Oct 07, 2011 IN FOCUS "Nothing is more hopeless than a scheme of merriment."– Johnson, Samuel. Weekly Indicators Indicators Current Last Week Dutch parliament approves EFSF expansion Sensex 16,233 16,454 Dutch parliament gave the green light for expanding the euro zone's bailout fund, Nifty 4,888 4,943 clearing one of the final hurdles to increase the fund's firepower in helping troubled Food Inflation 9.41% 9.13% countries in the currency bloc. The Netherlands is one of the last euro-zone countries

to ratify the agreement, which calls for increasing the fund's lending capacity to Exchange Rates EUR440 bn from around EUR250 bn. The other two countries, Slovakia and Malta, will Currency Current Last Week vote next week. While Malta's parliament is likely to pass the bill, the approval of US$1 Rs.49.1355 Rs.48.9253 Slovakia remains uncertain due to sharp divisions within the government coalition. € 1 Rs. 65.9981 Rs. 66.6458 Dutch support was never really in doubt, even as the center-right minority JP¥ 100 Rs. 64.11 Rs. 63.90 government had to walk a political tightrope to secure a majority by drawing support from the left-wing opposition. £ 1 Rs. 75.9733 Rs. 76.5192 World Bank cuts Philippines '11, '12 GDP outlook Global Economic and Corporate News The World Bank has lowered its economic growth forecast for the Philippines this year • Oracle to pay nearly $200M in DOJ settlement to 4.5% from 5.0% previously amid a weaker economic outlook for advanced Oracle Corp. has agreed to pay $199.5 mn, including economies. The bank also downgraded its growth forecast for 2012 to 5.0% from interest, to settle a U.S. Justice Department complaint that the company “failed to meet its 5.4% previously. Still, the Philippines' strong macroeconomic fundamentals help contractual obligations” in connection with sales to cushion the adverse impact of global economic uncertainties, the World Bank said, the federal General Services Administration. noting that the country's net foreign direct investments increased in the first half while • Virgin Australia's August passengers down foreign reserves have surged to record highs. "To better insulate the Philippine 2.7% economy from external shocks, it is important to maintain strong macroeconomic Virgin Australia Ltd. said it flew 2.7% less passengers in Aug compared with a year earlier, mostly due to a fundamentals and improve its competitiveness through diversifying exports, withdrawal from the domestic New Zealand market. strengthening domestic competition, and improving productivity of the services • AstraZeneca to cut 400 jobs from U.S. sector," World Bank economist Soonwha Yi said in a statement. According to Yi, operations "private consumption is expected to grow steadily, buoyed by lower unemployment, U.K.-based drug maker AstraZeneca PLC said it higher government spending and sustained remittances." planned to eliminate about 400 employees in its U.S. commercial operations, citing a need to reduce costs. Fitch Ratings cuts FY12 India GDP growth to 7.5% from 7.7% earlier • Breitburn acquires oil, gas properties from Fitch Ratings revised India's gross domestic product growth downward to 7.5% from Cabot 7.7% for 2011-2012 (Apr-Mar), and to 8.0% from 8.2% for 2012-13 due to high BreitBurn Energy Partners LP said it has completed inflation and interest rate scenario. "India has hit a difficult part of the cycle with the acquisition of some oil and gas properties primarily in Wyoming from Cabot Oil & Gas Corp. for growth and inflation heading in opposite directions...it appears that the combination of $283 mn, in a deal that expands the company's rising inflation and interest rates has taken a toll on the Indian consumer," Fitch said. presence in the Rocky Mountains region. The Fitch believes that inflation is likely to remain high as global commodity prices remain company disclosed the deal in Jul but didn't name the seller. firm. The Wholesale Price Index-based inflation rate for Aug rose to 9.8% from 9.2% • Airbus got 23 orders, delivered 40 planes in in the previous month. With inflation still at elevated levels, the Reserve Bank of India Sept. may have to continue with its monetary tightening stance, Fitch said. Airbus said it booked 23 orders for commercial jets in Moody's cuts SBI's rating citing inadequate capital, rising NPAs Sep and delivered 40 aircraft, which brings the total net orders from Jan. 1 to Sept. 30 to 1,038 and Moody's Investor Service downgraded State Bank of India's creditworthiness, on a deliveries to 374. Airbus, wholly owned by European standalone basis, to D+ from C-, citing worsening asset quality and delay in raising Aeronautic Defence & Space Co., said the new orders include a contract for fifteen A330-300 jets with Tier-I capital. "Notwithstanding our expectations that SBI's capital ratios will soon be Singapore Airlines Limited. restored through a capital infusion by the government, SBI's efforts to secure this • Blackstone's GSO Capital buys Harbourmaster capital for the better part of the year demonstrates the bank's limited ability to Blackstone Group said that its credit arm, GSO manage its capital," Beatrice Woo, vice president and senior credit officer at Moody's, Capital Partners, has bought Harbourmaster Capital, was quoted as saying in a release. Post the downgrade, SBI's Chairman Pratip one of the largest leveraged loan managers in Europe with some EUR8 bn in assets under Chaudhuri told that the "D+ maps to Baa3, which is still investment grade. BoB (Bank management. Financial details of the transaction of Baroda), PNB (Punjab National Bank), BoI (Bank of India) are also at D+; we were weren't disclosed. the only exception so far. The present rating of SBI is the same as GoI (GOI)". • Spectris buys Sixnet for $72M India asks Indonesia to remove non-tariff barriers for pharma cos Spectris PLC, the productivity-enhancing instrumentation and controls company, announced Commerce Minister Anand Sharma said his ministry is pushing for the removal of non- that it has completed the acquisition of Sixnet LLC, a tariff barriers for Indian pharmaceuticals in its negotiations with the Indonesian privately-held business located in North America. government. "India is particularly keen on bovine meat exports to Indonesia and • Apple co-founder Steve Jobs dies higher participation in the pharmaceutical sector of Indonesia," he said. Currently, • Apple Inc. co-founder Steve Jobs has died at age 56, a legend of Silicon Valley who as a young import of Indian buffalo meat is banned in Indonesia on fears that India is not free entrepreneur sought to change the world in the early from foot and mouth disease. Also, Indian pharmaceutical companies face problems in days of the PC industry — and lived to achieve that Indonesia such as delays in drug registration, and certain regulations such as those goal. Jobs, who stepped down as Apple’s chief requiring foreign drug registration holders to set up a production facility in Indonesia executive in Aug, has been battling ill health after being diagnosed with and having surgery for within two years of registration. Foreign direct investment cap of 70% inhibits Indian pancreatic cancer in 2004. investment in Indonesia. The governments of Indonesia and India will intensify efforts to explore ways and means of increasing trade and investment relations by eliminating

Nishita Shah Parsekar trade barriers and creating better business environment. The relaxation of such barriers would help achieve the bilateral trade volume target of $25 bn by 2015. [email protected]

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

INDEX

1. India’s Data Watch 03-08

2. Economy 09-14

3. Infrastructure 15-25 4. Sectors 26-52 A. IT & ITeS 26-27 B. Pharma & Healthcare 28-30 C. Telecom 31-32 D. Banking & Financial Services 33-36

E. Steel, Metals & Minerals 37-40 F. Auto & Auto Ancillaries 41-44 G. Miscellaneous 45-52 5. IPO Watch 53-54

6. Mergers & Accquistion 55-56

7. Ratings 57-62

8. Global Economy & Business 63-68

A. Global Economy 63-65 B. Global Business 66-68

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

INDIA’S DATA WATCH India Sep HSBC manufacturing PMI slips to 2.5-yr low of 50.4 HSBC manufacturing Purchasing Managers' Index for India fell to a two-and-a-half-year low of 50.4 in Sep from 52.6 in Aug. PMI measures the overall health of manufacturing sector. Sep PMI is near contraction levels, as an above 50.0 PMI indicates an expansion in manufacturing activity, while below 50.0 suggests a contraction. India's manufacturing PMI has remained above 50.0 since Apr 2009. "The growth momentum in India's manufacturing sector eased further in Sep. This was driven by weaker orders, with export orders still contracting due to the weaker global economic conditions," HSBC Chief Economist for India and ASEAN Leif Eskesen said. According to the latest data, India's industrial output growth fell to a 21-month low of 3.3% in July from 8.8% in the previous month. New business was "modest" during the month, however, new order growth slowed to a six-month low, the report said. New orders from export markets also contracted amid the global demand slowdown. "The reduction in new export orders suggested that domestic demand provided the principal support to overall new business growth," the report said. In Sep, the manufacturing sector recorded a fall in employment for the second consecutive month. Meanwhile, input price pressures in Sep "rose substantially" because of high raw material costs. "While the persistent inflation pressures support RBI's tightening bias, the slowdown in manufacturing growth suggests that the end to the tightening cycle is at least now in sight," Eskesen said. The central bank has raised repo rate 12 times since Mar last year by a cumulative 350 basis points. India Aug exports rise 44% on year; imports up 42% India's merchandise exports grew 44.3% on year in Aug to $24.31 bn, while imports grew 41.8% during the month to $38.35 bn. Exports have grown over 40% on year for the fourth consecutive month now. Exports during Apr-Aug, the first five months of 2011-12 (Apr-Mar), rose 54.2% on year to $134.50 bn, while imports grew 40.4% to $189.39 bn. India's trade deficit widened to $14.04 bn in Aug from $10.19 bn a year ago. Oil imports in Aug were up 48.7% on year at $10.28 bn, while non-oil imports rose by 39% to $28.07 bn. The following table details trade data for August and Apr-Aug (in bn dollar):

Yr-on-Yr % Aug 2011 Jul 2011 Aug 2010 change Exports 24.312 29.344 16.854 44.25 Imports 38.354 40.425 27.044 41.82 Oil Imports 10.279 11.445 6.912 48.72 Non-oil Imports 28.075 28.980 20.133 39.40 Trade Deficit 14.042 11.081 10.190 37.80

Apr-Aug 2011-12 Apr-Aug 2010-11 Yr-on-Yr % change Exports 134.502 87.218 54.21 Imports 189.394 134.928 40.37 Oil Imports 52.251 41.114 27.09 Non-oil Imports 137.142 93.814 49.19 Trade Deficit 54.891 47.710 15.05

Monthly data for financial year 2011-12 and previous year (in bn dollar):

Exports Yr-on-Yr Imports Yr-on-Yr Trade Deficit 11-12 10-11 Change(%) 11-12 10-11 Change(%) 11-12 10-11 Apr 23.849* 17.742 34.42 32.834* 28.770 14.13 8.985* 11.027 May 25.941* 16.531 56.93 40.907* 26.549 54.08 14.966* 10.019 Jun 29.213* 19.948 46.45 36.872* 25.883 42.46 7.659* 5.934

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

Jul 29.344* 16.141 81.79 40.425* 26.681 51.52 11.081* 10.539 Aug 24.312* 16.854 44.25 38.354* 27.044 41.82 14.042* 10.190 Sep 18.023* 27.141* 9.118* Oct 17.960* 27.689* 9.729* Nov 18.895* 27.796* 8.901* Dec 22.500* 25.130* 2.630* Jan 20.605* 28.587* 7.981* Feb 23.597* 31.701* 8.104* Mar 29.135* 34.743* 5.608* * Provisional The ministry releases revised data after a gap of a year. India Aug CPI-IW inflation at three-month high of 8.99% India's annual inflation rate based on the Consumer Price Index for Industrial Workers for Aug rose to a three-month high of 8.99% from 8.43% a month ago, the Labour Bureau said. CPI-IW inflation rate was 9.88% a year ago. The inflation rate based on CPI-IW food index for Aug rose to 7.33% from 6.25% the previous month, the bureau said. In Aug, the index for CPI-IW increased to 194 from 193 in Jul. The inflation rate based on CPI-IW is higher than the one based on the Wholesale Price Index. The headline inflation rate based on WPI was at 9.78% in Aug. The government calculates CPI separately for industrial workers, agricultural labourers and rural labourers. In Aug, the inflation rate based on CPI for agricultural labourers and rural workers also inched up to 9.52% and 9.71%, respectively, from 9.03% each in Jun. The point-to-point annual inflation rates, based on CPI for industrial workers, are as follows:

CPI-IW Point-to-point Inflation (%) Month 2011-12 2010-11 2009-10 2008-09 2007-08 Apr 9.41 13.33 8.70 7.81 6.67 May 8.72 13.91 8.63 7.75 6.61 Jun 8.62 13.73 9.29 7.69 5.69 Jul 8.43 11.25 11.89 8.33 6.45 Aug 8.99 9.88 11.72 9.02 7.26 Sep 9.82 11.64 9.77 6.40 Oct 9.70 11.49 10.45 5.51 Nov 8.33 13.51 10.45 5.51 Dec 9.47 14.97 9.70 5.51 Jan 9.30 16.22 10.45 5.51 Feb 8.82 14.86 9.63 5.47 Mar 8.82 14.86 8.03 7.87

India Apr-Aug fiscal gap at 66% of FY12 Budget aim India's fiscal deficit in the first five months of 2011-12 (Apr-Mar) touched Rs.2.73 trn, accounting for 66.3% of the Budgeted fiscal deficit aim, data released by the Controller General of Accounts showed. The fiscal gap has widened sharply in the absence of one-time windfall such as revenues from last year's 3G and broadband spectrum auctions. The government had garnered Rs.1.06 trn last year from these auctions compared with the budget target of Rs.350 bn. Total receipts in Apr-Aug were down 33% at Rs.1.99 trn. Revenue generation for the year looks doubtful, as divestment proceeds have only been Rs.11.65 bn against the government's target of Rs.400 bn. Tax receipts during Apr-Aug remained healthy, registering a 12% rise at Rs.2.40 trn, but were below Budget estimate of 18% growth. Total expenditure was marginally higher at Rs.4.72 trn. In Aug, the government's fiscal deficit was down 26% to Rs.447.70 bn.

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

The CGA detailed the government's fiscal deficit, receipts, and expenditure for Aug and Apr-Aug as follows (in bn rupees):

Aug 2011 Jul 2011 Aug 2010 Yr-o-Yr change Revenue Receipt 513.95 462.35 387.14 (-)1.7% Net tax revenue 499.13 353.79 288.27 20.0% Non-tax revenue 205.78 108.56 98.87 (-)22.6% Recovery of loans 8.87 16.13 9.79 (-)29.5% Other revenue 0.00 0.00 0.00 -100.0% Total Receipts 522.82 478.48 397.73 4.1% Non-plan expenditure 864.04 864.04 687.52 (-)13.2% Plan expenditure 203.34 275.44 217.40 (-)23.7% Total expenditure 970.52 1139.48 904.92 (-)15.6% Fiscal deficit 447.70 661.00 507.19 (-)26.0% Revenue deficit 350.80 602.99 394.98 (-)30.2%

Budget % of actuals of Apr-Jul Apr-Jul Y-o-Y estimates Budget Estimates 2011-12 2010-11 change 2011-12 2011-12 Revenue receipt 1,885.50 2,907.99 (-)35.2% 7,898.92 23.9 Net tax revenue 2,403.76 2,142.95 4.6% 6,644.57 21.8 Non-tax revenue 436.55 1,522.99 (-)71.3% 1,254.35 34.8 Recovery of loans 89.99 33.61 167.7% 150.20 59.9 Other revenue 11.45 21.18 (-)45.9% 400.00 2.9 Total receipts 1,986.94 2,962.78 (-)32.9% 8,449.12 23.5 Non-plan expenditure 3,402.15 3,112.49 9.3% 8,161.82 41.7 Plan expenditure 1,320.02 1,364.54 (-)3.3% 4,415.47 29.9 Total expenditure 4,722.17 3,327.00 5.5% 12,577.29 41.7 Fiscal deficit 2,735.23 1,514.25 80.6% 4,128.17 66.3 Revenue deficit 2,300.00 1,003.52 129.2% 3,072.70 74.9

Note: Revenue receipts include the central government's (about 70%) share in total tax collections and non- tax revenue such as dividend receipts from state-run companies and interest receipts on loans to state governments and others. Plan expenditure relates to expenditure incurred on schemes and projects executed under India's five-year plans. All other expenditures are clubbed under the non-plan head. Salaries and wages to government staff, interest payment and defence spending are some of the main items in this category. India current acct gap widens sharply; FDI inflows up India's current account deficit widened significantly to $14.1 bn in Apr-Jun from $12.0 bn a year ago and $5.5 bn in Jan-Mar because of a decline in services exports and due to a wider trade gap, data from the Reserve Bank of India showed. In Apr-Jun, trade from services stood at $11.9 bn compared with $14.4 bn in the previous quarter. Consequently, trade deficit during the quarter widened to $35.41 bn from $29.70 bn in Jan-Mar. Growth in services exports slowed to 15.7% from 18.3% year ago mainly due to moderation in transportation, software and business services. Merchandise exports or goods exports showed a healthy growth of 47.1%, higher than 33.2% a year ago. Transportation services exports declined to $129 mn from $912 mn in the previous quarter. Net inflows from private transfers, rechristened as primary and secondary income, were to the tune of $9.4 bn, marginally lower than the previous quarter. Despite the widening

Weekly Newsletter 5 Info-Spectrum Bridging the Information Gap in Corporate Landscape current account gap, the overall balance of payments registered a surplus of $5.4 bn during the quarter with the help of big inflows from foreign direct investment and external commercial borrowings. FDI, the more desired and stable form of inflows, rose to $7.2 bn during Apr-Jun from just $2.9 bn a year ago. The RBI had expressed concern that the share of FDI inflows in offsetting a large current account gap must be higher as they are more stable compared with portfolio flows. Inflows from portfolio investment rose marginally to $2.26 bn in Apr-Jun, wherein equity investments dominated. The RBI added $5.4 bn to foreign exchange reserves but valuation loss brought down reserves by $7 bn, data showed. In today's data, the balance of payments accounting was changed to align with global best practices. Services exports have been presented under 12 sub-heads while income and private transfers have been classified under primary income and secondary income. The capital account has been bifurcated under two segments—capital account and financial account. The financial account excludes transactions of intangible assets such as patents, copyrights and trademarks. RBI says Indian cos' overseas borrowings $3.71 bn in Aug Indian companies raised $3.71 bn through external commercial borrowings in Aug, down from $4.17 bn in Jul, the Reserve Bank of India said. The companies raised $2.68 bn through the automatic route and $1.03 bn via the approval route, the central bank said in a release. Tata Motors' overseas borrowing of $500 mn through the automatic route was the highest in Aug. India Sep power generation 70.57 bn kWh, up 9% on yr India's electricity generation grew 8.9% on year in Sep to 70.57 bn kWh, the Central Electricity Authority said. Power generation had grown 9.4% in Aug and 2.1% a year ago. Electricity generation was 3.5% lower in Sep than 73.10 bn kWh produced in the previous month. Nuclear power generation in Sep grew 31.6% to 2.68 bn kWh, while hydropower power rose 22.6% on year to 17.73 bn kWh. Thermal power generation in Sep rose 4.1% on year to 49.26 bn kWh. India imported 0.91 bn kWh power from Bhutan in Sep, down 8.7% on year, the authority said. The plant load factor of the thermal and nuclear power units in Sep were 61.4% and 77.8%, respectively. Electricity generation in Apr-Sep, the first half of 2011-12, rose 9.3% to 435.13 bn kWh. India is targeting electricity generation of 855.00 bn kWh in the current financial year, up 5.4% a year ago. Power generation had grown 5.6% in 2010-11. Electricity generation, with a weight of 10.3%, is the single largest item in India's Index of Industrial Production. India's industrial growth had fallen to a 21-month high of 3.3% in Jul from 8.8% in June and 9.9% a year ago. The authority detailed electricity generation in September and Apr-Sep as follows (in bn kWh):

Sep 2011 Aug 2011 Sep 2010 Yr-on-Yr change Plant load Factor Thermal 49.26 53.35 47.30 4.1% 61.4 Nuclear 2.68 2.72 2.03 31.6% 77.8 Hydro 17.73 16.00 14.46 22.6% - Bhutan 0.91 1.02 0.99 (-) 8.7% - Total 70.57 73.10 64.79 8.9% -

Apr-Sep 2011-12 Aug-Sep 2010-11 Yr-on-Yr change Plant load Factor Thermal 335.04 317.72 5.5% 71.3 Nuclear 16.01 10.88 47.2% 76.3 Hydro 80.08 65.32 22.6% - Bhutan 4.00 4.11 (-) 2.7% - Total 435.13 398.04 9.3% -

India Apr-Aug fisc gap Rs.2.73 trn vs 1.51 trn yr ago India's fiscal deficit rose to Rs.2.73 trn during Apr-Aug from Rs.1.51 trn a year ago due to a 33% fall in receipts. India's Apr-Aug fiscal deficit accounts for 66.3% of the 2011-12 (Apr-Mar) Budget estimate of Rs.4.13 trn. Last year, the government's coffer was buoyed by non-tax revenue collection of Rs.1.06 trn compared with Budget target of Rs.350 bn from spectrum airwaves sale. In the absence of any one-time bonus this year, the government has been banking on robust tax mop-up collections to help meet the fiscal

Weekly Newsletter 6 Info-Spectrum Bridging the Information Gap in Corporate Landscape deficit aim. However, slowdown in the economy and rising spending pressures may make the 2011-12 fiscal deficit aim difficult to meet. India’s 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. In the week ago period, primary articles inflation was at 11.43%. Primary articles index was 202.4, down 0.1% from a week ago. In the year ago period, primary articles index had risen 0.1%. Non-food articles inflation eased to 10.77% from 12.89% a week ago led by lower prices of silk (by 6%), raw cotton and coir fibre (5%). The index also declined 1.5% to 182.1. Meanwhile, food articles inflation continued to remain above 9% at 9.41% from 9.13% pervious week. Higher prices of fish (13%), gram (4%), and pulses (2%) spiked food articles inflation. Food articles index was up 0.2% on week at 197.7. Fuel group inflation rate remained unchanged at 14.69%, and the index for the group was also unchanged at 169.4. 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 the headline inflation rate at 7% at the end of the current financial year. Today's inflation data shows indices for primary articles, and fuel and power were as follows in the week ended Sep 17: --Primary articles index down 0.1% to 202.4 from 202.7 in the previous week; food articles index rose 0.2% to 197.7 from 197.3; non-food articles index was down 1.5% at 182.1 from 184.8 a week ago. --Fuel and power group index was unchanged at 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:

Sep 24 wk-on-wk Yr-on-Yr Commodity groups Weight 2011 % change % change I. PRIMARY ARTICLES 20.12 202.4 (-)0.15 10.84 Food articles 14.34 197.7 0.20 9.41 Cereals 3.37 176.2 0.06 4.57 Rice 1.79 173.8 0.64 4.13 Wheat 1.12 167.0 (-)0.30 (-)1.01 Pulses 0.72 209.7 2.29 7.54 Vegetables 1.74 221.6 1.33 14.88 Potatoes 0.20 158.1 (-)1.86 9.34 Onions 0.18 258.1 0.74 10.58 Fruits 2.11 175.4 0.23 11.72 Milk 3.24 196.1 0.00 10.35 Egg, Meat & Fish 2.41 215.7 (-)1.19 10.33 Non-food articles 4.26 182.1 (-)1.46 10.77 Fibres 0.88 225.4 (-)4.45 18.13 Oilseeds 1.78 158.3 (-)0.38 12.19 Minerals 1.52 303.6 0.00 21.05 II. FUEL & POWER 14.91 169.4 0.00 14.69 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

Sep composite PMI slips to 34-month low of 50.2

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

The HSBC India composite Purchasing Managers' index fell to near three-year low of 50.2 in Sep from 54.5 a month ago. The PMI is now dangerously close to 50, the cut-off level showing contraction in economic activity. The sharp fall in composite PMI is due to slowdown in services and manufacturing activities. Services PMI fell below 50 to 49.8 in Sep from 53.8 in Aug. Going ahead, the global economic slowdown combined with interest rate hikes by the Reserve Bank of India--to rein in inflation—could further pull down overall activity in manufacturing and services sector. Source says India Apr-Sep direct tax mop-up Rs.1.95 trn, up 7% India's direct tax mop-up rose 7.2% on year in Apr-Sep to Rs.1.948 trn, a government source told. Direct tax collections in Apr-Sep 2010 were at Rs.1.817 trn. In the first six months of the financial year 2011-12 (Apr-Mar), corporate tax collections rose to Rs.1.261 trn, up 3% from Rs.1.224 trn a year ago. Personal income tax collections in Apr-Sep rose 15.7% on year to Rs.683.59 bn from Rs.590.53 bn a year ago, the source said. The government had set direct tax mop-up aim at Rs.5.32 trn in the Budget for 2011-12 (Apr- Mar). However, securities transaction tax collection in six months to Sep 30 fell 13% to Rs.25 bn against Rs.28.74 bn a year ago. Gross tax collections during Apr-Sep were at Rs.2.57 trn, up 23% on year. So far in the current financial year, the government has refunded Rs.622 bn to the tax payers.

INDIA DATA CALENDAR Oct 07-10 Major port traffic in September, by Indian Ports Association Oct 07-10 Cement production, despatches in September, by CMA Oct 07-10 Foreign tourist arrivals in Sep, by tourism ministry Oct 07-10 Power generation for September, by Central Electricity Authority Oct 07 Primary articles inflation rate for week to Sep 24, by commerce and industry ministry Oct 07 WMA and forex reserves as on Sep 30, by RBI Oct 07 Bank deposits and credit as on Sep 23, by RBI Oct 07 Average rainfall for week to Oct 6, by IMD Oct 07-12 Automobile sales data for September, by SIAM Oct 10-15 GSM mobile subscribers data for Sep, by COAI Oct 12 Index of Industrial Production for August, by CSO Oct 14 WPI inflation for Sep, by commerce and industry ministry Oct 18 CPI for rural, urban areas and combined for September, by CSO Oct 20 CPI for rural and farm labourers for September, by Labour Ministry Oct 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.

