB Industrial Bearings; company's shareholders will get one NRB Industrial share for every four held. RELIANCE BROADCAST NETWORK: Plans to increase the share of subscription fee in its television business revenue to 25% by Jan 2013 from 10% now. SINTEX: The promoters of the company plan to up stake in the company by 4.78% to 40%.

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

RELIGARE ENTERPRISES: Bought 100% stake in Shreyas Stocks and Shreyas Advisory Services. GODREJ CONSUMER PRODUCTS: Has completed the acquisition of 51% stake in Mozambique's Darling Group. PANTALOON RETAIL: SEBI has fined the company 500,000 rupees for delays in redressing investors' grievances. ROYAL ORCHID HOTELS: To launch a new brand of hotels positioned higher than the mid-scale segment.

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

IPO Watch IPO Alert: Flexituff International sets Rs.155/shr issue price Flexituff International Ltd has set the issue price for its 6.75-mn-share initial public offering at Rs.155 a share. The issue had opened Sep 29 and closed Oct 5. The price band for the issue was set at Rs.145-155 a share. The issue was subscribed 1.2 times, showed data on the National Stock Exchange's website. The company had received bids for 7.86 mn shares. Flexituff International manufactures packaging bags. The company plans to use the proceeds of the issue for expanding the manufacturing facilities at its special economic zone and its domestic tariff area units in Pithampur. Flexituff International will use the funds also to set up a dripper project in Kashipur, and to meet its working capital needs. Shares of the company will be listed on the Bombay Stock Exchange and the NSE. Cos raise Rs.95.8 bn via IPOs, FPOs in Apr-Sep, dn 22% on yr Indian companies mobilised Rs.95.82 bn through public equity issues in Apr-Sep, a decline of 22% on year, according to data compiled by PRIME Database. The number of issues, however, were almost flat with 31 issues in the first six months of the financial year 2011-12 compared to 32 a year ago. There were 30 initial public offers that collectively raised Rs.50.04 bn. There was only one follow-on public offer that raised Rs.45.78 bn. The average ticket size of a public issue fell to Rs.3.09 bn, down from Rs.3.53 bn in the corresponding period of the preceding fiscal year. The Apr-Sep period saw only two issues of above Rs.10 bn. On the other hand, there were 11 issues of less than Rs.500 mn, the smallest issue being of Rs.232.5 mn. According to the data, 88%, or Rs.84.05 bn, of money in these public issues was raised through fresh capital, with the remaining Rs.11.77 bn raised through offers for sale where the proceeds go to the sellers such as government, promoters, venture funds and other investors and not directly to the company. According to PRIME, the banking and financial services sector dominated with seven companies raising Rs.76.21 bn followed by electronics with two issues raising Rs.3.24 bn. Besides equity issues, Apr-Sep saw hectic activity in the public debentures market. As many as seven debenture issues raised over Rs.45.89 bn, compared to two such debentures that mopped up Rs.9.71 bn in the corresponding period of the preceding year. With the markets remaining choppy, analysts feel that the outlook for many companies that are planning to hit the IPO trail looks quite uncertain. There are as many as 109 companies either having Securities and Exchange Board of India approval or are awaiting approval. Source says PE investors raised doubts over Lilliput accounts Lilliput Kidswear Ltd has deferred filing the draft red herring prospectus for its initial public offering in India as its private equity investors, Bain Capital and TPG, raised doubts over the company's audited financial statements, investment banking sources told. Promoters, including the company's Managing Director Sanjeev Narula, hold 55% while the two private equity investors hold the remainder. Lilliput approached the Delhi High Court on Oct 3 to prevent the PE investors from selling their stakes. The court has granted Lilliput injunction. Bain and TPG are yet to file their responses in the matter. "The PE guys got crank calls alleging financial irregularities in our books. It was just a couple of days before we were to file DRHP (draft red herring prospectus). Now it's their protocol to investigate since they got such calls which is what they are doing. This soured our relations and we approached the court...," Narula said in an SMS reply. He said the partners were trying to sort out the matters among themselves. Narula said the company continued to be confident about the issue and was now working on a "Plan B" to raise Rs.9 bn. He said valuation was an issue that could be settled and would depend on response the road shows get. Sources alleged the Delhi- based kids wear maker and retailer might have inflated its earnings for the financial year 2010-11 by about Rs.3.5 bn although the exact quantum could not be ascertained. Lilliput accounts are said to have been audited by Ernst & Young's audit arm SR Batliboi and Associates, according to sources. Bain Capital has invested in Lilliput through BC India Pvt Investor, while TPG owns the stake through Star Market Asia. Lilliput had plans to raise funds in an initial share sale that was to be completed by Mar. The private investors had acquired the stake last year. IPO Alert: Swajas Air Charters sets issue price at Rs.90/share Swajas Air Charters Ltd has set the issue price for its Rs.356.8 mn initial public offer at Rs.90 a share. The issue has been priced at the upper end of the price band, which was set at Rs.84-90 a share. Bids for the issue had opened Sep 26 and closed on Oct 5. The company had extended the closing date by five trading days from its original closing date of Sep 28. The company was also forced to cut its previous price band, which had been set at Rs.90-100 a share, due to poor subscription considering volatility in the stock market. Swajas Air had targeted raising Rs.375 mn from the IPO earlier. After the price band was cut, the issue was subscribed 1.43 times, according to data available on the National Stock Exchange. The Chennai-based non-

Weekly Newsletter 59 Info-Spectrum Bridging the Information Gap in Corporate Landscape scheduled airline operator plans to use the proceeds of the issue for fleet expansion; for setting up a maintenance, repair, and overhaul facility at the Chennai airport; for purchasing an office building, and for meeting working capital requirements. Shares of the company will be listed on the NSE.

ISSUES CLOSED, TO LIST Size Face Issue Issue To list Lead Issuer Shares:Rupees Value Price Period on Manager (mn:bn) (rupees) Tijaria Polypipes 10.0:0.6 10 60 27/09-29/09 Oct 14 Hem Swajas Air Charters 3.96:0.357 10 90 26/09-05/10 -- Aryaman Onelife Capital Advisors 3.35:0.37 10 110 28/09-04/10 -- Artherstone Flexistuff International 6.75:1.05 10 155 29/09-05/10 -- Collins Indo Thai Securities 4.0:0.296 10 74 30/09-05/10 -- Allianz M and B Switchgears 5.0:N.A 10 180-186 28/09-05/10 -- D and A PNB Taksheel Solutions 5.5:0.80 10 130-150 29/09-04/10 -- Investment Readymade Steel India N.A:0.347 10 108 27/06-29/06 -- Arihant VMS Industries N.A:0.26 10 40 30/05-02/06 -- Ashika

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

MERGERS & ACCQUISITIONS == INDIA-ABROAD ==

MAX INDIA ‐ LIFE HEALTHCARE GROUP Announced: Oct 11

Max India to sell 26% stake in Max Healthcare Institute to South Africa's Life Healthcare Group for Rs.5.16 bn.

