Docstoc

Info-Spectrum-XXIX-Feb06-2009

Document Sample
Info-Spectrum-XXIX-Feb06-2009 Powered By Docstoc
					  FEBRUARY 06, 2009                        Ours is a world of nuclear giants and ethical infants. If we continue to develop our
                                           technology without wisdom or prudence, our servant may prove to be our
                                           executioner.                                                        (Omar Bradley)
        WEEKLY INDICATORS
                                           India stands to gain from falling input prices: S&P
Indicators      Current       Last Week
                                           S&P Ratings Services, in a report titled "BRIC By Name, BRIC By
Sensex           9,301          9,424
                                           Nature?”, states that while China & India stand to gain from falling
Nifty            2,843          2,875
                                           input prices, while Russia & Brazil are net losers from lower energy,
Forex            US$            US$
Reserves      248.611 bn     247.621 bn
                                           metals, and agro prices. Although since 2001 the growth trend in all four
Inflation       5.07%          5.64%
                                           BRICs was more or less the same (up), the pace of growth differed
                                           markedly, S&P observed. S&P sees the challenge for India as being to
         EXCHANGE RATES                    consolidate public finances in order to reduce its debt burden. With
Currency       Current        Last Week    negative external financing needs, China is less sensitive to generalized
US$1          Rs. 48.73       Rs. 49.02    risk aversion than the other BRICs. However, without sufficient stimulus,
€1            Rs. 62.29       Rs. 63.25
                                           Chinese economy could potentially suffer a severe shock. S&P believes
                                           that amongst BRIC nations, China is best positioned to find endogenous
£1            Rs. 71.26       Rs. 69.83
                                           solutions in particular stimulus, to withstand an external crisis. Though
¥ 100         Rs. 53.58       Rs. 54.83
                                           Russia has access to fewer endogenous cures to the external gloom, it
         RESERVE RATIOS                    can still boast some important ratings strength, in relatively low levels of
CRR                          5%
                                           general government debt.
SLR                         24%
                                           India’s growth story intact: Panel at Davos
                                           India is a growth engine even in a slowing economy. Once the financial
            POLICY RATES                   crisis settles, India will continue to grow at a pace of at least 7%. This
Bank Rate                     6%           was the unanimous view of the high-powered panel at the Deutsche
Repo Rate                    5.5%
                                           Bank-CII breakfast session on Slowing Global Economy-Challenges and
                                           Opportunities for India Inc. While the Indian economy is facing many
Reverse Repo Rate             4%
                                           challenges with some sectors facing a serious slowdown, the long term
      MUTUAL FUND UPDATE                   growth story is robust, opined the experts.
Deutsche MF has introduced Auto
                                           Apr-Dec exports up 17.1% YoY
Sweep plan under the DWS Premier           India’s cumulative value of exports during Apr-Dec’08 period stood at
Bond Fund.                                 US$131,990 mn, as against US$112,737 mn in Apr-Dec’07, registering a
Principal MF has changed the name of       growth of 17.1% in Dollar terms and 28.7% in Rupee terms. The value
the Principal Liquid + Scheme to
Principal Ultra Short Term.
                                           of imports in the same period stood at US$225,809 mn, as against
Canara Robeco MF has introduced
                                           US$171,718 mn in Apr-Dec’07 period, registering a growth of 31.5% in
growth plan and dividend plan under        Dollar terms and 44.8% in Rupee terms. The trade deficit for April-
the Equity Tax Saver Fund.                 Dec’08 was estimated at US$93,819 mn, which was higher than the
      GLOBAL NEWS UPDATE                   deficit at US$58,981 mn during Apr-Dec’07.
The BoE has lowered its key interest
                                           Large Railway Capex proposals get approval
rate by 50 bps.                            The Cabinet has approved the proposal to set up Greenfield Electric &
European Central Bank has left its key     Diesel locomotive factories at Madhepura and Marhowra (Bihar), at an
interest rate unchanged in February.       estimated price of Rs. 2,000 cr. Meanwhile, Indian Railways is planning
NIESR said the British economy will        to set up mega multi-modal logistics parks (MMPLs) to provide
shrink 2.7% this year.
                                           integrated logistic facilities with mechanized handling and intelligent
World Bank has warned that the global
                                           inventory management at selected locations along the Dedicated Freight
financial crisis would pose a greater
danger of human crisis for Africa.         Corridors to reduce the overall logistics cost in the supply chain.,
Eurozone unemployment rate rose to         Half a million lay-offs in three months: Govt
the highest point in more than two
                                           The global meltdown and the consequent slowdown in Indian economy
years in Dec’08.
                                           has resulted in 5 lakh job cuts during Oct-Dec’08 in sectors like textile &
ICBC has backed away from granting a
30% discount on mortgage rates for         garment, metals & metal products, automobiles, gems & jewellery,
existing clients.                          transportation, construction & mining sectors, reveals a study
The Reserve Bank of Australia has          undertaken by the Labour Bureau. Meanwhile, massive lay-offs continue
reduced the interest rates by 1% to        in global arena with Panasonic, NEC Corporation, Sony Corporation,
3.25%.                                     BHP Billiton, Motorola, and Hitachi announced job-cuts to the tune of
                                           68,000. At the same time, Caterpillar and Roche are planning to cut
                                           more 2,110 and 780 jobs respectively, while News Corporation has
                    Asim Mohapatra         also announced job-cuts.
                          Content Editor
     asim.mohapatra@sushilfinance.com
                                                                                                  Info-Spectrum
                                                                  Bridging the Information Gap in Corporate Landscape




                                                  INDEX




          1. Economy                                                                      03-04

          2. Infrastructure                                                               05-07

          3. Sectors                                                                      08-20

                    A. IT & ITeS                                                          08-10
                    B. Telecom                                                            11-12
                    C. Pharma & Healthcare                                                      13
                    D. Automobiles                                                              14
                    E. Banking & Financial Services                                             15
                    F. Steel, Metals & Minerals                                                 16
                    G. Agro-Commodities & Commodity Derivatives                           17-18
                    H. Miscellaneous                                                      19-20
          4. Delisting & Buy-Backs                                                              21

          5. M&As                                                                               22

          6. Mutual Fund & Insurance                                                            23

          7. Ensuing Events                                                                     24

          8. Global                                                                       25-32

          8. Financial Scoreboard                                                               33




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



                                                  ECONOMY
India’s growth story intact: Panel at Davos
India is a growth engine even in a slowing economy. Once the financial crisis settles, India will continue to
grow at a pace of at least 7%. This was the unanimous view of the high-powered panel at the Deutsche
Bank-CII breakfast session on Slowing Global Economy-Challenges and Opportunities for India Inc. While
the Indian economy is facing many challenges with some sectors facing a serious slowdown, the long term
growth story is robust. Eric Mindich, Founder and CEO, Eton Park Capital Management, listed the political
situation, upcoming general elections, taxes, corporate governance, cost of capital resulting from project
delays, as issues that affect investment in emerging markets. Sunil Mittal, Chairman of Bharti Enterprises
and Anand Mahindra, MD of M&M emphasized that despite the fact that the financial crisis had tempered
India’s growth run, the enormous buying power of India’s billion-plus population, the robust savings rate
combined with the government’s fiscal prudence, would see India achieving reasonably good growth levels.
Arif Naqvi, Founder and Group CEO, said that no global investor can afford to ignore India’s requirements in
terms of investment capital, and India story is compelling and will stay that way irrespective of whatever
happens in equity markets.
Nuclear Power Corp signs MoU with Areva
Nuclear Power Corporation of India (NPCIL) has signed MoU with Areva that would open the way for a future
partnership in nuclear power generation. Post-MoU, it is now possible to have technical co-op between NPCIL
& AREVA to work on the setting up of 2-6 Areva-built EPR reactors on NPCIL’s Jaitapur (Maharashtra) site,
including life time fuel supply for these units. Meanwhile, India and the UN nuclear agency have signed an
agreement that will give international inspectors access to India's civil nuclear plants. As per the deal, India
will be required to open up 14 of its 22 reactors to inspections by 2,014. However, under the deal, the
IAEA's inspectors will have no access to India's military nuclear facilities.
Inflation drops after rising for two weeks
India's inflation, as measured by the wholesale price index (WPI), slid in the penultimate week of January
due to cheaper prices of certain fuel and manufactured products. The annual, point-to-point inflation, fell to
5.07% in the week ended January 24, as against 5.64% in the previous week, the Commerce & Industry
Ministry said. It was at 4.78% during the corresponding week of the previous year. The WPI for "All
Commodities" declined by 0.2% to 230.1 from 230.5 in the week ended January 17. The index for Primary
Articles group declined marginally to 249.0 from 249.1 in the previous week. The annual rate of inflation for
this group stood at 9.02% for the week ended January 24 compared to 11.01% in the previous week. It was
6.13% as on January 26, 2008.
SEBI to amend norms on calculating open offer price
The Securities & Exchange Board of India (SEBI) as decided that listed companies must declare
dividends on per share basis, while it has also decided to reduce the timeline for bonus issues. IPO
price band can now be announced two-days prior to the issue opens. The upfront payments for
warrants are also hiked to 25% as against 10%. SEBI will also amend norms on calculating open
offer price. Maintaining that SEBI is developing mechanism to deal with special cases like Satyam, the SEBI
Chairman CB Bhave said that SEBI has received request from Satyam Board on open offer norms. SEBI has
recognized special situation of Satyam and is working out transparent mechanism to arrive at valid open
offer price; there is no timeframe for amendments and is aware of urgency for Satyam, Bhave added.
India signs MoU with US
India has signed a Memorandum of Understanding (MoU) with the USA to establish a framework of
cooperation covering scientific, technical and policy aspects of production, conversion, utilization, distribution
and marketing of bio-fuels in a sustainable and environmentally friendly manner in accordance with national
priorities and socio-economic development strategies and goals. Eight specific areas have been identified for
collaborative activities. Bio-fuel feed-stock production based on sustainable biomass with active involvement
of local communities through non-edible oil seed bearing plantations on wastelands will be carried out.
Thrust will be given to production and development of quality planting materials and high sugar containing
varieties of sugarcane, sweet sorghum, sugar and cassava.
RBI eases rules on access of forex loans by exporters
The Reserve Bank of India (RBI) has allowed banks to raise export credit in foreign currency at 350 bps
above the London Interbank Offered Rate from 100 bps earlier. The decision to raise the interest rates at
which banks can raise export credit in the global market will help exporters to access foreign currency loans.
Cost of acquisition of credit in international market had gone up significantly in the recent months in the
backdrop of the global credit crisis. The apex bank has also asked the banks not to levy any charges like
service tax on the credit. The new rules will be applicable where Euro- Libor, which is used as a benchmark.



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



                                                             ECONOMY
Govt may extend sunset clause for EoUs
In a bid to encourage the Export-oriented Units (EoUs) at a time when global demand is expected to slump
further, the Government is planning to extend the 3-year tax benefits for them, which will benefit more than
2,700 companies operating within the EoUs. This benefit will expire at the end of FY10. The Commerce
Minister Kamal Nath has reportedly said that the Ministry took up the issue of extending the sunset clause
by another 3 years. However, the decision on this would probably be taken only after a new the Government
takes over after the General Elections.
Govt issues 6.9% OMCs GoI Special Bonds, 2026
The Government of India has announced the issue of ‘6.9% Oil Marketing Companies’ Government of India
Special Bonds, 2026’ for Rs. 21,942 cr (nominal). The Special Bonds are being issued to three Oil Marketing
Companies (OMCs) as compensation towards estimated under-recoveries on account of sale of sensitive
petroleum products during the current financial year.
The Special Bonds are being issued at par to the following OMCs on February 4, 2009.
                               Name of OMC                                                             Amount
                     Indian Oil Corporation Ltd. (IOCL)                                           Rs. 11,943.93 crore
                Hindustan Petroleum Corporation Ltd. (HPCL)                                       Rs. 4,681.36 crore
                 Bharat Petroleum Corporation Ltd. (BPCL)                                         Rs. 5,316.71 crore
The investment in the Special Bonds by the banks and Insurance Companies will not be reckoned as an
eligible investment in Government securities for their statutory requirements. The Special Bonds will be
transferable and eligible for market ready forward transactions (Repo).
Govt approves 12 FDI proposals worth Rs. 751.51 cr
The Government has approved 12 proposals of Foreign Direct Investment (FDI) amounting to Rs. 751.51
crore approximately based on the recommendations of Foreign Investment Promotion Board (FIPB). Wire &
Wireless (India) Ltd. has received approval involving FDI Rs. 450 crore for Issuance of partly paid-up equity
shares. Secunderabad-based Amritjal Venture Pvt. Ltd. has received approval for Rs. 300 crore FDI for
conversion of operating company into operating cum holding company to make downstream investments.
The Government has deferred five FDI proposals including Kolkata-based Mallcom (India) Ltd., Italy-based
Comecer SPA, Hyderabad-based Tanla Solutions Ltd., Ahmedabad-based Akar Info-Media and Bangalore-
based DSP Technology. The Government has rejected three FDI proposals including Mauritius-based Three C
Investment, Kolkata-based Southern CNG Automobiles and Gurgaon-based G4S Corporate Services.
Dec exports down 1.1% YoY
India’s exports during Dec’08 were valued at US$12,690 mn, which was 1.1% lower than the level of
US$12,825 mn during Dec’07. In rupee terms, exports touched Rs. 617.15 bn, which was 22% higher than
the value of exports during Dec’07. India’s Imports during Dec’08 were valued at US$20,256 mn
representing an increase of 8.8% over the level of imports valued at US$18,610 mn in Dec’07. In Rupee
terms, imports increased by 34.2%. Oil imports in Dec’08 were valued at US$4712 mn which was 30.9%
lower than oil imports valued at US$6824 mn in Dec’07. Non-oil imports during Dec’08 were estimated at
US$15544 mn, which was 31.9% higher than non-oil imports of US$11786 mn in Dec’07.
Core sector growth slips to 2.3% in Dec
India’s core infrastructure sectors expanded by 2.3% in Dec’08 lower than 3.2% rise in Dec’07, due to poor
performance by steel and electricity sectors, which constitute nearly 60% weight in the index. In November,
the index of six core industries grew at 1.8%. In the Apr-Dec’08, core sector production expanded 3.5%
against 6% in Apr-Dec’07 period. Electricity generation during the month under consideration was the lowest
in the Apr-Dec’08 period, as demand for power waned due to lesser industrial activity. Cement production
remained robust in Dec’08 and expanded the highest in the Apr-Dec’08 period.
                                              Index of 6 Core-Infrastructure Industries
         Sector               Weight in IIP          Dec’07            Dec’08                  Apr-Dec’08                Apr-Dec’08
     Crude Petroleum             4.17%               -1.4%              -0.3%                     0.3%                     -0.5%
    Refinery Products              2%                 1.9%               3%                       7.5%                      3.7%
           Coal                  3.22%                8.4%              9.4%                      3.5%                     10.1%
        Electricity              0.17%                3.9%              0.7%                      6.6%                      2.6%
         Cement                  1.99%                4.4%              11.6%                     7.7%                       7%
 Finished Steel (carbon)         5.13%                1.8%              -0.8%                     6.4%                      2.7%
         Overall                 26.7%                3.2%              2.3%                      5.9%                      3.5%

Amid global financial crisis, Finland sees huge opportunities in India; and the Finnish Government is trying to cut cost burdening, improve
banking infrastructure and extend capital benefits for commerce, said Dr. Paavo Väyrynen, Minister of Foreign Trade and Development of
Finland.
An MOU is to be signed between India and Norway for mutual cooperation on Local Governance.