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

ECONOMY ECONOMY: • Azad submits Telangana report to Sonia but decision may take time. • Modi misses BJP national executive meet, Gadkari praises Advani. • Chidambaram assures security to Advani's 'yatra'. • Cash-for-vote: Lok Sabha speaker clears prosecution of BJP MP. • Another BJP MLA in Goa resigns, to join Congress. • Lalu attacks Nitish for ties with BJP. • Blockade cripples Manipur, petrol costs Rs.140 a ltr. • Lokayukta police files FIR against Deve Gowda's son. • Court convicts 24 people for Kandhamal riots. • NIA questions Hizb man in Delhi HC blast case. • Omar apologises for disclosing names of rape victims. • Gujarat riots 'whistleblower' cop Sanjeev Bhatt arrested. • Raja refuses to respond to CBI plea on fresh charge. • India appeals against Portugal court verdict on Abu Salem. • Police files supplementary charge sheet in cash-for-vote case. • Omar Abdullah apologises for naming rape victims. • Cong leader Digvijaya files FIR against Facebook, Twitter, YouTube. • Govt says to announce IT, electronics, telecom policy Oct. • J&K: Row over NC worker's custodial death. • Pranab, Chidambaram had 'working difference': Salman Khurshid. • Series of gaffes puts Omar govt in tight spot. • 3 IAF staffers killed in car crash on Rajpath. • Militant says got training from Pak army, ISI. • Rs.15 bn defence land scam in J&K. • TRS chief brings fight for Telangana to Rajghat. • Ejaz Lakdawala gang suspected to be behind Mazgaon firing incident. • New affidavit to explain poverty to be filed soon. • Montek, Jairam reach deal, Rs.32 BPL cap may go. • Cash for votes: Amar Singh moves High Court for bail. • Omar: I have no hesitation in facing judicial inquiry. • Two killed, 4 injured in fireworks unit explosion in Tamil Nadu. • Naqvi says opposition parties creating fear of BJP among Muslims. • Katara murder: HC notice to Delhi, Uttar Pradesh on Vikas bail plea. • India Aug exports rise 44% on year; imports up 42%. • India Sep HSBC manufacturing PMI slips to 2.5-yr low of 50.4. • Montek clarifies on poverty line, says Rs.32/day reference point. • Moody's says high fisc gap, govt borrow may slow fisc consolidation. • Primary dealers body denies talk Rs.1-trn more govt borrow FY12. • Maharashtra year to Sep sugar output seen 9.3 mn tn vs 9.1 mn. • Govt rice buys start on a slow note; procurement down 38% on yr. • India Jan-Sep total coffee export 292,416 tn vs 224,426 tn yr ago. • Fitch Ratings cuts FY12 India GDP growth to 7.5% from 7.7% earlier. • Stand-off over Goa PAC report on illegal mining. • Home ministry tells Modi govt to protect Sanjiv Bhatt's family.

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

• Court reserves order on remand revision of Sanjiv Bhatt for Oct 7. • Pranab says Congress to project Rahul Gandhi as future leader. • CBI moves Portugal's SC over Abu Salem's extradition. • Inmates on hunger strike against police action in Tamil Nadu. • Raj Thackeray renews attack on north Indians. • Date for filing of tax return extended till Oct 31 in Sikkim. • J&K assembly adjourns sine die amid PDP uproar. • Night operations at Gaya International Airport suspended due to thefts. • Former Bihar CM Bhagwat Jha Azad dead. • India, Switzerland ink tax co-op MoU. • Inflation-wary ministries oppose 15% wheat MSP hike. • Change course and keep interest rates steady, banks tell RBI. • Source says India Apr-Sep direct tax mop-up Rs.1.95 trn, up 7%. • RBI says Indian cos' overseas borrowings $3.71 bn in Aug. • New maize crop arrival starts in south; prices likely to fall. • BJP: Suspension of tainted BSP legislators a charade. • Militant hideout busted, cache of ammunition seized. • Omar rejects Opposition's demand for resignation. • HC dismisses tour agents' petitions against Haj policy. • Spare Rajiv Gandhi's killers: DMK chief to PM. • We backed Anna Hazare, says RSS chief. • Deficit under control, says Finance Minister. • Defence ministry told to speed up port project clearance. • Karuturi's 30,000 acre corn crop destroyed on floods in Ethiopia. • S&P says FY13 Budget critical for India's sovereign rating. • India Sep HSBC composite PMI at 34-month low; svc sector contracts. • India pulses import may cost more as Canada, Australia supp16497 ly dn. • India Apr-Aug total spices export 195,500 tn, dn 23%. • Maharashtra state government approved investment proposals worth Rs.1,120 bn between April and Sep. • India and Afghanistan have signed pacts on developing minerals and natural gas in that country. TAXATION: • Lowering 20% withholding tax on interest paid on external commercial borrowings may have to wait due to pressure on direct tax collections. • Empowered Committee of State Finance Ministers on Goods and Services Tax to meet on Oct 14. • States oppose GST dispute authority. AGRICULTURE: • Maharashtra government estimates state's sugar output until the end of September at 9.3 mn tn as against 9.1 mn tn a year ago. • Government has approved 500 mln rupees as subsidy on sugarcane harvesting machines as demanded by farmers and sugar mills. DEFENCE: • Indian Air Force is likely to begin inducting fifth generation fighter aircraft, jointly developed by India and Russia, from 2017. EXPORTERS: • Government may announce sops for exporters, including interest subsidy, to cushion them from slowdown in western markets.

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

SUGAR: • Government issued export permits for 421,000 tn of sugar. ISMA pegs 2011-12 sugar output at 26 mn tn vs 24.3 mn year ago India is likely to produce 26 mn tn sugar in the new season that started Oct 1, as against 24.3 mn tn in the previous season, according to data from Indian Sugar Mills Association. Output in the country's largest sugar producing state, Maharashtra, is seen 9.27 mn tn in 2011-12, up 2.32% from last year, the data showed. Sugar output in Uttar Pradesh and Karnataka is also seen higher in the year ending Sep. While sugar output in Uttar Pradesh is seen rising by 13.1% to 6.66 mn tn, production in Karnataka is likely to rise by 4.40% to 3.80 mn tn, it said. Uttar Pradesh and Karnataka are the second and third largest sugar producing states, respectively, in the country. The industry body had last month carried out a detailed assessment of sugar output in different states across the country. "We (ISMA) have done a detail assessment (on sugar output) of all states. We have completed with the calculation and we are sticking to 26 mn tn production estimates," Narendra Murkumbi, president, Indian Sugar Mills Association had said. Of all the states, only Gujarat's sugar output is seen lower at 1.20 mn tn, down 1.64% on year. According to the latest government data, India's kharif cane sowing so far stands at 5.09 mn ha compared with 4.94 mn a year ago. Following table give the details of state-wise sugar production estimates for 2011-12 (Oct-Sep) in mn tn and comparative figures for last year's production and change in percentage terms:

STATES 2011-12 ESTIMATES 2010-11 CHANGE(%) Uttar Pradesh 6.66 5.89 13.1 Maharashtra 9.27 9.06 2.32 Karnataka 3.80 3.64 4.40 Tamil Nadu 2.06 1.85 11.4 Gujarat 1.20 1.22 (-) 1.64 Andhra Pradesh 1.05 1.00 5.00 Bihar 0.45 0.38 18.4 Punjab 0.35 0.30 16.7 Haryana 0.45 0.39 15.4 Madhya Pradesh & Chattisgarh 0.22 0.19 15.8 Uttaranchal 0.36 0.31 16.1 Odisha 0.06 0.05 20.0 Others 0.04 0.04 Nil Total 26.0 24.3 7.0

INTERVIEW: S&P says FY13 Budget critical for India's sovereign rtg India's Union Budget for 2012-13 (Apr-Mar) could turn out to be one of the most decisive factors for the country's sovereign rating, feels global ratings major Standard & Poor's. "The content and timing of enactment of next year's Budget will be very important factors for India's sovereign rating," Takahira Ogawa, S&P's director, sovereign and international public finance ratings told in an interview. India is currently rated BBB-/Stable by Standard & Poor's. Economists and rating agencies will closely watch next year's Budget, and any higher expenditures or subsidy could reflect deteriorating fiscal health. "To maintain the market's confidence, we believe it is becoming more important for the government to show its commitment to fiscal consolidation in the medium-term," Ogawa said. Last year, the government had accepted the 13th Finance Commission's recommendation to progressively trim its fiscal deficit to 3.0% of GDP by 2013-14. The panel had suggested the government should aim for a fiscal gap of 4.8% in 2011-12, 4.2% in 2012-13, and 3.0% in 2013-14. HIGHER BORROWING Though last week's announcement of an increase in government's market borrowing size for the second half of the year had hit the bond markets, the move was not surprising, said Ogawa said. "As such, it is not surprising to see the Indian government increase the size of its debt issuance, though the MoF's (ministry of

Weekly Newsletter 11 Info-Spectrum Bridging the Information Gap in Corporate Landscape finance's) explanation of this increase is rather technical in nature," he said. The government said it was being compelled to borrow around Rs.528 bn more through gilts in the current year due to a fall in collections from small saving schemes. The increase takes government's gross borrowing to Rs.4.70 trn. Government said the year's revenue from small saving schemes is pegged Rs.350 bn lower than the Budget estimate, while cash surplus at the start of the fiscal was also substantially lower. Reacting to the government's borrowing announcement, the bond market tumbled, with the yield on the benchmark 10-year gilt--7.80%, 2021—jumping 10 basis points to hit an eight-week high. Despite higher borrowing, the government said it will stick to its fiscal deficit target of 4.6% of GDP for the year. "At this stage, the increased size of government debt financing is within the scope of our expectations," Ogawa said. The market is now bracing for another hike in borrowing in Jan-Mar amid likely fiscal slippages since the government's divestment plans have not really taken off in a weak market, subsidy spending remains huge, and there is not much to boast of in terms of tax collections. Zuari Industries resumes partial production at Goa facility Zuari Industries Ltd has started production of fertilisers partially at its facility in Goa, with resumption in supply of key feedstock, naphtha, from the Mormugao port, the company said in a notice to the exchanges. The company's manufacturing facility in Goa comprises four separate units for producing ammonia, urea, Nitrogen-Phosphorus-Potassium-A and Nitrogen-Phosphorus-Potassium-B. The production of NPK--a combination fertiliser consisting of Nitrogen, Phosphorus and Potassium--has resumed, but that of ammonia and urea will start in around 10 days, an official said. The company had earlier said that it had shut down production after raw material supplies to its plants were disrupted when a major fire on Aug 19 damaged the pipeline supplying feedstock from Mormugao port. The plant has an installed capacity of 946,000 tn per year. Fitch Ratings cuts FY12 India GDP growth to 7.5% from 7.7% earlier Fitch Ratings revised India's gross domestic product growth downward to 7.5% from 7.7% for 2011-2012 (Apr-Mar), and to 8.0% from 8.2% for 2012-13 due to high inflation and interest rate scenario. "India has hit a difficult part of the cycle with growth and inflation heading in opposite directions...it appears that the combination of rising inflation and interest rates has taken a toll on the Indian consumer," Fitch said. Fitch believes that inflation is likely to remain high as global commodity prices remain firm. The Wholesale Price Index-based inflation rate for Aug rose to 9.8% from 9.2% in the previous month. With inflation still at elevated levels, the Reserve Bank of India may have to continue with its monetary tightening stance, Fitch said. Since Mar 2010, RBI has hiked the repo rate by 350 basis points to contain inflation and anchor inflationary expectations. However, the central bank may take a cautious monetary policy approach noting the deterioration in the global economy, Fitch said. World Bk OKs $250 mn loan to improve farm productivity in Bengal The World Bank today approved a $250 mn loan for improving small and marginal farmers' agricultural productivity in West Bengal, a release issued by the international financial institution said. World Bank will give the loan to the West Bengal Accelerated Development of Minor Irrigation Project under which 139,000 ha of irrigated area will be developed that is expected to benefit 166,000 farmers. The loan will have a maturity of 25 years, and will be extended by the Organisation's lending arm International Development Association. India Aug exports rise 44% on year; imports up 42% India's merchandise exports grew 44.3% on year in Aug to $24.31 bn, while imports grew 41.8% during the month to $38.35 bn. Exports have grown over 40% on year for the fourth consecutive month now. Exports during Apr-Aug, the first five months of 2011-12 (Apr-Mar), rose 54.2% on year to $134.50 bn, while imports grew 40.4% to $189.39 bn. India's trade deficit widened to $14.04 bn in Aug from $10.19 bn a year ago. Oil imports in Aug were up 48.7% on year at $10.28 bn, while non-oil imports rose by 39% to $28.07 bn. Zuari Ind resumes production at Mormugoa Port unit With reference to the earlier announcements dated Aug 30, 2011 and Sep 14, 2011 regarding shutdown of Complex Fertilizer Plant consequent to non-availability of Ammonia and Phosphoric Acid, the requisite raw- materials for production of complex fertilizers, Zuari Industries Ltd has now informed BSE that with the resumption of raw materials receiving at the Mormugoa Port the production of Phosphatic/Complex Fertilizers have resumed.

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

Montek clarifies on poverty line, says Rs.32/day reference point In an attempt to allay criticism against the Planning Commission for its affidavit in the Supreme Court on the definition of poor, Deputy Chairman Montek Singh Ahluwalia said the 32-rupee-per-day definition of poverty line is a mere "reference point". Govt issues export permits for 401,432 tn sugar in 3rd tranche The government has issued release orders for export of 401,432 tn sugar so far under the third tranche of overseas sales allowed under the open general licence scheme, the sugar directorate said. Uttar Pradesh mills offer Rs.205/100 kg for cane, unch on yr Sugar mills in Uttar Pradesh have offered to pay farmers Rs.205 per 100 kg cane in the new season that starts Oct, Uttar Pradesh Sugar Mills Association Secretary S.L. Gupta said. India Jun-Sep monsoon rains 899.8 mm, 1% above normal India received 1% above normal rains in the Jun-Sep monsoon season, boosting prospects of a bumper crop for the second year in a row. The country received normal rains in the four-month southwest monsoon season at 899.8 mm, 101% of the long period average of 886.9 mm, India Meteorological Department said. DATA ALERT: India current acct gap widens sharply; FDI inflows up India's current account deficit widened significantly to $14.1 bn in Apr-Jun from $12.0 bn a year ago and $5.5 bn in Jan-Mar because of a decline in services exports and due to a wider trade gap, data from the Reserve Bank of India showed. Modi-baiter suspended cop Sanjeev Bhatt arrested by Gujarat Police Suspended Indian Police Service Officer Sanjiv Bhatt, who accused Gujarat Chief Minister Narendra Modi of complicity in the 2002 post-Godhra riots, was arrested. FOCUS: Life beyond DEPB - exporters sigh, seek solace in drawback After many extensions, it is finally curtains for the 14-year-old Duty Entitlement Passbook Scheme that expires leaving behind sullen exporters, whose only solace is shifting of many items to the existing Duty Drawback Scheme. DATA ALERT: India Aug CPI-IW inflation at three-month high of 8.99% India's annual inflation rate based on the Consumer Price Index for Industrial Workers for Aug rose to a three-month high of 8.99% from 8.43% a month ago, the Labour Bureau said. Delhi govt hikes registration tax on diesel vehicles by 25% The Delhi government has raised the registration tax on diesel vehicles by 25% on the existing registration rate, according to a report in the Times of India. India Sep HSBC manufacturing PMI slips to 2.5-yr low of 50.4 HSBC manufacturing Purchasing Managers' Index for India fell to a two-and-a-half-year low of 50.4 in Sep from 52.6 in Aug. Flash floods damage Karuturi Global's Ethiopia maize crop Karuturi Global Ltd's maize crop in Ethiopia has suffered "substantial" damage due to recent flash floods, Avinash Kaushik, general manager, corporate strategy and planning said. Govt unveils draft electronics policy; eyes $400 bn revenue 2020 The government unveiled the National Electronics Policy draft, which aims to generate $400 bn annual revenue from manufacturing in the sector. The plan includes incentives to set up over 200 clusters to promote electronic goods manufacturing. Govt extends time for applying for sugar export quota by 15 days The government, in a notification, said that it has extended limit for sugar merchant exporters to apply for permits by 15 more days to Oct 18. Moody's says high fisc gap, govt borrow may slow fisc consolidation An increase in the government's market borrowing and a widening fiscal deficit may slow down the process of fiscal consolidation, a report by Moody's Investors Service said.

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

FOCUS: High govt borrow may squeeze liquidity; traders hope for OMO After the central government stunned the market with a huge borrowing plan, traders cannot help but wonder whether the liquidity deficit will widen to an extent that will compel the Reserve Bank of India to conduct open market operations. RBI says persons with pending cases cannot be money-changing agents The Reserve Bank of India asked authorised dealers to avoid appointing individuals or entities against whom cases are pending as money changing agents. Prime Minister's Office asks fertiliser min to expedite urea decontrol Amid inter-ministerial differences over decontrol of urea prices, the Prime Minister's Office has asked the fertiliser ministry to expedite the proposed policy. On Aug 5, a ministerial panel on fertilisers had referred the urea decontrol policy to the Cabinet Committee on Economic Affairs for approval. RBI says Indian cos' overseas borrowings $3.71 bn in Aug Indian companies raised $3.71 bn through external commercial borrowings in Aug, down from $4.17 bn in Jul, the Reserve Bank of India said. KARUTURI GLOBAL: Company's corn crop over 30,000 acres in Ethiopia destroyed by floods.

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

INFRASTRUCTURE INFRASTRUCTURE: • PSU oil cos revenue loss on subsidised fuel sale Rs.2.98 bn/day. • Indraprastha Gas hikes CNG prices by Rs.2/kg from Oct 1. • CAG appointed external auditor for International Atomic Energy Agency. • Lanco Infra head says expect court verdict on Perdaman case by Jul. • RPower to raise $2.2 bn via overseas loan for Sasan project. • Chavan for coastal ring road in Mumbai. • Evacuation issues haunt wind power producers in Tamil Nadu. • Cairn strikes gas in Sri Lanka's Manar Basin. • RIL-BP field plan may face hurdle. • Shasun promoters to sell part stake to bring down debt. • Air India to rejig seating, slash luxuries to save Rs.5 bn. • Airports Authority says it won't finance DIAL bailout. • Air India seeks finance ministry help to win lenders' confidence. • Developers sell land banks as home sales drop. • ACC Sep cement despatch up 9.5% on year, production up nearly 10%. • Ambuja Cements Sep despatches 1.55 mln tn, nearly unch on yr. • Sudhir Vasudeva appointed as ONGC chairman and managing director. • Jet Air pledges JetLite equity to raise 3.25 bln rupees. • Real estate consultants not to get FDI. • Essar weighs $750 mln infra IPO in London. • New chief Vasudeva says ONGC open to selling stake in NELP blocks. • Unsure of demand, a key cement co opposes price hike in Mumbai. • Suzlon arm REpower gets order to supply 122 MW wind turbines. • Punj Lloyd arm, Dassault in pact to offer energy sector solutions. • Dewan in stake sale talks with PEs to raise 5 bln rupees. • BHEL defers plan for financial firm on poor sector health. • Source says RIL may suspend Uttar Pradesh fertiliser units' gas supply. • BHEL gets 37.83-bln-rupee order from DB Power for thermal plant. • ED says Godrej Properties may get PE funds in some projects by Dec. • BHEL gets 37.83-bln-rupee order from DB Power for thermal plant. • Essar Group plans to list its infrastructure business in London next year to raise 37 bln rupees. • Planning Commission to review road contract models; weighs between build-operate-transfer and item-rate models. • The Mumbai Metropolitan Region Development Authority to soon finalise its report on proposed land use plan near airport. AVIATION: • Air India is looking at selling bonds to raise Rs.100 bn to reduce dependence on government bailouts. • Air India has managed to get insurance for its 150 aircraft at 13% less than last year. The airline paid $26.8 mn as premium against $30 mn a year ago. • Airports Authority of India has refused to give a Rs.3.5 bn loan to Delhi International Airport at 9% rate of interest to bail it out. • The civil aviation ministry has asked the finance ministry to issue a letter of comfort to 13 banks that have together lent Air India 220 bln rupees. • Domestic air passenger traffic in August grew 19.7% on year.

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

• Low cost carrier Indigo Airlines registered a profit of 6.5 bln rupees for the year ended March. This is the company's third successive year of profitability. • The European Union is firm on extending emission trading scheme for all flights entering or departing from airports in the region. • Commerce Secretary has said government should allow foreign airlines to invest in domestic ones. • Air India has lost 48 pilots to rival airlines in the past three months. POWER: • Nuclear Power Corp and Areva could sign a pact by December to supply European pressurised reactors for the Jaitapur project. • UK-based safety and risk-mitigation firm Lloyd's Register Group is eyeing buys in India to double its revenue to Rs.2.6 bn in three years. • Asian Development bank will invest $750 mn on setting up power transmission systems from Chhattisgarh to areas of high demand in north India. • TVS Group plans to spend Rs.18 bn on setting up wind energy plants of 200 MW over the next three years. • GVK Group plans to ramp up its power generation capacity to over 75,000 MW in five years. • City and Industrial Development Corp, a nodal agency for developing the Navi Mumbai international airport, plans to enter power generation to feed the proposed airport. • Essar Power to invest $8 bln over the next three years in power projects. ENERGY: • Daily loss of three state-owned oil marketing companies is seen at 2.71 bln rupees during Oct 1-14, 11.5% higher than the loss during Sep 16-30. • Sahara Group has entered the oil and gas sector by buying Ensearch Petroleum. • International Energy Agency has said global subsidy of fossil fuels is set to reach $660 bln in 2020 unless reforms are passed. • Andhra Pradesh government plans to spend up to 10 bln rupees for buying power this month to bridge the demand-supply gap in the state. OIL & GAS: • Petroleum and Natural Gas Board's internal strife delays allocation of city gas distribution projects. • India and Iran have agreed India will deduct dues of its exporters to Iran before settling its oil dues. REAL ESTATE: • Tata Housing Development Co to launch a 22-acre residential township in Kalyan, Mumbai, which will cost Rs.10 bn. • Leading developers such as DLF, DB Realty are forced to sell off their land banks and development rights as property sales have dropped. SHIPPING: • Government of Kerala has signed a 30-year concession pact with Malabar Ports to develop its Ponnani port on a build-operate-transfer basis. • Shipowners' body seeks sops for cargo transport. PORTS: • Thirty-one companies, including SHIPPING CORPORATION OF INDIA and ESSAR PORTS, have shown interest in Kerala government's project to convert Vizhinjam Port into a major port. Gammon Infra seeks SEBI OK for rights issue of up to Rs.2 bn Gammon Infrastructure Projects Ltd has filed papers with the Securities and Exchange Board of India for approval to raise up to Rs.2 bn via a rights issue of shares, the company said in a notice to the stock exchanges.