Status: Ongoing

== INDIA-INDIA ==

KRISHNA VENTURES ‐ RUDRA MAHIMA BUSINESS VENTURE Announced: Oct 13

Krishna Ventures approves merger of Rudra Mahima Business Venture with self.

Status: Ongoing

SOMANY CERAMICS ‐ VINTAGE TILES Announced: Oct 13

Somany Ceramics in pact to buy 26% stake in Vintage Tiles.

Status: Ongoing

RELIGARE ‐ SHEYAS STOCKS, SHREYAS ADVISORY Announced: Oct 12

Religare Enterprises has acquired Chennai‐based Shreyas Stocks and Shreyas Advisory Services.

Status: Complete

SAHARA GROUP ‐ FORCE INDIA Announced: Oct 12

Sahara Group buys 42.5% stake in Formula One team Force India owned by UB Group for $100 mn.

Status: Complete

UTV SOFTWARE – INDIAGAMES Announced: Oct 10

UTV Software Communications to raise its stake in Indiagames to 86.02% by acquiring 30.02% stake in the company for Rs.945.6 mn.

Status: Ongoing

TILAKNAGAR INDUSTRIES ‐ PUNJAB EXPO Announced: Oct 7

Tilaknagar Industries acquires Punjab Expo for Rs.55 mn.

Status: Complete

PTC INDIA ‐ IND‐BARATH POWERGENCOM Announced: Oct 7

PTC India Financial Services sells 26% in Ind‐Barath Powergencom to latter's promoter for Rs.690 mn.

Status: Complete

Weekly Newsletter 61 Info-Spectrum Bridging the Information Gap in Corporate Landscape

ESSEL CORPORATE ‐ DISH TV INDIA Announced: Oct 7

Essel Corporate to buy 31.04% in Dish TV via an inter‐se transfer at market price by Oct 13 or within 90 days thereafter.

Status: Ongoing

SURANA TELECOM ‐ YELLOW RENEWABLE ENERGY Announced: Oct 5

Surana Telecom and Power acquires 60% in Hyderabad‐based Yellow Renewable Energy.

Status: Complete

==GLOBAL M&A==

MICROSOFT‐SKYPE

Microsoft Corp has acquired Skype Technologies SA for $8.5 bn.

UNILEVER‐KALINA

Unilever buys 82% in Russia's Concern Kalina for 500 mln euros ($685 mln).

PEABODY ENERGY, ARCELORMITTAL ‐ MACARTHUR COAL

Peabody Energy and ArcelorMittal get regulatory clearance from Chinese authorities to acquire Macarthur Coal in a $4.7‐bln deal.

BAIN CAPITAL ‐ SKYLARK CO

Bain Capital close to buying restaurant chain Skylark Co from Nomura Holdings' unit for $3.4 bln.

ALLSTATE CORP ‐ WHITE MOUNTAINS INSURANCE GROUP

Allstate Corp acquires auto insurance firms Esurance Inc and Answer Financial Inc from White Mountains Insurance Group for $1 bln.

SUPERIOR ENERGY SERVICES ‐ COMPLETE PRODUCTION SERVICES

Superior Energy Services Inc to buy Complete Production Services Inc in a cash‐stock deal valued at $2.7 bln.

CHINA PETROCHEMICAL ‐ DAYLIGHT ENERGY

A subsidiary of China Petrochemical Corp (Sinopec) will acquire Canada's Daylight Energy for $2.1 bln in cash.

KBC BANK ‐ PRECISION CAPITAL

Belgium‐based KBC Bank will sell private banking unit KBL European Private Bankers for 1.05 bln euro ($1.42 bln) to Precision Capital.

Weekly Newsletter 62 Info-Spectrum Bridging the Information Gap in Corporate Landscape

RATINGS • CRISIL ups rtg on Trans Tech Turnkey's term loan to BBB/Stable

• CRISIL ups rating on Siyaram Silk Mills' long-term loan

• CRISIL ups rtg on Mrs Bector's Food Specialities' term loan

• CRISIL cuts rating on Allied Recycling's term loan to C

• CRISIL affirms A+/Stable on Muthoot Fincorp's cash credit

• Panchsheel Buildtech's term loan gets CRISIL B+/Stable

• CRISIL affirms rtg on Peacefort Chem-Ind Engg's cash credit

• CRISIL affirms A-(SO)/Stable on Pratibha Ostu JV's cash credit

• Sektra Marketing Services' cash credit gets CRISIL BBB-/Stable

• CRISIL C on Venus Garments India's enhanced term loan

• CRISIL puts Luminous Power' cash credit on positive rtg watch

• CRISIL affirms BBB/Stable on Agrawal Metal Works' cash credit

• AU Financiers (India)'s acquirer payouts get CRISIL AAA(SO)

• Chandu Agencies' cash credit gets CRISIL BB+/Stable

• ERA Infrastructure's term loan gets CRISIL BBB/Stable

• Govind Agro Foods' term loan gets CRISIL B/Stable

• Hindusthan Health Point's term loan gets CRISIL D

• Jagraon Cycle Industries' cash credit gets CRISIL B+/Stable

• ICRA affirms BB-(stable) on Samrat Plywood's term loans

• ICRA affirms BB+ on Soktas India's term loan

• NHPC's proposed long-term bonds get CARE AAA

• Sravanthi Energy's term loans get ICRA BB-(stable)

• Rohan & Rajdeep Infrastructure's bank facilities get CARE BB

• NHPC's proposed long-term bonds get CARE AAA

• North Karnataka Expressway's NCDs get CARE AAA(SO)

• Prescon Hospitality's term loan facilities get CARE B

• Mentor India's loan facilities get CARE BB

• CARE affirms BBB on Himalyan Expressway's bank facilities

• KazStroy Engineering India's bk facilities get CARE BBB+(SO)

• CARE affirms BBB+ on KazStroyService Infra's bank facilities

• Saboo Engineers' cash credit gets ICRA BB+(stable)

• ICRA BB- on Konark Foundations long-term fund based facilities

• ICRA affirms BB+ on Kox Med & Lab's cash credit facilities

• Laxmi Construction Co's cash credit gets ICRA BB(Stable)

• Mokama-Munger Highway's term loans get ICRA BBB-(stable)

• ICRA affirms AA- on OCL India's NCD programme

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

• Paragon Industries' term loan gets ICRA BBB-(Stable)

• RPG Life Sciences' term loans get ICRA BBB+(Stable)

• RPG Life Sciences' term loans get ICRA BBB+(Stable)