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



                                                   INFRASTRUCTURE
Govt to set up two Greenfield locomotive factories in Bihar
The Cabinet has approved Ministry of Railways’ proposal for setting up Greenfield Electric and Diesel
locomotive factories at Madhepura and Marhowra in districts of Madhepura and Saran respectively in Bihar.
To be set up at an estimated price of about Rs. 2,000 cr, the two factories are expected to generate
employment and act as catalyst to industrialize the Madhepura and Marhowra region. The factories will be
set up as a JV between Ministry of Railways with equity of 26% and a leading international manufacturer,
who will also bring in state-of-the-art technology. The selection of JV partner will be through an international
competitive bidding. The short-listed bidders include leading locomotive manufacturers. Alsiom (France),
Bombardier (Germany) & Siemens (Germany) for electric locomotive factory and GE India and US-based
EMD for Diesel locomotive factory. The Ministry of Railways will procure 800 electric locomotives of 12,000
HP each and 1,000 diesel locomotives of 4,500/6,000 HP each from these factories over a period of 10
years. These locomotives will also be maintained by the JVC over the next 25-26 years. These projects aim
at introducing international best practices in management, manufacture and maintenance of the rolling
stock. The locomotive availability and Energy Efficiency standards will be comparable to the best
internationally.
Govt to set up of 2 more AIIMS-like institutions
The Union Cabinet has approved the proposal to set up two AIIMS-like institutions in Uttar Pradesh and West
Bengal with an investment of Rs. 823 crore, in Phase-II of Pradhan Mantri Swasthya Suraksha Yojana
(PMSSY). Each institution will have a 960 bedded hospital intended to provide healthcare facilities in 39
specialties/super- specialty disciplines. Medical College will have 100 Under Graduate intakes besides
facilities for imparting Post Graduate/Doctoral Courses in various disciplines and Nursing College conforming
to Nursing Council norms. The Cabinet has also approved to upgrade 5 existing Government Medical
Colleges namely Govt Medical College (Amritsar), Govt Medical College (Himachal Pradesh), Govt Medical
College (Madurai), Government Medical College (Nagpur) and Jawaharlal Nehru Medical College (Aligarh) in
Phase-II of PMSSY, with an estimated cost of Rs. 150 cr, out of which the Central Government will
contribute Rs. 125 cr and a minimum amount of Rs. 25 cr will be borne by the respective state
governments. Moreover, the proposal for upgrading a medical college in Haryana has also been approved in
principle subject to the state government agreeing to carry out its obligations.
Railways to develop mega multi-modal logistics parks
The Indian Railways has planned a few mega Multi-modal Logistics Parks (MMPLs) - hubs providing state-of-
the-art integrated logistic facilities with mechanized handling and intelligent inventory management at
selected locations along the Dedicated Freight Corridors (DFCs) to reduce the overall logistics cost in the
supply chain for the customers, duly leveraging the modern, high-capacity rail connectivity of the DFCs
capable of meeting time-sensitive freight transportation requirement. To develop these MMPLs through
Public Private Partnership (PPP), the Ministry of Railways has invited Expression of Interests (EOI) in this
regard, seeking essential information regarding proposed locations, land area required and type/segment of
logistics business to be development etc. from large logistics service providers, Real Estate Developers,
Third Party Logistics players Warehousing investors, Container operators, Financial institutions, Industrial
houses etc. who are willing to participate in the development of these MMLPs. The Ministry of Railways has
launched its flagship project, the dedicated Corridors (DFCs) entailing construction of approximately 3300
kilometers of mostly double, electrified, high axle load track, with liberal space envelope, fit for high capacity
wagons and heavy haul freight trains at cruising speeds of 75 km/hr and top speeds of 110 km/hr, between
Jawaharlal Nehru Port Trust, Mumbai and Tughlakabad-Rewari and Kolkata to Ludhiana. A number of
industrial nodes are also being planned as a part of a related initiative by the Government of India along
side the western route of the DFC.
Maharashtra signs pact for projects worth Rs. 64.2 bn
The Maharashtra Government has signed investment commitments worth Rs. 64.2 bn with five companies in
the pipes and chemicals sectors. Some of the investment proposals are for industrially-backward regions of
the state like Chandrapur and Wardha district in Vidarbha. The said five projects are estimated to generate
more than 2,400 employment opportunities. The companies, which would sign agreements, are Ashapura
Mine Tech for a project in Ratnagiri district, Uttam Galva Metallics in Wardha district, Topworth Pipes &
Tubes in Raigad district, Abhishek Corporation in Kolhapur district and Gopani Iron & Power in Chandrapur
district. All the projects will be given the status of mega projects by the state government under a
customized policy for investment above Rs. 2.5 bn.
•   BHEL and Kerala Electrical and Allied Engineering Company have signed a Memorandum of Understanding (MoU) for setting up a JV
    to cater to core sectors like transportation, industries and renewable energy by manufacturing a specific range of products.
•   HPCL has commissioned its Rs. 1,757-crore Mundra Delhi common carrier pipeline, within the scheduled time of 36 months.



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



                                                     INFRASTRUCTURE
Govt to set up CPC for I-T return in Bangalore
The Union Cabinet has approved the proposal of the Income-tax Department to establish a Centralized
Processing Centre (CPC) at Bangalore for processing of all electronically filed returns in the country and the
paper returns filed in Karnataka. The CPC will enable the Department to process the returns and issue
refunds expeditiously. It will encourage more tax payers to resort to electronic filing of returns. The creation
of the new center entails an estimated expenditure of Rs. 255.46 crores over a period of five years. The
Departmental Officers and Staff will be responsible for logistics, coordination, supervising operations and
sovereign responsibilities. They will also be responsible for resolution of mismatches in the information
contained in the tax return and the Departmental data base and redressal of public grievances. The data
relating to processing of returns would reside at the Primary Data-Centre of the Income-tax Department
which has recently been commissioned at New Delhi. The Income-tax Department will continue to exercise
full control over taxpayers’ data so as to maintain privacy and security of tax payers’ data. The
establishment of the CPC will enable the department to release high-skilled resources, presently deployed
for processing of returns, for redeployment to pursue large scale cross verification of actionable information.
Govt approves 2 road sub-projects in Gujarat & Rajasthan
The Cabinet Committee on Economic Affairs has approved the proposal for two sub-projects i.e. 4-laning of
Gujarat/Maharashtra border to Surat-Hazira Port and 4/6-laning of Jaipur-Tonk-Deoli section in Rajasthan
having total length for both the sub-projects of 281.683 km and costing Rs. 2,865.54 cr under NHDP Phase
III on Design, Build, Finance, Operate and Transfer (Toll) basis.
    Section                                                 Length      Project Cost     Concession Period
    Gujarat/Maharashtra to Surat-Hazira Port                132.9 kms   Rs. 1,661.9 cr   19 yrs
    4/6-laning of Jaipur-Tonk-Deoli section                 148.7 kms   Rs. 1,203.6 cr   25 years
The project will be developed by the NHAI through the Public Private Partnership and the Concessionaire will
be selected by NHAI following two stage bidding process. The first stage of the bidding process i.e. pre-
qualification of the bidders has already been completed by NHAI. The second stage of bidding is in process.
Fitch assigns stable to negative outlook for Indian construction cos
Fitch Ratings expects the credit profile of Indian construction sector companies focused on contracting work
to be largely stable in CY09, although the agency anticipates that there could be negative surprises on
account of project delays and a consequent build up of receivables. Fitch notes that the present order book
positions of most companies provide comfort on the revenue growth front, although delays in funding and
reassessment of project viability could potentially result in lower growth rates during the year. While there
would be a likely slowdown in new orders, especially from the private sector, government orders are likely to
be robust based on the planned outlays as well as economic stimulus packages announced in December
2008 and January 2009, though deteriorating state finances could potentially increase receivable risks in this
segment as well. Consequently, Fitch expects an increase in the overall working capital cycle of most
construction companies, while the impact will vary based on end consumer segments. Companies which
have embarked on Build Own Transfer (BOT) and Build Own Operate Transfer (BOOT) saw an increase in the
construction cost of the projects during H1FY08, especially due to the high rise in the prices of cement, steel
and other construction materials. While these projects will provide a stable long term cash flow once
completed, most construction companies at the present stage remain exposed to the construction risks
associated with these projects. The risks are accentuated for players with a direct exposure to the real
estate sector, with liquidity issues having the potential to impact the contracting business.
Govt approves two NH projects in Rajasthan & Karnataka
The Cabinet committee on Economic Affairshas approved the proposal for the development to 2-lane with
paved shoulders with the provisions for augmentation to 4-lane standard on Design, Build, Finance, Operate
& Transfer (DBFOT) basis for two National Highway Projects in Rajasthan and Karnataka.
    Project Name                                 Length              Total Cost           Concession period
    2-laning Beawar-Gomti section (NH-8)         116 kms             Rs.202.7 cr          11 years for 2-lane & 30 years for 4-laning
    2-laning of Hospet-Bellary section (NH-63)   72.8 kms            Rs. 162.56 cr        8 years for 2-lane & 25 years for 4-aning
The project would be developed by the DORTH through Private Concessionaire who will be selected following
a two stage bidding process. Both the stages of bidding have been completed and bid due date was on
30.1.2009.
•      Reliance Industries is reportedly planning to build a 1,250MW power plant fired by gas trapped in coal at a mine in Madhya
       Pradesh.
•      GMR Energy has incorporated a Company named as 'Londa Hydro Power Pvt. Ltd.' and holds 99% shareholding in LHPPL.
•      Nagarjuna Construction has issued 1,000 Secured, Taxable, Redeemable Non-Convertible Debentures (NCDs) of Rs. 10 lakh each
       for cash at par aggregating to Rs. 100 crore to LIC of India.



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



                                                     INFRASTRUCTURE
HPCL commissions common carrier pipeline
Hindustan Petroleum Corporation (HPCL) has commissioned its Rs. 1,757-crore Mundra Delhi common
carrier pipeline on February 3rd 2009. The project has been commissioned within the scheduled time of 36
months. This pipeline will enable transportation of oil products from HPCL's refineries as well as of others
such as Indian Oil Corporation, Essar, Reliance Industries and MRPL. It can also carry imported products if
there is a domestic shortage. The pipeline connects the supply centers in Gujarat in the west to the
consumer areas in various states, including, Gujarat, Rajasthan, Haryana, Delhi, UP, Punjab and further
North. The main pumping station of the pipeline is at Mundra with 2 intermediate pumping stations in
Gujarat at Santhalpur and Palanpur and 3 in Rajasthan at Awa, Ajmer and Jaipur. The pipeline has been
commissioned under the principle of common carrier as laid down in the Petroleum Product Pipeline policy,
which ensures optimum capacity utilization.
Gail (India) has signed a Memorandum of Understanding (MoU) with Indian Farmers Fertilizer Cooperative Ltd. (IFFCO) for cooperation
in natural gas sector related opportunities in India.
The equity shareholders of McNally Bharat Engineering Company have approved the Scheme of Arrangement proposed to be made
between McNally Bharat Engineering Company Ltd. and McNally Sayaji Engineering Ltd.
Cairn India has reportedly received the approval of the Rajasthan Government go ahead for completion of the remaining part of 600-km
crude oil pipeline from its Barmer fields in the state to Salaya in coastal Gujarat.
The Board of Directors of Kalindee Rail Nirman Engineers shall meet on February 10, 2009, to consider the issue of raising further
capital through GDR/FCCB/convertible warrants route.
Vinay Cements has announced that Vinay Concrete & Aggregates Ltd. has become a subsidiary of the Company with effect from
January 27, 2009.
Trinethra Infra Ventures has signed an agreement to buy land for construction of a 3-Star Hotel at Anakapalli in Visakhapatnam (AP).
The land acquired by the Company for construction of 3-Star Hotel in Kakinada (AP) is in the process of conversion and planning stage.
Trinethra Infra Ventures has signed the contract agreement for construction of 496 flats consisting of 32 blocks at Bhubaneshwar
(Orissa) and the project cost is around Rs. 50 crore. It has also signed a sub-contract agreement with Manjeera Constructions for
construction of residential flats in Hyderabad and the project cost is about Rs. 25 crore.
Om Metals Infraprojects has secured one more contract of Sripadsagar project from AP Government for Rs. 95 crore during quarter
ended on December 31, 2008.
Unity Infraprojects has announced that the Company decided to amend the objects clause of the Memorandum of Association of the
Company to include the business of generation of electricity by conventional and non conventional sources of energy including generation
of electricity by way of installation of wind mills.
The Board of Directors of Lloyd Electric & Engineering has approved the proposal of forming WOS 'Lloyd Electric FZE' as a Free Trade
Zone Establishment in Ras Al Khaimah, UAE.
The Board of Directors of Ingersoll-Rand (India) has decided to curtail the production activity at the Ahmedabad factory to tide over
the reduction in customer orders.
The Board of Directors of Sobha Developers has decided to infuse resources in the form of equity, debt or combination of both into the
Company to meet its business requirements.
Arshiya International has announced that its Wholly Owned Subsidiary (WOS) i.e. Arshiya Rail Infrastructure (Arshiya Rail) has
commenced Phase-I of its rail operations.
Supreme Infrastructure India has received three prestigious projects total cost of three projects are Rs 225.65 crore.
Boeing is reportedly planning to buy aerospace structures and aviation electronic products worth at least US$600mn from Indian
companies such as L&T. Bharat Electronics, Wipro, HCL Technologies, Hindustan Aeronautics, Dynamatic Technologies and Macmet
Technologies will also get orders as part of the deal. The deal is part of the offset clause in relation to Boeing getting an order worth
US$2.1 bn in January to supply eight P-8I reconnaissance planes to the Indian navy.
Suzlon Energy has reportedly received Indian regulatory approval to raise up to Rs18bn through depositary share offer overseas.
Foreign Investment Promotion Board has approved the company's proposal in place of a rights issue that Suzlon had scrapped in October
last year following falling stock markets.
IG Petrochemicals has announced that the Central Government has imposed a safeguard duty at the rate of 25% ad valorem on
Phthalic Anhydride (PAN).
Mysore Petro Chemicals has announced that the Central Government has imposed a safeguard duty at the rate of 25% ad valorem on
Phthalic Anhydride (PAN).
The Board of Directors of Shiv Vani Oil & Gas Exploration Services has resolved to empower the Company to buy-back any kind of its
securities, and empowering the Company to issue equity shares in the Company, with differential rights as to dividend, voting, or
otherwise.
GMR Infrastructure said that DIAL has set up a unique facility for passengers with special needs at Delhi Airport. Contact Zone, a first
of its kind in Indian Airports would provide facilities for passengers like wheelchair assistance for physically challenged passengers,
unaccompanied minors etc.
Era Infra Engineering has secured a contract worth Rs. 222.98 cr from NTPC valued for mail plant & offsite civil works package for
Mauda Super Thermal Power Project.



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



                                                 IT & ITeS
Extend STPI benefits to ITeS until 2012: ASSOCHAM
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has proposed extension of tax
incentives under Software Technology Park of India (STPI) for IT industry, ITeS and data processing units
that are outside Special Economic Zones until 2012. The Chamber has argued that on account of current
meltdown, such units outside SEZs have become virtually non-competitive due to this anomaly which needs
to be corrected as the ASSOCHAM feels that in next 3 years, the ITeS and BPO sector will be able to come
out of its current plight. The Chamber has, therefore, proposed to Ministry of Finance to issue a notification,
extending benefits of STPI to suggested units. It may be mentioned here that the STPI benefits as per which
the IT industry avails 25% of tax incentives are coming to an end in March 2010 and the ASSOCHAM
expects its extension for another 3 years. The withdrawal of tax incentives will not affect the billion dollar
turnover of top 100 firms; it will on the other hand destabilize the fragile SME sector, leading to their very
survival issue and certainly would be stemming the further sustainable growth of IT industry in coming
years. The ASSOCHAM has also advocated need for creation of Rs. 100 cr worth of Venture Capital Fund on
PPP model to provide easy financing facilities for knowledge industries and at the same time take on
emerging threats for grabbing larger domestic ITeS market size from competing countries.
Satyam gets new CEO
Satyam Computer Services has announced that Board has appointed AS Murty as Chief Executive Officer,
with immediate effect. Murty is a Satyam veteran of 15 years, who has been in its forefront since Jan’94. He
brings to play a deep understanding of the organization, proven expertise in leading a business unit,
overseeing global delivery, nurturing customer relationship and spearheading the entire gamut of the human
resources function, added Deepak Parekh, Member of the board. The Board has also appointed Homi
Khusrokhan and Partho Datta as Special Advisors, to assist in Management and Finance areas, respectively.
These decisions are aimed at quickly stabilizing Satyam. The organization has visibly increased its focus on
business continuity for its customers and confidence building amongst its associates (employees) and
vendors.
Patni achieves global certification by SAP
               Patni Computer Systems, a leading global IT and BPO services provider, has announced that
               its global application management services have been certified by SAP AG, to deliver high-
               quality services based on SAP technology. Patni is SAP’s first Indian offshore partner to have
               received global certification of its ability to deliver application management services. Patni’s
application management services provide support across each of the core components of an application. This
includes the entire gamut of services necessary to deliver a superior IT experience – ranging from end-user
and application support, to database, operating system and infrastructure support. This typically helps
shrink application spends and reduce incident volumes on a year-on-year basis. As a SAP-certified global
provider of application management services, Patni’s integrated support flow model offers a transformational
approach that can deliver significant and sustainable improvements to a customer’s underlying cost
structure.
Geometric to showcase two releases at SolidWorks World
                Geometric has announced that its subsidiary i.e. Geometric Technologies, Inc., will showcase
                the upcoming releases of CAMWorks and DFMPro at SolidWorks World 2009 in Orlando, Florida
                from February 8 to 11, 2009. These products are seamlessly integrated within the SolidWorks
                platform, and enable intelligence and automation in design and manufacturing. CAMWorks
2009 has over 100 new features and enhancements for machining faster and more accurately. This release
also has significant advances in 3-axis functionality, new features and cutting strategies for 2 to 5 axis
milling, turning and wire EDM. CAMWorks, the first CAM solution to offer knowledge-based feature
recognition and associative machining capabilities, continuously enhances its features in line with customer
needs, and to better integrate with the SolidWorks platform. Version 2.0 of DFMPro for SolidWorks provides
users with additional checks to validate the design for sheet metal parts resulting in stronger parts, and
longer die and punch life of the sheet metal model.
Hexaware arm ties-up with Oracle
Hexaware Technologies, software services provider announced that its subsidiary, Caliber Point Business
Solutions, a leading Human Resource Outsourcing (HRO) has inked a pact with Oracle to offer oracles
human capital management (HCM) offerings with Caliber Point’s proven HR consulting and services to
customers under the “BPO Powered by Oracle” program. This relationship creates capabilities flexible enough
to meet the needs of global customers in North America and Western Europe markets, as well as the
growing and un-addressed need among midsize companies and underserved regions such as Latin America,
Central and Eastern Europe and Asia Pacific.