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

Oil PSUs to hike jet fuel prices by average Rs.916/kL from Oct 1 State-owned oil marketing companies will raise the prices of aviation turbine fuel by an average of Rs.961.00 a kL in the four metro cities from Oct 1, showed the price list published on the Indian Oil Corp Ltd's website. NTPC shuts 500 MW unit at Ramagundam plant due to coal shortage NTPC Ltd has closed the seventh unit at its power generation plant in Ramagundam, Andhra Pradesh due to a shortage of coal, a senior official of the company told. The unit has generation capacity of 500 MW. Lanco Infra sees Australian court verdict on Perdaman case by Jul Lanco Infratech Ltd is expecting the final outcome of the legal dispute--that the company's arm Griffin Coal Mining is currently engaged in Australia with Perdaman Chemicals and Fertilisers--by July, L. Chairman Madhusudhan Rao said. Reliance Power gets RBI nod to raise $2.2 bn debt for Sasan unit Reliance Power Ltd has got approval from the Reserve Bank of India to raise $2.2 bn through external commercial borrowings for its 3,960 MW Sasan Ultra Mega Power Project. Oil cos loss on subsidised fuel sale up 23% at Rs.2.98 bn/day State-owned oil marketing companies' daily revenue loss on sale of subsidised fuels increased by 22.6% over the last fortnight to Rs.2.98 bn, an official from one these companies told. CAG named external auditor for International Atomic Energy Agency The Comptroller and Auditor General of India has been appointed as the external auditor for International Atomic Energy Agency and World Intellectual Property Organization, a press release said. Indraprastha Gas hikes CNG prices by Rs.2/kg from Oct 1 Indraprastha Gas Ltd, sole supplier of compressed natural gas in Delhi and surrounding areas, has decided to increase prices of the fuel by Rs.2 per kg from midnight tonight, the company said. Adani Power's arms seek bids to set up 3 thermal power projects Adani Power Ltd's three subsidiaries--Adani Power Dahej Ltd, Kutch Power Generation Ltd, and Adani Pench Power Ltd--have invited bids for setting up three coal-based thermal power projects, two in Gujarat and one in Madhya Pradesh. GVK Power arm gets NHAI road four-laning order in Madhya Pradesh GVK Power & Infrastructure Ltd's subsidiary GVK Transportation Pvt Ltd has received an order for four- laning Shivpuri-Dewas section of National Highway No. 3 in Madhya Pradesh on build-operate-transfer basis with a concession period of 30 years, the company said in a notice to the exchange. Maharashtra road body planning Formula One racing track, theme park The Maharashtra State Road Development Corp Ltd is looking for a 400-500 acre plot in the Mumbai Metropolitan Region for a proposed Formula One racing track and theme park. Lanco Infra to divest stake to PEs to fund expansion Lanco Infratech, which is adding 6,000 MW power generation capacity for Rs.300 bn, is close to divesting part stake at the holding company level, verticals and special purpose vehicles to fund the growing equity requirement. GVK rejigs strategy; to focus on thermal projects GVK Power and Infrastructure Ltd plans to focus on thermal power projects while holding back its expansion plans for gas-based projects due to the lack of firm allotment of gas supplies. It will also expedite the implementation of hydel projects. Kirloskar Oil completes sale of bearings unit With reference to the earlier announcements relating to the disposal of the undertaking of the Company comprising of the Bearings Business Division ("BBD") situate at inter alia (1) Khadki, Pune and (2) MIDC, Ahmednagar, (save and except for the lands and buildings on which the BBD is situate) to KSPG Automotive India Pvt. Ltd. (earlier known as Pierburg India Pvt. Ltd.), Pune ("KSPG"), Kirloskar Oil Engines Ltd has now informed BSE that in pursuance of the approval accorded by the Board of Directors of the Company, and the shareholders of the Company, and pursuant to the Business Transfer Agreement ("BTA") entered into/executed by the Company and KSPG Automotive India Pvt. Ltd. (earlier known as Pierburg India Pvt. Ltd.), Pune (KSPG), the disposal of the undertaking of the Company comprising of the Bearings Business

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

Division ("BBD") situate at inter alia (1) Khadki, Pune and (2) MIDC, Ahmednagar, (save and except for the lands and buildings on which the BBD is situate) to KSPG, pursuant to and on the terms and conditions of the BTA, stands completed on Sep 30, 2011 i.e. the Completion Date (as defined in the BTA) and the Company has received the Purchase Price (as defined in the BTA) of Rs.870,000,000 on Sep 29, 2011 in consideration thereof. Airports authority rejects move to bailout Delhi airport operator The Airports Authority of India has rejected a move to bail Delhi International Airport Ltd out of a financial crisis by extending a Rs.3.5 bn loan at 9% interest. The proposal was mooted at a PMO meeting, chaired by the principal secretary to the prime minister in Aug. Cairn India arm strikes gas in Sri Lanka's Mannar Basin Cairn India Ltd's wholly-owned subsidiary has discovered natural gas in the first exploration well it drilled in the Mannar Basin in Sri Lanka. Cairn Lanka (Pvt) Ltd has notified the discovery to the Sri Lankan government authorities. The company struck a gross 25 mtr hydrocarbon column in a sandstone between the depths of 3,043.8-3,068.7 mtrs, which is predominantly gas bearing with some additional liquid hydrocarbon potential. "Further drilling will be required to establish the commerciality of the discovery," the release said. Cairn Lanka has committed an investment of around $110 mn over a period of three years to conduct detailed seismic studies and to drill three wells in the block. Cairn India's Sri Lankan arm had started drilling CLPL-Dorado-91H/1z, the first well to be drilled in Sri Lanka in 30 years, in a water depth of 1,354 mtrs in August with a Japanese drilling rig. The company was awarded 100% operatorship in the block--SL 2007-01-001, Mannar Basin, Sri Lanka, in 2008. Cairn India had made one of the largest onland oil discoveries in India in a block at Rajasthan and had put it on production in 2009. The Scottish parent of Cairn India is selling up to 60% in the company to Anil Agarwal-promoted Vedanta Group, which has received all necessary government approvals. NTPC says Sipat thermal plant unit-1 starts ops Oct 1 NTPC Limited has informed the Exchange that the Unit # 1 of 660 MW of Sipat Super Thermal Power Station Stage-I is declared on Commercial operation w.e.f. 00:00 Hrs of Oct 01, 2011. With this the commercial capacity of Sipat Super Thermal Power Station (Stage-I&II) is 1660 MW and that of NTPC is 30990 MW. Suzlon Energy's arm SEFORGE gets two orders worth Rs.2 bn Suzlon Energy Ltd's arm SEFORGE has bagged two new orders for tower flanges and castings worth Rs.2 bn, the parent said. The first order, from an independent wind turbine tower manufacturer, is worth Rs.1.2 bn. The second one is for castings and is worth Rs.800 mn. SEFORGE manufactures large size castings and large diameter forged and machine rings. RPower's Tilaiya ultra mega project registered for carbon credits Reliance Power Ltd's 3,960 MW ultra mega power project in Tilaiya, Jharkhand, has been registered for carbon credits worth Rs.20 bn from the United Nations Framework Convention on Climate Change, the company said in a press release. The project will generate 21.3 mn carbon credits, valued at over Rs.20 bn, during the initial 10-year period. The registration will allow the project to earn Certified Emission Reductions that can be traded and sold translating into direct revenues for the company. Reliance Power's Tilaiya ultra mega power project, in Hazaribagh district is a 3,960 MW (6 units of 660 MW each) pit-head project based on super-critical technology. Hyderabad Ind starts 1.25 MW wind turbine in Tamil Nadu Hyderabad Industries Ltd has informed that the Company has successfully commissioned a 1.25 MW Suzlon Make Wind Turbine at location KD248, Village: Eragampatti, Taluk: Dharapuram District: Tirupurour, Tamilnadu on September 29, 2011. The power generated from this Wind Turbine will be captively consumed by the Company at its AAC Blocks manufacturing plant in Chennai. With this the total installed capacity of the Company's Wind Power Plants has increased to 4.85 MW. Gulf Oil Corp appoints Manish Gangwal as CFO Gulf Oil Corporation Limited has informed the Exchange that subsequent to the movement of Mr. S. Subramanian: 1) Mr. Manish Gangwal, CFO-Lubes, has been appointed the Chief Financial Officer of the Company, under the Listing Agreement with the Stock Exchanges w.e.f. Oct 01, 2011. 2) Mr. A. Satyanarayan, Deputy Company Secretary, has been entrusted with the full responsibilities relating to the Company's Secretarial functions and will be the Compliance Officer of the Company pursuant to the

Weekly Newsletter 18 Info-Spectrum Bridging the Information Gap in Corporate Landscape provisions of Clause 47 of the Listing Agreement with the Stock Exchanges, for the purpose Of compliance of the Listing Agreement and other applicable requirements w.e.f. Oct 01, 2011. Elecon Engineering gets Rs.330-mn order from BHEL Elecon Engineering Co Ltd has received an order worth Rs.330 mn from Bharat Heavy Electricals Ltd. The company will design, engineer, manufacture, supply, erect, start up, test and commission four sets of wagon tippler with side arm charger for BHEL. The company will also commission spares for the raw material handling system project of NMDC's steel plant at Chhattisgarh under the order. BHEL is setting up NMDC Ltd's raw material handling system for the latter's upcoming 3-mtpa steel plant at Nagarnar, Chhattisgarh. Ambuja Cements Sep despatches 1.55 mn tn, nearly unch on yr Ambuja Cements Ltd despatched 1.55 mn tn cement in Sep, almost unchanged from 1.52 mn tn in the corresponding month last year. The Holcim group company produced 1.46 mn tn cement in Sep, compared with 1.48 mn tn a year ago, and its cement despatches rose 3.3% and output fell 3.9% on a month-on- month basis. ACC Sep cement despatch up 9.5% on year, production up nearly 10% ACC Ltd's cement despatched in Sep rose 9.5% on year to 1.73 mn tn, and production rose 9.9% to 1.67 mn tn. However, on a month-on-month basis, the company's despatches declined 8% and production fell 11%, respectively. Nava Bharat to provide guarantee for loans to co's arm Nava Bharat Ventures Ltd has informed that the Board of Directors of the Company at its meeting held on Oct 03, 2011, inter alia, has considered and approved in-principle to provide Corporate Guarantee in favour of the Banks in respect of loans to the Company's Subsidiary, M/s. Maamba Collieries Ltd. and also approved the constitution of 'Nava Bharat Employees' Welfare Trust' and 'Nava Bharat Employees' Master Welfare Scheme'. Sudhir Vasudeva appointed as ONGC chairman and managing director The government appointed Sudhir Vasudeva as the chairman and managing director of state-owned Oil and Natural Gas Corp, an official release said. Oil cos' loss on subsidised fuel sale up 11% at Rs.2.71 bn/day The three state-owned oil marketing companies' daily revenue loss on sale of subsidised fuels is seen at Rs.2.71 bn for the fortnight beginning Oct 1, 11.5% higher than the Rs.2.43-bn loss during Sep 16-30, according to a government release. Air India seeks letter of comfort from finance ministry To restore confidence of lenders in debt-laden Air India, the civil aviation ministry has asked the finance ministry to issue a letter of comfort to banks. State Bank of India and 12 other banks have lent Rs.220 bn to Air India by way of working capital loans. SpiceJet plans five more regional hubs across India Low-cost carrier SpiceJet Ltd plans to set up five more regional hubs in an effort to connect all major towns through its 70-seater Bombardier aircraft. The airline, which started its regional operations from Hyderabad last month, plans to have hubs in Chennai, Ahmedabad, Bangalore, Kolkata and Delhi. Highway developers approach competition regulator against NHAI move Highway developers have approached the Competition Commission of India against a National Highways Authority of India move to restrict the number of bidders for engineering, procurement and construction projects to be developed in Uttar Pradesh. Diamond Power Infra gets 5,600 tn transmission tower supply order Diamond Power Infrastructure Ltd has received a 5,600-tn order from Gujarat Energy Transmission Corp Ltd to supply transmission towers. As per the letter of intent, Diamond Power will supply and erect 66kV, 132kV, and 220kV transmission towers for the Vadodara-based electrical power transmission company. Diamond Power did not divulge value of the order. IL&FS Transportation gets order for stadium in Kerala IL&FS Transportation Networks Ltd has informed BSE that the Company had submitted its Bid with the National Games Secretariat ("NGS") for development of Outdoor Stadium at Karyavattom, Thiruvananthapuram, Kerala, (the "Project"). The Project is on Annuity basis with a concession period of 15

Weekly Newsletter 19 Info-Spectrum Bridging the Information Gap in Corporate Landscape years including a construction period of 24 months and the estimated cost of the Project is Rs.161 Crores. Further the Company has informed that, the Company has received the Letter of Award Iron NGS for the aforesaid Project. Reliance Infra commissions 150-km Parli-Solapur transmission line Reliance Infrastructure Ltd has commissioned the 150-km Parli-Solapur transmission line in western Maharashtra as part of the Western Regional System Strengthening Project. The transmission line is part of a 1500-km project to be built at a cost of Rs.14 bn. The newly commissioned 400kV double circuit transmission line is the fourth line in the project by Reliance Infra, with three others executed by Reliance Power Transmission Ltd, its subsidiary. The project, which aims to connect the transmission lines from the eastern parts of the country to the western regions India transmission lines, is expected to be completed in 2012, the release said. New chief Vasudeva says ONGC open to selling stake in NELP blocks Oil and Natural Gas Corp Ltd is open to selling stake in some oil blocks it had bagged under various rounds of New Exploration Licensing Policy, Chairman and Managing Director Sudhir Vasudeva said. "We are open (to selling stakes in NELP blocks)," Vasudeva told reporters here while assuming charge as ONGC's new chairman and managing director. Vasudeva did not, however, specify blocks that the company was likely to sell stakes in, or give any timeframe for the stake sale. Separately, S.V. Rao, director-exploration, said that the company is considering selling stakes in three blocks--two in Mahanadi oil fields off Odisha coast, and one in KG-D6 basin. On the company's proposed follow-on public offer, Vasudeva said, "... government of India will only take a call (on the FPO). We are prepared anytime the government of India wants to go for FPO." Unsure of demand, a key cement co opposes price hike in Mumbai The reluctance of a multi-national cement manufacturer is delaying hike in prices in Mumbai, even as the industry association is working to arrive at a consensus, industry sources said. The company, which supplies cement in Mumbai through two of its arms, is strongly resisting the 5 rupee per 50-kg bag rise in prices that is being proposed by the trade, the sources said. Cement prices in Mumbai are currently around 290 rupees per 50 kg bag in the retail market and about 270 rupees for institutional sales. "It (the company) opposed the decision in view of the demand situation," said a city-based cement dealer. "Demand has not picked up the way it usually does during festive season." Key manufacturers catering to the Mumbai market are meeting daily to resolve the issue and hope to announce a price hike by Thursday. The frustration among those seeking a hike in price is because demand tends to pick pace around September-end, when construction activity gains momentum after monsoon. Punj Lloyd arm, Dassault in pact to offer energy sector solutions PL Engineering, an arm of Punj Lloyd Ltd, has signed a pact with Dassault Systemes SA to jointly market the French company's software solutions and the former's services solutions in India and other markets. PL Engineering will market Dassault's software to companies in different sectors such as engineering procurement and construction, oil & gas, nuclear power, thermal power, chemicals and aerospace. Both the companies will provide an integrated platform for designing, construction and commissioning plants in various sectors, the release said, without elaborating on the scope, duration of the agreement, or its financial aspects. Electrotherm to seek shareholders OK for unit sale Electrotherm (India) Limited has submitted to the Exchange a copy of the Notice of Postal Ballot issued pursuant to Section 192A of the Companies Act, 1956 for seeking approval of members in relation to an Ordinary Resolution for sale, lease, transfer or disposal of "Ductile Iron Pipes Division" of the Company to its subsidiary, group and / or associate company or to any other entity as a whole and as a going concern on a slump sale basis or otherwise under Section 293(1)(a) of the Companies Act, 1956. Suzlon arm REpower gets order to supply 122 MW wind turbines Suzlon Energy Ltd today said its German subsidiary Repower Systems SE has received a wind turbines order from Zuidlob Wind BV, an arm of Swedish energy company Vattenfall AB. In a release, Suzlon said REpower would supply 36 turbines with total generation capacity of 122 MW for a wind energy farm in the Flevoland province of the Netherlands. The turbines will be installed by spring 2013, when the setting up of the wind farm will be complete, the company said.

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

Ackruti City launches premium residential project in Mumbai In anticipation of a spurt in demand during festive season, Ackruti City Ltd launched a 22-storyed premium housing project in Andheri East, a city suburb. "All approvals are in place and the project is already well under construction," Managing Director Vimal Shah was quoted as saying in a release. "The estimated completion and possession time is early 2014." Ackruti City will offer around 426 apartments ranging between 730-1,900 sq ft in size at the project. The project, called Ackruti Hillcrest, will include a clubhouse, gymnasium, kids play area, multi-purpose hall, and rooftop garden. The release did not detail financials of the project or the likely sale price for the apartments. Keeping in view the slump in demand at present, the company is offering a discount to buyers during the launch period. Demand for real estate has been subdued for a few months now due to rise in home loan rates, following Reserve Bank of India's move to raise key policy rates to tame inflation. HPCL postpones maintenance shut down at Vishakhapatnam by 2-3 mos Hindustan Petroleum Corp Ltd has postponed the regular maintenance shutdown at its Vishakhapatnam refinery by 2-3 months as some equipment that was to be replaced has not yet been delivered by suppliers, K. Murali, director-refineries told. The state-owned oil refiner and retailer had earlier planned a 45-day maintenance shutdown of the 9.5 mn tn refinery located in the coastal town of Andhra Pradesh in Oct-Nov. "We will now do it in Jan-Feb," Murali said. "The equipment will probably arrive by then." Maintenance activity at the company's 6-mn-tn a year refinery in Mumbai will also be pushed to the next financial year. Earlier, the refinery shutdown was scheduled for Feb-Mar. The official had said that the company was awaiting clarity on delivery of equipment to be used for the refurbishment to decide on dates for shutdown. The Vishakhapatnam refinery undertook a refurbishment shutdown in 2010-11 (Apr-Mar) which increased capacity to 8.3 mn tn per year from 7.5 mn tn earlier. HPCL witnessed a decline in throughput of its two refineries for the second consecutive year in 2010-11 at 14.70 mn tn, the official had said. In 2010-11, the company's output declined 6.7% from 15.75 mn tn a year ago, which was marginally lower from 15.80 mn tn in 2008-09. The decline in output in 2010-11 was because the company's refineries—in Mumbai and Vishakhapatnam--underwent shutdowns during the year. In the year ended Mar 31, the Mumbai refinery operated at 100% of its rated capacity of 6.5 mn tn and the Vishakhapatnam unit processed 8.2 mn tn crude oil. The Vishakhapatnam refinery's capacity increased to 8.3 mn tn a year from 7.5 mn tn after a capacity ramp-up in Jul-Aug. Jet Air pledges equity of low-cost arm to raise Rs.3.25-bn loan Jet Airways has pledged the entire promoters' equity holding in its low-cost subsidiary JetLite to IDFC for a loan of Rs.3.25 bn. Jet had acquired Air Sahara for Rs.14.5 bn in 2007 and renamed it JetLite to strengthen its foothold in the aviation market. NTPC plans restructuring exercise, may review joint ventures State-owned power utility NTPC Ltd is planning a restructuring exercise that involves reviewing the future of its numerous joint ventures and subsidiaries. "The idea is to see whether these joint ventures and subsidiaries need to be restructured, closed, or re-oriented," the report quoted a person familiar with the development as saying. "The plan is to rationalise or exit (ventures in) areas that don't make sense," the paper quoted a senior NTPC executive as saying. NTPC Chairman and Managing Director Arup Roy Choudhury confirmed that a restructuring was on, but denied that it would lead to exits from some ventures. NTPC has appointed Deloitte Touche Tohmatsu India Pvt Ltd to prepare a report that will form the basis of the review. The restructuring exercise comes at a time when NTPC has expressed its desire to exit from International Coal Ventures, a company promoted to buy coal mines overseas. Army stakes claim to US consulate land in south Mumbai The US consulate's plan to sell Lincoln House, a prime property at Breach Candy in south Mumbai, is likely to hit a roadblock as the Indian Army has claimed ownership of the land. The property has around 30 big and small bedrooms, a large swimming pool, huge gardens, and separate staff and servant quarters. The army's claim is based on a 1940 central government rule that says all land occupied by the British military is transferred to the defence ministry, the report said, quoting sources. The army will soon write to the city collector and the US consulate over the issue. The US consulate's Information Officer Kapil Gupta confirmed that senior army officials have claimed ownership of the land. He said the consulate is unaware of any obstacles to the land sale.

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

Suzlon Energy gets 25.5 MW order from GAIL India Suzlon Energy Ltd has received an order from GAIL India to supply 17 wind turbines of 1.5 MW capacity each for the latter's Karnataka power project, Suzlon informed the National Stock Exchange today. The value of the 25.5 MW order is around Rs.1.5 bn, a representative of the company told. The wind turbines are likely to be commissioned in 2012. This is Suzlon's third order from GAIL India, the earlier two being in Gujarat for 4.5 MW and 14.7 MW. ACC gets 21,181 carbon credits worth 14 mln rupees from UN body ACC Ltd has received 21,181 certified emission reductions, or carbon credits, for its 9 MW wind power project in Tamil Nadu, the United Nations Framework Convention on Climate Change said in a release. The carbon credits received by the company are valued at Rs.14 mn based on the current price of 10.17 euro (around Rs.664) a carbon credit in the December contract on the European Climate Exchange. ACC received the credits for reducing the emission of greenhouse gases at its project between Sep 3, 2009 and Sep 15, 2010. Diamond Power gets order for transmission lines Diamond Power Infrastructure Ltd has informed BSE about Receipt of Letters of Intents for Supply and Erection of 220KV D/C & 220KV S/C lines for Halvad-Sadla, BECL-Botad and Chorania - Gondal LILO at Sadla aggregating 155.846 kms. Godrej Prop, Godrej & Boyce in pact for Vikhroli land development Godrej Properties Ltd has signed an agreement with its holding Company, Godrej & Boyce Manufacturing Co Ltd, for developing the latter's land at Vikhroli in the city, the real estate developer said in a release today. "Godrej Properties will act as development manager and will be responsible for the conceptualisation, design, sales, and marketing of all future development on the G&B owned Vikhroli land," the release said. Godrej Properties, which will bear the cost for sales and marketing of the Project, will get 10% of the total revenue generated as fee for its services, it said. The cost of design and construction of the development will be borne by Godrej & Boyce. The project will include residential, commercial, retail and landscaped areas, and will be developed in phases. "The first project under this agreement will start immediately with the launch of Godrej Platinum, a residential development of approximately 600,000 sq ft. Godrej Platinum comprises of four high-end residential towers on which construction has already begun," the release said. BHEL gets 37.83-bln-rupee order from DB Power for thermal plant Bharat Heavy Electricals Ltd today said it has got a contract worth 37.83 bln rupees from DB Power (Madhya Pradesh) Ltd, a Dainik Bhaskar Group company. Under the contract, BHEL will set up a 1,320 MW thermal power plant in Madhya Pradesh, a company statement said. The order is for supply and installation of the main plant package for DB Power's upcoming coal-based supercritical thermal power project, located in Gorgi village in Singrauli district. BHEL is already executing a contract for DP Power--two units of 600 MW boiler turbine generator package along with associated auxiliaries for a 1,200 MW coal-based thermal power project in Chhattisgarh. Punj Lloyd gets EPC contract from Qatar to set up polysilicon plant Punj Lloyd Ltd has bagged an engineering, procurement and construction contract for a polysilicon plant from Qatar Solar Technologies. The 4,000-tn-per-year plant will be commissioned in mid-2013. Polysilicon is a key component used in the construction of solar panels. The contract is part of Qatar Solar Technologies' plan to manufacture 8,000 tn polysilicon per year. The project, estimated at $1 bln, will be located in Las Raffan Industrial City in the north east of Qatar, the country's key area for production of liquefied natural gas. Punj Lloyd had earlier received an order worth $800 mln from Qatar Petroleum for engineering, procurement, installation and commissioning of Strategic Gas Transmission Project in Qatar, the press release said. Head says Bajaj Electricals not to up service centres from 280 now With a focus on providing roaming services for its products in the hinterland, Bajaj Electricals Ltd plans to hold the number of its service centres in the country at 280, Chairman and Managing Director Shekhar Bajaj told. Consequently, trained personnel, attached to the company's existing service centres, will provide service in remote areas, thus enhancing its reach to a wider area at a much lower costs, he said. He did not share details of the number of mechanics the company plans to hire other than the over 1,000 mechanics currently employed with it.

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

ED says Godrej Properties may get PE funds in some projects by Dec Godrej Properties Ltd, which had disappointed the Street with lower-than-expected profit margins in Apr- Jun, is eyeing private equity funding in some of its projects to ensure better margins this financial year, Executive Director Pirojsha Godrej told. He said the company has the option to divest stake in 10-15 of its joint venture projects, and might seal some such deals by Dec. RIL threatens to suspend gas supply to 4 fertiliser units from Thu Reliance Industries Ltd has threatened to cut gas supply to four fertiliser units in Uttar Pradesh as the companies owning these units have not yet agreed to bear the burden of sales tax, a source told NewsWire18 today. The company has already served a notice of suspension to these fertilizer plants owned by Tata Chemicals Ltd, Indo-Gulf Fertiliser, Indian Farmers Fertiliser Cooperative Ltd, and Krishak Bharati Cooperative Ltd threatening to stop gas supply. Pandora Developers offer for 20% in Globus Constructors falls flat Pandora Developers and Infrastructure Pvt Ltd's open offer for 20% stake in Globus Constructors & Developers Ltd failed miserably, with the former managing to acquire only 0.01%. Pandora got 320 shares of Globus Constructors in the offer, open from Jul 29 to Aug 17, against a targeted 917,923 shares, according to the post offer status filed by Globus Constructors to the Bombay Stock Exchange today. Pandora Developers' offer for Globus Constructors' shares at 10 rupees each followed its acquisition of 14.07% stake in the New Delhi-based construction and real estate company through a share purchase agreement. Post completion of the open offer, Pandora Developers holds 14.08% stake in Globus Constructors. Patel Integrated offers 1-3 yr deposits Patel Integrated Logistics Ltd has launched a fixed deposit scheme under which it will offer deposits with maturities from one year to three years, the company said. RELIANCE INDUSTRIES: • May not get government nod to start drilling in the satellite fields surrounding its producing fields D1 and D3 in Krishna Godavari basin. • Has sought government nod to sell gas produced from below coal seams at about $13 per mn British thermal unit. • The Central Bureau of Investigation is likely to file a first information report against the company and former Director General of Hydrocarbons for impropriety in KG-D6 Block. • Arm Reliance Retail has opened an outlet in a property owned by the company in Mumbai. Company plans to develop at least 24 such properties in two years. • Withdraws gas supply suspension notice to Uttar Pradesh fertiliser units. • Promoter Mukesh Ambani plans to set up a hotel in Kenya in partnership with another entrepreneur. • Central Bureau of Investigation may file a first information report against the firm's executives and former director general of hydrocarbons V.K. Sibal and other government officials for allegedly favouring RELIANCE INDUSTRIES. NTPC: • Has closed down a 500 MW unit at its plant in Ramagundam in Andhra Pradesh due to shortage of coal. • Plans to get the detailed project report for a proposed $700 mn thermal power project in Sri Lanka ready by January. • Is planning a restructuring exercise under which it will review the future of its various joint ventures and subsidiaries. • Coal ministry seeks progress report from the company on development of mines. • Coal shortage has forced the company to shut three of the four units at its Dadri plant. KINGFISHER AIRLINES: • Has given Rs.500 mn commission to promoter Vijay Mallya for providing guarantees of over Rs.61 bn for its loans. • Over 75 of the airline's 650 pilots have quit in the past three months.