• ICRA affirms BBB- on HI-Q Electronics' fund based limits

• Fitch affirms Axis Bank's long-term FX issuer rtg at BBB-

• Fitch affirms BBB- issuer rtg to Export-Import Bank of India

• ICRA affirms BB+ on Anil Special Steels Ind's term loans

• Ballal Developers' term loan gets ICRA B+

• ICRA affirms BBB- on Bhatia Industries' fund based limits

• Academy of Engineering's fund based limits gets ICRA BB-

• ICRA affirms D(SO) on ICICI Bank backed assignee payouts

• ICRA cuts rtg on Cholamandalam Investment & Fin backed PTCs

• ICRA assigns AAA(SO) rating to Air India's 55-bln-rupee NCDs

• CRISIL cut rating outlook on Farmson Pharma's cash credit

• CRISIL cuts rtg on Esquire Estates Developers' loan

• CRISIL cuts rtg on Jaisu Shipping' cash credit

• CRISIL ups rtg outlook on Titagarh Wagons' cash credit

• ICRA ups Pyramid Technoplast's term loan rtg to BBB-(stable)

• CRISIL affirms AAA/Negative on IOC's fund-based bank limits

• CRISIL affirms A/Stable on Gujarat Organics' cash credit

• CRISIL affirms BB-/Stable on Charisma Builders' long-term loan

• Sri Ganesh Bottles' cash credit gets CRISIL B+/Stable

• CRISIL affirms A-/Stable on Pratibha Industries' term loan

• Nutan Ispat and Power's cash credit gets CRISIL B/Stable

• KGS Milestone Constructions fund based facilities get ICRA BB+

• Gulbarga Airport Developers' term loan programme gets ICRA BB-

• ICRA affirms AAA on Dabur India's non-convertible debenture

• Wah Restaurants' long-term fund based limits get ICRA D

• Quinnox Consultancy Services' term loans get ICRA BBB-(Stable)

• Madhuban Trade Steels' fund-based limits get ICRA BBB-(Stable)

• M M Ceramics & Ferro Alloys' fund-based limits get ICRA BBB-

• CRISIL affirms BBB-/Stable on Medicamen Biotech's term loan

• CRISIL affirms BB+/Stable on Ram Dev Rice's cash credit

• CRISIL affirms A-/Stable on Alchem International's term loan

• CRISIL affirms BBB/Stable on Asbesco (India)'s cash credit

• CRISIL affirms A1+ on Idea Cellular's short-term debt

• AEP Co's long-term bank facilities get CARE BB

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

• Baharampore Farakka Highways' bank facilities get CARE BBB

• Uttaranchal Iron and Ispat's bank facilities get CARE BB

• Raiganj Dalkhola Highway's bank facilities get CARE BBB

• Farakka Raiganj Highway's bank facilities get CARE BBB

• Clariant Chemicals (India)'s bank facilities get CARE AAA

• T C Terrytex's long-term loan gets ICRA B+

• Satish Sugars' fund based limits get ICRA BB

• Rajda Industries' fund based limits gets ICRA A4

• NSL Sugars (Tungabhadra)'s fund based limits get ICRA B

• M Venkatrama Reddy's fund based limits get ICRA BB(stable)

• ICRA affirms BBB+(Stable) on Ashapura Garments' term loans

• ICRA ups rtg on Maruti Papers' term loan to BB-(Stable)

• ICRA cuts rtg on Homera Tanning Industries' fund based limits

• ICRA ups rtg on Kanodia Technoplasts' term loan to BB(Stable)

• ICRA cuts rtg on Spa Ceramic's term loan to B+

• CARE cuts rtg on Jai Balaji Industries' bank facilities to D

• Fitch BBB-(ind) long-term rtg on nuFuture Digital's bank limit

• Fitch cuts Strands Textile Mills' national long-term rating

• ICRA cuts rating on Soundarya Decorators' term loan

• CRISIL cuts Shree Realtors' lease rental discounting loan rtg

• CRISIL A1+ on IndusInd Bank's enhanced CD programme

• CRISIL cuts rtg on Tayo Rolls' term loan to A-/Negative

• CRISIL ups rating on Goodwill Auto Agencies' cash credit

• CRISIL cuts rtg on Cyberabad Expressways' term loan to D

• Alang Metal Exim's cash credit gets CRISIL B+/Stable

• Venkateswara Modern Rice's cash credit gets Fitch B(ind)

• Rajendra Gears' term loans get ICRA B+

• RK Agarwal Agro Seeds' long-term bank facilities get CARE BB

• Toyota Construction's long-term bank facilities get CARE BB

• Gilvert Ispat's fund based limits get ICRA C

• MIQ Steels' term loan gets CRISIL D

• Clad Solutions' term loan gets CRISIL B+/Stable

• Global Power Systems' cash credit gets CRISIL C

• SPEL Semiconductor's long-term loan gets CRISIL BBB+/Stable

• Walled City Hotels' long-term bank facilities get CARE C

• IPC Packaging Co's long-term bank facilities get CARE BB

• Kohinoor Paper & Newsprint's bank facilities get CARE BBB-

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

• DH Khandelwal Commercial's cash credit gets CRISIL B+/Stable

• Milton Cycle Ind cash credit facilities get ICRA BBB-(Stable)

• Shiv Vegpro's term loans get ICRA BB(Stable)

• US Agrawal & Co's cash credit gets ICRA B

• Ambey Construction Co's cash credit gets CRISIL B-/Stable

• CARE affirms AA+ on Syndicate Bank's lower Tier II bonds

• ICRA affirms A+(Stable) on Andritz Hydro's fund based limits

• CRISIL BB-/Stable on Karna Paints' enhanced cash credit

• CARE affirms BB on Sambhaav Media's long-term bank facilities

• ICRA affirms BBB-(stable) on Amrut Gems' fund based limits

• CRISIL affirms rtg on Indo Global Commercials' term loan

• Advance Surfactants' term loans get ICRA BBB(Stable)

• ICRA affirms BBB+ on Burckhardt Compression's cash credit

• CARE affirms BBB- on Pengg Usha Martin Wires' bank facilities

• CRISIL affirms AAA on Gujarat Co-op Milk Marketing cash credit

• KRR Engineering's cash credit gets CRISIL BB-/Stable

• Dynamatic Technologies' term loans get BBB(Stable)

• ICRA cuts rtg outlook on Hari Machines' fund based limits

• Adigear International's fund based limits get ICRA BB+(Stable)

• ICRA affirms A-/stable on Lumax Industries' term loans

• Fitch puts Jindal Photo's long-term rtg on negative watch

• Fitch puts Overseas Infra's long-term rtg to non-monitored

• CARE affirms BBB- on Moradabad Bareilly's bank facilities

• Pure Milk Products' cash credit gets CRISIL BB-/Stable

• ICRA affirms A on Reliance Power's non-fund based limit

• Prakash Re-Rollers' cash credit facility gets ICRA BB

• Sarthak Metals Marketing's cash credit gets ICRA BBB-(stable)