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



                                                         IT & ITeS
Wipro releases suit for MS Office Communications Server
                 Wipro Technologies, the global IT Services business of Wipro has developed Communication &
                 Collaboration Solutions, which works with Microsoft Office Communications Server 2007. With
                 the implementation of this version Wipro will provide customized domain specific solutions to
                 customers that will enhance productivity, improve intra office communication significantly.
                 The new release builds on the software-based unified communications solution with important
                 new functionalities like dial-in audio conferencing bridge persistent group chat; Improved
Software Development Kits; Audio, Video and IM Conferencing; Microsoft Office Live Meeting hosted on
premise; Session and provides advanced call-management, routing, and monitoring tools. Wipro has
deployed Office Communications Server 2007 to more than 80 customers. In case of a healthcare provider
this solution will enable the physician to have access to internal portals for patient history, prescription test
reports from a Windows handheld device or a computer.
IIT Kharagpur & Microsoft launch MSCIP
The Indian Institute of Technology, Kharagpur, in association with Microsoft India, launched the ‘Microsoft
Centre of Excellence in Intellectual Property Research and Technology Policy’ (MSCIP). Situated within the
institute’s Rajiv Gandhi School of Intellectual Property Law, the centre will enhance the school’s attempt at
equipping professionals from technological backgrounds in Intellectual Property law. The Program will
provide scholarships to students in recognition of their academic excellence and encourage the
establishment of a knowledge bank in the area of IP. It will also offer ‘Outstanding Faculty Fellowships’
which are aimed at enhancing the teaching mission by exposing both faculty and students to the latest
research, which could be integrated into the practice of intellectual property. The program will also help
create a repository of publications and IP Policy toolkits for Government Agencies and regulators.
Kapital Bank of Azerbaijan leverages Oracle Flexcube
Oracle Financial Services Software, a majority-owned subsidiary of Oracle Corporation, has announced that
Kapital Bank, a leading bank in Azerbaijan, is using Oracle’ Flexcube Universal Banking to help expand the
size and depth of its banking operations across its network of 88 branches. Oracle Flexcube’s process-centric
approach has helped enable the bank to optimize business performance by using industry best practices with
an ability to define, implement and monitor the effectiveness of its processes. The solution has also helped
provide the bank with an application platform that enables it to seamlessly conduct its operations in both
domestic and international markets and enhance its risk management practices through comprehensive
audit trails and limit tracking across customer segments.
HCL Technologies opens an office in Canada
HCL Technologies has opened new office in Toronto to expand its North American operations. In Canada,
HCL delivers a value centric model of IT services to 11 Global 1000 clients across various Industries. The
Company has particularly found early traction in the Financial Services vertical where it enjoys patronage of
many blue chip customers. IT solutions and services across the enterprise with these five business lines are
namely Product Engineering-R&D, Custom Applications, Enterprise Application Services, Infrastructure
Management Services and BPO. A highly respected world leader in the IT industry, HCL has bean providing
innovative enterprise technology solution for over 30 years. With Canada’s IT services market expected to
grow to $34 bn by 2009 (according to Forrester Inc. research), HCL is looking at this market as geography
of focus in its global expansion strategy.
Wataniya Airways signs outsourcing deal with Kale
Kale Consultants, a leading solutions provider to Airline, Logistics & Travel (ALT) industry, announced that it
has entered into a multi-year outsourcing contract with Wataniya Airways, Kuwaits new full service luxury
airline. As part of the deal, Kale will deliver complete outsourced revenue accounting and passenger audit
services from its delivery centre. Kale will put into service its industry leading passenger revenue accounting
solution REVERA, as the backbone of this platform-based BFO deal. Kale will provide services to the airline
from its Managed Processing Services centres in India. Airlines worldwide are looking to transform their
transaction processes to also provide strategic capabilities in a cost effective manner. Outsourcing our
accounting and audit services to a specialist like Kale has been a key strategic step in our preparations to
commence operations in January 2009.
Rediff MoneyWiz has announced the availability of free, real-time stock market information on its site http://money.rediff.com
D-Link India has opened its new Renovated Service Center at SP Road Bangalore in order to make its warranty support infrastructure
even more accessible.
Infosys BPO has received a 'positive' rating in Gartner's MarketScope for comprehensive finance and accounting business process
outsourcing, 2008.
Subex has announced alliance with Telecom Italia to enable next generation IP and DSL services including Virtual Private Networks,
Virtual Local Area Networks and Multi-Protocol Label Switching.


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



                                                               IT & ITeS
Mastek creates Virtual bench to combat slowdown
Mastek had experienced a demand slowdown last quarter, as mentioned in the quarterly results
announcement in January. The slowdown, in combination with reduced attrition level, has led to an excess
bench build up of around 425 professionals, a majority of them trainees. With the intention of maintaining
profitability and, at the same time, reducing hardship to impacted staff, Mastek is creating a Virtual bench.
Mastekeers can remain on the Virtual bench for a maximum period of 12 months, during which they can
leverage the company's teaming and development facilities to upgrade their skills and competencies and get
back into a full time rote the moment a suitable opportunity arises. During the period a Mastekeer is on the
Virtual bench, he or she will receive a monthly allowance. These employees are also being offered the option
to leave the company immediately with a compensation package it they choose to do so. For people on the
Virtual bench, various internal departments are working on plans to provide training and development
programs to make this ‘forced break' as valuable as possible.
Latitude… Google launches new feature in Google Maps
                   Google has launched a new feature in Google Maps that allows one to share his location
                   with your friends and family. While it won't pinpoint one’s exact location, it gives one a
                   good idea of where his friends are at a given time. Using your Google account, one can opt
into the feature, and then invite friends and family to join Google Latitude. Once they accept, one will see
their profile picture appear on a map through your mobile device. Google Latitude is available in 27
countries, and across a variety of devices, including Android-powered devices, such as the T-Mobile G1;
Most color BlackBerry devices; Most Windows Mobile 5.0+ devices and Most Symbian S60 devices (Nokia
smartphones).
Hewlett Packard launches HP iPrint Photo
Hewlett Packard has launched a new service - HP iPrint Photo, offering customers the ability to print photos
anytime, anywhere from their iPhones and iPod Touch. The iPrint Photo service is available for free download
from Apple's "App Store" which is easily accessible from your iPhone, iPod touch or iTunes on your
computer. HP iPrint Photo is the first of its kind photo printing application which allows for quick and easy
wireless printing of 4X6-inch photos. The application is compatible with most HP inkjet printers connected to
a local Wi-Fi network. It comes equipped with multi-touch user-interface for the easiest and fastest wireless
iPhone or iPod touch print experience. Customers can quickly download HP iPrint Photo directly to the iPhone
or iPod to manually sync it with handheld devices. The HP iPrint Photo application provides customers the
flexibility and freedom to wirelessly print the millions of photos that have been captured on iPhone or iPod
touch devices.
Microsoft India has showcased a host of custom made solutions for the Indian market. The collection of tools and solutions introduced
by Microsoft India today are an attempt to cater to and enable the 95% Indians who still prefer their local language more than English in
their work and personal life.
Infosys Technologies announced that Forrester has named Finacle as a leader in global banking platforms. Finacle from Infosys ranked
number 1 in Overall Strategy and earned the top score for its Current Offering.
The Board of Directors of Zylog Systems has approved the investment in the equity shares of its 100% subsidiary Zylog Systems (India)
Ltd. – Rs. 24.9 crore towards the WIFI Projects. Its Board has also approved the proposal for availing enhancement of Working Capital
facility by Rs. 30 crore and additional term loan facility of Rs. 20 crore for acquisition of Fairfax Consulting Inc from Union Bank of India.
Moser Baer Photovoltaic, a subsidiary of Moser Baer India has won a contract to set up one of India's largest roof-top solar photovoltaic
installations in Surat.
The Board of Directors of IKF Technologies has approved the proposal of GDR issue of US$11 mn.
Satyam Computer Services has reportedly won 15 outsourcing contracts in January from the US, European, Japanese, African, Middle
East and Indian markets.
Seagate has introduced its Constellation family of new enterprise storage solutions for Tier-2 nearline storage applications. The two new
drive models, the 2.5-inch Constellation and the 3.5-inch Constellation ES hard drives, include a combination of features that enable high
capacities, increased power efficiency, enterprise-class reliability, and data security.
Kushagra Software is initiating the process of Merger/Amalgamation of Concurrent Infrastructure Pvt. with the Company with the High
Court, Mumbai for obtaining the High Court, Mumbai approval for the same.
The Board of Directors of Allied Computers International (Asia) has approved the proposal for raising of funds/resources for the
working capital and expansion plan of the Company through the following means, subject to the approval of the members of the
Company. Its Board has decided to issue of 66000060 Warrants convertible into even number of equity shares of Rs. 1 each at a price of
Rs. 1 each on preferential basis to the promoters group and others. Its Board has also decided to issue FCCBs/GDRs/ADRs/QIPs up to an
amount not exceeding Rs. 20 crore in one or more tranches, Allied Computers added.
LGS Global has set up a wholly owned Subsidiary (WOS) by name "LGS GLOBAL FZE, in RAKFTZ, UAE".
California Software has become a partner of the Intel Consumer Electronics Forum. As a member of this group, Calsoft will have access
to the latest Intel technology.
Infosys Technologies announced that Finacle from Infosys was named a leader in the January 2009 report. Infosys Finacle scored
highest on criteria of current offering as well as corporate and product strategy.




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



                                                   TELECOM
DoT allows choosing STD, ISD operator; keeps net telephony on hold
In another consumer friendly measure which will usher in more competition in the sector, the Department of
Telecom (DoT) permitted consumers to choose STD and ISD service provider as per their liking. The norm
holds true for both mobile as well as fixed-line services. Subscribers can now use the services of any
operator by purchase of calling card from the respective operator. The calling card will have a 16 digit
unique code. Upon punching of the number on the terminal i.e. fixed-line phone or mobile handset, the
subscriber will be routed to the network of the operator. The DoT however failed to come to a final
conclusion on the issue of allowing net telephony in India. It has now referred the matter back to the
regulator TRAI.
Industry veterans join hands to form new venture
Ravi Sharma, who resigned last year from the position of CEO of Datacom and three other IITians namely
Oxigen’s Pramod Saxena, BD Khurana former CEO of Reliance Infocomm and Sanjiv Gupta, former CEO of
Coca Cola India have come together to form Phi Enterprises and Phi Televentures. While Phi Enterprises will
focus on such as alternative power, defence electronics, railways, hospitality and infrastructure projects, Phi
Televentures will focus on new licences of Wimax, 3G, IPTV, MVNO and Mobile TV. The venture aims to help
foreign firms in identifying the right partner in India. Similarly Indian firms interesting in attracting VC
investments will also be served through the venture. The venture says that past instances in the Indian
telecom sector imply that while the Indian partners have gained tremendously from foreign partnership, it is
the foreign partners who are left behind. The venture also aims to assist foreign firms in the licencing and
regulatory aspects of the country. An immediate target for the venture appears to be the foreign firms
interested in bidding for the 3G spectrum auctioning. Phi Televentures has also appointed two regional
directors. Pertti Johansson, former Vice-President of Qualcomm, will be a regional director for Americas, MEA
and Africa and Ms Sylvie Richir, former Vice-President, Alcatel Lucent, will be the regional director for
Europe, based in Paris. Phi Enterprises has roped in four executives on the advisory board. This includes R.
Poornalingam, Chairman of C-DOT Alcatel Research Centre; PN Devrajan, Ex-Group President of Reliance
Industries; Vishwanath, who is on the LIC Board and Karnataka Bank; and Prem Behl, Chairman of
Exhibition India.
MTNL launches 3G Services in Delhi
Mahanagar Telephone Nigam (MTNL) has launched its 3G services, aptly named Jadoo, in Delhi. It is for the
first time that the service is being launched commercially any where in the country. The launch has been
possible on the basis of 3G spectrum allocated to the state owned telecom company by the Department of
Telecommunication last year. This service will also enable customers to see their caller live on screen. Also,
customers can make overseas calls using VOIP technology at as low as Rs. 3 per min from mobile to more
than 100 countries including Europe, USA and Canada. Latest technological trends in wireless technology
with services at lightning speed would now be available at finger tips with MTNL’s 3G Jadoo. For Jadoo one
needs to pay just Rs. 500+ applicable taxes, and monthly rental of Rs. 599 Call tariffs are as follows:
                                Own network (per min)   Other network (per min)    STD (per min)             ISD (per min)
 Voice calls                    0.60                    1.00                       As per Budget plan
 Video calls                    1.80                    3.00                       3.75                      30
3G Data service will also be available at a monthly rental of Rs 149, and Rs 5 per MB usage charge. 3G
services are initially available in NDMC areas, which will be soon expanded to entire Delhi and NCR. The
other major government owned company BSNL has also made preparations to launch its 3G services soon.
mChek partners with Gemalto
                   mChek, a leading provider of mobile security, banking and payment applications, has
                   announced its partnership with Gemalto, the world leader in digital security to bolster the
                   range and choice of secured mobile banking solutions available on Gemalto SIM cards to
                   markets in South Asia. Since Sept’08, Gemalto and mChek have successfully deployed a
                   broad range of mobile banking services with telecom operators in India and Sri Lanka on
millions of SIM cards. This includes a mobile top-up service where its customers can recharge anywhere,
anytime for themselves or others. The partnership aims to bring new levels of security and convenience
beyond India and Sri Lanka into markets such as Bangladesh, Indonesia and the Philippines. The Gemalto
Partner Network consists of leading companies that develop products that are complementary to Gemalto
products and solutions. Gemalto partners such as mChek have the benefit of exchanging information and
getting access to technology and business support as the company looks at expanding its secured mobile
banking solutions. This move reaffirms Gemalto’s commitment to the region and to bringing convenient,
easy to use, secure-mobile solutions to subscribers.