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

• The company said it would be able to recover additional costs incurred on full service model through higher yields. PRISM CEMENT: • The company's tiles division--HR Johnson--plans to invest Rs.4 bn to increase capacity at five locations. • Gives 12 bln rupee contract to develop captive coal mine at Madhya Pradesh to Australia's India Resources. OIL AND NATURAL GAS CORP: • Sudhir Vasudeva has been appointed as chairman and managing director of the company. • Expects to start production from the North Tapti marginal gas field this month. ACC: • Achieved production stabilisation at its plant in Wadi, Karnataka, which has a capacity of 12.5 tn per day. • Plans to substitute 5% of its annual coal requirement of about 5 mn tn over next three years with waste generated by cities and industries. GAMMON INFRASTRUCTURE: Has sought approval of the Securities and Exchange Board of India for launching a rights issue of up to Rs.2 bn. GODREJ PROPERTIES: Has tied up with Goldbricks Infrastructure to develop a residential project in Nagpur. LANCO INFRATECH: Aims to up coal output to 20 mn tn in two to three years from around 4 tn now. Its power generation capacity may touch 4,700 MW by Mar. OMAXE: Shareholders have approved of the company raising Rs.6 bn by issuing securities through different means including public issue, rights issue. POWER GRID CORP OF INDIA: Commissioned the transmission system for evacuation of power from Mundra, Gujarat. BOMBAY DYEING & MANUFACTURING: Plans to get over 50% of its revenue from real estate operations in the ongoing financial year. GVK POWER & INFRASTRUCTURE: Has bagged its biggest road project order from National Highways Authority of India in Madhya Pradesh. MAHINDRA & MAHINDRA: Is looking to enter affordable housing with homes priced upto 1 mln rupees across the country. SPICEJET: Plans to set up five more regional hubs across the country to boost connectivity to major towns. DLF: Arm DLF Foundation plans to invest 2 bln rupees to build 250 centres for skills training of 1 mln unemployed youth. JET AIRWAYS: Has pledged entire promoters' equity holding in JetLite to INFRASTRUCTURE DEVELOPMENT FINANCE CO for a loan of 3.25 bln rupees. KSK ENERGY: Promoters' open offer for buying 20% more stake in company at 125 rupees per share to open Oct 12, end Oct 31 PENINSULA LAND: Has emerged the highest bidder for a plot in Breach Candy in Mumbai, bidding 2.72 bln rupees for the property. ALFA LAVAL: Swedish promoter has set the floor price at 2,045 rupees per share for delisting the company. BHARAT PETROLEUM CORP: Expects to incur $5.7 bn loss from selling fuel below cost in the ongoing financial year. GLOBUS CONSTRUCTORS & DEVELOPERS: Pandora Developers & Infrastructure managed to acquire only 0.01% in the company through an open offer for 20% stake. KNR CONSTRUCTIONS: Has got an order from the National Highway Authority of India for two-laning of the Muzaffarpur-Barauni section of National Highway 28. RAMKY INFRASTRUCTURE: Has bid for projects worth $1 bn in Gabon, Africa and expects to get projects worth $400 mn from that country.

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

TATA POWER CO: Maharashtra's state power distribution utility Mahavitaran has barred the company's arm Tata Power Trading Co from participating in short term power purchase pacts. RURAL ELECTRIFICATION CORP: Plans to raise Rs.2.50 bn through five-year bonds, sets coupon at 9.35%. BHARAT HEAVY ELECTRICALS: Defers plan for finance company on weak prospects for power sector. ULTRATECH CEMENT: Has despatched 2.75 mn tn cement in Sep compared to 2.84 mn tn a year ago. CAIRN INDIA: Has found natural gas reserves in the first well it drilled in Mannar Basin in Sri Lanka. ACKRUTI CITY: Launches 22-storey premium residential project in Mumbai at an initial discount. ELECTROTERM: To seek shareholders' approval for selling its ductile iron pipe unit. SURANA TELECOM & POWER: Has acquired 60% stake in Yellow Renewable Energy.

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

IT & ITeS INFORMATION TECHNOLOGY: • India to debut world's cheapest tablet at $35. • The world's cheapest tablet computer will be available in India from Wednesday, for 1,750 rupees a piece. • Polaris Soft gets Vietnam bank order for core banking software. • Bengaluru-based AllGo Embedded systems will launch a 5,000-rupee tablet computer in December. • Wipro to provide Oracle financial solution to US' UGI Utilities. • DataWind launches UbiSlate tablet computers for 2,999 rupees. • Open source solutions firm Red Hat Inc has bought Bengaluru-based cloud computing start-up Gluster for $136 mln. • Government launched the world's cheapest tablet computer at 2,256 rupees, which will be available to students for 1,750 rupees. HCL Info, Sanovi Tech in pact for disaster recovery mgmt solutions Sanovi Technologies Pvt Ltd said it has entered into a joint venture agreement with HCL Infosystems Ltd to provide disaster recovery management software. Under the agreement, HCL Infosystems will support Sanovi's business initiatives in India by bundling the latter's products and software with the system integration solutions deployed by the company to its customers, Sanovi said in a release. "This tie-up helps us to enhance our presence across various verticals including manufacturing, telecom, government, banking and retail," Ashish Guha, president, Global Sales, Sanovi Technologies, said. "Government market is a key focus area for Sanovi and HCL Infosystems is an established player in this space. We jointly look forward to grow our solutions footprint across various segments in India," Guha said. At present, the partnership focus will be India and both companies will explore other markets and territories in future, Sanovi said. Infotech Enterprises says started ops at Kakinada plant in Andhra Infotech Enterprises Ltd today said it has commenced operations at its new development centre from its facility at Kakinada, Andhra Pradesh, from Friday. To 150 seats, we would be adding another 250 seats and operating it in two shifts, B. Ashok Reddy, president, global HR and corporate affairs, said in a release today. This 300-people development centre would grow to 800 people by January 2012, he said. This is Infotech Enterprise's sixth facility in India. The company already has two facilities in Hyderabad, and one each in Bangalore, Noida and Vizag. Shares of Infotech Enterprises today closed at 112.30 rupees on the National Stock Exchange, down 2.3% from the previous close. Financial Tech seeks 6 more months to dilute stake in MCX MCX promoter Financial Technologies India Ltd has sought six more months' time to dilute its stake in the exchange to 26% from 31%, the Press Trust of India news agency reported. The deadline for the dilution of stake was Sep 30. "FTIL has sought extension till March 2012, as it is in the process of divesting the stake in the Multi Commodity Exchange through an initial public offer of the commodity exchange," the agency quoted a consumer affairs ministry official as saying. The MCX promoter needs to dilute its stake to 26% as per the new guidelines laid down by the Forward Markets Commission on the equity structure for a national commodity exchange. Subex gets order from Turkey-based telecom operator Avea Subex Ltd has received an order for its billing and settlement solution from Turkey-based telecom company Avea. The information technology company did not disclose the value of the order. Subex's 'Revenue Operation Centre' solution helps telecom companies manage costs and revenues with domestic and international partners. Polaris Soft gets Vietnam bank order for core banking software Polaris Software Lab Ltd has received an order from Vietnam Bank of Social Policies for its core banking software suite 'Intellect Global Universal Banking'. The company did not provide financial details of the contract. Polaris Software will help the Vietnam bank to replace legacy systems across its 64 branches. The company's Intellect suite covers various aspects of bank operations such core banking, lending, treasury and internet banking. The state-owned bank enjoys a powerful position in policy making and the microfinance field in Vietnam, according to the release. The new core banking system will help Vietnam Bank to have centralized data across branches enabling it to have a seamless view of all operations.

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

Accentia to seek shrholder OK to merge Thunga Software Accentia Technologies Ltd has informed BSE that pursuant to the order given by the Hon'ble High Court of Judicature at Mumbai a meeting of equity share holders of the Accentia Technologies Ltd (transferee Company) will be held on Oct 20, 2011 at noon at the registered office of the Company at D-207, 2nd Floor, International Infotech Centre, Belapur Railway Station Complex, CBD Belapur, Navi Mumbai, Maharashtra - 400614., in the matter of amalgamation of Thunga Software Pvt. Ltd. (Transferor company) with Accentia Technologies Ltd. (Transferee company). Tanla Solutions promotes GK Srinivas as CFO Tanla Solutions Ltd has submitted to the Exchange a Copy of Proceedings of the Board Meeting held on Sep 30, 2011.The Following items were discussed and approved: (1) Appointment of Mr. G.K.Srinivas (presently AVP-Finance & Accounts) as the Chief Financial Officer(CFO); (2) Re-designation of Mr.Amit Gupta, Director - Finance as Director – Reference Architecture; (3) The resignation of Mr.S.K.Palhan - Independent Director. Persistent Systems, Dassault in pact for software solutions Persistent Systems Ltd has tied up with Dassault Systemes SA to offer integrated services based on the French company's software to companies in India. Persistent Systems will offer the services in sectors such as energy, telecommunications, and banking and finance. Infotech Enterprises says started ops at Kakinada plant in Andhra Infotech Enterprises Ltd said it has commenced operations at its new development centre from its facility at Kakinada, Andhra Pradesh. Satyam Computer launches cloud-based solution Enlighta Deliver Satyam Computer Services Ltd has deployed a cloud-based service management platform called Enlighta Deliver. Infosys bags Rs.7.0-7.5 bn postal contract Infosys has bagged the Rs.7.0-7.5 bn financial services systems integrator contract from the Department of Posts. Other vendors in the fray included India's largest software exporter Tata Consultancy Services and global services giant HP. Satyam Comp head says discretionary spend dn; FY12 sale seen up 20% Even as it sees a decline in discretionary spending by clients in US and Europe, Satyam Computer Systems Ltd is confident of posting a revenue growth in "high teens" in 2011-12 (Apr-Mar), Chairman Vineet Nayyar told. INFO EDGE: Plans to invest an additional Rs.180 mn in Kinobeo Software which runs an online group deals website. INFOSYS: Received a contract from the Department of Posts for integrating its financial services systems worth Rs.7.0-7.5 bn. SATYAM COMPUTER SERVICES: Global sales head Atul Kunwar resigns. FINANCIAL TECHNOLOGIES: Seeks consumer affairs ministry nod for MCX stake dilution. INFOTECH ENTERPRISES: Has started operations at its new development centre in Kakinada. PERSISTENT SYSTEMS: In pact with Dassault Systemes SA to offer integrated services based on the French company's software to companies in India. EDUCOMP SOLUTIONS: EuroKids, majority owned by the company, plans to raise up to 2.4 bln rupees in two years to build 13 more schools. FIRSTSOURCE SOLUTIONS: Has bought back bonds with a face value of $21 mln. TECH MAHINDRA: Bags WiMAX managed services contract along with Huawei Technologies for 2012-13 from Bahrain-based telecom firm Menatelecom.

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

PHARMA & HEALTHCARE PHARMACEUTICALS& HEALTHCARE: • The government is mulling amending the drug pricing law to authorise National Pharmaceutical Pricing Authority to seek details of landed cost of medicines. • Commerce ministry has dissented over the Maira Committee's recommendations for foreign direct investment in pharmaceutical industry. • Ranbaxy starts distributing Daiichi's 2 heart drugs in Italy. • Natco Pharma to supply 3 generic cancer drugs to S Africa's Litha. • Commerce and industry minister Anand Sharma has asked Indonesia to consider opening its market for Indian pharmaceutical companies. • Sanofi setting up largest vaccine plant in Hyderabad. India asks Indonesia to remove non-tariff barriers for pharma cos Commerce Minister Anand Sharma said his ministry is pushing for the removal of non-tariff barriers for Indian pharmaceuticals in its negotiations with the Indonesian government. "Our senior officials have discussed issues on both sides (India and Indonesia) related to non-tariff barriers," Sharma said while addressing first Indonesia-India Biennial Trade Ministers' Forum at Jakarta. "India is particularly keen on bovine meat exports to Indonesia and higher participation in the pharmaceutical sector of Indonesia," he said. Currently, import of Indian buffalo meat is banned in Indonesia on fears that India is not free from foot and mouth disease. Also, Indian pharmaceutical companies face problems in Indonesia such as delays in drug registration, and certain regulations such as those requiring foreign drug registration holders to set up a production facility in Indonesia within two years of registration. Foreign direct investment cap of 70% inhibits Indian investment in Indonesia, the commerce minister said. "The governments of Indonesia and India will intensify efforts to explore ways and means of increasing trade and investment relations by eliminating trade barriers and creating better business environment," a release by the commerce ministry said. The relaxation of such barriers would help achieve the bilateral trade volume target of $25 bln by 2015. Vivimed Labs acquires 100% stake in Klar Sehen Vivimed Labs Ltd has acquired 100% stake in Kolkata-based Klar Sehen Pvt Ltd. Pharmaceutical company Klar Sehen, which operates in the eye care segment, owns about 50 trademarks and brands such as Renicol, Lysicon-V, Care Tears, and Dexacort. The company has a strong marketing presence in the northeast, Bihar, and Andhra Pradesh, the notice said. Klar Sehen has manufacturing facilities in Kolkata and Hyderabad and has arrangements to manufacture some of its products in Uttaranchal. Vivimed Labs said the acquisition is part of its strategy to increase its domestic presence in speciality pharmaceutical areas. Strides Arcolab gets US FDA OK for antibiotic Clindamycin injection Strides Arcolab Ltd has got approval from the US Food and Drug Administration to market Clindamycin injection, an antibiotic used to treat bacterial infections. The company plans to launch the product in early 2012, the release said. US market for the drug is estimated at $65 mln in 2011, according to a report by IMS Health, an international sales data and consultancy company for pharmaceutical industry. Clindamycin will be available in three-single dose vial sizes and in pharmacy bulk packaging, Strides Arcolab said. The product will be marketed by Sagent Pharmaceuticals, a US-based pharmaceutical company, with whom Strides Arcolab has an agreement to jointly develop, supply and market injectable products in the US. Neuland Lab plans Rs.120 mn rights issue for working capital Neuland Laboratories Ltd is planning to raise Rs.120 mn through a rights issue of shares to meet its incremental working capital requirements, according to a draft letter of offer filed by the company with Securities and Exchange Board of India. The Hyderabad-based company manufactures active pharmaceutical ingredients and peptides and also provides contract research and manufacturing services. Exports account for over 81% of its revenues. State Bank of India has sanctioned corporate loan of up to Rs.150 mn to Neuland Laboratories for meeting its working capital requirements subject to the company infusing additional capital of Rs.100 mn. The rights issue is being done to comply with this condition, the company said in the draft papers. Neuland Laboratories has two manufacturing facilities--both in the Hyderabad. The issue is being managed by SBI Capital Markets Ltd.

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

Transgene Biotek allots 2.5 mn GDRs at $7 each Transgene Biotek Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 03, 2011, has allotted 2, 500, 000 GDRs underlying 25, 000, 000 Equity Shares of Rs. 10/- each @ US$ 7 per GDR aggregating to US$ 17.5 million. Natco Pharma to supply 3 generic cancer drugs to S Africa's Litha Natco Pharma Ltd has entered into a pact for supply of three generic drugs to South Africa-based Litha Healthcare. The three drugs are used to treat cancer. "It is a relatively small deal," he said. "But this is our first entry into South Africa. Litha will help us in registrations and licensing. The pact may be extended (to) some (other) drugs later." Hyderabad-based Natco Pharma makes generics and active pharmaceutical ingredients focused on oncology-related drugs. Nannapaneni said the pact is for the long term, and so not possible to estimate the deal size. Shasun Pharma shareholders OK warrant issue to promoters Shasun Pharmaceuticals Ltd has informed that the members of the Company by way of Postal Ballot have passed the Special resolution relating to issue and allot upto 15,00,000 convertible warrants to the Promoters and Directors of the Company on Preferential basis, by requisite majority. In this regard the Company has submitted to BSE a Copy of Scrutinizer Report. Ranbaxy begins distribution of Daiichi Sankyo's drugs in Italy Ranbaxy Laboratories Ltd today said its unit, Ranbaxy Italia S.p.A, has entered into a partnership with Daiichi Sankyo Co Ltd's Italian unit for distributing the latter's products across Italy. Ranbaxy Laboratories is controlled by Japan-based Daiichi Sankyo Co Ltd. Ranbaxy Italia will hold exclusive distribution rights of two of Daiichi Sankyo's long established brands Congescor and Lopresor, which have combined sales of 20 mln euros in Italy, the company said in the press release. The drugs are used for the treatment of congestive heart failure and hypertension. Shasun Pharma promoters may sell part stake to cut debt Promoters of Shasun Pharmaceuticals Ltd are looking to sell part of their stake in the company to reduce debt. The Chennai-based bulk drugs maker has appointed investment bank Kotak Mahindra Capital to find buyers, the report quoted two people familiar with the matter as saying. Promoters, including Managing Director S. Abhaya Kumar and others own 46.65% stake in the company as of Jun 30. In its first acquisition, Shasun bought UK-based loss-making contract manufacturing unit of Rhodia in Jan 2006. The unit, now Shasun Pharma Solutions, acts as an outsourcing partner for other large companies in the US, Europe and Asia for research and manufacturing. ANALYSIS: Indian drug-makers to draw strength from weak rupee Indian pharmaceutical majors, for whom generic drug exports make up a large part of their revenues, are likely to emerge as the biggest beneficiaries of the recent sharp depreciation in rupee against dollar, unlike some other export oriented industries which are facing waning demand. Dr Reddy's gets US FDA tentative nod for Novartis' Zometa generic Dr Reddy's Laboratories Ltd has received tentative approval from the US Food and Drug Administration for zoledronic acid injection, the generic version of Novartis' Zometa. Strides Arcolab gets US FDA nod to market Paclitaxel injection Strides Arcolab Ltd's wholly owned subsidiary, Onco Therapies Ltd has received final approval for anti-cancer injectable drug, Paclitaxel, from the US Food and Drug Administration. The company has also got tentative nod for Oxaliplatin. Torrent Pharma gets US FDA tentative OK for new drug Memantine Torrent Pharmaceuticals Ltd has got the US Food and Drug Administration's tentative approval for new drug Memantine Hydrochloride, according to information available on the regulator's website. Elder Pharma revises 1-3 yr deposit rates Elder Pharmaceuticals Ltd has revised interest rates on fixed deposits with maturities from one year to three years, the company said in a newspaper advertisement. USFDA inspects Dishman Pharma arm's unit for new drug Dishman Pharmaceuticals and Chemicals Ltd has informed that its Wholly Owned Subsidiary Company, namely Carbogen Amcis AG., Switzerland has successfully completed US FDA PAI for a new hi potency drug for a US multinational.

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

SHASHUN PHARMACEUTICALS: Promoters may sell part of their stake in the company to reduce its debt. NEULAND LABORATORIES: Is planning to raise 120 mln rupees through a rights issue of shares to meet its incremental working capital requirements. SHASUN PHARMACEUTICALS: Shareholders approve 1.5 mln warrants issue to promoters. TITAN BIOTECH: Shareholders have approved selling the company's Chopanki unit.

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

TELECOM TELECOMMUNICATION: • Anil Ambani Group says no aide showed intent to turn approver in 2G. • Bharti official says Infratel listing unlikely this FY. • BSNL looking for private players to operate tower, cable network. • CBI has said it has no evidence of Anil Ambani's direct involvement in structuring different firms and fund transfers relating to Swan Telecom. • Bharat Sanchar Nigam is looking to partner private telecom infrastructure companies to manage its tower and optical fibre network. • DoT to terminate 13 licences given to Swan. • BSNL offers to set up co-op for VRS staff; outsource work. • Bharat Sanchar Nigam plans to set up an outsourcing cooperative for all employees who take voluntary retirement from the company. • The Department of Telecommunications is likely to issue notices to five companies for under- reporting revenues following a special audit. • Department of Telecommunications will monitor third generation mobile telephony roaming pacts between BHARTI AIRTEL, Vodafone and IDEA CELLULAR. • New telecom policy to separate licensing and spectrum allocation functions from the Department of Telecommunication, which will continue to retain policy-making area. Reliance Globalcom ups Europe, Asia cable capacity to over 500 GB Reliance Globalcom, the international division of Reliance Communications Ltd, has upgraded the capacity of its undersea cable linking Europe, West Asia, Asia, and Far East by 400% to over 500 GB. The capacity upgrade on the Flag Europe Asia cable system--that links Western Europe, Japan, West Asia, India, China and South East Asia--and the FALCON cable system--that connects India with Persian Gulf--will help the company cater to existing and future bandwidth requirements of its telecom carriers and internet service providers. "Reliance Globalcom has witnessed a consistent year-on-year growth of around 60% in the bandwidth requirement on the Europe, Middle East and Asia route," Punit Garg, chief executive officer of Reliance Globalcom, was quoted as saying in the release. He added that there is potential to further increase the capacity to "multi Terabit". Bharti official says Infratel listing unlikely this FY The much-awaited public listing of Bharti Infratel Ltd, the tower subsidiary of Bharti Airtel Ltd, is unlikely to happen in the current financial year ending Mar, Akhil Gupta, deputy group chief executive officer and managing director of Bharti Enterprises said. Anil Ambani Group says no aide showed intent to turn approver in 2G Anil Ambani's Reliance Group said none of its charge-sheeted officials in the 2G spectrum allocation case has expressed any intention to become approver. Telecom dept in talks with fin min on broadband spectrum auction The telecom department is in talks with the finance ministry on the possibility of another round of auction of broadband wireless access spectrum, Telecom Secretary R. Chandrashekar said. Minister Sibal says to push for infra status for telecom towers Telecom Minister Kapil Sibal said the government should provide infrastructure status to the telecom tower industry to enable easy funding for the sector. CBI likely to file FIR against Dayanadhi Maran by Oct 10 A first information report is likely to be registered by the Central Bureau of Investigation by Oct 10 on the Aircel-Maxis Communications deal, naming former telecom minister Dayanidhi Maran and his brother Kalanithi, who runs the Sun TV Network. BSNL offers to surrender broadband spectrum Loss-making state-owned telecom major BSNL has offered to surrender its broadband wireless airwaves to the government after its plans to rollout WiMAX-based services using these airwaves through a franchisee model flopped.

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

Subex completes sale of activation ops to Netcracker With reference to the earlier announcement dated Sep 20, 2011, Subex Ltd has now informed that the Company has concluded the transaction for sale of its activation business to Netcracker Technology Corporation, a leading telecom OSS player and part of the NEC group. BSNL eyeing telecom infra cos for managing co's tower, cable network Bharat Sanchar Nigam Ltd is scouting for private telecom infrastructure companies to manage its tower and optical fibre cable network across the country. According to BSNL's plan, the private player will be asked to manage, operate and maintain the company's infrastructure. DoT may cancel 13 licences granted to Swan Telecom The Department of Telecommunications is set to cancel 13 licences granted to Swan Telecom (now known as Etisalat DB) on the charge that the company was a front company of Reliance Telecom and not eligible for licences under the crossholding norm. Singapore arbitration panel dismisses Sivasankaran plea in Maxis case A three-member arbitration panel in Singapore has dismissed entrepreneur C. Sivasankaran's charge that Malaysia's Maxis Communications acted in bad faith by breaching a pact to do an initial public offer of Aircel within three years of taking over the Indian operator. Tatas, Aditya Birla Group in out-of-court pact in Idea Cellular row The Tata Group and Aditya Birla Group have resolved their five-year-old dispute over the former selling its 48% stake to Idea Cellular Ltd through an out-of-court settlement. The Tatas have withdrawn their plea for arbitration. BSNL sweetens retirement scheme plan, offers to set up cooperative Bharat Sanchar Nigam Ltd has sweetened its voluntary retirement scheme by proposing to help set up an outsourcing co-operative for all employees who take the offer. The telecom PSU will farm out work contracts on a 5-10 year basis to the proposed cooperative. RELIANCE COMMUNICATIONS: • Has sought the government defer imposing fine on it for under-reporting revenue and refer the matter to Telecom Regulatory Authority of India. • CBI still probing role of Reliance Anil Dhirubhai Ambani group chairman Anil Ambani's role in 2G scam, says no evidence of direct involvement in Swan Telecom fund transfer. • Plans to halve its debt of over Rs.320 bn before March 2013. IDEA CELLULAR: Tata group and Aditya Birla Group have reached an out of court settlement to resolve a dispute over stake sale in the company by the Tata group. TATA COMMUNICATIONS: Department of Telecommunications may oppose the company's plan to set up subsidiaries in Malaysia and New Zealand.