• Karan Development Services' cash credit limit gets CRISIL D

• CRISIL affirms A1+ on Mahindra & Mahindra's short-term loan

• ICRA cuts rtg on Multiurban Infra Services' cash credit to B

• ICRA cuts rtg on RG Buildwell Engineers' long-term facilities

• ICRA ups rating on Mosaic India's short-term fund to A1+

• ICRA cuts rtg on Sterling Biotech's long-term loans to D

• ICRA cuts rtg on Universal Air Products' term loans to D

• CARE ups rtg on Jay Ambe Gowri Chem's term loan to BBB-

• ICRA ups rating on Mosaic India's bank facilities to A1+

• ICRA cuts rating on Osnar Chemical's term loans to B-

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

• ICRA cuts rating on Rupam Conductors' term loan to D

• ICRA cuts rtg on Sterling Biotech's long-term loans to D

• Fitch ups outlook on UEM India to Positive from Stable

• CRISIL cuts rating on Tata BP Solar India's NCD programme

• CRISIL cuts rating on Mohammed Enterprises' term loan

• Vandana Global's long-term bank facilities get CARE BB

• CARE affirms AA+ on Sundaram BNP Paribas Home Finance's NCDs

• Smita Conductors' long-term bank facilities get CARE A-

• Paranjape Schemes Construction's bk facilities get CARE BBB-

• Suresh Chand Gupta's long-term bank facilities get CARE BBB-

• CARE affirms A1+ on Jindal Power's short-term debt programme

• Giriraj Ginning & Pressing's bank facilities get CARE B

• Acer Granito's long-term bank facilities get CARE BB

• CRISIL affirms B/Stable on Kuber Tieup's cash credit

• CRISIL affirms A1+ on Jindal Aluminium's packing credit limit

• Indermani Mineral's cash credit gets CRISIL B+/Stable

• Geojit Credits' cash credit limit gets CRISIL A-/Stable

• CRISIL affirms rtg on Blue Star Diamonds' post-shipment credit

• Bajrang Cotgin's cash credit gets CRISIL B/Stable

• CRISIL affirms D on Aswin Textiles' cash credit

• Amartex Industries' cash credit gets CRISIL BB/Stable

• ICRA affirms BB+ on Gujarat Infraproject's fund based limits

• ICRA affirms A-(Stable) on CEPCO Industries' term loans

• CRISIL affirms rtg on Winergy Drive Systems overdraft facility

• CRISIL affirms BB-/Stable on Viyyat Power's long-term loan

• CRISIL affirms BBB/Stable on Taurian Iron & Steel cash credit

• CRISIL affirms rtg on Sri Karunambikai Mills' long-term loan

• Shreewaali Ferro Tech's term loan gets CRISIL B/Stable

• CRISIL affirms A3 on MESO's export packing credit facility

• Krishna Food Processing's term loan gets ICRA B+

• ICRA affirms AAAmfs on Kotak Bond Short Term Plan

• Kommlabs Design's fund based limits get ICRA B

• Kiran Agencies' long-term fund based limits get ICRA B

• ICRA affirms B+ on Kalptaru Paper's term loans

• Jogi Food Processing's term loan gets ICRA B+

• Jeyavishnu Spintex's term loan facilities get ICRA B-

• Jai Ganesh Ispat & Ferro's fund-based limits get ICRA B+

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

• ICRA affirms B- on World Resorts' term loans

• Sunil Garg & Co's cash credit gets ICRA BB-(Stable)

• Shivalik Cotsyn's term loan gets ICRA B+

• Patco Foods' cash credit facility's get ICRA B+

• ICRA affirms BBB (Negative) on NSL Sugars' term loans

• ICRA affirms BB(Stable) on NSL Krishnaveni Sugars' term loans

• ICRA affirms A+ on Natco Pharma's long-term loans

• L S Mills' 1.9-bln-rupee term loans get ICRA C

• Goldfinch Hotels' fund based limits get ICRA D

• Amba Highrise gets Fitch B(ind) national long-term rating

• CRISIL affirms rtg on Yamuna Roller Flour Mills' cash credit

• CRISIL affirms BBB-/Stable on Sangeeta Poly Pack's term loan

• G K Power Transmission's cash credit gets CRISIL B+/Stable

• Shreeji Food Processing's term loan gets ICRA B+

• CARE affirms A+ on Ajanta Pharma's long-term bank facilities

• LM Wind Power Blades India's Non-fund based limits get ICRA A2

• Mangalore Cashew Ind's term loan facilities get ICRA BB

• Mynah Industries' term loan facilities get ICRA BB+(Stable)

• CARE affirms A on Polyplex Corp's long-term bank facilities

• ICRA affirms BB+ on Rika Global Impex's fund based facilities

• Finance Solutions' short-term bank lines get ICRA A1

• Hari Oil & General Mills' fund based limits gets ICRA BB

• Indus Motor Co's fund-based limits get ICRA BB+(Stable)

• ICRA affirms rtg on Navin Mehta & Co's fund-based limits

• ICRA affirms BBB+ on Rice Lake Weighing' fund based facilities

• Avi Global Plast's long term loans get ICRA BB+(Stable)

• Parameshwara Industries' cash credit gets ICRA B+

• Theme Export's packing credit limit gets ICRA A4

• Shri Rajal Cotton Ind's cash credit gets ICRA B+

• Restoration Engineers' cash credit gets ICRA BB(Stable)

• ICRA affirms BB+ (stable) on Neumann Components' term loans

• CARE cuts rtg on Sarda Energy's long-term bank facilities

• ICRA cuts rating on Kausthubha Projects' term loans

• ICRA cuts rating on Ind Barath Energies' term loans to D

• ICRA cuts rating on Kailash Ginning's cash credit to D

• ICRA cuts rating on Gayatri Hitech Hotels' term loan to D

• CRISIL ups rating on Shri Ashutosh Structures' cash credit

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

• CRISIL cuts rating on NV Resorts' cash credit limit to D

• CRISIL ups rating on Khyati Steels' cash credit to BB/Stable

• CRISIL ups rating on Khyati Ispat's enhanced cash credit

• ICRA cuts rtg on Lord Krishna Education's fund based limits

• ICRA cuts rating on MSM Energy's term loans to D

• ICRA ups rating on Tagros Chemicals' term loan to BBB

• ICRA cuts rating on Amethyst Hospitality's term loan to D

• ICRA cuts rtg on Suryachakra Power Corp's term loans to D

• ICRA cuts rtg on Sri Panchajanya Power's term loans to D

• ICRA cuts rtg on South Asian Agro Industries' term loans to D

• ICRA cuts rtg on SNQS International Socks long-term loans to D

• ICRA cuts rating on GNG Trading Co's cash credit to C

• ICRA cuts rtg on Paramount Communications' fund based limits

• ICRA cuts rtg on Shree Engineering Ind's fund-based limits

• ICRA cuts rtg on Suryachakra Global Enviro Power's term loans

• Biological E's term loan gets CRISIL BB+/Stable

• CRISIL affirms A/Stable on Tata Sky's long-term loans

• CRISIL affirms AA-/Stable on Uhde India's overdraft facility

• CRISIL affirms AA+/Stable on VST Industries' NCDs programme

• CRISIL affirms BB/Stable Surya Exim's cash credit

• CRISIL affirms BB+/Stable on Mahabir Jute Mills' term loan

• CRISIL affirms BBB-/Stable on Bhima and Brother's term loan

• CRISIL affirms rtg on Kalyani Engineering Works' term loan

• Fitch B-(ind) national long-term rtg to Piccadily Hotels

• Fitch BBB(ind) long-term rtg to Financial Inclusion Network

• ICMC Corp's term loans get ICRA BBB-(Stable)