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



                                                             TELECOM
Global telecom service providers form ACTO in India
Global telecom service providers providing enterprise telecom services in India announced the formation of
the Association of Competitive Telecom Operators (ACTO). The forum has been registered under the
Societies Registration Act by Registrar of Societies, Government of NCT of Delhi. ACTO is an association
representing non-integrated long distance telecom carriers that will represent and advocate to the
Government and Regulatory bodies on issues related to market opening, emerging technologies and pro-
competitive policies and reforms in the Enterprise market segment. ACTO is an industry body focused on
policies that will enhance Enterprise telecommunications in India, has been formed by several leading non-
integrated long distance carriers that provide service to the Enterprise market segment. The enterprise
market segment includes the IT-enabled Services, BPO, and MNC segments that are the cornerstone of
India’s economy. The formation of ACTO, and its focus on the Enterprise telecommunications landscape,
marks a new chapter in the ever evolving Telecom sector in India, and signifies the importance and
promising growth in the Enterprise segment.
Rel Com to consolidate Optic Fiber Div to Reliance Infratel
The Board of Directors of Reliance Communication has approved a scheme for consolidation of Optic Fiber
Division of the Company to Reliance Infratel Ltd, a subsidiary of the Company. The transfer of Optic Fiber
Assets from Rel Com to Reliance Infratel will be through a Court approved Scheme of Arrangement at fair
value. Reliance Infratel owns, operators, and develops telecom infrastructure, primarily consisting of
wireless communication sites and towers. Reliance Infratel currently owns all of the towers used by Rel
Com's CDMA and GSM wireless networks and is developing additional towers to meet the needs of RCOM
and other customers. The above consolidation of the Optic Fiber Divisions into Reliance Infratel reflects the
global trend of segregating the telecommunication infrastructure business, with a view of adopting the best
management practices, and to identify the actual economic value add arising out of infrastructure business
and telecommunication services businesses. Consolidation will lead to synergies and cost efficiencies in term
of lower operating costs, No additional equity shares are to be issued and no change is proposed in the
capital structure of the Company in terms of said Scheme.
HotSpot launches Mobi SafeGuard
HotSpot has announced the launch of ‘Mobi SafeGuard’, a unique, all-inclusive warranty for mobile handsets.
Applicable when purchased with new handsets, Mobi SafeGuard covers repair of all kinds of handset faults
including liquid and physical damage for a 2 year period. Mobi SafeGuard also provides a 2-year extended
warranty that adds to the average life of the phone, and moreover if the handset is not repairable, the
Company will provide a refund equivalent to 50% of the existing market value of the particular mobile
handset model.
                 Cost of the handset                                                 Cost of Mobi SafeGuard
                   Up to Rs. 5,000                                                           Rs. 300
               Rs. 5,001 – Rs. 10,000                                                        Rs. 600
               Rs. 10,001 – Rs. 15,000                                                      Rs. 1,200
                Rs. 15,001 and above                                                        Rs. 1,500
Mobi SafeGuard also helps the retailer garner more margins while selling new mobile handsets, and is
available in various denominations as per the cost of the mobile handset model. The product is available at
most multi-brand outlets and can initially be purchased with GSM handsets of Nokia, Samsung, Motorola and
Sony Ericsson.
•   Idea Cellular has clarified that Idea had acquired BK Modi Group's stake in Spice Communications Ltd. in Jul'08. Hence, Spice
    Communications has no relation with BK Modi-led Spice Group and is not in any way involved with any initiative relating to Satyam.
•   Digital Solution has won a contract to distribute Aspen Optics in Pakistan, as per which it will distribute fiber connectivity products
    from Aspen Optics to support the construction of fiber optic infrastructure in the country.
•   Kavveri Telecom Products has announced that one of its promoters has pledged 0.5 mn shares (5%) of the total outstanding
    shares of the firm with State Bank of India.
•   Shyam Telecom announced that its promoters have pledged 2.2 mn shares representing 19.52% stake in the company with the
    State Bank of India.
•   Mobile Tele Communications has announced that the Promoters/Promoters Group have reported to the Company that none of the
    shares held by the Promoters/Promoter Group have been pledged with any person.
•   Nortel Networks plans to pull out its mobile WiMAX business, as it undertakes restructuring of its operations under bankruptcy
    protection.
•   Tata Communications has expanded delivery capabilities for managed hosting and storage services in Mumbai and now has three
    sites (Mumbai, Chennai and Hyderabad) capable of delivering high quality managed hosting and storage services in India.
•   Bharti Teletech has announced a strategic alliance with Logitech to service business customers, as per which it will sell and
    distribute an exclusive portfolio of Logitech products to enterprise customers in India.
•   Beetel has announced the launch of the DB 7401 feature rich phone, with a unique in-built temperature measurement and record
    feature.



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



                                               PHARMA & HEALTHCARE
Dr. Reddy's launches five generic product in US
                Dr. Reddy’s Laboratories has launched Levetiracetam Tabs in four strengths (250 mg, 500
                mg, 750 mg, & 1000 mg), the generic version of UCB Keppra tablets and Omeprazole 40 mg
                Capsules, the generic version of AstraZeneca's Prilosec having annual sales of $1.1 bn and
                $168 mn respectively in US market as per IMS data. The pharma major has also
Lamotragine Chewable Tablets in two strengths (5 mg and 25 mg), the generic version of GSK’s Lamictal
CD tablets and Divalproex 125 mg Capsules & Delayed Release Pellets, the generic version of Abbott's
Depakote Delayed Release Capsules having annual sales of $87 mn and $126 mn respectively in US market
as per IMS data. The Hyderabad-based pharmaceutical company has launched Lamotrigine Tabs in four
strengths (25 mg, 100 mg, 150 mg and 200 mg), the generic version of GSK’s Lamictal tablets having
annual sales of $2.3 bn as per IMS data.
Bio E inaugurates mfg campus in Hyderabad
Hyderabad-based Biological E. (Bio E) has inaugurated the new biopharmaceutical and
vaccines manufacturing campus at Shameerpet in Hyderabad. With a Phase-I investment of
over Rs. 3 bn, the facility will manufacture vaccines and biopharmaceuticals that are crucial
in the global effort to prevent childhood disease. These products are intended for supply to
markets worldwide including USA and Europe through strategic partnerships. The Company has long-
established expertise in the development and manufacture of vaccines and Bio E expects to invest an
additional Rs. 2.5 bn over the next two to three years in expanding capacities and creating infrastructure for
the future pipeline products of the company. Bio E's operations are driven by a strong management team
whose expertise includes extensive experience in biopharmaceutical development, manufacturing and
quality assurance at leading US and European biotechnology companies. BE manufactures and markets a
range of vaccines and biologics including vaccines such as Tetanus, DTP, Hepatitis B, Haemophilus influenza
Type B, and a DTP-HBV combination vaccine. In addition, Bio E had a number of vaccines in late stage
development including a novel Japanese Encephalitis Vaccine as well as a Pentavalent vaccine.
Glenmark Generics gets USFDA nod for Lithium Carbonate
Glenmark Generics Inc. USA (GGI), a subsidiary of Glenmark Generics Ltd. (GGL), has received ANDA
approval from the United States Food and Drug Administration (U.S. FDA) for Lithium Carbonate 150 mg,
300 mg and 600 mg capsules and will immediately commence marketing and distribution of these products
in the US market. Lithium is indicated in the treatment of manic episodes of Bipolar Disorder. It is also
indicated as a maintenance treatment for individuals with a diagnosis of Bipolar Disorder. Maintenance
therapy reduces the frequency of manic episodes and diminishes the intensity of those episodes which may
occur. Typical symptoms of mania include pressure of speech, motor hyperactivity, reduced need for sleep,
flight of ideas, grandiosity, elation, poor judgment, aggressiveness, and possibly hostility. When given to a
patient experiencing a manic episode, lithium may produce a normalization of symptomatology within 1 to 3
weeks. According to IMS Health, Lithium Carbonate capsules had annual sales of US$10mn for the period
ending September 2008. Glenmark's current portfolio consists of 38 generic products authorized for
distribution in the US market. The Company currently has over 40 ANDAs filed with the US FDA pending
approval. In addition to these internal filings, GGI continues to identify and explore external development
partnerships to supplement and accelerate the growth of the existing pipeline and portfolio.
SMS Pharma reports mob-attack at Kazipalli unit
SMS Pharmaceuticals has announced that a mob has attacked one of the Company's manufacturing facilities
located at Kazipalli industrial area (Unit I) alleging pollution problems, which is under investigation. Pollution
Control Board meanwhile has issued closure orders to pacify the mob and are further investigating their
allegations. The Company would like to assure that, they have all the pollution control systems and hence
would tide over this issue. The Company is having four manufacturing facilities in addition to the above unit
and all are operating without any impediments.
•   The Board of Directors of Invicta Meditek shall meet on February 08, 2009, to consider the proposal to sell/dispose with option to
    lease back the property located at Sidco Industrial Estate, Ambattur, in Chennai.
•   Tonira Pharma has secured GMP Compliance approval for its pharmaceutical manufacturing facilities at Ankleshwar and Nandesari
    from Pharmaceuticals & Medical Devices Agency (PMDA), Japan, consequent to the inspection conducted by the Pharmaceuticals &
    Medical Devices Agency (PMDA) auditors on November 17-19th, 2008. The above approvals will have positive impact on the exports
    of the Company to the Japanese and other regulated market.
•   The Board of Directors of Tanu Healthcare has approved the merger of Indore-based Blue Cross Generic Pvt. Ltd, with the
    Company, subject to necessary approval. Blue Cross Generics Pvt. Ltd, Indore is a Company which has presence in the Medicinal
    Plants with the land bank for growing medicinal plantations.
•   Sun Pharmaceutical is reportedly plans to buy a mid-size generic company in US to hike its share in their pharmaceutical market.
    The Company is looking at acquisition in the US, which could give us a return of around 20-22% on its investments, reveals a news
    report citing its Chairman and MD Dilip Shanghvi.



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



                                                        AUTOMOBILES
Moody downgrades Toyota’s rating
Moody has downgraded Toyota Motor Corporation’s credit rating, saying that the length and severity of the
global downturn will mean a slow road to profit recovery for the Japanese auto giant. Moody's cut the rating
to "Aa1" from "Aaa", and said that it had a negative outlook on the company. A number of factors in
Toyota's operating environment - the global economic slowdown, yen appreciation, and volatility in the
prices of raw materials - continue to evolve. Thus, the company is unlikely to meaningfully improve its
operating performance in the financial year ending March 2010, Moody's said in a statement. According to
Moody, Toyota is likely to maintain its dominant position, having overtaken General Motors vehicle output
last year, but would see volume and revenue decline.
Ashok Leyland to cut capex
Ashok Leyland announced that it would cut capex and would rethink investment needed for Nissan venture.
The company also added that it would spend Rs. 20 bn, as against planned Rs. 33 bn and would also reduce
its intended capacity for new factory. Ashok Leyland has delayed the proposed Rs. 7 bn to Rs. 8 bn
investment at its facility in Pantnagar and its Chennai plant owing to slowdown in the domestic market.
Ashok Leyland proposed new plant at Pantnagar in Uttrakhand had an initial investment outlay of Rs. 12 bn.
The plant, which has a capacity to produce 40,000 vehicles a year has been delayed and is now expected to
go on stream next year. It is learnt that the Company has already invested around Rs. 10 bn to Rs. 15 bn at
its brown field operations in Chennai, Hosur, Bhandara and Alwar in Rajasthan.
Hyundai Motor signs MoU with Syndicate Bank
Hyundai Motor India, the second largest car manufacturer and the largest passenger car exporter has signed
an MoU with Syndicate Bank. The pact between the auto major and Syndicate Bank will accelerate car loan
disbursals for Hyundai vehicles and also offer excellent auto loan schemes for Hyundai's potential customers
across India. With over 2,200 branches across the far-ends of the country, the tie-up with Syndicate Bank
will help both the partners to reach out to wider market and make loans convenient and easy to finance.
Hyundai Motor India already enjoys a great presence in both the metro and the mini-metro markets with a
wide array of product offerings. Through this strategic tie-up with Syndicate Bank, the company seeks to
further strengthen its position across all major markets and focus on a major retail expansion drive.
•   Maruti Suzuki India has reported 5.39% rise in its sales in Jan’09 on the back of its highest ever monthly sales. The Company has
    sold a total of 71,779 vehicles last month compared with 68,107 units in Jan’08.
•   Honda Siel Cars India has sold 5,773 units in Jan’09, as against 7,767 units in Jan’08, registering a decline of 25.7 on YoY basis.
•   Bajaj Auto has announced that its total two wheeler sales in Jan’09 were down 34% at 110,363 units, led by weak motorcycle sales
    that stood at 109,666 units versus 166,492 units in Jan’08. While its three-wheeler sales fell 11% to 21,985 units, total two and
    three wheeler sales were down 31% at 132,348 units over Jan’08.
•   Hyundai Motor India has signed a Memorandum of Understanding (MoU) with Syndicate Bank to accelerate car loan disbursals for
    Hyundai vehicles and also offer excellent auto loan schemes for Hyundai's potential customers across India.
•   M&M has announced that its total automotive sales (ex-tractors) in Jan’09 fell 21% in comparison to Jan’08.Sales (including
    exports) of cars, SUVs, trucks and three-wheeled vehicles reached 17,611 units in Jan’09, as against 22,309 units sold in Jan’08,
    while the exports fell 80% to 291 units.
•   Tata Motors has announced that its total vehicle sales were down 33% in Jan’09. Commercial and passenger vehicle sales
    (including exports) dropped to 36,931 units in Jan’09 from 54,796 units sold in Jan’08.
•   TVS Motor Company has sold 93,729 vehicles in Jan’09, marginally up from 93,385 units in Jan’08. However, its motorcycles sales
    rose by 13% to 43,990 units last month, as against 38,961 units sold in Jan’08.
•   Mahindra & Mahindra has announced that the recently launched Mahindra XYLO has sold 1,788 nos. in two weeks, with the first
    vehicle delivered on January16, 2009. Moreover, bookings for the XYLO have crossed the 4,000 mark since launch.
•   Yamaha Motor India has registered an impressive growth of 192% in sales in Jan’09, as compared to the corresponding period last
    year. It sold 18,320 units in Jan’09 as against 6,284 units in Jan’08.
•   Steel Strips Wheels has announced that despite the recession in global auto industry, the Company has achieved sales of 446,157
    wheel rims in Jan’09 as against 440,797 wheel rims in Jan’08.
•   Steel Strips Wheels has posted Rs. 286 mn net profit in Q3FY09, as against Rs. 364 mn net profit in Q3FY08, registering a decline
    of % on YoY basis. Its net profit stood at Rs. 746 mn for the 9 months ending on December 31, 2008, as against Rs. 1,133 mn in
    the year ago period.
•   Ashok Leyland has sold 2,444 vehicles in Jan’09, as compared to the 9,112 vehicles in Jan’08, registering a decline of 73.2% on
    YoY basis. Its total domestic sales stood at 2,026 units in Jan’09, as against 8,477 units in Jan’08.
•   Mahindra Forgings has announced that its Chakan will work for four days a week instead of six days a week till further information
    due to slowdown in demand for Company's products.
•   Investment & Precision Castings has announced that CRISIL has assigned its ratings to BBB+/STABLE/P2 to the various bank
    facilities of the Company. The ratings reflect Company's established presence in the investment casting business, healthy operational
    efficiency, and strong financial risk profile.
•   The Board of Directors of Sundaram Brake Linings has approved the proposal to offer and issue to the equity shareholders of the
    Company equity shares of Rs. 10 each of the Company on Rights basis for a sum up to Rs. 150 mn in the ratio to be determined by
    the Board or Committee thereof at such price, being not less than Rs. 120 per equity share of Rs. 10.
•   M&M’s Farm Equipment Sector has announced that its total tractor sales (including exports) in Jan’09 were 6,931 units compared
    to 8,053 units in Jan’08.
•   Eicher Trucks and Buses improved its overall share in the domestic market from 6.8% in Dec’08 to 7.3% in Jan’09.