Weekly Newsletter 32 Info-Spectrum Bridging the Information Gap in Corporate Landscape

BANKING & FINANCIAL SERVICES BANKING & FINANCE: • National Housing Bank to seek government approval for external commercial borrowings. • Catholic Syrian Bank gets shareholders' approval to increase its share capital by issuing shares on preferential basis. • A fortnight after the Reserve Bank of India's rate hike, only two private banks have raised lending rates and not many others are keen to do so. • National Housing Bank to raise Rs.2.5 bn via 3-year bonds. • RBI says FIIs can buy up to 49% stake in M&M Financial Services. • Moody's cuts SBI's rating citing inadequate capital, rising NPAs. • SBI says D+ rtg investment grade, on par with India sovereign rtg. • RBI asks foreign banks to adhere to review guidelines. • IBA CEO says bankers seek pause in RBI policy rate hikes. • The Indian Banks' Association has requested the Reserve Bank of India to pause its policy rate hike cycle as most banks' margins are under pressure and asset quality deterioration is a growing concern. • SBI head says Moody's rating cut a concern but not a big one. • SBI not to up loan rates to avoid becoming uncompetitive in market. • After cutting STATE BANK OF INDIA's rating, Moody's Investor Service has retained the rating of AXIS BANK and ICICI Bank at C-. • Government asks banks to furnish capital, ratings, and non-performing assets details. • Banks oppose proposal to hike deposit insurance cover five-fold. Moody's cuts SBI's rating citing inadequate capital, rising NPAs Moody's Investor Service downgraded State Bank of India's creditworthiness, on a standalone basis, to D+ from C-, citing worsening asset quality and delay in raising Tier-I capital. "Notwithstanding our expectations that SBI's capital ratios will soon be restored through a capital infusion by the govt, SBI's efforts to secure this capital for the better part of the year demonstrates the bank's limited ability to manage its capital," Beatrice Woo, vice president and senior credit officer at Moody's, was quoted as saying in a release. Post the downgrade, SBI's Chairman Pratip Chaudhuri told that the "D+ maps to Baa3, which is still investment grade. BoB (Bank of Baroda), PNB (Punjab National Bank), BoI (Bank of India) are also at D+; we were the only exception so far. The present rating of SBI is the same as GoI (government of India)". The rating downgrade, once again, raises questions on the government's ability to provide capital support to state- owned banks at a time when it is struggling to manage its fiscal deficit and has raised its borrowing targets. As on Jun 30, State Bank of India's capital adequacy ratio was 11.60%, with its Tier-I capital ratio at 7.6%. "...such a level for its Tier-1 capital ratio provides an insufficient cushion to support growth and to absorb potentially higher credit costs from its deteriorating asset quality," the release said. Moody's said even if SBI's Tier-I ratio were to rise to 9.30% post the bank's proposed rights share issue, it would still be below the mandated 8% if its loan book were to rise 15% each year over the next three years. Chaudhuri had recently told that the government was committed to infusing capital into the bank, but the details and modalities for the infusion were still to be worked out. Moody's expects cyclical swing in Tier-I capital ratio for SBI over the next three years, and has calculated its average Tier-I during this period at 8.50%. "And given that a bank's ability to freely access the capital markets is an important rating criterion globally, we therefore believe a lower BFSR for SBI is warranted, especially as these circumstances are likely to recur," Woo said. Moody's also revised the bank's financial strength rating outlook to stable. The rating agency slashed the bank's hybrid debt rating to Ba3 from Ba2, while it revised the hybrid debt rating outlook to negative. Union Bank of India revises FCNR(B), NRE deposit rates Union Bank of India has revised interest rates on its foreign currency non-resident and non-residential external deposits. The bank revised interest rates on FCNR deposits in six currencies—the US dollar, pound sterling, euro, Japanese yen, Canadian dollar and Australian dollar. Revised rates on FCNR deposits are as follows (numbers in parenthesis are previous rates): Maturity Period ------Interest rates (in % per annum)------

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

USD GBP EUR JPY CAD AUD 1 year to less than 2 yrs 1.86(1.80) 2.72(2.65) 3.04(1.55) 1.55(2.66) 2.67(2.66) 6.04(6.10) 2 years to less than 3 yr 1.56(1.51) 2.29(2.28) 2.52(2.54) 1.36(1.34) 1.99(2.16) 5.03(5.30) 3 years to less than 4 yr 1.72(1.67) 2.41(2.44) 2.61(2.71) 1.38(1.36) 2.17(2.32) 5.14(5.46) 4 years to less than 5 yr 1.98(1.95) 2.61(2.67) 2.80(2.91) 1.43(1.40) 2.35(2.51) 5.37(5.67) 5 years only 2.24(2.28) 2.80(2.90) 2.99(3.13) 1.49(1.46) 2.54(2.72) 5.50(5.81)

The revised interest rates on NRE term deposits with effect from today: Duration Existing Rates Revised Rates 1 year to less than 2 years 2.55 2.61 2 years to less than 3 years 2.26 2.31 3 years and above 2.42 2.47

State Bank of India revises FCNR(B), NRE deposit rates State Bank of India has revised interest rates on its foreign currency non-resident and non-residential external deposits. The bank revised interest rates on FCNR deposits in various currencies—the US dollar, pound sterling, euro, Japanese yen, Canadian dollar and Australian dollar. Revised rates on FCNR deposits are as follows (numbers in parenthesis are previous rates): Maturity Period ------Interest rates (in % per annum)------USD GBP CAN$ JPY 1 year and above but less than 2 yrs 1.86(1.80) 2.72(2.65) 2.67(2.66) 1.55(1.55) 2 years and above but less than 3 yrs 1.56(1.51) -- -- 1.36(1.34) 3 years and above but less than 4 yrs 1.72(1.67) -- -- 1.38(1.36) 4 years and above but less than 5 yrs 1.98(1.95) -- -- 1.43(1.40) 5 years only ------1.49(1.46)

The revised interest rates on NRE term deposits with effect from today: Duration Existing Rates Revised Rates 1 year to less than 2 years 2.55 2.61 2 years to less than 3 years 2.26 2.31 3 years and above 2.42 2.47

Fin min seeks Cabinet OK to convert IIFCL into NBFC The finance ministry has decided to seek Cabinet approval for converting India Infrastructure Finance Co Ltd into a non-banking finance company despite the Planning Commission's opposition. IIFCL is currently regulated by the finance ministry. "Converting IIFCL into an NBFC will strengthen risk management and avoid concentration of risk," the report quoted a finance ministry official as saying. Under the structure proposed by the finance ministry, IIFCL will convert into a special category infrastructure finance company with a higher authorized capital base of Rs.50 bn against the current Rs.20 bn. The company will continue to enjoy sovereign guarantee for its borrowings. The finance ministry has indicated that IIFCL will need around Rs.110 bn by 2013-14 (Apr-Mar) to meet the prudential norms followed by infrastructure finance companies, which are required to maintain a capital adequacy ratio of 15%. Planning Commission has opposed the move arguing that since the equity contributions would have to come from plan funds, the other priority programmes will suffer. Ajai Kumar assumes charge as CMD of Corporation Bank Corporation Bank has informed that in exercise of powers conferred by clause (a) of sub-section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 read with sub- clause (1) of clause 3, clause 5, clause 6, clause 7 and sub-clause (1) of clause 8 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980, the Central Government, after consultation with

Weekly Newsletter 34 Info-Spectrum Bridging the Information Gap in Corporate Landscape the Reserve Bank of India, appointed Shri Ajai Kumar, Executive Director, Uco Bank as the Chairman and Managing Director of the Bank for the period from the date of his taking charge of the post and upto Jun 30, 2013 i.e. the date of his superannuation or until further orders, whichever is earlier. Accordingly, Shri Ajai Kumar has joined the Bank on Oct 01, 2011. ADB OKs $200 mn loan for urban svcs, water supply upgrade in Assam The Asian Development Bank approved a $200 mn loan to the Assam Urban Infrastructure Investment Program for improving water supply and urban services in Guwahati and Dibrugarh. The Manila-based multilateral funding agency will give $81 mn as the first tranche and $119 mn as part of the second tranche of the loan. The loan will help provided clean piped water to about 350,000 residents in Guwahati and upgrades to sewerage and solid waste systems in the two cities. A 10-km rapid transit corridor will also be developed in Guwahati, the statement said. SBI says D+ rtg investment grade, on par with India sovereign rtg State Bank of India's rating continues to be investment grade even after being cut a notch by Moody's Investor Services, Pratip Chaudhuri, chairman of the country's largest bank, told. Moody's cut SBI's standalone rating to D+ from C-, citing concern over worsening asset quality and the inability of the bank to shore up capital. Chaudhuri said the bank's standalone rating, post the downgrade, was in line with the country's sovereign rating. Moody's currently has assigned Baa3 foreign-currency rating and a "stable" outlook on India's sovereign debt. Axis Bank extends $200-mn CP program via Dubai branch by a year Axis Bank said it has extended by a year its $200-mn commercial paper issue through its Dubai International Financial Centre Branch. The maturity date for the commercial papers is now Sep 30, 2012. The bank did not mention the reason for the extension. The commercial papers are rated A-1 by Standard & Poor's and prime-1 by Moody's Investor Service. The issue proceeds will be used for general corporate purpose. Banks' association seeks cap on loan prepayment charges Prompted by concerns over mismatches in liquidity, the Indian Banks' Association has written to the Reserve Bank of India seeking capping of loan prepayment charges and not waiving them off completely, according to a report in Mint newspaper. National Housing Bank to seek nod for raising funds via ECBs National Housing Bank will soon approach the finance ministry and the Reserve Bank of India to allow it to raise external commercial borrowings. It is also talking to the World Bank for $350 mn assistance from its International Development Association. IDBI Bk buys 14.92% more in IDBI Trusteeship Services IDBI Bank Ltd has informed that IDBI Trusteeship Services Ltd. has become a subsidiary Company of IDBI Bank Ltd. in terms of Section 4 of the Companies Act, 1956, with effect from Oct 01, 2011, consequent upon acquisition of 14.92% additional shareholding of IDBI Trusteeship Services Ltd. RBI says FIIs can buy up to 49% stake in M&M Financial Services Foreign institutional investors can buy shares and convertible debentures of Mahindra & Mahindra Financial Services Ltd up to 49% of the its paid-up capital under the portfolio investment scheme, the Reserve Bank of India said. INTERVIEW: IDBI Cap's Udasi says Sensex not to see 20000 in a hurry Volatility and weak sentiment will continue to dog the Indian equity market in the near term as concerns over the Eurozone debt crisis and domestic headwinds are unlikely to ebb soon, according to Sonam Udasi, head of research at IDBI Capital Market Services. FOCUS: Moody's rate cut on SBI spooks mkt, brings econ under scanner To say that Moody's Investors Service's move to slash creditworthiness of India's largest lender State Bank of India is an effective downgrade on the country's economy may sound rather alarmist, but the portents of the rating agency's measure are sure to unnerve the equity market. SBI head says Moody's cut in standalone rtg only for perpetual debt Downplaying the cut in rating by Moody's Investors Service, State Bank of India Chairman Pratip Chaudhuri said the downgrade applies only to perpetual debt and the bank's composite rating remains unchanged at Baa2.

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

Govt asks PSU banks to open more branches in northeast states The government has issued a directive to public sector banks to open branches in every unbanked block in the northeast by Sep 2012. The seven northeast states have 70 unbanked blocks and 55 under-banked districts. Moody's cuts SBI's rating citing inadequate capital, rising NPAs Moody's Investor Service downgraded State Bank of India's creditworthiness, on a standalone basis, to D+ from C-, citing worsening asset quality and delay in raising Tier-I capital. Bankers plead for pause in rate hikes as margins dip, NPAs rise The Indian Banks' Association has requested the Reserve Bank of India to pause its policy rate hike cycle as most banks' margins are under pressure and asset quality deterioration is a growing concern. INTERVIEW: ED says Bank of India fundraising unlikely before Apr-Jun Bank of India's plan to raise capital of Rs.45 bn through an equity issue is unlikely to be executed this financial year, and may happen only in Apr-Jun, Executive Director N. Seshadri said. ING Vysya Bank hikes Base Rate 25 bps to 10.45% effective Oct 1 ING Vysya Bank has increased its Base Rate by 25 basis points to 10.45% from Oct 1, the bank said in a release. Sources say rural bks may get 6 mos more to apply core banking srvs The Reserve Bank of India is likely to give regional rural banks, up to six month extension, to implement core banking services, sources close to the development told. ADB clears $750 mn loan to PowerGrid for national grid project Multilateral funding agency Asian Development Bank today approved two loans worth $1.1 bn to expand power transmission systems in the country, including a $750 mn loan to PowerGrid Corp. RBI revises Ways and Means Advances limit for Oct-Mar The Reserve Bank of India on Sep 30 revised the government's borrowing limit under the central bank's Ways and Means Advances facility. RBI says bank credit to NBFCs grows 55.2% on year to Aug 26 Loans by banks to non-banking financial companies grew 55.2% on year to Aug 26, data released by the Reserve Bank of India showed. Credit to NBFCs had grown 11.3% in the same period a year ago. RBI to give loans to state co-op bks for general ops at repo rate The Reserve Bank of India has effectively hiked the rate at which it grants loans and advances to state co- operative banks for general banking business such as clearing adjustments, and liquidity. TIC-TAC: SBI head may mull keeping some key branches open Sundays Identifying opportunity in adversity is the cornerstone of good business practice, and State Bank of India Chairman Pratip Chaudhuri seems to have seen an opportunity following a server crash on Saturday. National Housing Bk invites bid for 3-yr bond National Housing Bank has invited bids from merchant bankers for three-year bonds, an official said. STATE BANK OF INDIA: • Chairman Pratip Chaudhuri has said despite Moody's cutting its standalone rating to D+ from C-, rating continues to be investment grade. • The bank may have to pay more for its overseas borrowings after the rating cut. • Government is likely to inject Rs.80 bn in to the bank to boost its capital base. • Targets higher deposits, eyes more high-networth customers. BANK OF BARODA: Chairman and Managing Director M.D. Mallya has said the bank is seeing pressure on asset quality and credit growth is still not significant. ORIENTAL BANK OF COMMERCE: Sees 20% bottomline growth in 2011-12, no plans to raise funds till 2014. ING VYSYA BANK: Has hiked its Base Rate by 25 basis points to 10.45%.

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

STEEL, METALS & MINERALS STEEL, METAL & MINERAL: • Gujarat NRE Coke to start longwall mining in Australia by Dec. • JSW Steel secures 416,000 tn iron ore in Karnataka e-auction. • Government may allow captive coal block owners to auction surplus coal from their mines. • Fresh cases against Bellary's Reddy, 15 places raided. • KIOCL looks to buy stake in West African ore mine. • Posco-SAIL JV hits new hurdle. • Mining secy says issue of levy on captive coal mines "solvable". • JSW Steel raises all product prices Rs.1,750-2,000/tn. • Secretary says the government will discuss the new Mines and Minerals. • Bill with the mining industry, says issue of royalty payment is 'solvable'. • State-run iron-ore company KIOCL Ltd plans to buy stake in an iron ore mine in Mauritania. • Mining companies would have to shell out Rs.100 bn extra in levies when the new mining bill becomes a law. • NMDC lines up Rs.24.5 bn capex. • Ore diversion: Railways fines Rashmi Metaliks Rs.6 bn. • Dussehra gold sales up 30% over last year. • Miners target Sindhudurg as Goa's mineral resources dry up. • The Manohar Parrikar-led Public Accounts Committee on illegal mining in Goa has recommended immediate stoppage of extraction and transportation of ore. • Government to review 236 steel plant memoranda of understanding. Official says NMDC may up iron ore price by 8-10% for Oct-Dec NMDC Ltd may increase prices of iron ore by 8-10% for contracts inked for the quarter ending Dec, Director - Finance S. Thiagrajan told. "Considering the rupee deprecation, there may be some increase in iron ore prices for Oct-Dec contracts," he said. The increase in prices will be for both, iron ore lumps and fines, with retrospective effect from Oct 1, he said. For Jul-Sep, the average iron ore price of lumps was Rs.4,600 per tn, and for fines Rs.2,900 per tn. He said NMDC has not yet decided the price hike due to the holidays, but will do so by next week. NMDC revises iron ore prices every quarter based on the price trend in the international market. On the e-auctioning of iron-ore in Karnataka as per the Supreme Court's directive, Thiagrajan said the process has begun and the company has put 148,000 tn iron ore lumps and 60,000 tn fines for sale. Besides mineral trading company MMTC Ltd, NMDC is the only mining company allowed to sell up to 1 mn tn iron ore per month in the state through an e-auction, which is monitored by a court appointed committee. The Supreme Court banned iron ore mining in three districts of Karnataka, and allowed e- auctions to clear the current stock of around 25 mn tn. "The e-auction process has started on Oct 2. We are expecting the outcome (bid price and total quantity sold) by Oct 6," he said. State-owned NMDC is the largest iron ore producer in the country, and produced 7.10 mn tn iron ore in Jul-Sep, up 55% from the same period last year. GAIL mulls buying ADB's 5.2% stake in Petronet LNG GAIL (India) Ltd has offered to buy Asian Development Bank's 5.2% stake in Petronet LNG Ltd, in a according to a report by Press Trust of India. GAIL has pitched this offer to Oil Secretary G.C. Chaturvedi, who is also the chairman of Petronet LNG. ADB has offered to sell the stake, which is equivalent to 39 mn shares and valued at over Rs.6 bn, the report quoted sources as saying. "ADB has held a 5.2% stake in Petronet LNG since 2004," an ADB spokesperson said. "ADB always looks to exit its equity investments once it believes that the development mission has been accomplished." GAIL, Oil and Natural Gas Corp Ltd, Indian Oil Corp and Bharat Petroleum Corp Ltd currently hold 12.5% stake each in Petronet LNG. Under the shareholders' agreement, these five companies have the first right of refusal over ADB stake. In case other companies are also interested, the ADB stake can be split equally, with each buying 1.3% stake.

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

Jindal Steel gets Mozambique govt nod for 2,640 MW power plant Jindal Steel & Power Ltd has received approval from the Mozambique government for a 2,640 MW coal-fired power plant in the Tete province. The project, estimated at $3 bn, will start operations from 2015, Mozambique newspaper Noticias reported. The power plant will be located in the Songo and Changara districts, which have substantial reserves of coking coal and coal. Jindal Steel already holds a 25-year mining concession for the two districts. "Once commercial mining commences, it will be producing 10 million tonne of high grade coal per annum," according to Jindal Steel website. The Indian steel maker is expected to start mining coal in Tete province by 2015. "Jindal should start producing thermal coal in 2015 and, because this product cannot be stored for a long time in high volume, we have to ensure that at that time the power plant will be operating so that the coal can be used," the news paper report said. The power generated from the plant will be sold in South African region. Source says NMDC Jul-Sep iron ore output 7.1 mn tn, up 55% on yr NMDC Ltd's iron ore output stood at 7.10 mn tn in Jul-Sep, up 55% from the 4.58 mn tn produced a year ago, a source told. In Sep, the company's iron ore output was 2.54 mn tn, as against 1.62 mn tn a year ago, the source said. "The weather condition at Bailadila (mining region) in Chhattisgarh was favourable in September (which) resulted into higher production," the source said. In Jul, NMDC produced 2.40 mn tn iron ore, while output in Aug was 2.16 mn tn. For the six months to Sep, the company's total iron ore production stood at 13.1 mn tn. NMDC is the country's largest producer of iron ore and aims to produce 30n mn tn iron ore in 2011-12 (Apr-Mar). JSW Steel says CBI sought ore purchase details at Vijayanagar unit JSW Steel Ltd said the Central Bureau of Investigation today visited the company's Vijayanagar plant and sought "certain information" about iron ore procurement by the company. The company said contrary to media reports, the premises of the company were not raided by the CBI. In a media statement, the company said that it was in compliance with all laws regarding iron ore procurement and that "...every tonne procured is accounted, paid for and in compliance ...". The company said it has been procuring iron ore from various sources for its steel production requirements and that it would fully co-operate and provide all information that may be sought by the authorities. Navin Fluorine, ITC get carbon credits from UN body Navin Fluorine International Ltd has been allotted 408,757 certified emission reductions for reducing its greenhouse gas emissions by thermal oxidation of hydrofluorocarbon-23, said the United Nations Framework Convention on Climate Change. Based on the current price of 10.74 euros (Rs.709) per carbon credit of the benchmark Dec contract on the European Climate Exchange, the carbon credits of the company are valued at Rs.290 mn. The credits have been awarded for the period Feb 1-Apr 30, the statement said. The UN body also allotted 24,563 certified emission reductions worth Rs.17.4 mn to ITC Ltd for its 14.1 MW wind power project in Tamil Nadu. The credits have been awarded for power generation between Mar 14, 2010, and Sep 30, 2010, the statement said. Coal India sees Rs.20 bn annual hit if mine bill approved Coal India Ltd would see its profit drop by Rs.20 bn annually if the new mining bill is approved by Parliament, the Press Trust of India quoted company chairman, N C Jha, as saying. The new mines legislation calls for mining companies to share 26% of their profits to be shared with the local people who are affected by mining projects and also proposes a central and state levy on mining. The Coal India chairman said that for the state-run mining entity to remain profitable, the government would have to resort to hike in coal prices. JSW Steel raises all product prices Rs.1,750-2,000/tn JSW Steel has raised price of all its products by Rs.1,750-2,000 per tn from Oct 1, Sharad Mahendra, vice president - sales and marketing, told. "The product price hike has taken place mainly to bring it inline with international prices and also on expectations that demand will rise for steel products post monsoon," said Mahendra. JSW Steel is the third largest steel manufacturer in the country. Four promoter cos pledge 1.9 mn JSW Steel shares Sep 20-Oct 1 JSW Steel Ltd said that four promoter entities, Gagan Trading Co Ltd, Mansarovar Investment Ltd, JSW Investment Pvt Ltd, and Jindal Steel and Alloys Ltd, pledged 1.9 mn shares or 0.85% stake in the company between Sep 20-Oct 1. The promoters have so far pledged 34.07 mn shares or 15.27% stake in JSW Steel.

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

Sterlite Ind cuts copper cathode price by 9.5% to Rs.404,453/tn Sterlite Industries Ltd has lowered prices of cut copper cathode by 9.5%, or Rs.42,413, to Rs.404,453 per tn, the company said on its website. It also cut prices of continuous cast copper wire rod by 9.4% to Rs.406,080 a tn. The new prices, effective Oct 1, are exclusive of taxes and other levies. The Vedanta-group company aligns its product prices in line with the trend on the London Metal Exchange. GAIL, Indraprastha Gas Ltd plan city gas distribution projects in Qatar GAIL (India) Ltd and Indraprastha Gas Ltd are planning to set up compressed natural gas-based city gas distribution projects in Qatar. GAIL has sought details of locations as also price details of gas that will be made available by Qatar for this project. Cabinet OKs new mines bill; proposes 26% profit shr for coal mines The Union Cabinet gave its nod to introduce the Mines and Minerals (Development and Regulation) Bill, 2011, in Parliament and also to repeal the existing Mines and Minerals (Development and Regulation) Act, 1957, Mines Minister Dinsha Patel said. Metal, mining co shrs see sharp fall on cabinet nod to mining bill The shares of metal and mining companies fell sharply after the Union Cabinet cleared the new mining bill that entails miners sharing a significant part of their profit after tax with the affected locals in the regions. JSW Steel secures 416,000 tn iron ore in Karnataka e-auction JSW Steel Ltd has secured 416,000 tn iron ore in the second round of the Karnataka e-auction held on Sep 29 by state-owned Metal Scrap Trading Corp Ltd, the steelmaker's Chief Executive Officer and Director Vinod Nowal told. Gujarat NRE Coke to start longwall mining in Australia by Dec Gujarat NRE Coke plans to start longwall mining in Australia by Dec, which will take the company's coking coal output to 2 mn tn per annum from the current 600,000 mn tn production "in the next few years", Arun Kumar Jagatramka, chairman and managing director, said on the sidelines of the company's Annual General Meeting. HEG buys back 2.4 mn shrs for Rs.575 mn via open market Graphite electrode manufacturer HEG Ltd has bought back 2.4 mn shares for Rs.575 mn through open market transactions since Apr 11, the company said. New mining bill sends shivers dn mining cos; seen aiding long term The shares of metal and mining companies sunk after the Union Cabinet cleared the new mining bill that entails miners sharing a significant part of their profit after tax with the affected locals in the regions. Coal India may invest up to Rs.400 bn in 12th Five-Year Plan State-run Coal India Ltd may invest up to Rs.400 bn in the 12th Plan Period ending 2017 towards mines' development for augmenting production. The company may spend the money also on buying machinery and building washeries. Hindustan Copper cuts cathode prices by 3.4% to Rs.431,559/tn Hindustan Copper Ltd has slashed prices of cut copper cathodes by Rs.15,170 per tn to Rs.431,559, the company said on its website. It also cut prices of full copper cathode by 3.4% to Rs.430,059 a tn. The new prices, effective Oct 1, are exclusive of taxes and other levies. The state-owned company aligns its product prices in line with the trend on the London Metal Exchange. Hindustan Zinc cuts zinc price by Rs.3,400/tn to Rs.110,400 Hindustan Zinc Ltd cut zinc prices by Rs.3,400 per tn to Rs.110,400, according to the company's website. The company also cut lead price by Rs.5,500 to Rs.116,400 per tn. The Vedanta group company aligns its product prices in line with London Metal Exchange. Mining secy says issue of levy on captive coal mines "solvable" The government will discuss with the mining industry the provisions of the Mines and Minerals (Development and Regulation) Bill, 2011 to resolve issues such as the methodology of royalty calculation for companies with captive coal mines, Mining Secretary S. Vijay Kumar told. COAL INDIA: • Coal India sees annual hit of Rs.20 bn to profitability if new mining bill is passed by Parliament.

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

• Has said it may invest up to Rs.400 bn in the 12th Plan period to develop mines for augmenting production. JSW STEEL: • Has secured 416,000 tn iron ore in the second round of the Karnataka e-auction by Metal Scrap Trading Corp. • Has raised price of all products by 1,750-2,000 rupees per tn from Oct 1. • Four promoter entities of the company have pledged 1.9 mn more shares, or 0.85% stake, in the company between Sep 20-Oct 1. • Has raised production at its Vijaynagar plant after winning iron ore bids in an e-auction last week. GAIL (India): Plans to buy Asian Development Bank's 5.2% stake in PETRONET LNG and may have to pay over Rs.6 bn for it. STERLITE INDUSTRIES: Has cut copper prices by 9.5% to 402,876 rupees a mn tn effective Oct 1. JINDAL STEEL: Got approval from the Mozambique government for a 2,640 MW coal-fired power plant, with an estimated cost of $3 bn. NATIONAL ALUMINIUM CO: Plans to set up a 500,000 tn per annum aluminium smelter and a 1,250 MW coal-based power plant in Indonesia for $4.5 bn. NMDC: Lines up capex of over Rs.24.5 bn for various mining projects.