• ICRA affirms A (Stable) on Arch Pharmalabs' NCD programme

• ICRA affirms BBB- on Benlon India's fund based bank limits

• ICRA affirms BBB-(Stable) on Axa Parenterals' term loans

• ICRA retains BBB+(SO) on Aster Building Solutions' term loan

• IDBI Mutual Fund's short-term bond gets CRISIL AAAmfs

• IDF Financial Services' cash credit gets CRISIL BB/Stable

• Mahima Shankar Processed Foods' term loan gets ICRA B+

• Mantri Dwellings' term loans get ICRA BBB-(Stable)

• MNR Exports' 55-mln-rupee term loan gets CRISIL B/Stable

• Morakhia Metals & Alloys' rupee term loan get CRISIL D

• PCM Alloys Steels' fund based limit gets ICRA B+

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

• Silktex's term loan facilities get ICRA C

• Yash Agro Energy's term loan gets CRISIL B-/Stable

• CRISIL affirms BBB/Stable on Pacific Electronics' cash credit

• CRISIL affirms rtg on Tropicana Liquid Storage long-term loan

• Fitch BB(ind) national long-term rtg to Bharat Hydel Projects

• CRISIL affirms BBB/Stable on Penguin Electronics' cash credit

• Fitch BB(ind) national long-term rating to Bharat Construction

• ICRA affirms rtg on Tirthanjali Educational Society term loans

• Vallabhbhai Dhanjibhai and Co's packing credit get CRISIL BBB-

• Waman Hari Pethe Jewellers' cash credit gets CRISIL BBB/Stable

• Fitch cuts Asset Reconstruction Co's national long-term rtg

• ICRA cuts rtg on Aster's fund based limits to BBB+

• ICRA cuts rating on Premier Conveyors' term loans to D

• ICRA ups rtg on Godrej Agrovet's fund based bank limits to A+

• CRISIL cut rating on Rangara Industries' cash credit to D

• CRISIL ups rating on Supreme India Impex's cash credit

• CRISIL ups rtg outlook on Vidhi Dyestuffs long-term loan

• ICRA cuts rating on Anshul Steels' term loan to D

• ICRA cuts rating on Harvins Constructions' fund based limits

• ICRA cuts rating on Winsome Yarns' term loans to D

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GLOBAL ECONOMY GLOBAL ECONOMY: • Eight killed in new Syria protests. • Bahrain to probe teen protester death. • Pakistan may repatriate bin Laden wives. • Hundreds killed in Thailand floods. • New Zealand battles to contain oil spill. • Pakistani doctor faces treason charges after bin Laden raid. • US military starts curfew after rape claims. • Mexican navy discovers 32 bodies in neighbourhood. • Private funeral held for Steve Jobs. • Libyan council forces battle Qaddafi loyalists inside Sirte. • Desmond Tutu marks 80th birthday. • Liberian President among three to win Nobel Peace Prize. • US asks court to halt state immigration law. • Gaddafi town 'close to falling'. • Jiang appearance ends rumours of his death. • Syrian forces fire on mourners at Kurdish funeral. • Muslim, Christian graves vandalized in Israeli city. • $10 mn bounty on al Qaeda in Iraq leader. • Yemen leader says he will step down, but his aides qualify remark. • 'Iran plot' to kill Saudi envoy to US foiled. • UN rights urges independent probe in Egypt clashes. • Peace process set to take concrete shape, says Nepal PM. • US will soon have a woman President, hopes Palin. • EU slams Syria, slaps sanctions on Iran. • Syria opposition gains regional backers. • Ukraine's court convicts former prime minister. • Israel to release 1,027 prisoners for its lone soldier. • China, Vietnam sign deal to resolve maritime disputes. • US to pressure Iran over 'plot to kill Saudi envoy'. • Myanmar frees political prisoners, including dissident comic. • UK visa rule overruled by top court. • US held secret talks with Haqqani network, says report. • Doctors seized near Somali border. • Bhutan king weds commoner. • World baffled by crude Iranian assassination plot. • Afghanistan students rally against Pakistan. • China summons diplomats after deadly boat raid. • Quake shakes Indonesia's Bali, tourists run from hotels. • Libyan Islamists attack Sufi shrines. • Slovakia's Parliament approves Europe's bailout fund corpus hike. • S&P cuts Spain's long-term sovereign credit rating to AA- from AA. • Fitch cuts ratings of 4 Europe banks including RBS, UBS; may downgrade those of Bank of America, Morgan Stanley, Goldman Sachs. • US economy adds 103,000 jobs.

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• Moody's downgrades nine Portuguese banks. • Moody's cuts credit ratings of 12 British banks. • Inflation not a big worry, top Fed officials say. • Former trader Emanuel Goffer sentenced to 3 years. • Euro crisis talks held in Berlin. • US economy adds 103,000 new jobs in Sep. • Italy and Spain debt downgraded by Fitch. • Greece secures next bailout cash. • UK seeing a big rise in poverty, says IFS. • UK economy deteriorating, says BCC. • UK unemployment hits 17-year high. • Slovak parties in talks after bailout fund rejection. • Eurozone industrial production sees surprise rise. • Republicans block Obama jobs bill. • Japan's core machinery orders jump 11% in Aug. • IMF cuts growth forecast for Asia China CPI rises 6.1% in September China’s consumer price index rose 6.1% in Sep from a year earlier, according to reports, a weaker-than- forecast increase that may bode well for future price trends in the world’s second-largest economy. The reading for Sep fell below the 6.2% rise that economists had been expecting. The latest CPI reading for China marked a slowdown from Aug, when prices rose 6.2% annually. “Tightening of monetary policy and growth moderation have ensured that inflation is now in retreat,” noted Alistair Thornton, analyst at IHS Global Insight. “Softer international commodity prices and easing demand pressure from advanced economies should embed this trend into next year,” he added. Still, inflation remains uncomfortably high in China, far above the central bank’s target range and the People’s Bank of China currently has little scope to loosen policy. “The liquidity backlog and pressure from structural wage gains will ensure that inflation remains well above desired levels,” said Thornton. “For the moment, we remain in policy stasis – no more tightening, but no real loosening – while Chinese authorities nervously eye developments in the euro zone,” he said. CPI rose 0.5% month-on-month in September, a higher reading than the 0.3% increase recorded in Aug. S&P cuts Spain's long-term sovereign credit rating Standard & Poor's said that it has lowered its long-term rating on Spain's sovereign credit to AA- from AA. The firm said that the outlook for Spain is negative. "Despite signs of resilience in economic performance during 2011, we see heightened risks to Spain's growth prospects due to high unemployment, tighter financial conditions, the still-high level of private sector debt, and the likely economic slowdown in Spain's main trading partners," S&P said. Singapore's third quarter GDP rises 1.3% Singapore's gross domestic product grew by 1.3% in the third quarter, beating economist forecasts as manufacturing output rose, data released by the Ministry of Trade and Industry Friday showed. On a seasonally-adjusted quarter-on-quarter annualized basis, Singapore's economy grew by 1.3%, after contracting by 6.3% in the previous quarter, the MTI said. China starts 1.2 mn public housing units in Sept China started building 9.86 mn public housing units in the Jan-Sep period, the Ministry of Housing and Urban-Rural Development said in a statement. China started building 1.18 mn public housing units in Sep, the statement said. The government aims to start building 10 mn such units this year to provide more low- cost homes to curb potential social instability caused by rising property prices. Premier Wen Jiabao said in Mar that the government plans to build 36 mn public housing units as part of its current five-year plan, which runs from 2011 to 2015. As of the end of September, 15 municipalities and provinces, including Beijing, Chongqing and Sichuan, have exceeded their full-year public housing starts quota, up from five provinces in Aug. Guangdong province, which had the lowest start rate in Aug, reached 96% of its quota in Sep, a jump from 66% in the preceding month.