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



                                        BANKING & FINANCIAL SERVICES
Fitch sees asset quality challenges for Indian banks
Fitch Ratings has commented that the present economic downturn throws up asset quality challenges for
Indian banks that could impact NPL ratios, according to a report titled "Indian Banks - Annual Review and
Outlook". The report states that asset quality pressures have been building up in certain sectors, starting
with unsecured consumer loans in 2007, and spreading to SMEs, while corporates' cash flows came under
pressure in 2008. Given the sector diversity of the loan portfolio and, barring a collapse in domestic demand
and industrial activity, the systemic reported gross NPL ratio (which stood at 2.3% at Dec’08) may not
significantly exceed 5% in the next 12 months to early 2010. Any short-term damage over the next 12
months should be manageable from a systemic perspective, though the ratings of banks with concentrations
to the vulnerable sectors - including commercial real estate, textiles and other export-led sectors or those
with already weak profitability and capital cushion - may face downgrades. Fitch also notes that the 8.5%
aggregate Tier 1 ratio for the Indian banking system comprises almost entirely of common equity that
provides some comfort during the downturn. The government has also announced it will ensure minimum
capital adequacy ratio of 12% for all government banks. External sources for common equity have however
dried up and if loan growth remains higher than the internal capital generation for banks, Tier 1 capital
would erode.
Citibank launches remittance service for US-based NRIs
           Citibank NA has launched of Citi Online Remit, a new online money transfer service to India. Citi
           Online Remit provides Non Resident Indians (NRIs) the facility to transfer funds to India from any
           US Checking/Savings account or using a US Credit/Debit Card as a direct transfer into the
beneficiary's Bank account or as a draft couriered to the beneficiary's mailing address in India. Powered by
the QuikRemit platform from Citi's Global Transaction Services, this new platform leverages Citi's deep
expertise in transaction services, cutting-edge technology, digital banking, payments and understanding of
the needs of the Indian Diaspora to offer NRIs a secure, user-friendly and highly transparent means of
money transfer. Citi Online Remit has a wide range of security features built into the platform such as Online
Identity Verification, Multi-Factor Authentication, Global IP tracking and Account authentication. The
platform also offers an online tracking system that allows NRIs to follow their transaction at every stage of
the transfer process and facilitates the scheduling of dates for future transfers by setting up recurring
transfer instructions. Regular email alerts are provided to help users keep up-to-date with information on
the foreign exchange rates applicable on their transfers.
Great Lakes, Union Bank to set up UBCFE
Great Lakes Institute of Management, Chennai and Union Bank of India have come together to create a
center of excellence in banking which will be called as Union Bank Center of Excellence in Banking (UBCFE).
UBCFE will focus on research and knowledge management in the domain of banking in India and play a
catalytic role in teaching, training, consulting, evangelizing and other suitable ways to foster and enrich the
Banking Sector in India. The center will also act as a data bank in banking for academic researchers. It is
envisaged that the center will conduct certification courses in select areas in Banking. The intellectual capital
of Great Lakes and its collaboration with Yale and Stuart School of business and the operating experience of
Union Bank of India will be leveraged towards the above said objectives and bridge the current research gap
in the Indian Banking sector.
AmEx appoints Rajesh Saxena as CEO of AEBC, India
             American Express announced the appointment of Rajesh Saxena as Chief Executive Officer for
             American Express Banking Corporation (AEBC), India. Rajesh will head the Country Executive
             Team and directly manage the International Consumer Card and Small Business Services,
             leading the company’s marketing, acquisition, product development and insurance areas. In this
             role, Rajesh will also spearhead several strategic and business development initiatives for the
             company while steering smooth collaboration across its diverse businesses in India. His position
will be the key to advancing and strengthening the company’s strategic focus in India. Rajesh will be based
in Gurgaon and will report to John Steward, Executive Vice President, ICSS (World Markets).
•   Religare Enterprises is deploying three energy-efficient & green Scalable Modular Data Centers in a $3.1 min IT infrastructure
    services agreement with IBM.
•   SBI has slashed interest rate on new home loans at a fixed rate of 8%, applicable to all new home loan borrowers irrespective of the
    loan amount.
•   LIC has raised its stake in state-run Canara Bank to 5.08% through open market transactions estimated over Rs. 7 crore.
•   The Board of Directors of Indiabulls Securities has approved the proposal to buy-back equity shares of the Company. The
    proposed buy-back will be from the open market through stock exchanges at a price not exceeding Rs. 33 per equity share with total
    aggregate consideration for the buy-back limited to Rs. 83.18 crore.
•   Central Bank of India has announced that the Bank intends to raise capital in the form of Tier II bonds to the tune of Rs 270 crore.



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



                                       STEEL, METALS & MINERALSSAIL
Steel capacity target by 2012: Paswan
The Government plans to advance its target for steel-making capacity by eight years, Steel Minister Ram
Vilas Paswan said on Tuesday. The Centre aims to produce 124mn metric tons of steel annually by 2012
compared with its earlier target of 2020, the minister said. Meanwhile, S.K. Roongta, Chairman of Steel
Authority of India Ltd. (SAIL) expects an increase in domestic demand. Production may slightly miss the
13mn tons target set for this year, he added.
SAIL to invest Rs. 40 bn in Orissa mining projects
Steel Authority of India (SAIL) has lined up an investment of Rs. 40 bn for implementation of its various
mining projects in Orissa. SAIL’s investment in these mining projects is a part of its Rs. 540 bn mega
expansion plan according to which the company has targeted a steel output of 26 mn tonne per annum by
2010-11. The expansion plan aims to enhance the capacity of SAIL’s steel plants as well as mines. The raw
materials division of SAIL has projected to produce 30 mn tonne per annum of iron ore to meet the
requirement of the steel plants in the eastern region.
Posco to cut steel output further
Posco has announced that it will cut steel production by 200,000 metric tonne in February, which will bring
output lost since December to 2.3% of last year's total. With this, the South Korean steel major will take
total cuts to 770,000 tons, the local newspaper reported. The world's fourth-largest steel-maker by output
slashed steel output by 350,000 tonne in January. The Company cut its steel production for the first time in
December. The planned February reduction is equivalent to 0.6% of the company’s crude steel output of
33.1mn tons in 2008, or 7.3% of average monthly output last year.
   •   The prices of steel scrap have dipped by 3% at Mumbai on February 5, 2009. Ingot price remained firmed across the country.
       But the prices of sponge iron and some grades of iron ore improved by 1.5% and 3% respectively.
   •   The Government, which had put into effect import restraints for seamless pipe products in order to prevent China & Ukraine
       from selling off their steel stockpiles, has revoked this policy on January 16th due to the sluggish market.
   •   Indian Railway has reduced the freight rate concession extended to iron ore exporters by withdrawing Rs. 100 from the
       concession of Rs. 134 a tonne with effect from February 1, 2009 and will be valid up to March 31, 2009. The Railways had
       earlier extended freight concessions of up to 50% on export of iron ore till March 31, 2009.
   •   Tata Metaliks has received prospecting license for iron ore over an area of 154.8 hectare in Dongarpal village in Sindhudurg
       district of Maharashtra for a period of 2 years.
   •   NLMK has decommissioned coke batteries No 3 and No 4 with a combined capacity of 0.68 MTPA at its main production site in
       Lipetsk. As a result of the shutdown, its coke production capacity is reduced to 7.3 MTPA including 2.7 MTPA at its main
       production site and 4.6 MTPA at its West Siberian subsidiary Altai-koks. In October 2008, NLMK decommissioned coke batteries
       No. 7 and 8 with a total capacity of 1.04 million tonnes per year.
   •   The Aluminium & Copper unit of Kobe Steel has posted operating loss in Apr-Dec’08 period. Its annual operating loss will be
       ¥28 bn for FY09, as compared with estimated ¥2 bn loss as of Oct’08 and ¥22 bn operating profit in previous fiscal.
   •   Hindustan Zinc has reduced the zinc prices by 1.2% to Rs. 69,700 a metric tonne, while keeping the lead prices unchanged at
       Rs. 70,200 per tonne.
   •   Bhushan Energy, an unlisted arm of Bhushan Steel has reportedly bought 9.5% stake in Orissa Sponge & Iron for Rs. 223 mn
       through open market transactions. The Company has increased its stake from 5.35% to 9.5%.
   •   The Board of Directors of Gujarat NRE Coke shall meet on February 07, 2009, to decide on the issue of Secured Redeemable
       Non-convertible Debentures with warrants under QIP for an aggregate amount not exceeding Rs. 10 bn.
   •   MMTC has invited bids for empanelling pig iron importers. Bids should be submitted by February 12th, by 1700 hours. MMTC
       said that the eligibility criteria would be that the companies should have an average gross turnover of USD 100 mn and gross
       profit of USD 5 mn in the last 3 years.
   •   Gitanjali Gems has executed a tripartite share purchase agreement with MMTC, and the newly formed JVC i.e. MMTC Gitanjali
       Pvt. Ltd. as a party to it. The MMTC-Gitanjali JV will be engaged in establishing, developing, managing, and maintaining retail
       jewellery showrooms and carrying out such other activities as may be necessary or incidental thereto.
   •   Bhuwalka Steel Industries has announced that the Company has been informed by Suresh Kumar Bhuwalka main promoter
       of the Company that 1556170 no of equity shares of the Company have been pledged till now as securities against bank limits
       sanctioned to Bhuwalka Steel Industries Ltd.
   •   The Board of Directors of Silver Smith India has deferred its decision for exploring of the business of mining of silver in
       various geographical locations.
   •   Gopal Iron & Steels Company Gujarat has announced that CRISIL has assigned an "SE 2B" Rating to the Company and this
       rating indicates "High Performance Capability and Moderate Financial Strength" and this rating is valid up to January 06, 2010.
   •   Maharashtra Seamless has announced that its promoters have informed the Company that they have not pledged any equity
       shares of the Company held by them to anybody.
   •   Posco is reportedly planning to set up a processing plant in Maharashtra. The state Government is in the process of acquiring
       land in Raigad district. Posco plans to invest in phases, and is likely to use Dighi port to import steel for processing.
   •   Uttam Galva Metallics has signed an MoU with the Maharashtra Government to set up a project with an investment of Rs.
       1,096 crore to manufacture half a million tonne of Pig Iron.
   •   Ashapura Minechem has signed an MoU with the Maharashtra Government to set up a state-of-the-art Alumina Complex at
       Ratnagiri, with an investment of Rs. 42 bn.
   •   HSBC Global Investment has reduced its stake in JSW Steel to 2.99% through an open market sale for an estimated Rs. 5
       crore.



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



                     AGRO-COMMODITIES & COMMODITY DERIVATIVES
Farm commodity prices show mixed trend
Farm commodity prices monitored by the Department of Consumer Affairs have generally remained steady
or have shown mixed trend in different centres across the country in the week ending February 2, 2009. The
Wheat prices remained steady, at all the reporting centers except for an increase at Dehradun, Bhopal,
Raipur and Thiruvananthapuram. The Sugar prices remained steady, at all the reporting centers except for
an increase at Delhi, Shimla, Jammu, Lucknow and Bhopal. The Gram Dal prices remained steady, at all the
reporting centers except for an increase at Jammu, Chennai and Bangalore and decrease at Delhi, Shimla,
Mumbai and Bhopal. The Tur Dal prices remained steady at all the reporting centers except for an increase
at Lucknow, Dehradun, Bhopal, Mumbai, Bhubaneshwar, Chennai and Raipur and decrease at Delhi. The
Urad Dal price remained steady, at all the reporting centers except for an increase at Raipur and Chennai
and decrease at Mumbai and Bhopal. The Moong Dal prices remained steady at all the reporting centers
except for an increase at Delhi, Bhopal, Raipur, Kolkata, Bhubaneshwar and Chennai. The Masoor Dal
prices remained steady at all the reporting centers except for an increase at Delhi, Bhopal and Raipur. The
Groundnut Oil prices remained steady at all the reporting centers except for increase at Kolkata and
Bangalore and decrease at Delhi, Shimla, Bhopal, Raipur and Chennai. The Mustard Oil prices remained
steady at all the reporting centers except for increase at Shimla, Mumbai and Shillong and decrease at Delhi,
Jammu, Dehradun, Raipur and Agartala. The Vanaspathi prices remained steady at all the reporting centers
except for increase at Lucknow and Bhubaneshwar and decrease at Shimla, Dehradun, Bhopal, Raipur,
Shillong and Chennai. At Delhi, the price of Vanaspathi remained steady over one week; price of Urad Dal
remained steady during the month; prices of rice, milk and salt remained steady during the past three
months; price of wheat remained steady for the past one year. The prices of Atta, Moong Dal, Masoor Dal
and sugar increased during the week. The prices of Gram Dal, Tur Dal, Groundnut Oil, Mustard Oil, Tea,
Potato and Onion decreased during the week.
As on January 22, 2009, PEC, MMTC, NAFED and STC have contracted import of 10 lakh tonne of pulses this
year, out of which about 7.9 lakh tonne has arrived at the ports.
Rice procurement crosses 200 lakh tonne mark
The following is update on actions taken by the Government to maintain adequate available of foodgrains,
edible oils and sugar and to check price rise in these commodities.
Increase in Rice stock: The rice procurement during KMS 2007-08, as on 30.9.2008 was 284.91 lakh tonne
as against the overall procurement of 251.07 lakh tonne in KMS 2006-2007, representing an increase of
13.48% over the previous year. KMS 2008-09 has since commenced from 1.10.2008. Till 4.2.2009, a
quantity of 207.52 lakh tonne of rice has been procured in KMS 2008-09 as against 177.10 lakh tonne of
rice procured during corresponding period in KMS 2007-08 – an increase of 17%.
Comfortable stock of foodgrains: It is estimated that the stock of wheat as on 1-4-2009 will be 98.97 lakh
tonne compared to the buffer norms of 40.00 lakh tonne. In addition there is a strategic reserve of 30 lakh
tonne of wheat. Similarly it is estimated that the rice stock will be 65.94 lakh tonne as on 1-10-2009,
against the buffer norm of 52.00 lakh tonne.
Allocation of wheat for bulk consumer under OMSS: In order to check inflationary trend in price of wheat the
Government of India had decided to allot 10.0 lakh tonne of wheat to States for open sale to bulk
consumers through tender during Oct 2008 to Feb 2009.
Steps taken to control rise in sugar prices: The Govt has released higher quota of non-levy sugar in the
open market and made available 50 lakh tonnes of non-levy (free sale) sugar for the quarter ending
(January –March 2009) as against 44 lakh tonnes made available during the corresponding quarter
(January-March 2008) of the last sugar season. In order to increase availability of sugar in the country, the
Government has allowed sugar mills to import raw sugar under Advance Authorization Scheme upto
30.9.2009 and permit sugar factories to sell processed raw sugar in the domestic market and fulfill export
obligation on ‘ton-to-ton’ basis within 24 months.
Decrease in wholesale prices of edible oils: The wholesale prices of Soyabean oil, mustard oil, groundnut oil,
sunflower oil, cotton seed oil, coconut oil, Vanaspathi and RBS Palmolein have declined by 4.36%, 16.67%,
10.83%, 3%, 3.33%, 2.15%, 3.2% and 0.31% respectively during the last one month, whereas the
wholesale prices of bran oil in the domestic market have increased by 1.12% during the same period.




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



                          AGRO-COMMODITIES & COMMODITY DERIVATIVES
Govt clears Rs. 150 cr for MSP Operations for Cotton
In order to undertake Minimum Support Price (MSP) operations to protect the farmers interests in the event
of domestic market prices of raw cotton ruling below the MSP, the Union Cabinet has approved the allocation
of supplementary Non-Plan Budgetary Grant to the tune of Rs. 500 crore in the current fiscal (2008-09) to
meet the commitment towards reimbursement of losses. CCI has also been directed to dispose of the cotton
procured at MSP rate by offering discounts for bulk purchases as has been the practice in Maharashtra State
Cooperative Cotton Growers Marketing Federation (MSCCGMFL). The implementation of the decision will
enable CCI for smooth conduct of MSP operations during the current cotton season 2008-09.
MCX-SX launches website in Malayalam and Tamil
MCX-SX has announced launch of website in Malayalam and Tamil, which went LIVE on 31st January, 08.
With the launch of these websites, MCX- SX is the only stock exchange that offers the benefits of currency
futures in 4 regional languages. The other 2 websites i.e. Hindi and Gujarati were launched in December 08.
The websites aim at developing the currency futures market by spreading awareness about the use of
futures to reduce risk of fluctuating currency prices. Thousands of SMEs, Banks, Corporate Houses including
Exporters and Importers across Tamil Nadu and Kerala will now be able to benefit in their own language.
This project will continue in other languages by the launch of 7 more website in local language i.e. Marathi,
Kannada, Telugu, Bengali, Oriya, Assamese and Punjabi in the coming months. The Marathi site which is
ready for launch will formally be inaugurated on 10th Feb ’09 in Mumbai. The websites offers information
updates on price movements; volumes transacted, and contract details. The new websites features a
frequently asked questions (FAQs) section, currency futures price ticker, real-time rendering of charts (i.e.,
without refreshing entire page), gathering feedback and queries in the regional languages, online charts with
magnification facility, and market and membership-related data at a single location.
India Post to now launch Gold Accumulation Plan
India Post has announced the success of its Gold retailing pilot project in association with Reliance Money
and World Gold Council. It also announced plans to launch Gold Accumulation Plan (GAP) via its retail
network. The announcement was made by Sunita Trivedi, Chief General Manager, India Post. Over 10,000
customers have purchased 24,742 gold coins through India Post outlets since October 15, 2008. The
proposed GAP will offer customers a SIP (Systematic Investment Plan) like option while investing in gold
through accumulation of small quantities as and when they have the money during a particular month.
Hence, customers will not need to invest a huge lump sum at a single point of time. Under GAP, the
customer will benefit from the average pricing of gold over a period of time, as more gold grams will be
credited when the price of gold is low and lesser will be purchased when the price is high. The quantity of
gold to be invested in or grammage (such as 25/ 50/ 100 grams) and the tenure specified can be increased
as and when desired by the customer.
•   The Bombay High Court has reserved its order in a dispute between National Commodity and Derivatives Exchange (NCDEX) and
    commodity futures regulator Forward Markets Commission (FMC) in connection with slashing of transaction rates by the former.
•   Alchemist Corporation is in the Process of divesting its majority shareholding in one of its subsidiary company.