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

AUTO & AUTO ANCILLARIES AUTOMOBILE: • Maruti says made 675 Swift, 50 A-Star, SX4 car today; mum on strike. • Hyundai India says booking for compact car Eon to open Oct 1. • Maruti Suzuki to raise output of Swift by 40%. • Nissan India to roll out Sunny in West Asia, Africa. • Fiat India has started supplying its Linea model to Sri Lanka to increase focus on exports. • Maruti to start Swift hatchback assembly ops at Manesar Plant B Oct 4. • Ceat says in talks with workers to resolve strike at Nasik unit. • RBI lifts bar on FIIs buying shares of Maruti Suzuki India. • Source says Tata Motors Pantnagar unit production hit on civil unrest. • With launch of the Brio, Honda sees a big role for India in its Asian business. • Toyota Kirloskar Motor to start exporting Toyota Etios and Etios Liva to South Africa by Mar 2012. Maruti Sep total sales hit by Manesar unit labour unrest, fall 21% Maruti Suzuki India Ltd reported a fourth successive monthly decline in sales, as total vehicle sales fell 21% on year in Sep due to a month-long labour strike in its Manesar factory. The country's largest carmaker sold 85,565 vehicles in Sep against 108,006 vehicles in the previous year, as production of the Swift, SX4 and A- Star models were hampered by the Manesar unit labour unrest since Aug 29. "The disruption in production owing to the labour issue at the company's Manesar plant during Sep adversely impacted the sales numbers during the month," the company said in a statement. Maruti Suzuki had also blamed labour unrest at Manesar for the drop in Aug sales numbers. Output has been dented since Aug 29 after the company insisted workers sign a "good conduct" bond before being allowed to enter the premises. The 33-day strike was called off earlier. The company's Sep domestic sales fell 17.2% on year to 78,816 vehicles and exports slumped 47.5% on year to 6,749 units. During the month, sales of compact cars fell 9% on year, sales of mini passenger vehicles slid 23.5%, and super compact (Dzire) sales grew 10%. The company has re- classified its models into new segments following the Society of Indian Automobile Manufacturers' switch to a new format. While Swift, Estilo and Ritz models now come under the "compact vehicles" classification, M800, A-Star, Alto, and WagonR models are classified as "mini" cars. Dzire has been named "super compact", SX4 "mid-size" and the Kizashi comes under the "executive" category. Gypsy and Grand Vitara models now fall under the "utility vehicles" category, while Omni and Eeco are classified as "vans". In Sep, the company sold only 14 units of its Kizashi sedan that was launched in Feb. Maruti sold 412 units of utility vehicles Gypsy and Grand Vitara, and 11,737 units of vans during the month. Tata Motors Sep total vehicle sales up 22% on yr; CV sales up 29% Tata Motors Ltd's total sales in Sep grew 22% on year to 78,786 vehicles. Sep total sales were also up 23% on month. Domestic commercial vehicle sales in the month rose 29% on year to 46,247 vehicles, driven largely by demand for light commercial vehicle models. Tata Motors' domestic passenger vehicle sales rose 10% on year to 26,319 vehicles, excluding Fiat vehicles. Tata Motors and Fiat have a joint venture agreement through which Tata Motors sells the latter's vehicles in India. Nano sales were, however, down 47% on year in Sep at 2,936 units. Indica hatchback sales grew 64%, while sedan Indigo's sales fell 11%. Sales of utility vehicles Sumo, Safari, Aria, and Venture rose 60% on year during the period under review. Tata Motors' exports also rose 23% on year to 6,220 vehicles in Sep. M&M Sep total sales, excluding tractors, up 25.5% at 44,137 units Mahindra & Mahindra Ltd's Sep total sales, excluding tractors, rose 25.5% on-year to 44,137 vehicles. Domestic sales in Sep rose 21% on year to 41,136 units, while exports rose almost 130% to 3,001 units. Sales of passenger vehicles, which include utility vehicles and Verito sedan, rose 11% on year to 19,447 units, the company said. In Sep, the company sold 7,302 three-wheelers compared with 6,005 units sold a year ago. It also sold 13,419 units of four-wheel pick-ups, which include the Gio and Maximo brands, against 9,255 units sold a year ago. M&M's joint venture to manufacture commercial vehicles with US-based Navistar Inc sold 968 units in Sep, against 1,069 units a year ago. Mahindra had not divulged its tractor sales numbers for Sep, nor its two-wheeler sales for the month at the time of filing this report. The company only gave out Jul-Sep data, which showed a 30% rise on-quarter.

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

Hero MotoCorp Sep total sales up 27% on year at 549,625 vehicles Hero MotoCorp Ltd, formerly Hero Honda Motors Ltd, said it despatched 549,625 vehicles from its factories in Sep, up 26.7% from the same month last year. The company had sold 503,654 vehicles in Aug. "We expect this momentum to continue into the festive season, and our plans are in place to meet the market demand," Senior Vice-President, Marketing and Sales, Anil Dua, said in a statement. The company's total sales from Jul to Sep were 1.54 mn units, up 20% over the corresponding period in 2010. Hero MotoCorp Ltd competitor Bajaj Auto said its motorcycle sales in Sep rose 18% on year to 371,208 vehicles while TVS Motor reported a 12% year-on-year growth in motorcycle sales for September at 90,848 units. Eicher Trucks and Buses Sep total sales 4,627 units, up 20% on yr Eicher Trucks and Buses, a unit of VE Commercial Vehicles Ltd, said the company sold 4,627 vehicles in Sep, up 20% from the corresponding month a year ago. Sep sales were 27% higher than Aug. The company's exports during the month were at 475 vehicles against 199 units a year ago. Eicher is India's third largest manufacturer of trucks and buses after Tata Motors Ltd and Ashok Leyland Ltd. VE Commercial Vehicles is a joint venture between Eicher Motors and Sweden's Volvo. Tata Motors said its domestic commercial vehicle sales in Sep rose 29% on year to 46,247 vehicles, driven largely by demand for light commercial vehicle models. Ashok Leyland Sep total sales fall 17% on year to 8,576 units Ashok Leyland Ltd reported a 17% on-year decline in its Sep total vehicle sales at 8,576 units. The decline was led by a 22% fall in domestic sales. The company's total domestic sales during Sep fell to 7,456 units from 9,512 units sold a year ago, Ashok Leyland said in a release. Sequentially, however, the company's total sales grew by 19% from 7,218 vehicles sold in Aug. Ashok Leyland's exports in Sep were at 1,120 units, up 32% from 850 units sold a year ago. In Aug, the company had exported 1,050 vehicles. The company's total production in Sep was down 15% on year at 7,451 vehicles. Sequentially also the production was down almost 4% from 7,734 vehicles manufactured in Aug. Steel Strips gets Rs.220-mn a year order from European co Steel Strips Wheels Ltd has received a Rs.220 mn a year order from a European trailer manufacturer to supply up to 60,000 wheels annually. The company will start supplying the wheels from its Jamshedpur facility from this month. "The company is also in discussions with other OEMs (original equipment manufacturers) in the same industry for similar volumes which will also start flowing in the current quarter," Steel Strips said. In Sep, Steel Strips's wheel rims sales declined 14.4% from a year ago to 753,000 units. However, the company's wheel rims exports rose to 123,020 units in the month from 77,901 units a year ago. Steel Strips' Sep wheel rims sales down 14% on yr at 753,000 units Steel Strips Wheels Ltd sold 753,000 wheel rims in Sep, down 14.4% from a year ago. The company's wheel rims exports rose to 123,020 units in the month from 77,901 units in Sep last year. The Chandigarh-based company said it produced 753,000 steel wheel rims in Sep compared with 866,000 a year ago. In the month, the company's truck rims sales surged 262% to 47,682 units. Tractor rims sales were up nearly 50% at 78,100 units. Source says Tata Motors' Pantnagar unit affected on curfew Production at Tata Motors Ltd's Pantnagar unit in Uttarakhand has been hit due to a curfew in the area following communal riots that erupted on Oct 2 at Udham Singh Nagar district, a company source told. Production at the unit has been hit for the past three days, the source said, without sharing any further details. The company mainly manufactures Ace range of light commercial vehicles at the Pantnagar unit. Maruti to start Swift hatchback assembly ops at Manesar Plant B Oct 4 Maruti Suzuki India Ltd will begin assembling vehicles at its Manesar Plant B from Oct 4, starting with the Swift hatchback model, Managing Executive Officer M.M. Singh told. "Assembly operations at Plant B begin Oct 4," Singh said. "We are yet to finalise on which other models would be made there." The company had started welding operations at Manesar Plant B in Sep. RBI lifts bar on FIIs buying shares of Maruti Suzuki India The Reserve Bank of India lifted the restriction on foreign institutional investors buying shares of Maruti Suzuki India Ltd as the aggregate shareholding of foreign entities has slipped below the prescribed trigger limit. The company has now been removed from the caution list for FII investments, the RBI release said.

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

Ceat in talks with workers to resolve Nasik unit strike Ceat Ltd has informed that few workmen, had a fight on Sep 30, 2011 on account of personal rivalry between them. Due to provocations during the said fight, the workmen resorted to a flash illegal strike. A dialogue is onto resolve the issue and return to normalcy at the earliest. Hyundai India's Eon compact car bookings to start from Oct 1 Hyundai Motor India Ltd will start taking bookings for its small hatchback car Eon from Oct 1, the company said in a statement. Although Hyundai India did not specify the launch date of the car, it is being speculated that the vehicle would be unveiled some time in Oct. Strike ends at Maruti's Manesar unit; workers to sign conduct bond Workers at Maruti Suzuki India Ltd's Manesar plant called off their month-long strike earlier. Settlement was reached after all workers agreed to sign the good conduct bond," a short message service statement from Maruti Suzuki said. Honda Siel sees parts supply from Japan normalising by Nov Honda Siel Cars India Ltd expects its component supplies from Japan to normalise by the second half of Nov after which it also hopes to ramp up production. Ashok Leyland gets $36.56-mn Tanzania order for 723 vehicles Ashok Leyland Ltd has received a $36.56-mn order from Tanzania to supply 723 vehicles by Mar, it informed the Bombay Stock Exchange. Delhi govt hikes registration tax on diesel vehicles by 25% The Delhi government has raised the registration tax on diesel vehicles by 25% on the existing registration rate from Sep 29, according to a report in the Times of India. Most automakers, except Maruti Suzuki, report growth in Sep sales Most automobile manufacturers, barring Maruti Suzuki, reported a growth in Sep sales on improving demand for passenger vehicles during the festival season. TVS Motor Sep total sales up 17% on year; motorcycles up 12% TVS Motor Co Ltd sold 219,369 vehicles in Sep, up 17% from the same month a year ago, the company said in a statement. Nissan plans to export mid-level sedan Sunny to West Asia next year Nissan Motors India plans to start exporting Sunny, its mid-level sedan, to West Asia and Africa early next year. Sunny is Nissan's second locally made vehicle after Micra, which was launched last Oct. Maruti says made 675 Swift, 50 A-Star, SX4 car; mum on strike Maruti Suzuki India Ltd said it made 675 Swift hatchback models from its Gurgaon and Manesar plants. Atul Auto Jul-Sep sales 6,794 units vs 4,814 yr ago Atul Auto Ltd has informed BSE that the Company has recorded total Sales of 6794 Vehicles in the quarter of Jul -Sep 2011, as against 4814 Vehicles of Jul-Sep 2010 Quarter. MARUTI SUZUKI: • Workers at the company's Manesar plant called off their strike and agreed to sign the good conduct bond. • The company's passenger car sales in Sep were down 18% on year at 66,667 units. • Aims to double its sales network to 2,000 from the current 1,000 by 2015. • Its market share has slumped to nearly 40% of the passenger car market for the first time in a decade. • Intends to raise output by 40% in Oct. MAHINDRA & MAHINDRA: • Will soon begin working with Ssangyong Motor Co to for their first jointly developed vehicle. • Production has been stalled at its Rudrapur tractor unit since Oct 3 following curfew in the wake of communal clashes. TATA MOTORS: • Its total vehicle sales in Sep are up 22% on year to 78,786 vehicles.

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

• Arm Jaguar Land Rover plans to double India sales of all its vehicles in the ongoing financial year. ASHOK LEYLAND: • Plans to develop a utility vehicle to take on Toyota's Innova. • Total sales for September at 8,576 units, down 17% on year. HERO MOTOCORP: Plans to launch a 250cc motorcycle in the second half of 2012, its most expensive product. ATUL AUTO: Total sales for Jul-Sep at 6,794 units as compared to 4,814 a year ago.

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

MISCELLANEOUS MISCELLANEOUS: • Official says Inox Leisure to subscribe to Fame's rights issue. • Koutons Retail lenders approve plan to restructure 6-bln-rupee debt. • Nippon to invest 30.62 bln rupees for 26% in Reliance Cap arm. • Workers' strike forces Bosch to shut down Bengaluru unit ops. • Colgate India closes Hyderabad unit; shutdown not to impact ops. • Official says Inox Leisure to subscribe to Fame's rights issue. • FMC to soon allow single performance audit for brokers. • NSE to extend closing session trade timing by 10 minutes from Mon. • Govt may allow 100% FDI in single-brand retail. • Online term cover plans click with net-savvy Indians. • Amul initiates first image makeover to woo the youth. • No evidence Anil Ambani set up Swan, says CBI. • Ban on plastic bags in Delhi; violators to face 5-year jail. • IPO closure, listing time gap to be cut. • Bombay Dyeing to boost realty focus for growth. • Titan to hike watch prices up to 20% on forex, gold hit. • Pantaloon Retail OKs 15 bln rupees fund raising plan. • More downgrades than upgrades likely this fiscal, says Crisil. • IRDA slaps 500,000 rupees fine on HDFC standard Life. • EuroKids plans to raise 2.4 bln rupees, build 13 schools. • PE investments at $8.6 bln in year to date. • It's "Namaste" Africa, goodbye Odopic brand for Dabur. • Bosch labour strike enters 8th day; co firm on outsourcing plan. • Zuari Industries resumes partial production at Goa facility. • SEBI says cos must state unaudited, limited review results together. REGULATORY: • Securities and Exchange Board Of India has extended its deadline for 100% dematerialisation of promoter holding in companies to Dec 31. • Securities and Exchange Board of India refused to revoke its order against MCX-SX to start equities trading. • Securities and Exchange Board of India seeks to reduce the time between closure of initial public offer and listing of companies. • SEBI has asked listed Indian companies to mandatorily submit the limited review report along with their unaudited results. • RBI has relaxed some norms for domestic money transfer transactions aimed at making such transactions accessible to more customers. • SEBI has hinted at regulating commissions of private equity and venture capital funds. • Insurance and Development Authority of India says quoting permanent account number to be mandatory for making cash payments of more than 50,000 rupees in insurance premium. • IRDA slaps 500,000-rupee fine on HDFC Standard Life Insurance Co for violating norms on claim settlements. • Competition Commission of India has asked corporate affairs ministry to tighten rules to bring several mergers and acquisitions under its watch. RETAIL: • Reliance Retail and Bharti Retail have opened their first hypermarkets in Mumbai.

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

• UK-based Plaza Centers to invest 10 bln rupees for operations in India. • The government is considering allowing foreign companies to completely own single brand retail stores. • GITANJALI GEMS, TITAN INDUSTRIES, BATA INDIA seen in focus as government may allow 100% FDI in single brand retail stores. • German retailer Metro Cash & Carry plans to get 5% of its revenue from India by the year 2015. • Berkshire Hathaway-owned frozen food brand Dairy Queen is talking to Reliance Retail for a joint venture in India. • Sector shows signs of another meltdown on mounting debt. MEDIA: • The government has raised foreign direct investment cap in terrestrial broadcasting and frequency modulation radio to 26% from 20%. • Government plans to raise net worth limit for news and non-news channel applicants by 10 times. • ZEE ENTERTAINMENT, ZEE NEWS, SUN TV, RAJ TV, TV TODAY, TV18 BROADCAST, NDTV and RELIANCE BROADCAST shares in focus as government may raise net worth requirement for new channel applicants. PRIVATE EQUITY: • US-based private equity firm General Atlantic is studying four acquisitions in India, each worth $200 mln. • Private equity firm Kohlberg Kravis Roberts and Co LP is extending a $30 mln commitment to financial services firm Way2Wealth. • India-focused private equities plan to raise $47.5 bln. CHEMICALS: • Paint sales in the country are set to go down 10-20% in September and October owing to prolonged monsoon. FUND RAISING: • Realty fund manager Azure Capital advisors to start raising around 2 bln rupees from next week to invest in residential projects in southern and western India. MUTUAL FUNDS: • HDFC Mutual Fund has beaten Reliance Mutual Fund to be India's largest fund with assets under management worth 918.27 bln rupees. INSURANCE: • Health insurance portability to be effective today. ELECTRONICS: • Government has unveiled the National Electronics Policy draft, which aims to generate $400 bn annual revenue from the sector. Seasonality may hit hospitality cos' Jul-Sep result, says Edelweiss The second quarter results for the companies in the hospitality sector are likely to be muted as seasonal factors would keep occupancy rate flat leading to decline in the average room rates, said Edelweiss Securities Ltd in its results preview note for the sector. "Owing to seasonal factors, occupancies are expected to remain close to Q1FY12 (Apr-Jun) levels of 63-65%," the brokerage said and added that although average rates might rise 4-5% on year, it might fall 4-5% on quarter. During Jul-Sep, the brokerage expects hotel companies to report earnings before interest, taxes, depreciation and amortisation margin of around 12- 15%. Lower than average room rates on account of weak occupancy might bring down Jul-Sep profit for EIH Ltd and Taj GVK Hotels & Resorts Ltd, Edelweiss said. While EIH's Jul-Sep profit is estimated at 19 mln rupees as against 155 mln rupees in the previous quarter, Taj GVK's profit is also likely to decline to 69 mln rupees as compared to previous quarter's 120 mln rupees, it said. Indian Hotels Co Ltd may see a 5.4% dip in its profit compared with the previous quarter's profit of 203 mln rupees, the brokerage said. It is looking for trends from the company's international properties as the global slowdown is likely to hit its consolidated quarterly results. Mahindra Holidays & Resorts India Ltd may see a 13% rise in its Jul-Sep profit from previous quarter's 169-mln-rupee profit, despite recording a fall in addition to its members "and old

Weekly Newsletter 46 Info-Spectrum Bridging the Information Gap in Corporate Landscape members getting withdrawn." The brokerage said the Indian operations of Cox & Kings Ltd are expected to report average growth due to the seasonal nature of the industry. The company may report 282-mln-rupee profit, down nearly 26% as compared to previous quarter. Cox & Kings' investment returns from the earthquake-hit Japan and debt ridden European Union are expected to remain subdued, Edelweiss said. The brokerage is also awaiting an update on returns from the newly acquired UK-based travel company, Holiday Break. The average room rates are expected to rise 5-8% in 2011-12 (Apr-Mar) despite a rise in supply of rooms. This is because of an anticipated upsurge in occupancy rate during the year, the brokerage said. Edelweiss has given a 'hold' rating for shares of Cox & Kings, and EIH. CLSA Capital invests $21.8 mln in Kota-based coaching co Resonance CLSA Capital Partners, the alternative assets management arm of CLSA Asia-Pacific Markets, has invested $21.8 mln in Kota-based coaching institute company Resonance Eduventures Pvt Ltd. CLSA Capital Partners has invested in Resonance through one of its funds--the $333 mln ARIA Investment Partners III L.P.--and has also picked up minority stake in the coaching company, according to information on CLSA Capital Partners' website. This is the fifth investment by ARIA Investment Partners III and the 10th by the ARIA group of funds in India to date. Resonance was founded in 2001 and provides coaching to engineering and medical students for entrance examinations. The company has a network of more than 38 centres across 18 Indian cities. Prior to this round of funding, Resonance had raised funds in 2010 from the India Build-Out Fund managed by Milestone Religare Investment Advisors. "The Indian education sector is particularly appealing to CLSA Capital Partners due to the high demand for quality education," said Richard Pyvis, executive chairman, CLSA Capital Partners. "In particular, training for the Indian Institute of Technology Joint Entrance Examination is in high demand with more than 450,000 candidates competing annually to secure ranks in the top 2-3% in order to gain entrance to the IIT," he said. CLSA Capital Partners has around $2.7 bln of funds under management currently. Bosch labour strike enters 8th day; co firm on outsourcing plan As the strike at Bosch Ltd's Bengaluru plant entered its eighth day today, the company said its plan to outsource some non-core activities stands unchanged, and is in compliance with the October 2010 wage settlement pact with workers. In a release, the company asked employees who are on a relay hunger strike since Sunday to resume work. The company, which makes auto ancillary parts, said the strike has not hit supplies, and despatches were being made from available stocks. "MEA's (MICO Employee's Association) illegal strike has resulted in loss of approximately 60 lakh (6 mln) rupees to state exchequer and over 4 crore (40 mln) rupees to the central exchequer in the last seven days," the release from the company said. GTN Ind's Andhra unit stops from Sep 7 on worker unrest GTN Industries Ltd has informed BSE that manufacturing operations at the Company's Yarn Processing Unit located at Shadnagar are temporarily suspended with effect from September 07, 2011. There has been protest by the workmen against changes made in the pay slips by adding and deducting same amounts incurred towards certain expenses as a part of the cost to the Company resulting no impact in their net pay. However, this change has lead to stop of work by the workmen demanding additional compensation towards these item without accepting deduction. The Workmen Union has been making all the efforts to take undue advantage of the said classification proposed by the Company and started illegal protest for the same by suspending the operations at the plant. All the efforts are being made by the Management to resolve the issue and to bring normalcy. There has been series of meeting held with Labour Department / Union and it is expected that the matter shall be resolved shortly. Net worth for cos owning news channels may be hiked 10 times The government is planning to raise net worth and other financial requirements for companies to own news channel licence by 10 times. For getting a non-news channel licence, the government is considering a four- fold increase in net worth. Under the Information & Broadcasting Ministry's proposed norms, firms looking to launch news channels will have to maintain a net worth of 150 mln rupees for the first channel and 50 mln rupees for every additional channel. For non-news channel, the applicants will have to maintain a net worth of 50 mln rupees for the first channel and 25 mln rupees for each additional one. Also, new licences will be granted to only those media firms that furnish performance bank guarantees, which will be 20 mln rupees for a news channel licence and 10 mln rupees for a non-news channel. The government will encash the guarantee in case a media firm fails to operationalise the channel within a year of getting the licence. The revised guidelines are likely to come up for the Cabinet's approval later this week.