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China to levy nationwide 5%-10% tax on oil and gas China will extend an experimental tax on oil and gas to the entire nation, taxing the resources at between 5% and 10%, the State Council said. China introduced a 5% resource tax, which calculates tax based on value rather than on volume of production, in oil-rich but ethnically troubled Xinjiang Uighur Autonomous Region last year and later extended it to 12 western provinces and regions. The tax will be extended nationwide starting Nov. 1, the State Council said in a statement. China will also levy a higher tax on rare- earth ores, at CNY0.4-CNY60 per ton, it said. Portuguese bank borrowing from ECB fell slightly The dependence of Portuguese banks on the European Central Bank's liquidity facilities fell slightly in Sep but remained at a high level, according to data released by the Bank of Portugal. The Bank of Portugal said banks' borrowings from the ECB fell to EUR45.62 bn from EUR46.02 bn in Aug. The modest decline took place against a background of generally increasing reliance on the ECB across the euro zone. Total euro- zone bank borrowings from the ECB rose over 10% in the month to stand at EUR588.79 bn at the end of Sep. Portuguese banks' deposits at the ECB rose from nearly nothing to EUR3.05 bn, their highest level this year. Merkel, Sarkozy vow on banks buoys global stocks Slovakia EFSF vote delayed; troika may conclude talks Oct 10 Global equities surged Oct 10 after German Chancellor Angela Merkel and French President Nicolas Sarkozy said they agreed on the need to strengthen European banks, though they stopped short of providing details. “We are determined to do all that is necessary to guarantee bank recapitalization,” Merkel said at a joint news conference following the meeting. Sarkozy said that “when it comes to recapitalizing the banks, our agreement with Germany is total.” The two leaders said the package of measures will be revealed by the end of the month. A favorable report would clear the way for the release of an 8 bn euro ($10.8 bn) aid tranche Greece needs by mid-Nov in order to avoid default. Slovakia pushes off vote on EFSF Slovakia’s ruling coalition failed to resolve differences over revisions to the European Financial Stability Facility that would grant the €440 bn euro-zone bailout fund wider powers to fight the spread of the sovereign debt crisis. The changes, which allow the EFSF to intervene in bond markets and provide lifelines to troubled sovereign governments, have been agreed by 15 of the 17 euro member nations. Slovakia and Malta have yet to support the plan. Slovakia Prime Minister Iveta Radicova said coalition talks will continue Oct 11, according to media reports. Merkel and Sarkozy met on Oct 9 to discuss how the euro zone’s financial resources should be used to address the sovereign debt crisis. France reportedly wanted to draw on the European Financial Stability Facility to recapitalize banks, while Germany wanted the fund to be used as a last resort. Merkel said previously she was willing to consider the recapitalization of European banks. She has also said she was willing to discuss modifying the European Union’s treaty. The summit in Berlin took place as pressure increased on European leaders to find solutions capable of soothing fears the region’s sovereign debt crisis could lead to a banking crisis. ECB's Nowotny calls slowed growth worrisome European Central Bank Governing Council Member Ewald Nowotny said the slowdown in growth in many areas, including Europe, the U.S. and emerging markets, is worrisome. "Fears about developments in the real economy are justified," said Nowotny. However, fears about inflation are unjustified, said Nowotny, adding that economic prognoses put the peak of price increases in the current quarter and show a reduction in inflation in 2012. Nowotny said that Central and Eastern Europe will continue to have growth in the future, but will of course be affected by the growth slowdown in other countries. "No region is an island," said Nowotny. Mobile devices took up 6.8% of U.S. Aug. data Smartphones and tablets are prompting users to consume more media offerings while at the same time taking up more bandwidth, according to a new report from market researcher comScore Inc.. Mobile devices accounted for 6.8% of U.S. data traffic in Aug, two-thirds of which came from mobile phones, the research company said. More than a third of U.S. digital traffic through mobile phones came through a WiFi connection, up almost 3 percentage points over the three months. Smartphones and tablets have proven highly profitable for electronics makers as spending on other devices, such as personal computers, shows signs of slowing. At the same time, the sector's explosive growth is posing a challenge for network operators tasked with keeping up with surging data use. The ComScore report also highlighted the mobile