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



                                                      MISCELLANEOUS
Fitch sees weak retail sales in 2009
            The Indian retail industry has been affected over the past year by various factors including
            slowing economic growth, high interest rates and the liquidity crunch, which together put
            pressure on consumer discretionary expenditure. The industry was also affected by the high cost
            of real estate rents during much of CY08, although Fitch Ratings expects this to ease in CY09.
            Amid these pressures, most retailers have experienced a drop in footfall and demand, reflected in
slowing Same Store Sales (SSS) growth and greater time to break even for new stores. Fitch expects SSS
growth in 2009 to be weaker than in 2008 due to slow Indian GDP growth. In a deteriorating
macroeconomic climate, retailers may be forced to give discounts and promotional offers to maintain
volumes, which will drive down margins. Consequently, Fitch expects value retailers to have an edge over
lifestyle retailers due to the “value-seeking” approach of the Indian consumer, although overall the
operating environment for retailers will remain challenging during FY09. Fitch expects the credit profiles of
the major retailers to remain under pressure during CY09 given weak economic/consumer sentiment, rapid
expansion and margin pressures. With internal cash flows expected to remain under pressure, requirements
for working capital and capex will likely be funded by debt given the challenging equity environment, leading
to increases in leverage in the medium term.
Villeroy & Boch opens Indian subsidiary
Villeroy & Boch AG has launched its Indian subsidiary namely Villeroy & Boch Sales India Pvt. Ltd. One of the
most renowned European Premium brands in tableware and bath and wellness is all set to offer the best
experience in bathroom concepts to the Indian consumers through its Bath and Wellness division in India.
While the branded market is around €120 mn (Rs. 780 cr) and still growing at a high rate of growth, and in
volume terms, the ceramic sanitary is around 40 mn pieces again growing at a 12%-15% YoY. Villeroy &
Boch will target a substantial stake in the next three years and is going to invest in structure and facilities in
order to achieve a two digits growth in India. It will open 15-18 showrooms in 2009 with its value partners.
Murugappa ED gets Honorary Doctorate
MA Alagappan, Executive Chairman of the US$2.4 bn Murugappa Group, was awarded with an
Honorary Doctorate by Birmingham City University. The University confers these awards of
distinction on persons who have achieved eminence in public or professional life. The award was
presented by The Chancellor of the University, the Lord Mayor of Birmingham, at a function held
at the Birmingham City's International Convention Centre. Over the years, Alagappan has led
many of the major businesses of the Murugappa Group. He was the driving force behind the Group's entry
into and growth in the financial services businesses. He has also spearheaded the Group's foray into the
plantations business. Alagappan has been involved with several industry bodies such as FICCI and SICCI. He
is also the Honorary Consul of Hungary, South India.
•   SS Khurana has taken over as the new Chairman, Railway Board and ex-officio Principal Secretary to the Government of India,
    Ministry of Railways.
•   Pavers England Footprints has announced expansion in Indian Footwear Retail by inviting franchisees to retail their European comfort
    brands Pavers England.
•   The Norwegian government has committed to collaborate with The Energy and Resources Institute (TERI) at a high level stake-
    holder's discussion in order to promote climate and ocean research in India.
•   The Board of Directors of Archidply Industries has decided to postpone the decision of putting up new particle board and MDF
    plant in view of the economic slow down and import prices of the above products coming down by 30%, thus making investment in
    the project unviable.
•   The Board of Directors of Control Print has decided to issue 2.6 lakh equity shares of the Company on preferential basis to the
    promoters/person acting in concert with the promoters.
•   Century Textiles & Industries has announced that in view of adverse market scenario and demand recession, the Company is
    restricting the production of denim cloth partly for the time being its Khargone (MP) factory.
•   The Board of Directors of Dhunseri Tea & Industries has approved the proposed IT and ITeS infrastructure project of the
    Company, for development of Twin Towers at Kolkata IT Park at Bantala. The total project cost of about Rs. 130 cr has been divided
    into two phases. The Phase-I of the project is slated to commence soon and is expected to be completed by 2011.
•   Dharamsi Morarji has suspended the operations of its Ambernath factory and has issued "Lock Out" notice with effect from
    February 09, 2009 on account of continued losses.
•   Fomento Resorts & Hotels has to demolish the construction on plinth of approximately 1,000 square meters of the resort as per
    the Supreme Court order. The Company said that it will be an impact on the profitability for FY09.
•   Gateway Distriparks has acquired the balance 26% equity from the other shareholders in its Visakhapatnam-based unlisted
    subsidiary i.e. Gateway East India Pvt Ltd.
•   GE Shipping Company has signed a contract to sell “Jag Riddhi”, a Handymax dry bulk carrier. The 1997 built, 47,240 DWT vessel
    will be delivered to the buyers in Q4FY09.
•   Hardcastle & Waud Manufacturing Company has announced that Global Trendz Retail Pvt. Ltd. has ceased to be its subsidiary
    with effect from January 29, 2009, following partial divestment.




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



                                                       MISCELLANEOUS
KPMG India launches IFRS Institute
KPMG in India has announced the launch of its IFRS Institute in India (IFRS Institute). The IFRS Institute is
designed to assist various stakeholders in the planned convergence from Indian GAAP to International
Financial Reporting Standards (IFRS). The IFRS Institute is a web-based platform, which seeks to act as a
one-stop site for all information, updates and views on IFRS implementation in India. In addition to
propriety KPMG content, the website will provide links to several other sources of information related to IFRS
and its implementation. The site can be accessed by all interested parties at no cost. Additionally, the site
provides a facility to register as a member by providing certain minimal information. Registered members
would be entitled to receive invitation for KPMG sponsored IFRS events and IFRS web casts.
Aditya Puri wins CNN-IBN Indian of the Year Award
HDFC Bank Managing Director Aditya Puri has won the CNN-IBN Indian of the Year 2008 in the
Business category. Puri won, as CNN IBN puts it, for steering HDFC Bank well in a tough time,
ensuring growth without taking risks and leveraging his customer-base well. Given in six
categories i.e. Politics, Sports, Business, Entertainment, Public Service, and Global Indian, these
awards ”recognize, celebrate and honour Indians who have contributed to our country and in
turn have strengthened our society and contributed to building Brand India in 2008. Each
category had six nominees. Ratan Tata, Baba Kalyani, CB Bhave (SEBI), S.Ramadorai (TCS) and Uday Kotak
(Kotak Group) were the other nominees in the Business category. The winners in the other five categories
are Nitish Kumar (Politics), Abhinav Bindra (Sports), Aamir Khan (Entertainment), G Madhavan Nair & Team
Chandrayaan (Public Service) and AR Rahman (Global Indian). In Dec’08, leading financial daily Business
Standard declared Puri as Banker of the Year (2008) for successfully leading his bank in tough times.
•   Investment & Precision Castings has announced that CRISIL has assigned its ratings to BBB+/STABLE/P2 to the various bank
    facilities of the Company.
•   Ion Exchange India has won an order worth Rs. 126.3 crore from NTPC Tamil Nadu Energy Company (NTPC-TNEB JV) for a 3X275
    m3/h Sea Water Reverse Osmosis plant for the 3X500MW thermal power plant at Vallur near Chennai.
•   The Board of Directors of Interfit Techno Products has decided to diversify into additional product lines in order to improve the
    revenue and profitability and to use the manufacturing facilities available to the maximum.
•   JHS Svendgaard Laboratories has received the Best Performing Enterprise Award "Runner-up" at Plasticon Awards 2009 for
    complete range of oral care products.
•   The Board of Directors of Kerala Ayurveda has decided to initiate regulatory proceedings to wind up KatraSoft Europe GmbH,
    Germany – the WOS of the Company.
•   The Board of Directors of Kamat Hotels India has decided to divest its 60% stake in the subsidiary Company i.e. Concept
    Hospitality to other group of shareholders.
•   The Board of Directors of Max India has approved the proposal to issue on rights basis, such number of equity shares having Rs. 2
    each for cash for an amount not exceeding Rs. 650 cr.
•   Mahindra Forgings has announced that its Chakan will work for four days a week instead of six days a week till further information
    due to slowdown in demand for Company's products.
•   The Board of Directors of Manjushree Extrusions has decided to further expand Company's PET/Monolayer containers
    manufacturing capacity at a capital outlay of Rs. 10 cr to be fully financed out of internal accruals during the current and next year.
•   The Board of Directors of Milestone Global has the proposal to establish a Wholly Owned Subsidiary in Australia to carry on
    business of direct marketing of products of the Company.
•   Niraj Cement has received the Letter of Intent (LoI) for project worth Rs 98.04 crore from Haryana State Roads & Bridges
    Development Corporation for construction of 4-lanning of various road in Rewari town & construction of new roads in Rewari district.
•   Niraj Cement has announced that the Niraj-JM Mhatre (JV between Niraj Cement and JM Mhatre) has received the Letter of Intent
    (LoI) for project worth Rs 135.2 crore from Haryana State Roads & Bridges Development Corporation.
•   Nicco Corporation has applied to Corporate Debt Restructuring Cell for further restructuring of its finances.
•   Navin Fluorine International has announced CARE has assigned 'CARE A' rating to its long-term banking facilities indicating
    adequate safety for timely servicing of debt obligations and low credit risk. CARE has also assigned 'PR1' rating to its short-term
    banking facilities, indicating strong capacity for timely payment of short-term debt obligations and lowest credit risk.
•   Nava Bharat Ventures has announced that its subsidiary i.e. Nava Bharat (Singapore) Pte (NBS) has concluded definitive
    agreements with a Coal Mine Owner in Indonesia. NBS is entitled to hold 75% stake in the coal concession which has mineable
    reserve of 10 mn tonne of high grade coal.
•   The Board of Directors of PTC India has approved raising of funds up to Rs. 1,200 crore (Rs. 12 bn) through the Qualified
    Institutional Placement.
•   Rama Newsprint & Papers has decided to temporarily shut the newsprint plant in view of the sluggishness in the demand for
    newsprint and partially switch over to production of writing and print paper.
•   RPG Cables has announced that the BIFR has sanctioned the rehabilitation scheme for the revival of the Company. Accordingly,
    necessary steps will be taken to implement the provisions of the scheme, RPG Cables added.
•   Symphony Comfort Systems has incorporated a Wholly Owned Subsidiary Company (WOS) in Singapore and has subscribed
    100% equity shares of the said WOS i.e. Sylvan Holdings Pte Ltd., Singapore.
•   Shoppers Stop has entered into a Memorandum of Understanding (MoU) with Amalgamated Bean Coffee Trading Company, which
    will permit the latter to operate Cafe Coffee Dat from the stores owned and/or operated by Shoppers Stop.
•   Tata Tea is reportedly in the process of restructuring its US operations with a view to bringing down costs substantially.
•   Trent has entered into an MOU with the Inditex Group to develop and promote Zara stores in India.



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



                                           DELISTING & BUY-BACKS
PSI Data Systems to delist from BSE
Aditya Birla Nuvo has issued public announcement to the equity shareholders of PSI Data Systems for the
purpose of delisting the equity shares of the Company. The equity shares of PSI Data Systems are currently
listed on the BSE, and Aditya Birla Nuvo seeks to de-list the equity shares of the Company from BSE. Aditya
Birla Nuvo seeks to delist the equity shares of PSI Data Systems, by acquiring all the balance equity shares
currently not held by the promoters and promoter group (2,208,414 equity shares of Rs 10 each or
approximately 29.25% of the equity share capital of the Company held by the public) on the terms and
conditions specified in this announcement. The floor price for the offer under the book building process is
determined at Rs. 45.29 for each fully paid equity share of the Company. The price for the delisting offer will
be determined pursuant to the reverse book building process prescribed. The bid for delisting offer shall
open on February 16, 2009, and close on February 20, 2009, while the final settlement date has been fixed
at February 26, 2009. Enam Securities has been retained as Manager to the delisting offer.
ICI India to buy-back up to 31.96 lakh equity shares
ICI India has announced the buy-back of its fully paid-up equity shares having face value Rs. 10 each from
the open market through the stock exchanges at a maximum price not exceeding Rs. 575 per equity share
payable in cash, for an aggregate amount not exceeding Rs. 183.77 crore. The buy-back size represents
25% of the aggregate of the Company's paid-up equity share capital and free reserves as on March 31,
2008. At the maximum buy-back price of Rs. 575 per equity share and for the buy-back size not exceeding
Rs. 183.77 crore, the maximum number of equity shares that can be bought back would be 31.96 lakh
equity shares, representing 8.33% of the outstanding fully paid up equity shares of the Company as on
March 31, 2008. The buy-back shall open on February 17, 2009, while the last date of buy-back has been
fixed at December 18, 2009. All payment obligations related to the Buyback shall be completed by the last
date for the Buyback. ICICI Securities Ltd. has been retained as the Manager to the buy-back offer.
Eicher Motors announces buy-back offer
Eicher Motors has announced the buy-back of up to 14,08,969 fully paid-up equity shares of Rs.10 each
through the tender offer route at a price of Rs. 691.68 per equity share payable in cash, for an amount
aggregating up to Rs. 97.46 crore. The offer size represents up to 21.28% of the aggregate of the
Company's total paid-up equity capital and free reserves as on March 31, 2008. The buy-back would not be
more than 25% of its total paid-up equity capital. Since as per the buy-back regulations the promoters have
right to participate in buyback under tender offer route, the promoters have right to participate in buyback,
Mitsubishi Motors Corporation is free to participate in the proposed buy-back to the extent of their
shareholding. Eicher Goodearth Investments Ltd. (EGIL), Eicher Investments Pvt. Ltd., Siddhartha Lal,
Simran Lal and Tara Lal (EGIL Group) have consented not to participate in the proposed buy-back of the
Company.
Further, AB Volvo, Sweden, holding 8.1% of equity share capital of the Company, has consented not to
participate in the proposed buy-back. The buy-back shall open on March 12, 2009, while the closing date of
buy-back has been fixed at March 26, 2009. The shares shall be extinguished on April 13, 2009. JM Financial
Consultants Pvt. Ltd. has been retained as the Manager to the buy-back.
•   Elecon Engineering Company has announced that Emtici Engineering Ltd., promoter of the Company has purchased total 16,900
    equity shares of Rs. 2 each of the Company on February 02, 2009 from open market.

                                                       RATINGS
Fitch assigns ‘AA(ind)’ to MindTree
Fitch Ratings has assigned MindTree, a National Long-term rating of 'AA(ind)'. The Outlook is Stable. The
agency has also assigned 'F1+(ind)', 'F1+(ind)' and 'AA(ind)' to MindTree's fund-based working capital limits
amounting to Rs. 1,717 mn, non-fund based working capital limits amounting to Rs. 53 mn and existing
term loans amounting to Rs. 1, 926.2 mn. The ratings reflect MindTree's position as a leading mid-sized
player in the Indian IT Services industry, strong client relationships and its demonstrated ability to manage
rapid growth. The ratings also reflect the company's comfortable operating margins and consequent growth
in operating cash flows. With its capex through FY08 largely financed through the Rs. 2.35 bn IPO raised in
FY07, debt levels on MindTree's balance sheet remained low. The ratings also factor the company's
management quality and the strength of its internal systems. The agency believes that IT outsourcing
demand could come under pressure, with fewer new discretionary projects, the expectation of pricing
pressures on existing contracts and working capital cycles potentially increasing as clients try to extend their
payment terms.