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

Aksh Optifibre promoters make 20% open offer at 7 rupees/share Promoters of Aksh Optifibre Ltd have made an open offer to acquire 20% additional stake in the company at 7 rupees a share. The offer price is at a 12.9% premium to the stock's closing price of 6.20 rupees on the National Stock Exchange. Promoters said they are making the open offer as their plan to purchase additional shares from the open market to raise their stake from the current 13.23% will trigger the offer. The offer will open Nov 18 and close Dec 7. Entertainment tax waiver for PVR Uttar Pradesh multiplex PVR Limited has informed the Exchange that the "State of Uttar Pradesh through District Magistrate, Lucknow vide their Letter No. 579/M.K./2011-12 dated 30th September, 2011 have granted Entertainment Tax Exemption for first 5 years subject to a maximum limit of Rs. 14.94 Crore under U. P. Entertainment and Batting Tax Act, 1979 to Company's "PVR Phoenix Multiplex" situated at Phoenix United Mall, Plot No. CP - 8, Sector - B, Kanpur Road, Lucknow w.e.f. 10th September, 2010". London Stock Exchange, Singapore Exchange mull LME joint bid The London Stock Exchange Group Plc and Singapore Exchange Ltd have held high-level discussions about a joint bid for the London Metal Exchange, according to a report in the Wall Street Journal. The bidding talks are at a very early stage, the paper said quoting a person familiar with the matter. A week ago, the LME said it had been approached by several suitors and would start a formal review of offers, which people familiar with the matter say could value the market-leading platform at about $1.56 bn. SGX has held multiple meetings with bankers to discuss a bid for the LME, the report said quoting people familiar with the development. LME has seen record trading volumes for derivative contracts involving copper, aluminium, zinc and other metals in recent sessions, while buyer interest has been kindled by plans outlined in May to explore setting up its own clearing house, which could boost revenue and provide more flexibility in launching new contracts. The 134-year-old exchange is the world's largest venue for trading metals-based futures and options, a segment where global volume rose 39% last year, according to the Futures and Options Association. At least 10 interested parties have approached the London Metal Exchange about a potential buyout, LME Chief Executive Martin Abbott said in an interview earlier this week. LME board has retained Moelis & Co as a financial advisor. Edserv to sell 2.7% stake to Dainik Bhaskar Corp for Rs.150 mn Publishing house Dainik Bhaskar Corp Ltd will pick up 2.7% stake in Edserv Softsystems Ltd for Rs.150 mn. The media company, which publishes Hindi daily Dainik Bhaskar and English newspaper Daily News and Analysis, will acquire the Edserv stake through fully convertible warrants. Last week, shareholders of Edserv had approved preferential issue of 700,935 warrants convertible into shares at Rs.214. Separately, Edserv Softsystems said it has tied up with Andhra Pradesh-based education portal EducationAndhra.com to provide online courses for various competitive exams and other content. Edserv will offer courses for the Indian Institute of Technology joint entrance examination, all India engineering entrance examination, and chartered accountancy and information technology skills. The tie-up will expand Edserv's user base by 3.5 mn and help it spread its presence in Andhra Pradesh. Also, the Chennai-based Edserv has acquired Prosel Ventures' e-learning content--for chartered accountancy, company secretary, cost and works accounts, and international financial reporting standards courses--for Rs.350 mn in an all-stock deal. Edserv said it is in talks with the top four auditing firms to implement International Financial Reporting Standards in its chartered accountancy courses. Compact Disc to mull film production co buy Oct 11 Compact Disc India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on Oct 11, 2011, inter alia, to consider and approve the following: 1. To consider and approve change in the name of Company. 2. To consider alteration in main object clause of the Company. 3. To consider shifting of Registered Office of the Company from the Union Territory of Chandigarh to the 5tate of Maharashtra and alteration in Memorandum & Articles of Association. 4. To consider acquisition of business of a Mumbai based Film Production Company. 5. To consider and approve transfer of part of business of the Company to its subsidiary, CDI Media Pvt. Ltd. 6. To consider increase in authorized share capital of the Company and alteration in Memorandum and Articles of Association of the Company. Clariant Chem to sell arm Chemtreat for Rs.50.8 mn Clariant Chemicals (India) Ltd has informed that in accordance with the decision taken by the Board of Directors of the Company the Company has executed the Share Purchase Agreement for divestment of its

Weekly Newsletter 48 Info-Spectrum Bridging the Information Gap in Corporate Landscape entire holding in its subsidiary Company, Chemtreat Composites India Private Ltd., for a total consideration of Rs.5,08,30,000 (Rupees Five crores eight lakhs thirty thousand). TVS Electronics allots 350,000 warrants to Tranzmute TVS Electronics Ltd has informed BSE that pursuant to the approval of the shareholders at the Annual General Meeting of the Company held on September 21, 2011, the Company on October 03, 2011 has allotted 3, 50, 000 Warrants with option to exercise the right to be allotted equal number of Equity Shares of Rs.10/- each of the Company on preferential basis to Tranzmute Business Advisory LLP, Mumbai. Bombay Rayon allots 2.5 mn shrs to promoter at Rs.263/shr Bombay Rayon Fashions Ltd has allotted 2.5 mn equity shares to a promoter group entity Machine Tools Pvt Ltd at Rs.263 per share on conversion of optionally convertible warrants, the company said in a notice to the exchanges. Official says Titan Ind to take store count to over 1,000 by FY13 Titan Industries Ltd plans to take its overall store count to over 1,000 across verticals by 2012-13 (Apr-Mar) from 727 currently. The company has verticals such as watches, eyewear, jewellery and precision engineering, V. Govindraj, vice president of integrated retail sales, told. Bombay High Court bench adjourns MCX-SX vs SEBI case to Oct 14 A Bombay High Court bench hearing the petition of MCX-SX against capital market's regulator Securities and Exchange Board of India adjourned the case to Oct 14, while making suggestions about resolution of the dispute. Reliance Media, Thought Equity Motion tie up for content solutions Anil Ambani's Reliance MediaWorks Ltd has tied up with US-based Thought Equity Motion Inc to provide integrated digital content management solutions in India, an official release said. INTERVIEW: Advanta MD sees genetically modified seeds driving ylds As India faces the harsh reality of falling land availability for crop cultivation, and a rising population to feed, use of genetically modified seeds to raise crop yield seems to be the only answer believes V.R. Kaudinya, managing director and chief operating officer, Advanta India Ltd. SEBI reallocates portfolios of EDs as 3 new officials take charge Securities and Exchange Board of India said it has reallocated the departments of its executive directors after three new officials took charge. FOCUS: Mkt braces for more borrow as fisc slippage looks imminent After Rs.530 bn additional borrowing shocker for the second half of the current fiscal, the government's repeated assertions that it will stick to the fiscal deficit target of 4.6% is not finding any takers in the bond market. Cinemax India OKs transfer of theatre exhibition ops to subsidiary Cinemax India Ltd will transfer its movie exhibition business to its wholly-owned subsidiary Cinemax Exhibition India Ltd with effect from Apr 1. Cinemax India plans to list Cinemax Exhibition India. NIIT-National Skill Development Corp JV to set up training centres NIIT Ltd has entered into an agreement with National Skill Development Corp to set up youth skill development centres in the country, the former said in a notice to the Bombay Stock Exchange. Inventure Growth to invest Rs.60 mn in arm via rights issue Inventure Growth & Securities Ltd said it would invest Rs.60 mn in its arm Inventure Merchant Banker Services Pvt Ltd via a rights issue of the latter's shares. Future Group arm, govt co in JV for multi-skill training centres Future Learning Ltd, the education and training arm of Future Group, formed a 73:27 joint venture company with National Skill Development Corp, to set up 1,680 multi-skill training centres across India. Govt raises foreign direct investment cap in FM radio to 26% Aimed at attracting higher foreign direct investment into the country the government announced several concessions including raising the FDI cap in terrestrial broadcasting and frequency modulation radio to 26% from 20%, an official release said.

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

Reliance Capital gets RBI nod for stake sale in insurance arm Reliance Capital Ltd has got approval from the Reserve Bank of India to sell 26% stake in Reliance Life Insurance to Japan's Nippon Life Insurance for Rs.30.6 bn, a joint release said. Venture capital co Helion invests $3.5 mn in education co Vienova Venture Capital firm Helion Advisors has invested $3.5 mn in Delhi-based Vienova Education Ltd. Koutons Retail lenders approve plan to restructure Rs.6-bn debt Koutons Retail India Ltd's bankers, led by Indian Overseas Bank, have approved a debt restructuring proposal that includes an option for the banks to convert part of the loans into equity and conversion of some working capital facilities to long term debt, the company said. Lloyd's Register Group scouting for acquisitions in India Lloyd's Register Group, one of the world's largest classification and accreditation societies, is scouting for acquisitions in India as it aims to more than double revenues from the country over the next three years, Richard Sadler, chief executive officer, said. Workers' strike forces Bosch to shut down Bengaluru unit ops Bosch Ltd has shut down operations at its Bengaluru plant in view of a 'tool down' strike by employees that began on Sep 28, the automotive ancillary parts maker said. Reliance Media files draft offer for Rs.4.4-bn rights issue Reliance MediaWorks Ltd has filed a draft offer letter with the Securities and Exchange Board of India to raise Rs.4.4 bn via a rights issue, the company said in a notice. Official says Inox Leisure to subscribe to Fame's rights issue Inox Leisure Ltd will participate in Fame India Ltd's Rs.900 mn rights issue and will look to maintain its current stake of 50.27% in the latter post the rights issue, Director Deepak Ashar told. FOCUS: MFs' systematic invest plans saving grace in volatile mkts Retail investors who have borne the brunt of a volatile equity market are increasingly finding solace in systematic investment plans of mutual funds. Colgate India closes Hyderabad unit; shutdown not to impact ops Colgate-Palmolive (India) Ltd discontinued operations at its toothpowder-manufacturing plant in Hyderabad after all employees availed the voluntary retirement scheme under the compensation package. NSE to extend closing session trade timing by 10 minutes from Oct 3 The National Stock Exchange will extend the trading session post closure of normal trading by 10 minutes from Oct 3, according to a circular on the exchange website. BSE details circuit breakers for Sensex during Oct-Dec The Bombay Stock Exchange detailed market-wide circuit breakers for Oct-Dec that will trigger a co- ordinated suspension in trading across equity and derivative markets should the key indices move up or down 10%, 15% or 20%. Govt may allow 100% FDI in single-brand retail The government is considering allowing 100% foreign direct investment in single-brand retail sector. Currently, only 51% FDI is allowed in single-brand retail and the industry ministry is now looking at a proposal to raise this limit to 100%. Fin min asks IIFCL to mull tie-ups with insurance cos for takeout plan The finance ministry has asked India Infrastructure Finance Co Ltd to consider partnering general insurance companies for its takeout financing scheme. The proposal is aimed at giving a fillip to takeout financing, which has not done well since launch last year. FIIs on sell mode for 2nd straight mo; dump shrs worth $204 mn Sep Foreign institutional investors continued to pull out funds from Indian markets for the second consecutive month in Sep as high domestic inflation and interest rates, coupled with problems in the Eurozone, prompted them to exit emerging markets. Bajaj Corp to replace Bombay Dyeing in BSE Mid-Cap Index Oct 10 Bajaj Corp Ltd will replace Bombay Dyeing & Manufacturing Co Ltd in the BSE Mid-Cap Index from Oct 10, the Bombay Stock Exchange said in a notice.

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

Pantaloon Retail board OKs long-term fund raising plan Pantaloon Retail (India) Ltd's board of directors has approved raising of not more than Rs.15 bn either by issuance of securities or debt instruments, or a combination of both, the company said in a notice to the bourses. Workers start relay hunger strike at Bosch's Bengaluru unit Labour unrest at Bosch Ltd's Bengaluru plant intensified as the 'tool down' strike by the workers entered its sixth day. Navin Fluorine, ITC get carbon credits from UN body Navin Fluorine International Ltd has been allotted 408,757 certified emission reductions for reducing its greenhouse gas emissions by thermal oxidation of hydrofluorocarbon-23, said the United Nations Framework Convention on Climate Change. Primary dealers body denies talk Rs.1-trn more govt borrow FY12 Denying that Reserve Bank of India officials had indicated a further rise in the government's market borrowing, Primary Dealers Association of India Chairman Pradeep Madhav said these reports are "mischievous". Tilaknagar Ind acquires bottling unit in Punjab Oct 1 Tilaknagar Industries Ltd has informed BSE that the Company has acquired 100% stake in Punjab Expo Breveries Pvt. Ltd., a bottling unit situated at Derabassi, Punjab on October 01, 2011. Finance secretary-led panel to select new LIC chief on Oct 12 A government-appointed panel, chaired by Finance Secretary R.S. Gujral, will interview short-listed candidates on Oct 12 for the post of the chairman of state-owned Life Insurance Corp of India, a finance ministry official said. Govt not to allow FDI in real estate consultancy firms The government has decided not to allow foreign direct investment in real estate consultancy firms. The Foreign Investment Promotion Board has articulated this view, while rejecting French consultancy firm AOS Studley's proposal to start real estate consultancy services through a subsidiary. PVR: • Has opened a multiplex at Vasant Kunj in New Delhi. • Will invest 5.8 bln rupees to set up six entertainment cities, add 350 more screens in three years. CINEMAX INDIA: Its board has allowed transferring its theatre business to a wholly-owned arm Cinemax Exhibition India, which will also be listed. HITTCO TOOLS: Has formed a subsidiary in Thailand, which will start production in 2012-13 (Apr-Mar). KOUTONS RETAIL INDIA: Bankers have approved a proposal to restructure debt to the tune of Rs.6 bn. NIIT: in pact with National Skill Development Corp to build skill development centres in India. Project to cost Rs.3.77 bn over four years. PADMALAYA TELEFILMS: Shareholders have approved the company's plan to raise up to Rs.2 bn. RELIANCE MEDIAWORKS: Is in pact with US-based Thought Equity Motion to provide content management solutions to Indian media companies. AKSH OPTIFIBRE: Promoters to make open offer for 20% more stake in company at seven rupees a share. PANTALOON RETAIL: The board has approved raising of 15 bln rupees either by issuance of securities or debt instruments, or a combination of both. RADICO KHAITAN: Its partner Diageo plans to buy half its stake in their joint venture Diageo Radico Distilleries. TITAN INDUSTRIES: To hike watch prices 4-20% on dollar, gold price rise. GTN INDUSTRIES: Manufacturing operations at the company's yarn processing unit in Andhra Pradesh temporarily suspended since Sep 7. ARSI COSMETICS: Shareholders have approved preferential allotment of 2 mn shares at 36 rupees. BOMBAY BURMAH TRADING CO: The Competition Commission of India clears 1-bln-rupee takeover of the company's laminates division by Japanese firm Aica Kogyo.

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

BOSCH: Workers at the company's Adugodi plant may intensify strike. BOMBAY DYEING: Promoter Nusli Wadia bought 0.87% more stake in the company from the market. CINEMAX INDIA: To launch a three-screen multiplex with a capacity of 716 seats in Surat. FUTURE VENTURES: The company has raised its stake in arm Indus Tree to 59.94%. INDIA INFOLINE: Carlyle Mauritius Investment Advisors' sub-account has purchased 2.31% more stake in the company through open market deals between Sep 21 and Oct 4 for nearly 476 mln rupees. MOTILAL OSWAL FINANCIAL SERVICES: Promoter Passionate Investment Management has increased its stake to 36.35% from 35.38% earlier. SHOPPERS STOP: Has opened its first retail store in Mysore. With this, the chain now has 44 Shoppers Stop stores across cities. UTV SOFTWARE COMMUNICATIONS: Walt Disney buys 100% stake in the company-owned Indiagames for 3.92-4.90 bln rupees.

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

IPO Watch IPO Alert: RDB Rasayans issue price set at Rs.79/share RDB Rasayans Ltd has fixed the issue price for its 4.5-mn-share initial public offering at Rs.79 a share, according to an advertisement in The Financial Express. The issue has been priced at the upper end of the price band, which had been set at Rs.72-79 a share. RDB Rasayans plans to use the funds raised by the issue mostly to finance its capital expenditure and raise manufacturing capacity by 7,450 tn per annum to 13,500 mn tn per annum. The company proposes to list the shares on the Bombay Stock Exchange. RDB Rasayans is engaged in manufacture of polypropylene tape, polypropylene woven sacks, woven fabrics, industrial woven fabric, polypropylene woven fabrics and polypropylene woven bags. IPO Alert: CARE seeks SEBI nod for 7.2-mn-share issue Credit Analysis and Research Ltd, the second largest rating agency in the country, has sought the Securities and Exchange Board of India's approval for an initial public offering of 7.20 mn shares of face value Rs.10 each. The offer, entirely a stake sale by promoters IDBI Bank and Canara Bank and some other shareholders including State Bank of India, IL&FS Financial Services and Tata Investment Corp, constitutes 25.22% of the company's post-offer paid up share capital. According to the draft red herring prospectus, IDBI Bank and Canara Bank together hold 48.6% in CARE while SBI and IL&FS Financial hold 9% each. The shares will be listed on the National Stock Exchange and the Bombay Stock Exchange. CARE rates debt instruments such as commercial papers, fixed deposits, bonds, debentures, and asset-backed securities, and also initial public offers. It also assesses credit risk of small and medium enterprises. The book running lead managers to the issue are Kotak Mahindra Capital Co Ltd, Bank of America Merrill Lynch Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd, IDBI Capital Market Services Ltd, and SBI Capital Markets Ltd. IPO Alert: Ambuja Intermediates seeks nod for Rs.650-mn issue Ambuja Intermediates Ltd has sought the Securities and Exchange Board of India's approval for its maiden issue of Rs.650 mn, according to the company's draft red herring prospectus. Established in 1988, Ambuja Intermediates makes speciality chemicals, dye, and dye intermediaries that are used in industries such as leather, textile, paper plastics, and polymer. The company operates five manufacturing units in Gujarat, with a total capacity of 6,140 mtpa of speciality chemical, dye, and dye intermediaries. Of the issue proceeds, Ambuja Intermediates plan to use Rs.116.89 mn to upgrade machineries and existing facilities at its Rajpur unit in the Mehsana district and to set up a sodium sulphate recovery plant. The company plans to spend Rs.152.21 mn on setting up two windmills of 1.25 MW each at Jamnagar in Gujarat. Ambuja Intermediates currently operates three windmills generating 4 MW of power. Captive consumption of power generated from windmills has helped the company to cut power cost by 70%, according to the draft prospectus. Also, Ambuja Intermediates will spend Rs.80 mn on repayment of terms loans and Rs.180 mn on working capital requirements. The company has appointed Saffron Capital Advisors Pvt Ltd as the book-running lead manager for the issue, and Link Intime India Pvt Ltd as registrar. IPO Alert: Olympic Cards seeks SEBI nod for Rs.270 mn issue Invitation cards maker and supplier, Olympic Cards Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for its maiden issue of Rs.270 mn. The face value of the shares offered would be Rs.10 each. The company plans to use the issue proceeds to set up a manufacturing unit near Chennai and for establishing four retail outlets. Shares of the Chennai-based company will be listed on the Bombay Stock Exchange and National Stock Exchange. Ashika Capital Ltd is the book running lead manager for the issue. IPO Alert: Abhitech Energycon seeks SEBI nod for 3.51-mn-shr issue Abhitech Energycon Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering of 3.51 mn shares at a face value of Rs.10 rupees per share. The issue will constitute 26.98% of the post issue paid-up capital of the company, a copy of the draft prospectus posted on SEBI's website said. Indbank Merchant Banking Services Ltd is the book running lead manager for the issue, and Sharepro Services (India) Pvt Ltd is the registrar. The company plans to list its shares on the Bombay Stock Exchange and on the National Stock Exchange. Abhitech Energycon manufactures fuel additives for solid and petroleum fuels. Part of the proceeds from the proposed public offering will be used to set up a fuel additives manufacturing facility, and establish three marketing offices in India. The remaining funds will be used for working capital and issue expenses, according to the company's prospectus.

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

ISSUES CLOSED, TO LIST

Size Face To Issue Issue Issuer Shares:Rupees Value list Lead Manager Price Period (mn:bn) (rupees) on Indo Thai Securities 4.0:N.A 10 70-84 30/09-05/10 -- Allianz Swajas Air Charters N.A:0.37 10 84-90 26/09-05/10 -- Aryaman Flexistuff International 6.75:N.A 10 145-155 29/09-05/10 -- Collins M and B Switchgears 5.0:N.A 10 180-186 28/09-05/10 -- D and A Taksheel Solutions 5.5:0.80 10 130-150 29/09-04/10 -- PNB Invstment Onelife Capital 3.35:N.A 10 100-110 28/09-04/10 -- Artherstone Advisors Tijaria Polypipes 10.0:0.6 10 60 27/09-29/09 -- Hem RDB Rasayans 4.5:N.A 10 79 21/09-23/09 -- Chartered 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 54 Info-Spectrum Bridging the Information Gap in Corporate Landscape

MERGERS & ACCQUISITIONS == ABROAD-INDIA ==

NIPPON LIFE INSURANCE ‐ RELIANCE LIFE INSURANCE Announced: Sep 30

Reserve Bank of India gave its approval to Reliance Capital to sell 26% stake in Reliance Life Insurance to Nippon Life Insurance Co for Rs.30.62 bn.

Status: Ongoing

HCC CONCESSIONS‐ XANDER GROUP Announced: Sep 29

Hindustan Construction Co has sold its 14.5% stake in HCC Concessions to private equity firm Xander for Rs.2.4 bn.

Status: Complete

== INDIA-INDIA ==

VIVIMED LABS ‐ KLAR SEHEN Announced: Oct 3

Vivimed Labs Ltd has acquired 100% stake in Kolkata‐based Klar Sehen Pvt Ltd.

Status: Complete

NEWTIME INFRASTRUCTURE ‐ LOTUS BUILDTECH Announced: Oct 3

Newtime Infrastructure acquires 100% in Lotus Buildtech by allotting 3.9 mn shares to the shareholders of the latter on a preferential basis.

Status: Complete

BAJAJ CORP ‐ UPTOWN PROPERTIES Announced: Sep 29

Bajaj Corp has acquired Uptown Properties Pvt Ltd for Rs.750 mn.

Status: Complete

==GLOBAL M&A==

INTERNATIONAL BUSINESS MACHINE CORP – Q1 LABS

International Business Machines Corp to buy Q1 Labs for an undisclosed sum.

HANLONG ‐ AUSTRALIAN SUNDANCE RESOURCES

China‐based Hanlong to acquire Australian Sundance Resources for $1.6 bn in an all‐cash deal.

PHARMACEUTICAL PRODUCT DEVELOPMENT

Carlyle Group and Hellman & Friedman to acquire Pharmaceutical Product Development for $3.9 bn.

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

SUMITOMO MITSUI ‐ PROMISE CO

Sumitomo Mitsui Financial Group, which already owns 21% stake, to acquire Promise Co for around $2.6 bn.

NATIONWIDE MUTUAL ‐ HARLEYSVILLE GROUP

Nationwide Mutual to acquire Harleysville Group for $1.63 bn.

CHINA MINMETALS RESOURCES ‐ ANVIL MINING

China Minmetals Resources to acquire copper miner Anvil Mining for $1.3 bn.

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

RATINGS • CRISIL affirms A1+ on Sundram Fasteners' debt programme

• Sunshine Fasteners' cash credit facility gets CRISIL BB/Stable

• Surana Motors' cash credit gets CRISIL B+/Stable

• CRISIL affirms A1+ on Tata Communications' debt programme

• CRISIL affirms BBB+/Stable on Trivitron Healthcare's term loan

• CRISIL affirms rtg on Trivitron Medical's overdraft facility

• Vaibhav Laxmi Industries' cash credit gets CRISIL B/Stable

• CRISIL affirms BB/Stable on Vishesh Engg Co's cash credit

• Rishabh Software's cash credit gets CRISIL B+/Stable

• SH Kelkar and Co's cash credit gets CRISIL A-/Stable

• Sanghavi Jewel's export packing credit gets CRISIL A4+

• Saraf Foods' term loan gets CRISIL BB-/Stable

• Shreejee Jewellers' cash credit gets CRISIL BB-/Stable

• CRISIL affirms rtg on Shriram Equipment Fin's bk facilities

• Sizer Metals' cash credit gets CRISIL BB+/Stable

• CARE affirms BBB- on Asahi India Glass long-term bk facilities

• Sree Siddharameshwara Agro's cash credit gets CRISIL B+/Stable

• Smriti Apparels' packing credit gets CRISIL A4+

• Sizer Metals Pte's cash credit gets CRISIL BB+/Stable

• Indrayani Sales' cash credit gets CRISIL B+/Stable

• Keva Fragrances' 200-mln-rupee loan gets CRISIL A-/Stable

• Kings Dehydrated Foods' cash credit gets CRISIL BB/Stable

• CRISIL affirms BB/Stable on Matangi Rubber's cash credit limit

• CRISIL puts Meshco Steel's cash credit on withdrawal notice

• Reliance Capital's short-term debt programme gets CRISIL A1+

• CRISIL puts Raja Builders cash credit rtg on withdrawal notice

• CRISIL affirms rating on Powerlinks Transmission's term loan

• Reliance Home Finance's short-term debt gets CRISIL A1+

• CRISIL affirms rtg on Hyundai Construction Equipment's loan

• CARE affirms BBB- on Asahi India Glass long-term bk facilities

• AA Autotech's term loan gets CRISIL A/Stable

• CRISIL affirms BBB-/Stable on Ajanta Soya's letter of credit

• Arinits Sales' cash credit gets CRISIL BB-/Stable

• ASK Automotive's cash credit gets CRISIL A+/Stable

• CRISIL BBB-/Stable on Bhagwan Mahaveer Cancer Hospital's loan

• Bhavani Ind (Bengaluru)'s cash credit gets CRISIL BB+/Stable

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

• CRISIL affirms B+/Stable on Byond Tech's cash credit

• CRISIL affirms BB+/Stable on East Coast Engg Co's cash credit

• CRISIL affirms A-/Positive on GKC Projects' cash credit

• CRISIL affirms BBB+/Stable on Hero Exports' cash credit limit

• CRISIL affirms AA+/Stable on Hero FinCorp's bank loan facility

• ICRA affirms BB(Stable) on Agni Steels' term loans

• ICRA affirms BB on Barbate Automotive's term fund based limits

• Covalent Laboratories' fund based limits get ICRA BBB+

• M&M Chocolates' long term fund based limits get ICRA D

• Ram Techno Projects (India)'s fund based limits get ICRA B+

• Shri Bajrang Power & Ispat's term loans get ICRA BBB+(Stable)

• ICRA affirms rtg on Shri Rathi Steel Dakshin's term loans

• ICRA affirms BBB-(stable) on Shri Rathi Steel's term loans

• Fitch affirms long-term rtg on Kohima Municipal Council

• CARE affirms BBB- on Asahi India Glass long-term bk facilities

• Bajaj Kagaj's long-term bank facilities get CARE BB-

• CARE BBB+(Is) issuer rating on Hamon Shriram Cottrell

• JKM Infra Projects' long-term bank facilities get CARE BBB

• CARE affirms A1+ on Magma Fincorp's enhanced short-term debt

• Raghuvir Ginning Factory's long-term bk facilities get CARE B

• Shriram Transport Finance's proposed NCDs issue gets CARE AA+

• CARE affirms BBB on Tower Vision's long-term bank facilities

• CARE affirms BB on Vaibhav Gems' long-term bank facilities

• ICRA ups rating on Ambika Cotton Mills' term loans to BBB

• ICRA cuts rating on SP Apparels' term loans to D

• ICRA cuts rating on Gora Mal Hari Ram's fund based limits

• ICRA cuts rating on MRO-TEK's fund based limits to BB+

• CRISIL ups rating on Pregna International's cash credit

• CRISIL ups rating outlook on Blackwood Developers' term loan

• CRISIL ups rating on Bhumika Gems' export packing credit

• ASM Traxim's long-term bank facilities get CARE BB

• CARE affirms BB+ on Anamika Conductors' bank facilities

• CARE affirms A1+ on Srei Infrastructure Finance's STD plan

• ICRA puts Essar Telecom fund-based limits on withdrawal notice

• ICRA A4 on Sri Lakshmi Prasanna Agencies fund based facilities

• ICRA affirms A-(Stable) on Venkateshwara Hatcheries' term loan

• Spark Green Energy (Satara)'s term loans get ICRA BB(stable)

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

• Siddheshwari Ind's fund based limits get ICRA BBB-(stable)

• Pioneer Town Planners' fund based facilities get ICRA BB-

• JITF Waterways' senior term loan gets ICRA BBB-(stable)