Weekly Newsletter 73 Info-Spectrum Bridging the Information Gap in Corporate Landscape devices' potential to spur more online sales, with 56% of tablet owners using the devices to look up product or price information for a specific store. Amazon.com Inc.'s recently launched Kindle Fire tablet is widely seen at trying to capitalize on this trend by pricing the devices to sell with the expectation that consumers will use them to buy more products on its online store. The survey found 58% of tablet owners consumed world, national or local news on their devices, with one in four viewing such content on a near-daily basis. Bank Indonesia cuts benchmark interest rate Bank Indonesia cut its benchmark overnight rate by 25 basis points to 6.50%, as it is concerned about the impact of the global slowdown on its economy and deems that inflationary pressures are receding. "As we expect inflation next year will be below 5%, we decided to bring down the policy rate to 6.5%, which is reasonable and justified," Bank Indonesia Governor Darmin Nasution said in a press conference after a monthly rate-review meeting. Bank Indonesia Deputy Gov. Hartadi Sarwono indicated last month the central bank's concerns have shifted from the threat of inflation to fears of an economic slowdown due to prolonged euro-zone debt problems. Sarwono said the central bank is ready for monetary easing should it be required to help support economic growth, especially as the bank sees lower inflationary pressures ahead. Most economists had expected the central bank to keep its policy rate steady at least until the end of the year as they expect global economic turmoil to persist. They said cutting the rate would further weaken the rupiah and destabilize the country's financial market. OPEC again cuts demand forecast for 2011, 2012 The Organization of Petroleum Exporting Countries Tuesday further trimmed its global oil demand growth forecast for 2011 and 2012 and warned it could cut the outlook again amid growing unease over the global economy. In its monthly report, OPEC reduced the global demand growth forecast for this year by 180,000 barrels of oil a day on uncertainty in the world economy and weakening Chinese and Indian prospects. The group also signalled concern about a possible "imbalance" in the supply-demand balance in the oil market. "Uncertainty in the world economy has dimmed the picture for 2011, particularly in the OECD region (Organisation for Economic Co-operation and Development)," OPEC said. " So far, clear signs of weakening demand have had only a limited impact on overall oil market fundamentals. However, in the current economic environment, it is necessary to remain alert to the risks of a growing market imbalance." Global oil demand will still rise by 900,000 barrels a day this year, but the downgrade represents only a fraction of the 87.8 mn barrels a day OPEC expects to be consumed this year worldwide, OPEC said. For 2012, global demand growth forecast was revised down by 70,000 barrels per day to stand at 1.2 mn barrels per day. OPEC estimated demand for its own crude remained unchanged for 2011 compared with the previous OPEC monthly report. The OPEC oil demand outlook, however, was cut by 100,000 barrels a day for 2012 to stand steady at 29.9 mn barrels per day compared to 2011. OPEC, which in its Aug report project that Libyan oil output would reach 1 mn barrels a day within six months, said that the North African country's output rose to 96,000 barrels per day in September, from only 7,000 barrels a day the previous month. It did not, however, give any further details, on how long the country could take to return to its pre-unrest production levels. Though the report did not comment on the intentions of group's producers at their next meeting on December 14 in Vienna, the downgrade in demand could give ammunition to an Iran-led group that has fought higher oil output. A June OPEC meeting in Vienna ended in acrimony after a Saudi Arabia-led group failed to persuade the cartel that an anticipated surge in oil demand this year merited an output increase. A split between OPEC oil producers has resurfaced in recent days as economic risks and the return of Libyan output has sent oil prices under $100 a barrel and opened up a debate on what oil price "floor" would compel a response from the producers group. Peru August trade surplus widens Peru posted a trade surplus of $1.16 bn in Aug, compared with a surplus of $448 mn in the same month a year earlier, the government said. The National Statistics and Information Bureau, or INEI, said that exports totaled $4.53 bn in August, up 53.6% from $2.95 bn in the same month last year. Exports increased thanks largely to a rise in mineral exports. Peru's mining sector accounts for about 60% of Peru's exports. Imports totaled $3.37 bn in Aug, up 34.8% from $2.5 bn in the year-ago month. UBS said in a report that it forecast a trade surplus of $1.28 bn in Aug. Peru's gross domestic product is expected to expand by 6% to 6.5% this year, compared to 8.8% last year. Chile central bank seen holding rates steady Growing concerns regarding the international economic outlook likely will lead Chile's central bank to hold the benchmark rate steady for the fourth consecutive month and possibly change its neutral bias. Central bank officials in recent public appearances have stressed that slower global growth is the biggest risk to the

Weekly Newsletter 74 Info-Spectrum Bridging the Information Gap in Corporate Landscape local economy, which is highly dependent on its exports. If markets abroad cut their appetite for Chilean goods, such as copper, fertilizers, wood pulp and other natural resources, the Andean nation's economy could lose steam. Gross domestic product is expected to grow around 6.5% this year, but slow down to growth of 4.25% to 5.25% next year, according to the central bank. The three dissenting analysts see the bank cutting the benchmark rate to 5.0%. It would be the bank's first interest-rate reduction since mid- 2009, when it cut the rate to 0.5%, its lowest ever. Brazil's Petrobras, BG Group sign cooperation deal Brazilian oil and gas producer Petroleo Brasileiro SA, or Petrobras, and the Brazilian unit of BG Group Plc signed an agreement to cooperate on developing technological solutions for production challenges, Petrobras said. The three-year accord signed at Petrobras's Rio de Janeiro headquarters will initially cover well construction and production optimization. Over this period, joint investments in mutual development activities are projected at some 60 mn Brazilian reais ($34.09 mn), Petrobras said in a statement.

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

GLOBAL BUSINESS GLOBAL MARKET: • Samsung lifts forecasts on strong mobile sales. • EU clears Microsoft's Skype acquisition. • Premier Foods in profit warning. • Swiss company Avaloq set to create 500 jobs. • Sony to buy out Ericsson stake in phone business. • Oracle plays catch up, launches public cloud, social network. • Sainsbury to match prices of certain products at rivals Tesco and Asda. • Europe clears Microsoft Skype bid. • Dexia board meets to decide bank's fate. • US moves to limit cos' risky trading. • Struggling Dubai Bank is taken over by larger rival. • Burberry revenues see strong growth. • Sony to recall 1.6 mn LCD TVs worldwide. • Apple launches iCloud after online misfires. • WSJ circulation scam claims senior Murdoch executive. • Galleon's Rajaratnam sentenced to 11 years in prison. • European banks may need to raise 200 bn euro. • JP Morgan profits fall due to eurozone crisis. • Slowdown in the German economy is predicted. • Lloyds and RBS credit ratings cut by Fitch. Samsung, Google delay phone launch Samsung Electronics Co. and Google Inc. have agreed to delay the public announcement of a new mobile- phone product following the death of Apple Inc.'s former chief executive, Steve Jobs, the Seoul-based electronics giant said. Krawcheck to get $6 million after leaving B. of A. Former Bank of America Corp. executive Sallie Krawcheck will receive $6 million after leaving the bank following a management reshuffle last month. Itau in talks to buy part of HSBC Brazil operation Itau Unibanco Holding SA, Brazil's largest private-sector bank in terms of assets, is in talks to buy part of HSBC Holdings PLC's Brazilian operations, local newsmagazine Veja reported. America Movil expects to make offer for Telmex Mexican telecommunications giant America Movil SAB expects to launch its offer to buy the 40% of fixed-line unit Telefonos de Mexico SAB that it doesn't already own in Nov, Chief Executive Daniel Hajj said. Metro AG: CEO Cordes to waive contract extension German retailer Metro AG said Chief Executive Eckhard Cordes has informed the company's supervisory board and major shareholders that he no longer wishes to extend his contract, which ends Oct. 31, 2012. The reason for Cordes' waiving the extension of his contract wasn't immediately clear. The company and Cordes declined to comment. BMW plants to exceed full-capacity utilization German car maker BMW AG will exceed full-capacity utilization at its plants this year, Automotive News Europe reports, citing the company's head of production, Frank-Peter Arndt. Deutsche Telekom CEO optimistic on AT&T deal Deutsche Telekom AG is optimistic it will eventually be able to sell its U.S. unit T-Mobile USA To AT&T Inc. as planned, despite opposition from the U.S. Justice Department, Chief Executive Rene Obermann tells German weekly Bild am Sonntag in an interview published.