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



                                                              M&As
HotSpot Retails acquires Cellucom
HotSpot Retails Ltd., a Spice Group company announced the acquisition of the Indian stake of Dubai-based
mobile and IT products retailer, Cellucom. HotSpot already has over 500 retail stores across the country;
this along with Cellucom’s 120-plus retail stores will take the combined entity’s overall position to a clear No.
2 in the mobile & technology-product retail category, giving it a truly pan-India presence through this
inorganic growth. By way of this deal, HotSpot has acquired 100% equity of Cellucom in lieu of its 26%
equity on a consolidated basis. Given the fact that Cellucom’s product offering spans an entire set of mobile
and IT products, the merger will further enhance HotSpot’s product line to include IT and related products
along with the existing line of mobility offerings. The consolidation would result in significant advantages and
benefits to both companies.
IOB gets RBI nod for SSSB takeover
Chennai-based PSU lender Indian Overseas Bank (IOB) has received approval from the Reserve Bank of
India to acquire the assets and liabilities of Pune-based Shree Suvarna Sahakari Bank (SSSB). The due
diligence report for the same is expected to be prepared by the first week of February. After formation of
scheme with the administrations by April the acquisition process will be completed. The RBI, in the wake of
financial irregularities that led to losses of over Rs. 300 cr, placed SSSB under moratorium some years back.
After receiving approval from the Board of Directors to take over the troubled bank in Mar’08, it has taken
the Bank more than ten months to secure RBI's approval. The acquisition was delayed due to the audit
ordered by the Registrar of Companies of the Maharashtra government, which is a body regulates co-
operative banks along with Reserve Bank of India. Apart from that differences in the legal structure of IOB
and a co-operative bank also further complicated the process of securing approval for the branches of SSB.
Voltas completes acquisition of Saudi Ensas
Voltas has announced that the legal process involved in connection with the transfer of 51% shareholding of
Saudi Ensas, a JVC in Kingdom of Saudi Arabia from the local partner in favour of Voltas Ltd. has been
completed. Upon receipt of the requisite approvals, the Ministry of Commerce and Industry, Saudi Arabia
has issued a fresh certificate of registration dated January 28, 2009 to give effect to the above. The entire
shareholding of Saudi Ensas is now held by Voltas Ltd. and its subsidiary and accordingly, Saudi Ensas is a
wholly owned subsidiary of Voltas Ltd, effective January 28, 2009. Saudi Ensas is engaged in the execution
and operations / maintenance of electro mechanical installations in KSA.
Ericsson, STMicroelectronics complete merger deal
STMicroelectronics and Ericsson have announced the closing of their agreement merging Ericsson Mobile
Platforms and ST-NXP Wireless into a 50:50 JV. The deal was completed on the terms originally announced
on August 20, 2008. The new Company is designed for long-term stability and is set to become an industry
leader in product research, as well as design, development, and the creation of cutting-edge mobile
platforms and wireless semiconductors. The JV begins as a major supplier to four of the industry’s top five
handset manufacturers, who together represent about 80% of global handset shipments, as well as to other
exciting industry leaders. Ericsson contributed US$1.1 bn net to the joint venture, out of which US$0.7 bn
was paid to STMicroelectronics. Prior to the closing of the transaction, ST exercised its option to buyout
NXP’s 20% ownership stake of ST-NXP Wireless.
•   US-based wireless service provider, Harris Stratex Networks is reportedly set to acquire majority stake in Telsima, a five year-old
    India focused WiMax solutions firm, for around US$55 mn. The Nasdaq-listed Harris Stratex is expected to announce the deal later
    this month.
•   The Board of Directors of Tanu Healthcare has approved the merger of Indore-based Blue Cross Generic Pvt. Ltd, with the
    Company, subject to necessary approval.
•   Kushagra Software is initiating the process of Merger/Amalgamation of Concurrent Infrastructure Pvt. with the Company with the
    High Court, Mumbai for obtaining the High Court, Mumbai approval for the same.
•   Fidelity International (FIL Asia Services Pty Ltd.) has purchased 3.62% stake in Satyam Computer, raising its stake to 6.79%.
•   The Board of Directors of Aarti Industries shall meet on February 07, 2009, to consider the amalgamation of Avinash Drugs Ltd.
    and Surfactant Specialities Ltd. with the Company.
•   Alfa Laval AB had announced on October 23 2008 a public offer to increase its share of Alfa Laval (India) Ltd. The offer has now
    been closed and owners of approximately 12% of the shares accepted to sell at Rs. 1,000 per share, which represents a total value
    of approximately SEK 380 mn. This means that Alfa Laval AB increases its share of ownership in the Indian company from some
    77% to approximately 89%.
•   Reacting to the news report brought out in some section of media, Teledata Informatics has clarified that the Company denies the
    statements made by the publication about the Company and its acquisition of stake in Singapore-based eSys Technologies.
•   Sun Pharmaceutical is reportedly plans to buy a mid-size generic company in US to hike its share in their pharmaceutical market.
    The Company is looking at acquisition in the US, which could give us a return of around 20-22% on its investments, reveals a news
    report citing its Chairman and MD Dilip Shanghvi.
•   Gateway Distriparks has acquired the balance 26% equity from the other shareholders in Visakhapatnam-based Gateway East
    India.


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



                                             MUTUAL FUND & INSURANCE
Taurus MF names new Head of Equity
          Taurus Mutual Fund has appointed Mohit Mirchandani as Head of Equity with effect from 2nd of
          February 2009. He has worked in India and USA during his career spanning 12 years. He joins
          Taurus from ING Investment Management. At ING, he was responsible for developing business
          and managing portfolios in his capacity as VP and Portfolio Manager – Equity, for more than six
          years. He is credited with the improvement of ING Mid Cap Fund and ING Tax Saving Fund from
          fourth to second quartile. His first three years with ING were spent in the US where he was
promoted from Analyst to Co Portfolio Manager. Prior to ING he worked with Coca Cola Company as a
Research Analyst. An MBA from Emory University Finance and Strategy, Mohit also holds a Master of
Management Studies from Mumbai University.
Max New York Life partners with City Co-op Bank
Max New York Life Insurance and City Co-Operative Bank have announced a strategic referral tie-up. Max
New York Life Insurance will utilize the branch network of the bank to sell its life insurance products. The tie
up with City Co-Operative Bank, Mumbai will further strengthen Max New York Life Insurance’s presence in
Mumbai. Max New York Life Insurance’s products will be sold through a network of 9 branches of City Co-
Operative Bank Ltd., Mumbai. This alliance enables Max New York Life Insurance to reach its customized life
insurance solutions to more than 190,000 customers of The City Co-Operative Bank Ltd.
Tata AIG Life inks pact with South Indian Bank
Tata AIG Life Insurance Company and South Indian Bank have entered into a partnership to provide
premium renewal collection services to Tata AIG Life customers through all the 520 CBS(Core Banking
Solutions) branches of the South Indian Bank. This partnership would provide the policyholders of TATA-AIG
Life the convenience of paying their renewal premiums by cheque or cash at the nearest branch of South
Indian Bank. This will especially be a convenience for the rural customers at par with that in urban centers.
This initiative has been rolled out across all the 520 CBS branches of South Indian Bank in the country.
Customers of Tata AIG Life will find it convenient to make renewal premium payments by cheque or cash
upto Rs49,999/- at the branches of South Indian Bank.
ICICI Pru Life launches Wealth Advantage ULIP
ICICI Prudential Life launched Wealth Advantage, a unique single premium ULIP. Wealth Advantage allows
consumers to stay invested in the plan for as long as they live, even beyond the age of 70 years, thereby
ensuring long-term coverage. Further, it also offers the flexibility to increase or decrease the sum assured in
accordance with the individual's protection needs. Through this strategy customers can invest a lump sum
amount in the company's money market fund (Preserver) and transfer a pre-defined amount every month
into any one of the chosen equity funds. This gives customers the benefit of rupee cost averaging by
ensuring that they buy more units at lesser price. It also gives customers the security of a liquid fund while
trying to enhance returns by systematically moving the funds into equity.
Deutsche MF introduces Auto Sweep plan under Premier Bond Fund
Deutsche Mutual Fund has introduced the Auto Sweep plan under the DWS Premier Bond Fund. The new
plan will be available for subscription at Rs. 10 per unit on February 09, 2009. It is an open ended scheme
with the investment objective to provide regular income by investing in debt securities including bonds and
money market instruments. The scheme will invest up to 60-100% in the debt instruments including
government securities and corporate debt and invest up to 40% in the money market instruments. It is
benchmarked against CRISIL Composite Bond Fund Index. The scheme will not charge any entry load, while
it will charge an exit load of 3% if redeemed before 12 months. There will be no exit load applicable on auto
sweep in to equity fund.
Principal MF changes the name of its Liquid + Scheme
Principal MF has changed the name of the Principal Liquid + Scheme to Principal Ultra Short Term in
accordance to the recommendation from SEBI to discontinue the nomenclature of Liquid Plus Scheme, as the
nomenclature of Liquid Plus gives a false impression of added liquidity. The aforesaid change in the scheme
will be in effect from 2nd February, 2009. All the other features of the scheme remain unchanged. The
scheme is an open ended fund, with the investment objective to generate regular income through
investments in debt securities and money market instruments and is managed by Badrish Kulhalli.
•   Canara Robeco MF has introduced growth plan and dividend plan under the Canara Robeco Equity Tax Saver Fund. The dividend
    plan further offers dividend payout and dividend reinvestment option. The present investments of the existing unit holders have held
    under dividend payout option as a default plan. The new plans will be available for fresh investments from February 2, 2009 and the
    investments will be subject to a statutory lock in period of three years from the date of allotment.




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



                                            ENSUING EVENTS
     th
17        Edition of Convergence India in New Delhi
                      Exhibitions India is organizing the trade fair i.e. 17th Edition of Convergence India
                      during 18-20 March, 2009 at Pragati Maidan, New Delhi. Supported by the Ministry of
                      Communications & IT and I&B Ministry, the event has generated huge interest
                      amongst the telephony, broadband and entertainment industry. The upcoming event
                      has given special focus to the broadcast segment. The concurrent conference is a
global platform set to discuss strategic issues of broadband connectivity, 3G, WiMax, Value Added Services
(VAS), Next Generation Network (NGN),new business revenue models, corporate social responsibility, and
regulatory aspects,etc conducive to the digital landscape. The event is expected to attract over 15,000 trade
visitors. "The 17th Convergence India 2009 expo brings into sharp focus the tenacity of the Indian ICT
industry and the emergence of its growing market as a global destination for business and investment," said
Mr Prem Behl, Chairman, Exhibitions India Group.
ASSOCHAM to host BFSI Summit in Mumbai
ASSOCHAM is organizing a “Banking & Financial Services Industry (BFSI)” Summit on 9th February 2009 at
Hotel Taj President, Cuffe Parade in Mumbai. Through this platform, the senior bankers will interact with the
leaders of the industry and commerce in discussing their role and aspirations in the development of the
Indian economy. While Pawan Kumar Bansal, Minister of State for Finance has agreed to be Chief Guest and
grace the occasion, Dr. D. Subbarao, Governor, Reserve Bank of India and Arun Ramanathan, Finance
Secretary, Ministry of Finance have also been requested to address the Summit.
ZEE, ASSOCHAM to host 4th Annual Zee Carnival 2009
ZEE Network in collaboration with ASSOCHAM is organizing the ZEE Carnival 2009 and De Voxpop
Infotainment during 13th-15th February, 2009 at Grand Hall, Olympia, London which has been held annually
for the past four years. ASSOCHAM and De Voxpop Infotainment are the Exclusive India Partners for the Zee
Carnival USA, Singapore, Dubai and UK. The ZEE Carnival is an annual event property of ZEE TV, which has
been conducted with enormous success at various International venues in the past years. The last year’s
ZEE Carnival was conducted at the Olympia Hall, Central London, U K. Shah Rukh Khan was the brand
ambassador of the show and there was a massive turn out of more than 45,000 people over a period of
three days with conferences and celebrities great shows. As there is participation of business from other
parts of the world like Middle East and Europe - the India Pavilion is earmarked at a prominent area in ZEE
CARNIVAL 2009 wherein leading brands from Healthcare, Hospital, Medical Tourism, Real estate, Education,
luxury products, Designer Clothes, Jewellery, Travel & Tourism, Home financing Companies and various type
of lifestyle related brands shall be showcased and it seems a very good opportunity for the active
participation of your organisation to provide vast awareness to more than 60000 NRIs and foreign
companies, B2B meetings and promotion of business interests with the European community and investors.
5th International Education Fair in New Delhi
ASSOCHAM is organizing 5th International Education Fair cum Seminar during 30-31 May, 2009 at Pragati
Maidan, New Delhi, to spread a vast message that sustained growth of economy of the country is strongly
linked with the quality of education. This is a mega education event in which about 200 Management,
Technical & Professional Institutions and foreign Universities/institutions are expected to participate under
one roof to showcase their strength. ASSOCHAM plays a significant role to provide a distinctive platform to
students under one roof to choose their career-path with greater access to higher education, professional
courses and offer a unique opportunity to the aspiring students who are on the threshold of stepping into an
ever-increasing globally competitive career path to meet the need based requirement of industry.
India Regional Offset Conference 2009 on Feb 9th
Three of the world’s leading offset organizations have joined hands with the Confederation of
Indian Industry (CII) to plan a topical offset conference on Indian offsets on 9th February
2009 at 09.30 am at Hotel The Hyatt Regency, Bhikaji Cama Place, New Delhi. The organizers
have previously conducted the first and second Global Industrial Cooperation Conferences
(GICC) held in Portugal and Greece in 2004 and 2006, as well as the Middle East Regional Offsets
Conference (MEROC) in Abu Dhabi in February 2007 and the IROC 2008 in New Delhi, which proved to be
amongst the most successful international offset conferences ever held. IROC 2009 will take place at the
Hotel Hyatt Regency, New Delhi on 9-10 February 2009. The organizers expect that the Indian Regional
Offset Conference 2009 will build on the acknowledged success of GICC’04, GICC’06 and MEROC’07 and
IROC 2008 and high quality presentations by global experts on offsets and stake holders in the Indian offset
obligations will be made during IROC 2009.



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



                                                  GLOBAL
Fed extends lending facilities, swap lines additional 6 months
              The Federal Reserve has announced that it is extending the term of several lending facilities as
              well as swap lines with foreign central banks for an additional six months as credit markets
              remain strained. The extension through October 30, 2009 adds a half year from the original
              expiration date of April 30th, 2009, in light of continuing substantial strains in many financial
markets. The bevy of lending facilities established over the past year plus represents a push from the
nation's policymakers to think outside the box in addressing what many argue is the greatest financial crisis
since the Great Depression. The extension of the Asset-Backed Commercial Paper Money Market MF Liquidity
Facility, the Commercial Paper Funding Facility, the Money Market Investor Funding Facility, the Primary
Dealer Credit Facility, and the Term Securities Lending Facility through October 30th will help credit markets
as they struggle through the financial crisis. Swap lines currently affected include agreements with the
Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the
Bank of England, the European Central Bank, the Bank of Korea, the Banco de Mexico, Reserve Bank of New
Zealand, Norges Bank, the Monetary Authority of Singapore, Sveriges Riksbank, and Swiss National Bank.
US pending home sales jump 6.3% in Dec
Pending home sales unexpectedly showed a notable increase in December, according to a report released by
the National Association of Realtors, with buyers taking advantage of improved affordability conditions. The
report showed that pending home sales rose 6.3% in December following a revised 3.7% decrease in
November. With the unexpected monthly increase, pending home sales in December were up 2.1%
compared to the same month a year ago. The report showed that the unexpected increase in pending home
sales came as strong gains in the South and Midwest more than offset modest declines in the Northeast and
West. While pending home sales rose 13% in the South and 12.8% in the Midwest, pending home sales in
the Northeast and West fell 1.7% and 3.7%, respectively.
US Treasury pumps another $1.15 bn to 42 banks
The US Treasury Department has made another investment of US$1.15 bn in 42 banks from the US$700 bn
financial bailout package. Now a total of 359 banks in 45 states and Puerto Rico has received over
US$195.33 bn in support. To date, the largest investment was 25 bn dollars and the smallest investment
was approximately US$1 mn. According to the Treasury's Capital Purchase Program (CPP), the Treasury will
purchase up to a total of US$250 bn of senior preferred shares from healthy US financial institutions. Banks
participating in the CPP will pay the Treasury a five percent dividend on senior preferred shares for the first
five years following the investment and a rate of 9% per year thereafter. Banks may repay the Treasury
under the conditions established in the purchase agreements, and the Treasury may sell these shares when
market conditions stabilize. Among the most recent banks to receive the Treasury funding was Legacy
Bancorp of Milwaukee, Wisconsin, a CDFI founded by African-American women and one of the fastest
growing community banks in the nation. CDFIs such as Legacy provide vital credit and financial services to
low-income areas that are often unavailable from commercial banks.
US factory orders fall for 5th consecutive month in Dec
Orders for manufactured goods fell by more than expected in the month of December, according to a report
released by the Commerce Department, with factory orders falling for the fifth consecutive month. The
report showed that orders for manufactured goods fell by 3.9% in December following a revised 6.5%
decrease in November. The bigger than expected drop in factory orders reflected notable decreases in orders
for both durable and non-durable goods. The report said that orders for durable goods fell by 3.0% in
December compared to the 2.6% decrease that was originally reported earlier this month, while orders for
non-durable goods fell by 4.8%. Excluding orders for transportation equipment, factory orders fell by an
even steeper 4.4% in December compared to a 6.0% decrease in the previous month. The shipments of
manufactured goods fell by 2.9% in December following a 6.5% decrease in November. Shipments fell for
the fifth consecutive mark, marking the longest streak of consecutive monthly decreases since March-July
1998. Inventories of manufactured goods fell by 1.4%, marking the steepest percentage decline since the
series was first published on a NAICS basis in 1992.
US Dec construction spending down 1.4%
Reflecting continued weakness in the US housing market, the construction spending in the December fell by
much more than economists had been expecting. The construction spending fell 1.4% to an annual rate of
$1,053.7 bn in December from a revised November estimate of $1,068.8 bn. A 1.7% decrease in spending
on private construction contributed to the bigger than expected decrease, with spending on residential
construction falling by 3.2% and spending on non-residential construction falling by 0.4%. The steep drop in
construction spending also reflected a 0.8% decrease in spending on public construction, which came as
spending on educational construction fell by 0.9% and spending on highway construction fell by 2.4%.