• ICRA BB on Praveenya Institute of Marine Engg's term loan

• ICRA affirms BB(stable) on Bedmutha Ind's fund based limits

• ICRA affirms AA(SO) on Bangalore Development Authority's bond

• ICRA affirms AA(SO) on Bangalore Development Authority's bond

• FITCH BBB-(ind) long-term rtg to IRB Talegaon Amravati Tollway

• CRISIL affirms BBB+/Stable on TCG Lifesciences' long-term loan

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

• Ramkrishna Agencies' cash credit gets CRISIL BB-/Stable

• Radhekrishna Extractions' cash credit gets CRISIL BB/Stable

• Quantam IT Park's term loan gets CRISIL BB-/Stable

• Nimitaya Hotel's overdraft facility gets CRISIL B-/Stable

• Murano Tiles' term loan gets CRISIL B/Stable

• LP Hospitality's term loan gets CRISIL B/Stable

• CRISIL affirms BB/Stable on Gstaad Hotels' term loan

• Ganesh Rice Mills' cash credit gets CRISIL B/Stable

• CRISIL A4+ on Dolphin International's foreign bill discounting

• CRISIL affirms AA+/Stable on Deutsche Investments' NCDs plan

• CRISIL affirms AA+/Negative on Citicorp Fin's reduced NCDs

• CRISIL affirms BBB/Stable on CICON Engineers' cash credit

• CP Sponge Iron's term loan gets CRISIL B+/Stable

• CRISIL affirms B+/Stable on Atlanta Electricals' cash credit

• CRISIL affirms BBB/Stable on Vishwanath Projects' cash credit

• RF Exports' long-term loan gets CRISIL B+/Stable

• Parikh Marketing's cash credit gets CRISIL B+/Stable

• CRISIL affirms BBB/Stable on Indo Colchem's rupee term loan

• Eldee Motors' cash credit gets CRISIL BB-/Stable

• Concast Global's cash credit gets CRISIL BBB-/Stable

• CRISIL affirms rating on Almondz Finanz's overdraft facility

• Aditya Dispomed Products' bank loan gets CRISIL BBB-/Stable

• CARE affirms BBB on Jyoti's long-term bank facilities

• Anvil Cables' cash credit gets CRISIL C

• CRISIL affirms A4+ on Geo Sea Foods' export packing credit

• CRISIL affirms A1 on Geojit Credits' short-term debt programme

• CRISIL A1+ on Gruh Finance's enhanced CP programme

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

• KBJ Bullion's cash credit gets CRISIL BB-/Stable

• CRISIL affirms AAA/Stable on Lucas TVS' cash credit

• CRISIL affirms A1 on Geojit BNP Paribas' bank guarantees

• Export Import Bank of India's bonds get CRISIL AAA/Stable

• CRISIL ups rating on Raman FibreScience's long-term loan

• ICRA cuts rtg on Saraswati Education Society's term loans to D

• Allied India Iron & Steels' term loan gets CRISIL B/Stable

• CRISIL A1+ on Tamilnad Mercantile Bank' enhanced CD programme

• Auto Dynamic Corp's cash credit gets CRISIL BB/Stable

• Bentec Electricals and Electronics' cash credit gets CRISIL D

• Sipai Industries' cash credit gets CRISIL B/Stable

• BMR Exports' packing credit gets CRISIL A4+

• CRISIL affirms BBB/Stable on Raunaq Intl's cash credit limit

• Rajeshwara Forgings' cash credit gets CRISIL D

• Quantaplast Polymer's term loan gets CRISIL D

• Otira Pharmaceuticals' cash credit gets CRISIL B/Stable

• National Mining Co's cash credit gets CRISIL B-/Stable

• Kinjal Construction Co's term loan gets CRISIL B+/Stable

• CRISIL affirms AA/Stable on Indus Towers' long term loans

• CRISIL affirms BBB+/Stable on Development Credit Bank's bonds

• Fitch C(ind) national long-term rtg to NS Engineering Projects

• Fitch BBB-(ind) national long-term rating to Jubilant Motors

• ICRA cuts rtg on Indu Navayuga Infra Projects' term loan to D

• ICRA cuts rating on Bhrigus Software India's cash credit to D

• CRISIL ups rtg on Priya Blue Industries' enhanced cash credit

• CRISIL cuts rating on Niranjan Metallic's cash credit

• CRISIL cuts rating on Janki Newsprint's cash credit to D

• CRISIL cuts rtg on Associated Power Structures' cash credit

• CRISIL B+/Stable on Astoria Agro and Allied Ind' term loan

• CRISIL BB-/Stable on Indian Transformers' cash credit

• CRISIL BB-/Stable on Patsar Transformers' cash credit

• CRISIL cuts rating on SCM Garments' long-term loan

• CRISIL ups rtg on Prabhat Elastomers' term loan to B/Stable

• CARE affirms AA+ on IDBI Bank's debt programme

• CARE affirms A1 on Greenply Industries' short-term debt

• Firefly Energy's long-term bank facilities get CARE BB

• CARE affirms BBB- on Dr Agarwal's Eye Hospital's bk facilities

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

• Darode Jog Builders' long-term bank facilities get CARE BB+

• CARE affirms AAA on Bridgestone India's bank facilities

• Birla Shloka Edutech's long-term bk facilities get CARE BBB-

• ASM Traxim's long-term bank facilities get CARE BB

• CARE affirms BB+ on Anamika Conductors' bank facilities

• Sainath Texport's long-term bank facilities get CARE BB

• CRISIL A1+ on Banaskantha District Co-op Milk Producers' loan

• CRISIL affirms B+/Stable on BD Textile Mills' cash credit

• Arvind Techno Engineers' term loan gets CRISIL BBB

• CRISIL BB/Stable on Amazon Wood's enhanced term loan

• Allied India Iron & Steels' term loan gets CRISIL B/Stable

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

• CARE affirms A1+ on Srei Infrastructure Finance's STD plan

• Somnath Cotton's long-term bank facilities get CARE B

• CARE BB+ on Shri Mahavir Ferro Alloys' long-term bk facilities

• CRISIL affirms rtg on Pratibha Pipes and Structural term loan

• PMR Food Products' cash credit gets CRISIL D

• Pincon Spirit's cash credit gets CRISIL BB+/Stable

• Nishigandha Polymers' cash credit gets CRISIL BB-/Stable

• CRISIL affirms BBB-/Stable on Lila Polymers' bill discounting

• Lakshmi Rail Infra's term loan gets CRISIL D

• Jayachandra Bearings India's cash credit gets CRISIL BB/Stable

• CRISIL affirms A1+ on Easyaccess Financial Services' STD plan

• Deepak & Co's proposed long-term bank loan gets CRISIL B

• Zeal Silk Saree Impex's cash credit gets CRISIL B/Stable

• CRISIL affirms BB/Stable on Vikas Strips' cash credit

• CRISIL affirms AA on Valsad District Co-op Milk Producers loan

• CRISIL affirms BB- on Shri Satguru Metalloys' credit limit

• CRISIL affirms rtg on Shreyas Shipping & Logistics cash credit

• Shlok Media's term loan gets CRISIL BB

• CRISIL affirms BBB+/Stable on Shingora Textiles' term loan

• CRISIL affirms BBB-/Stable on Savla Chemicals' cash credit

• CRISIL affirms A-(SO)/Stable on Prime Infrapark's term loan

• Fitch affirms national long-term rtg on Nomura Capital

• Fitch affirms A1+(ind) national short-term rtg on Citi India

• Fitch affirms BB-(ind) national long-term rtg to Gansons Ltd

• Fitch BB+(ind) national long-term rtg to Century Aluminium

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• Fitch affirms A1+(ind) on Barclays India's 50-bln-rupee CDs

• ICRA affirms BBB+ on Narbheram Vishram's term loan

• ICRA affirms A1+ on Muthoot Fincorp's commercial paper plan

• Lingaya's Society's bank facilities get ICRA BB-

• Iris Health Services' term loan gets ICRA B+

• Intell Educational Society's fund based limits get ICRA BB

• ICRA affirms AA+ on Hero FinCorp's long term NCD

• GTZ (India)'s term loans get ICRA BB(Stable)

• Grama Vidiyal Microfinance's get ICRA MFI grade M2

• Atha Mines' export packing credit gets ICRA A3+

• ICRA affirms BBB(Stable) on Anugraha Valve Castings term loans

• ICRA affirms A1+ on Orient Paper & Industries' short term debt

• ICRA BB- on Ya Ali Moula Educational Society fund based limits

• Vijay Grihanirman's term loans get ICRA BB+

• ICRA affirms AA- on Tide Water Oil Co's fund based facilities

• ICRA BB- on Sri Krishnadevaraya Educational fund based limits

• Shanthi Fortune India's term loan facilities get ICRA D

• Priyanka Constructions' cash credit gets ICRA BB-

• ICRA affirms BB- on Oswal Agricomm's fund based limits

• ICRA cuts rtg on Wingsfield Knitwear's fund based limits to D

• Fitch cuts national long-term rtg on Emerald Mineral Exim to D

• Moody's cuts SBI's stand-alone hybrid debt rtg to Ba3 from Ba2

• CARE ups rtg on Nandan Exim's long-term bank facilities

• CRISIL cuts rtg on Raj Hair International's long-term loan

• CRISIL ups rating on Supreme Alloy's bank overdraft facility

• Fitch cuts outlook on Mahindra Ugine Steel's to stable

• Fitch cuts outlook on Tata Power Trading Co's to stable

• ICRA cuts rating on Belgaum Wind Farms' term loan to BB

• ICRA ups rating on Adani Agri Fresh's term loan to BBB

• ICRA ups rtg on Ramprastha Promoters & Developers' term loan

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GLOBAL ECONOMY GLOBAL ECONOMY: • Islamist cleric Anwar al-Awlaki killed in Yemen. • EU keeps talks with Ukraine on track despite trial. • Medvedev defends Putin return, cites Obama-Clinton rivalry. • Anti-government protests swell in Syria. • Merkel questions new Israeli settlements. • Militants abduct 34 miners, labourers in northwest Pakistan. • US slaps sanctions on 5 Haqqani network fundraisers. • Yemen President Saleh refuses to step down. • US Defense Secretary Panetta warns of Israeli isolation. • Pakistan denies ISI involvement in Rabbani's assassination. • Libyans run gauntlet of bullets to escape Sirte. • Typhoons Nesat and Nalgae strike the Philippines. • Philippine typhoons leave 59 dead. • Convicted Lockerbie bomber says truth will come out. • Officials: Cabinet for new Libyan government finalized. • ICC to probe war crimes in Ivory Coast. • Mosque in Israel vandalized, set on fire. • Somalia suicide car bomb kills at least 65 in Mogadishu. • Thirteen killed in attack on bus near Quetta, Pakistan. • France warns Syria not to intimidate anti-govt activists. • Rwandan President Kagame accused of inciting 1994 genocide. • Dalai Lama cancels South Africa Tutu trip over visa. • Foreign aid set to take a hit in US budget crisis. • Cooling problem shuts nuclear reactor in Japan. • Greek haircut under review, no new Eurozone package until Nov. • China, Russia defend Syria veto. • Germany reopens hundreds of Nazi investigations. • NATO: Top Haqqani leader killed in strike. • Sarah Palin says she will not run for president. • US Fed chief raises doubts on recovery. • Eurozone delays decision on next Greek payout. • US Senate backs debate on currency law amid yuan row. • Franco-Belgian bank Dexia shares in new slump as Greece worries continue. Bank of Korea says 2011 GDP likely below forecast Bank of Korea Gov. Kim Choong-soo said he expects economic growth this year to come below the central bank's forecast for a 4.3% rise. "The third-quarter growth rate won't be that high. This year's economic growth rate will likely be lower than 4.3%, but slightly above 4%," he told lawmakers during a parliamentary audit of the BOK and the Finance Ministry. Gross domestic product is expected to expand in the low-4% range next year, he added. Kim has said he sees greater downside risks to economic growth than upside risks, suggesting the central bank may lower its growth forecast. The BOK currently expects the economy to grow 4.3% this year and 4.6% in 2012. The economy grew 6.2% last year. European bank funding rates stay high after ECB The cost for European banks to borrow from each other or convert euros to dollars remained extremely high after the European Central Bank revived two programs designed to ease funding constraints. All that the ECB can do is help make sure banks have access to liquidity, but there are bigger problems the ECB can’t do

Weekly Newsletter 63 Info-Spectrum Bridging the Information Gap in Corporate Landscape anything about, said David Watt, senior currency strategist at RBC Capital Markets. “They didn’t do anything that suggests they would be solving the liquidity crisis. There are still concerns about solvency issues.” The one-year cross-currency basis swap, the rate banks pay to convert euro payments into dollars, slipped to 69 basis points below the euro interbank offered rate, from 71 basis points earlier, Watt said. That’s similar to the levels seen during the height of the financial crisis in 2008. A basis point is 1/100th of a percentage point. “There isn’t the mad scramble like in 2008 but banks in the euro zone have to pay a pretty good spread to dollars,” he said. “I don’t see the funding backdrop easing up to any great extent.” The ECB said it will buy 40 billion euros ($53 billion) worth of covered bonds and collateralized longer-term loans to commercial banks. Read more about ECB actions. The euro sampled EURUSD -0.04% turned higher after ECB President Jean-Claude Trichet’s press conference as stocks recovered. See more on euro, dollar. As another indicator or willingness to lend to banks, Watt looks at the premiums required to borrow for longer periods of time, like a year, versus shorter periods, like three months. The spreads there “show only some confidence in the short-term for EU banks, but a lingering sense of unease” longer term, Watt said. “It’s not just a liquidity issue going on, its concerns whether the system will be operating in a few months or a year. There’s not much the ECB can do about that.” It’s going to take something like recapitalizing the banks, Watt said. That idea has surfaced again lately, including from European Commission President Jose Manuel Barroso, who said the commission is urging euro-area members to organize a coordinated plan to recapitalize banks. Read more about recapitalizing European banks. However, it matters who that support is coming from, Watt said. The market needs to hear more willingness from the European government officials actually in the position to coordinate such an effort. Dutch parliament approves EFSF expansion Dutch parliament gave the green light for expanding the euro zone's bailout fund, clearing one of the final hurdles to increase the fund's firepower in helping troubled countries in the currency bloc. The Netherlands is one of the last euro-zone countries to ratify the agreement, which calls for increasing the fund's lending capacity to EUR440 billion from around EUR250 billion. The other two countries, Slovakia and Malta, will vote next week. While Malta's parliament is likely to pass the bill, the approval of Slovakia remains uncertain due to sharp divisions within the government coalition. Dutch support was never really in doubt, even as the center-right minority government had to walk a political tightrope to secure a majority by drawing support from the left-wing opposition. The government has only 52 seats in the 150 member parliament and it normally relies on the backing of the Freedom Party, which strongly opposes any euro-zone bailouts. S&P says portion of speculative ratings increases Standard & Poor's said the percentage of companies worldwide with speculative-grade ratings was up at the end of Jun compared with a year earlier, especially in Europe where sovereign-credit woes remain an issue. The share of speculative ratings globally rose to 44.1% from 41.6%, while the median rating remained at triple-B-minus, a notch above junk territory, where it has been since the second quarter of last year. Global ratings upgrades outpaced downgrades, at 3.51% and 2.25%, respectively, in the second quarter. U.S. upgrades led the way, at 4.26%, while Europe had the most downgrades, at 4.07%, amid recent sovereign- debt issues. The proportion of speculative-grade ratings increased to 24.3% in Europe from 19.2% a year earlier. The median rating for European corporate issuers declined a notch to triple-B-plus, three notches above junk. Europe also saw the portion of issues rated in the triple-A, double-A and single-A categories drop to 49.3% from 55.4%. In the U.S. the portion of speculative ratings increased to 51.5% from 50%, while the median rating was double-B-plus, one notch into junk, where it has stayed since the third quarter of 2010. The proportion of speculative-grade companies is only higher in emerging markets, where it is 55.9%, and the median rating also is double-B-plus. Weekly initial jobless claims up 6,000 to 401,000 The number of people who applied for unemployment benefits rose slightly last week, only partially reversing a sharp decline two weeks ago, U.S. data showed. Initial jobless claims in the week ended Oct. 1 increased by 6,000 to a seasonally adjusted 401,000, the Labor Department said. Claims in the week ended Sept. 24 fell 33,000 to a total of 395,000, revised from an initial estimate of a drop of 37,000 for the week. Economists said that large drop was caused by seasonal adjustment issues as well as the tailing off of hurricane-related activity. A Labor Department official said that no special factors impacted the latest claims data. There used to be an old rule of thumb that claims above 400,000 signaled recession, but economist Michelle Girard said that this is no longer valid and that no alternative threshold has emerged. Economists are watching claims closely as any sustained uptrend from current levels would be an early-warning signal of renewed contraction in the economy, said Girard, senior economist at RBS Securities Inc., in a note to

Weekly Newsletter 64 Info-Spectrum Bridging the Information Gap in Corporate Landscape clients. The average of new claims over the last four weeks, viewed as a more accurate gauge of employment trends, fell by 4,000 to 414,000, the lowest level since late August. Bank of Portugal cuts 2012 growth forecast The Bank of Portugal cut its economic forecasts for the country for next year, as government austerity measures depress consumption and a slowdown in the global economy weighs on exports. In its autumn economic bulletin, the central bank said it now expects the country's gross domestic product to shrink 2.2% next year, more than the 1.8% contraction it had expected in its last bulletin. However, it also raised its GDP projection for this year slightly, and now expects the economy to contract 1.9% this year compared with its previous estimate of a 2% contraction. Portugal's economy is expected to remain sluggish as the government strives to comply with the goals set under the EUR78 billion bailout agreement with the European Union and the International Monetary Fund. "The monetary and financial conditions of the Portuguese economy deteriorated considerably during 2011--despite the high level of recourse to Eurosystem funding--and the foreign demand directed to the Portuguese economy decelerated more than anticipated," the central bank said in a release. Since taking office in June, Prime Minister Pedro Passos Coelho has announced measures to reduce its spiraling deficit, including tax increases and cuts to public spending, which will hurt internal demand. The central bank estimates domestic demand will drop 5.2% this year and 4.8% the next. The central bank reiterated that structural reforms carried out so far are "still insufficient" and that the government needs to carry out "urgent" reforms in such areas as the judicial system and the energy sector to get Portugal's economy back to growth. The central bank also said recent indicators point to a deeper global economic slowdown, which may hamper export growth. Exports are due to rise 6.7% in 2011 and 4.8% in 2012, the bank said, compared with previous forecasts of increases of 7.7% in 2011 and 6.6% in 2012. World Bank cuts Philippines '11, '12 GDP outlook The World Bank has lowered its economic growth forecast for the Philippines this year to 4.5% from 5.0% previously amid a weaker economic outlook for advanced economies. The bank also downgraded its growth forecast for 2012 to 5.0% from 5.4% previously. Still, the Philippines' strong macroeconomic fundamentals help cushion the adverse impact of global economic uncertainties, the World Bank said Thursday, noting that the country's net foreign direct investments increased in the first half while foreign reserves have surged to record highs. "To better insulate the Philippine economy from external shocks, it is important to maintain strong macroeconomic fundamentals and improve its competitiveness through diversifying exports, strengthening domestic competition, and improving productivity of the services sector," World Bank economist Soonwha Yi said in a statement. According to Yi, "private consumption is expected to grow steadily, buoyed by lower unemployment, higher government spending and sustained remittances." In the first half, the local economy grew by 4.0% from a year earlier compared with 8.6% in the same period a year earlier, as lackluster external trade and reduced government spending weighed on economic activity. To provide better support for the economy, the government has committed to accelerate spending in the second half. "With ample fiscal space, the government is expected to boost spending in the second half and catch up on delayed implementation of infrastructure projects," Yi added.

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GLOBAL BUSINESS GLOBAL MARKET: • Deutsche Bank says will miss full-year profit target. • Britain PM Cameron says 'moment of danger' for global economy. • Australia's trade surplus jumps 72% in Aug as exports improve. • UBS to make modest profit despite $2.3 bln trader losses. • Apple unveils iPhone 4S with faster chip. • Greeks told protests could derail bailout. • Denmark gives banks $72.6-bln lifeline. • Man Group doubles planned job cuts. • New Zealand suffers double ratings downgrade. • Barclays faces sanctions in Japan. • Treasury fears effects of a euro break-up. • Greek cabinet approves budget cuts. • Kroes calls for greater broadband investment. • Dexia put on downgrade watch. • Kodak denies any bankruptcy plans. • Shell Singapore in Force Majeure. • Fiat pulls out of Italian employers body. • Mizuho Securities to cut 700 employees. • Bank of England increases quantitative easing by 75 bln pound sterling. • Apple co-founder Steve Jobs dies. • ECB boosts liquidity and holds rates at 1.5%. • Sony secures Abu Dhabi funds for EMI bid. • BBC set to cut 2,000 jobs by 2017. • Aircraft maker Airbus strikes $9.5 bln deal with Qantas for 110 jets. Oracle to pay nearly $200M in DOJ settlement Oracle Corp. has agreed to pay $199.5 mn, including interest, to settle a U.S. Justice Department complaint that the company “failed to meet its contractual obligations” in connection with sales to the federal General Services Administration. Virgin Australia's August passengers down 2.7% Virgin Australia Ltd. said it flew 2.7% less passengers in Aug compared with a year earlier, mostly due to a withdrawal from the domestic New Zealand market. Domestic passenger numbers increased 0.5%. Australia's second biggest airline said its revenue load factor, which measures the number of seats filled by paying passengers, decreased 1.6% to 78.1%. AstraZeneca to cut 400 jobs from U.S. operations U.K.-based drug maker AstraZeneca PLC said it planned to eliminate about 400 employees in its U.S. commercial operations, citing a need to reduce costs. Breitburn acquires oil, gas properties from Cabot BreitBurn Energy Partners LP said it has completed the acquisition of some oil and gas properties primarily in Wyoming from Cabot Oil & Gas Corp. for $283 mn, in a deal that expands the company's presence in the Rocky Mountains region. The company disclosed the deal in Jul but didn't name the seller. PeruPetro plans to sign six contracts this year Perupetro President Aurelio Ochoa said during a press conference that the contracts will include clauses related to a new law aimed at improving consultation with indigenous communities. The legislation, known as the prior consultation law, was approved in September and is expected to be implemented in early 2012. Four of the contracts are to be signed by a consortium that includes Spanish oil company Repsol YPF SA and

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Ecopetrol SA (EC, ECOPETROL.BO), Ochoa said. The other two contracts will be signed by Emerald Energy Peru SAC, he added. Moody's lowers outlook on RadioShack Moody's Investors Service lowered its outlook on RadioShack Corp., citing the impact of the consumer electronics retailer's lackluster operating performance on its margins and credit metrics. The ratings firm cut its outlook on RadioShack to negative from stable. It also affirmed its Ba1 rating, one notch below investment grade, on the company's corporate family rating. Airbus got 23 orders, delivered 40 planes in Sept. Airbus said it booked 23 orders for commercial jets in Sep and delivered 40 aircraft, which brings the total net orders from Jan. 1 to Sept. 30 to 1,038 and deliveries to 374. Airbus, wholly owned by European Aeronautic Defence & Space Co., said the new orders include a contract for fifteen A330-300 jets with Singapore Airlines Limited. Blackstone's GSO Capital buys Harbourmaster Blackstone Group said that its credit arm, GSO Capital Partners, has bought Harbourmaster Capital, one of the largest leveraged loan managers in Europe with some EUR8 bn in assets under management. Financial details of the transaction weren't disclosed. Total and Novatek join in gas-liquefaction project French oil major Total SA said it has teamed up with Russia's Novatek to develop the Yamal gas liquefaction project taking a 20% stake. Novatek, Russia's largest independent gas producer, intends to keep at least a 51% stake in the project, the French company said in its statement. The "relevant Russian authorities" approved the acquisition in August, total said. The project involves the production of at least 15 mn metric tons of liquefied natural gas per year, Total said. WellPoint gets $273M Medicare-Medicaid contract WellPoint Inc.'s national-government services business, was awarded a Medicare administrative contract by the Centers for Medicare & Medicaid Services potentially valued at $273 mn over five years. The managed care provider and its rivals have been diversifying their businesses into areas beyond employer-sponsored health insurance and increasing their presence in plans that cover senior citizens in the wake of U.S. health- policy changes. Lanxess to invest 30M euros in 3 Brazil projects German chemical company Lanxess AG will invest a total of 30 mn euros ($39.9 mn) in three projects in Brazil, the company said. "The three investments include the construction of two new plants at Lanxess' Porto Feliz site in the state of Sao Paulo. One is for the production of the high-tech engineering plastics Durethan and Pocan--used primarily by the automotive industry to make cars lighter and more fuel efficient. The new plant, which will be run by the business unit Semi-Crystalline Products, will have an initial capacity of 20,000 metric tons per year. The plant will go on stream in the middle of 2013," the company said. The projects will generate 100 jobs in Brazil, the company said. Spectris buys Sixnet for $72M Spectris PLC, the productivity-enhancing instrumentation and controls company, announced that it has completed the acquisition of Sixnet LLC, a privately-held business located in North America. Apple co-founder Steve Jobs dies Legendary co-founder of Apple dead at age 56 Apple Inc. co-founder Steve Jobs has died at age 56, a legend of Silicon Valley who as a young entrepreneur sought to change the world in the early days of the PC industry — and lived to achieve that goal. Jobs, who stepped down as Apple’s chief executive in Aug, has been battling ill health after being diagnosed with and having surgery for pancreatic cancer in 2004. He took two medical leaves from the company he co-founded in 1976 with Steve Wozniak. The company did not disclose a cause of death. Expanded coverage: Steve Jobs dies at 56. Jobs, who was ousted from Apple in 1985, returned in the late 1990s, with Apple near bankruptcy. He ultimately restored the company’s luster, forging into new industries from music to mobile phones to tablet computers. Jobs was named MarketWatch’s CEO of the Decade late last year. S&P ups Equity One outlook to stable on debt moves Standard & Poor's Ratings Services raised its outlook on Equity One Inc. to stable, removing an immediate risk to the real-estate investment trust's investment-grade rating after the company took steps to improve

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

its risk profile. With the commercial real-estate market on the mend, S&P removed its negative outlook on the REIT and raised its liquidity assessment of the company to adequate from less-than-adequate. S&P still rates Equity One at triple B-minus, on the verge of speculative-grade territory. Its stable outlook reflects a fair business-risk profile "characterized by a moderately sized, good quality, predominantly grocery-anchored retail portfolio," analyst Eugene Nusinzon said.

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