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Astronics to equip HondaJet aircraft Astronics Corp. said that Honda Aircraft Co. has chosen it to supply power and heat-control installations for the HondaJet advanced light business jet. Terms of the agreement were not disclosed. The aircraft is scheduled for first delivery in 2012. Korea's KDB in talks to buy HSBC local retail arm South Korean government-owned KDB Financial Group is talking with HSBC Holdings' Hong Kong unit about buying the retail financing business of HSBC's Korean unit, people with direct knowledge of the matter said. HSBC's Korean unit is held by Hong Kong and Shanghai Banking Corporation Limited in Hong Kong, a unit of London-based HSBC Holdings. HSBC declined to comment. Blackstone holds talks with Iceland Food CEO Private equity group Blackstone has held talks with Malcolm Walker about backing his probable GBP1 billion to GBP1.5 billion bid for Iceland Foods, The Sunday Telegraph reports without citing sources. The paper said Blackstone has had a number of talks with the retailer's founder and chief executive. Neither Blackstone nor Walker could be reached for comment. GM's September China sales rise 15.3% General Motors Co. said that its vehicle sales in China, along with those of its local joint-venture partners, rose 15.3% from a year earlier in Sep to their second-highest monthly sales total ever. The company is on track to achieve sales of 2 mn vehicles in China in the ten months to Oct, and a record year overall, GM China Group President Kevin Wale said in a statement. China vehicle sales reached 240,244 units in Sep, up 16.7% from Aug. Jan-Sep sales reached 1,892,862 vehicles, up 6.6% from a year earlier. Tata Coffee nears Starbucks joint-venture deal Tata Coffee Ltd. and Starbucks Corp. could announce an alliance this month to open the U.S-based company's outlets in India, a person familiar with the matter said. Tata Coffee and Starbucks signed an initial agreement in Jan for sourcing and roasting premium coffee beans in India. Toyota's September China sales up 10.5% Toyota Motor Corp.'s vehicle sales in China rose 10.5% in Sep from a year earlier to around 86,400 vehicles, a company spokesman said, reflecting a recovery from earlier earthquake-related disruptions. Toyota sold about 612,000 vehicles in the Jan-Sep period, up 5.2% from a year earlier, said Takanori Yokoi, a Beijing- based spokesman for the company. Toyota's sales rose 14.9% in Aug and 28.4% in Jul. Ferrovial to sell 5.88% of BAA to Alinda at £280M Spanish company Ferrovial SA said it has reached an agreement to sell 5.88% of U.K. airports company BAA to Alinda Capital Partners for GBP280 million. In a Spanish regulatory filing, Ferrovial said it will have a 49.99% stake in BAA after the deal. By lowering its stake in BAA below 50%, highly indebted Ferrovial will be able to unload BAA-related debt. Saipem to spend $300 million on factory in Brazil Italian oil-services company Saipem SpA said it has purchased a Brazilian company with the license to develop 35 hectares of land in Latin America's largest port near Sao Paulo. The purchase paves the way for Saipem to build a factory, estimated to cost $300 million, to serve a recently discovered offshore Brazilian oil field, the company said. Finmeccanica's SuperJet gets $200M Comlux pact Italian industrial group Finmeccanica SpA said its jet-making joint venture, SuperJet International, has won a $200 million contract from a Swiss company. Sonoco to buy protective-packaging maker Tegrant Sonoco Products Co. agreed to acquire protective-packaging provider Tegrant Corp. for $550 million in cash from private-equity firm Metalmark Capital, a deal that will help the company expand in other markets. Sara Lee to sell Spain, Portugal bakery businesses Sara Lee Corp. agreed to sell its fresh bakery businesses in Spain and Portugal to Mexico's Grupo Bimbo S.A.B. de C.V. (BIMBO.MX) for EUR115 million in cash. Keynote Systems to buy mobile-apps-testing firm Keynote Systems Inc. agreed to acquire privately held Mobile Complete Inc. for $60 million in cash, a move that expands its enterprise-mobile-product portfolio.

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

China’s CIC lifts stakes in local banks Two Chinese state-controlled banks said they had received letters from the investment arm of China’s sovereign wealth fund, China Investment Corp., advising them that it had boosted its holdings via purchases in Shanghai earlier in the day. Industrial & Commercial Bank of China Ltd. said Central Huijin Investment Ltd. had bought 14.58 million yuan-denominated A shares on the Shanghai Stock Exchange. The fund’s holdings in percentage terms remained at 35.43% of shares outstanding, ICBC said. Agricultural Bank of China Ltd. said Central Huijin purchased 39.07 million shares, which boosted its holdings of total issued capital to 40.0374% from 40.0254%. Rimage to buy Qumu for $52M, lifts dividend Digital content manager Rimage Corp. agreed to acquire Qumu Inc. for $52 million, giving Rimage a greater presence in the growing video communications market. South Africa's Exxaro to exit from zinc business South African mining company Exxaro Resources Ltd. said that it will begin a process to shut its Zincor refinery in the country in a move to leave the zinc business. Dexia gets $122 billion of state guarantees Beleaguered European lender Dexia SA agreed to the nationalization of its Belgian retail banking arm as part of a new rescue package for the group that also includes 90 billion euros ($122 billion) of state funding guarantees. Irish coalition asks rivals for austerity ideas The Irish coalition government is looking to its political rivals for suggestions on how to meet its austerity targets, as the government faces the latest review by its bailout lenders, Brian Hayes, the junior minister in the budget ministry said. BlackBerry services disrupted in Europe Vodafone Group PLC reported technical problems affecting Research In Motion Ltd.’s BlackBerry service in the U.K. The problems are also impacting other networks in the U.K., and RIM “has advised us that they’re working to resolve the issue as a matter of urgency,” a U.K.-based Vodafone spokesman told Dow Jones. Continental AG lifts winter-tire output: report German tire maker Continental AG is producing additional winter tires due to bottlenecks stemming from the current global boom for automobiles, a company board member told Tuesday's edition of German newspaper Handelsblatt. ENRC to buy rest of Kazakh coal firm Shubarkol Eurasian Natural Resources Corporation PLC proposed to buy from its founding shareholders the 75% it doesn't already own in the common shares of Kazakh thermal coal producer Shubarkol Komir JSC for up to $600 million. First Reserve invests $10 mln in Energy Corp JV Private equity firm First Reserve Corp. said it has agreed to invest $100 million in a joint venture with Energy Corp. of America.

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Weekly Newsletter 78