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



                                                              GLOBAL
Bank of England cuts bank rate to record low
            The Bank of England (BoE) has lowered its key interest rate by 50 bps as expected to avert the
            serious risks of deepening recession and inflation undershooting target. At the end of the two-
            day rate-setting meeting, the Monetary Policy Committee reduced the official Bank Rate paid on
            commercial bank reserves by 0.5% to a record low of 1%. The interest rate stands at the lowest
            level since the central bank was established in 1694. The Committee judged that there remained
a substantial risk of undershooting the 2% CPI inflation target in the medium term at the existing level of
Bank Rate. The BoE said the global economy is in the throes of a severe and synchronized downturn. The
central bank noted that output in the UK declined sharply in the fourth quarter of 2008 and a similar decline
is expected for the early part of this year.
BoE lends Banks £185 bn Under Special Liquidity Scheme
The Bank of England (BoE) said it lent Treasury Bills with a face value of approximately GBP 185 bn under
the Special Liquidity Scheme, implemented in Apr’08, to improve the liquidity position of the banking
system. The central bank executed the scheme to allow banks and building societies to swap for up to three
years some of their illiquid assets for UK Treasury Bills. The number of banks and building societies
accessing the scheme was 32. The total value of the securities (held by the Bank as collateral) amounts to
approximately GBP 287 bn. The Bank's valuation of those securities as at 30 January 2009 was
approximately £242 bn.
BoJ to resume stock purchases
The Bank of Japan (BoJ) has announced that it will revive a plan to buy shares held by
financial institutions to shore up their capital, which has been badly eroded by the global
stock-market rout. The BoJ plans to spend up to ¥01 trillion (US$111.5 bn) through April
2010, resuming a program it ended more than 4 ago. The BoJ resumed the stock purchases
to support financial institutions’ future endeavors to reduce market risk associated with stockholdings, and
through which to ensure the stability of the financial system. It added that the share purchases would help
improve the financial position of banks and bolster the financial system. The BoJ is seeking approval for the
plan from the Ministry of Finance and other government bodies. The shares need to have been traded for a
minimum of 200 days per year and have an annual turnover of ¥20 bn. Eligible banks are those whose stock
holdings exceed 50% of its Tier-I capital & whole total holdings are greater than ¥500 bn.
EurAsEC to set up US$10 bn anti-crisis fund
              The Eurasian Economic Community (EurAsEC) will create a US$10 bn fund to deal with the
              global financial crisis. Russia and Kazakhstan will contribute US$7.5 bn and US$1 bn
              respectively to the anti-crisis fund. The money would be allocated to member states facing
              grave social and economic problems, he said, adding that relevant agreements will be drawn
              up within three months. The fund will be used only for support, not for commercial needs. It
can be noted that the EurAsEC, an economic bloc formed in May 2001, comprises Russia, Belarus,
Kazakhstan, Kyrgyzstan and Tajikistan.
ADB prices $1 bn 3-year global bond issue
The Asian Development Bank (ADB) returned to the US dollar bond market yesterday with the
pricing of a $1 bn 3-year global benchmark bond issue. The proceeds from the issue will go into
ADB's ordinary capital resources for use in its non-concessional operations. The bonds, with a
coupon rate of 2.125% per annum payable semiannually and a maturity date of 15 March 2012,
were priced at 99.779% to yield 92.25 basis points over the 1.125% US Treasury note due January 2012.
The transaction was lead-managed by Daiwa SMBC, Goldman Sachs, Morgan Stanley and UBS.A syndicate
group was also formed consisting of BNP Paribas, Citigroup, Credit Suisse, Deutsche, Dresdner, HSBC,
Mitsubishi UFJ Securities, Nomura and RBC Capital Markets. About 47% of the bonds were placed in Europe,
Middle East and Africa, 36% in Asia and 17% in the Americas. By investor types, around 58% were bought
by central banks and financial institutions, 24% by funds, asset managers and insurance, and 18% by
banks.
•   The National Institute of Economic & Social Research said the British economy will shrink 2.7% this year. The think-tank lowered
    GDP forecast for 2009 from a 0.9% decline estimated in October. The economy is expected to record a slight recovery in 2010 by
    expanding 0.6%. The NIESR expects the central bank to cut key interest rate again from a record low of 1.5%.
•   European Central Bank (ECB) has left its key interest rate unchanged in February after reducing the rate four times since Oct’08.
    The Governing Council left its interest rate on the main refinancing operations at 2%, interest rates on the marginal lending facility
    at 3% and the deposit facility at 1%.
•   The World Bank's Chief Economist on Africa Shanta Devarajan has warned that the global financial crisis would pose a
    greater danger of human crisis for Africa.


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



                                                             GLOBAL
Eurozone unemployment rises to 2 year high in Dec
               Unemployment rate in the Eurozone rose to the highest point in more than two years in
               December 2008. As many as 12.472 mn people were unemployed in the 15-nation zone in
               December, increasing by 230,000 or 8%, compared with November's 7.9%. This is the ninth
               consecutive monthly hike. Compared with the same month in 2007, the number of the jobless
               was up 1.397 mn in the € area, according to the first estimate from the Statistical Office of the
European Communities (Eurostat). Among the member states, the lowest unemployment rate recorded in
the Netherlands (2.7%) and Austria (3.9%) and the highest in Spain (14.4%). In the 27-nation European
Union, the jobless rate edged up to 7.4% in December from November's 7.3%. There were 17.911 mn
people unemployed in December in the EU, increasing by 309,000 compared with the previous month and
by 1.665 mn over the same month in 2007. The EC predicted earlier this month that unemployment rate in
the € zone would rise to 10.2% in 2010, exceeding for the first time the 10% level recorded in 1998.
Australia unveils new stimulus
Australia has announced fresh set of measures to ward off the threat of a recession in the wake of a
worldwide economic downturn. While the government said it will spend an additional A$42 bn (US$27 bn) to
boost demand, the central bank lowered interest rates to the lowest in 45 years. Australia's government said
today that it is planning additional stimulus measures over the next three fiscal years in an effort to boost
employment and prevent the economy from falling into recession. Included in the package are A$12.7 bn in
cash grants to low-to-middle income earners and families from March, and A$28.8 bn for infrastructure, tax
breaks for small businesses education and jobs creation projects. The government said it expects slumping
revenue and higher outlays will lead to a budget deficit of A$22.5 bn in the fiscal year ending June 30,
reversing its earlier forecast for a A$5.4 bn surplus. The government revised its jobless forecast higher,
saying that unemployment will rise to 5.5% in the second half of 2009, up from its earlier estimate for 5%.
ICBC stalls mortgage discount
The Industrial and Commercial Bank of China (ICBC) has backed away from granting a 30%
discount on mortgage rates for existing clients. The biggest bank in China last month said it
would automatically grant existing qualified mortgage clients a 30% discount on mortgage
rates. However, ICBC said it was still preparing the scheme and didn't give a timetable
when the policy would be introduced. No reasons for the change were given. The People's
Bank of China said late last year that banks can double the 15% discount on individual
mortgage rates to 30%, to trim the lending burden for homebuyers. Those with ICBC mortgages will still
enjoy a 15% discount on mortgage rates. Industry watchers said ICBC might feel squeezed and be reluctant
to offer the higher discount. However, almost all major banks in China, such as the Bank of China, the Bank
of Communications and China Construction Bank, have adopted the higher discount. In most cases, banks
said borrowers who enjoyed the previous 15% discount could apply for the lower rates. If borrowers think a
bank's conditions for being given the discount are too stringent, they can shift their mortgage to another
bank. Those who move their mortgages may have to pay a commission.
Finland announces €2 bn stimulus package
The Finnish government announced a stimulus package having an overall impact of €2 bn (about US$2.56
bn). The package will generate at least 25,000 man-years in employment. Overall GDP this year and next
year combined will grow by approximately one%. The fiscal stimulus impact, 1.7% of GDP, or €2 bn,
brought about by the decisions concerning the budget and supplementary budget of 2009, will also rank the
third largest in the EU Commission's comparison among the 27 member states. In accordance with the
decisions made in conjunction with the supplementary budget, a total of €1.2 bn will be used to increase
government expenditure and launch new projects. The statement pointed out that lifting the social insurance
contribution will produce an annual income reduction of €833 mn in the future. The stimulus decisions made
will raise the spending limits for 2009 by €216 mn.

•   Domestic sales of Japanese automakers reportedly extended their slump in January, dropping 27.9% from the same month a year
    earlier. The monthly automobile sales dropped to 174,281 units from 241,629 units. Sales of Toyota Motor dip by 22.5% to 81,985
    units, Honda Motor’s sales went down by 30.7% to 22,087 units and Nissan Motor’s volumes contracted 31.1% to 30,786 units.
•   China reported a fiscal deficit of ¥ 111 bn (US$16.21 bn) in 2008. The country's fiscal revenue reached ¥ 6.13 trillion for the whole
    of 2008, up 19.5% from the previous year.
•   The Swedish Govt will offer banks billions more in aid to avoid a worsening of the economic downturn.
•   To get the credit markets working again, the government will carry out a new rescue package worth up to Kronor 50 bn (about US$6
    bn) for the banking sector.
•   The Reserve Bank of Australia has reduced the interest rates by 1% to 3.25%, citing moderating inflation pressures and the need to
    help spur demand to head off recession.



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



                                                            GLOBAL
Prudential Financial slips to Q4 loss on lower revenue
                    Prudential Financial Inc. has reported a fourth quarter net loss from a profit in the year-
                    ago period, primarily due to lower premium revenue, higher Insurance and annuity
                    benefits and realized investment losses. The Newark, New Jersey-based company has
                    reported quarter $1.64 bn net loss in Q4CY08, compared to $792 mn net profit in
                    Q4CY07. Loss from continuing operations, after-tax, was $1.67 bn, compared to a profit
after-tax from continuing operations of $781 mn in Q4CY07. On a consolidated basis, the Company has
reported $1.57 bn net loss in Q4CY08, compared to $871 mn net income in Q4CY07. Its total revenues for
the quarter declined to $5.90 bn from $6.70 bn in the comparable period last year. For the fiscal year 2008,
the Company has reported $1.1 bn net loss, compared to $3.51 bn profit in the similar period last year.
Excluding items, adjusted operating income for CY08 declined to $1.12 bn, as against $3.32 bn in CY07. On
a consolidated basis, the Company has reported $1.07 bn net loss in CY08, compared to $3.704 bn net
income in CY07. Total revenues for CY08 declined marginally to $26.04 bn from $26.49 bn in CY07. Looking
forward, the Company reaffirmed its fiscal 2009 earnings view in the range of $5.25 to $5.65 per share
based on after-tax adjusted operating income of the Financial Services Businesses.
Cisco Q2 profit drops 27%
Cisco Systems, Inc. has recorded 27% decline in earnings in Q2, as sales declined amid what
it called a challenging macro-economic environment. The world's largest computer networking
gear maker reported GAAP net income for the second quarter of $1.5 bn, compared to $2.1 bn
for the year-ago quarter and $2.2 bn for the previous sequential quarter. San Jose, California-
based Cisco, which makes the routers and switches that direct computer and telecommunications traffic over
corporate networks and the Internet, said net sales for the second quarter fell 7.5% to $9.09 bn from $9.83
bn in the same quarter last year, while the Q2 sales declined 12% sequentially. The gross margin for Q2 fell
to 62.9% from 64.2% in the year-ago quarter. Product sales for Q2 fell 11% to $7.3 bn from $8.2 bn a year
ago, while services sales increased 6% to $1.7 bn from $1.6 bn last year. For the first six months of its fiscal
year, Cisco has reported GAAP net income of $3.7 bn, compared with $4.3 bn for the same period last year.
Visa posts higher profit in Q1
                    Credit card transaction processing major Visa Inc. has announced that its Q1 profit
                    increased from last year despite the tough economic conditions. The San Francisco,
                    California-based company's net income for Q1 stood at $574 mn, compared to $424 mn
in the prior-year quarter, when the company was private. On an adjusted basis, net income was $599 mn,
compared to $443 mn in the year-ago quarter. Net operating revenue for Q1 of 2009 increased 17% to
$1.74 bn from $1.49 bn in the same quarter of last year, driven by strong contributions across all revenue
categories. The total operating expenses for Q1 declined to $773 mn from $810 mn in the prior year
quarter. For the full year 2009, Visa anticipates net revenue growth in the high single-digits. Visa also
cautioned that annual revenue growth could be affected in 2010, if the current economic conditions persist
beyond 2009.
AmEx Q4 profit declines 79% on lower revenue
               American Express Company (AmEx) has reported a 79% decline in Q4 net income from the
               year-ago period primarily due to lower revenue and a decline in interest income. The New
               York-based company reported a substantial drop in fourth-quarter net income to $172 mn
               from $831 mn in the corresponding quarter last year. The Company primarily attributed the
decline in net income to loan delinquencies, write-offs and restructuring charges. AmEx has reported a 72%
decline in income from continuing operations for the quarter to $238 mn from $858 mn in the corresponding
period last year. American Express stated that its overall card-member spending declined 10% YoY or 5%
adjusting for forex rates. For the fiscal 2008, net income decreased 34% to $2.63 bn from $4.01 bn in the
full year 2007. Income from continuing operations for the full year 2008 decreased 32% to $2.80 bn from
$4.13 bn in the fiscal 2007. Total revenues net of interest expense for the fiscal 2008 increased 3% to
$28.37 bn from $27.56 bn in the previous year similar period.
• Sakthi Sugars announced that in view of the economic meltdown in USA and Europe and consequent liquidity caused by drastic
    reduction in the order booking level, the step down subsidiaries of Sakthi Sugars i.e. Sakthi Germany GmbH, Germany (6 step down
    subsidiary) and Sakthi Sweden A.B., Sweden (3 step down subsidiary) have filed bankruptcy protection, while another subsidiary
    company i.e. Arvika Gjuteri AB has filed for financial reconstruction under Swedish laws.
•   Alcatel-Lucent has reported fourth quarter attributable to the equity holders of the parent and group share, of €3.892 bn net loss,
    as against €2.579 bn net loss in the year-ago quarter. Adjusted net loss group share was €1.321 bn. The latest quarter adjusted net
    loss included an impairment charge of €934 mn for goodwill and other intangible assets not related to the Lucent-combination.
    Quarter revenues declined to €4.954 bn from €5.234 bn in the year-ago quarter.




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



                                                            GLOBAL
Atlas Copco to cut thousands of jobs
Swedish industrial equipment manufacturer Atlas Copco has announced that it would cut
thousands of workers worldwide in the aftermath of the international financial crisis. The
current economic situation makes the outlook very uncertain but demand is expected to remain
very weak in most industries and regions in the near term, said President and CEO Gunnar Brock in a
statement, adding that it will affect 3,000 workers worldwide, including 900 in Sweden. However, the
statement pointed out that the company's revenues increased 12% in the fourth quarter to Kronor 19.7 bn
(US$2.3 bn), while net profit more than doubled to Kronor 2.92 bn kronor (about US$340 mn). The
company, which makes air compressors, industrial power tools as well as construction and mining
equipment, has cut its workforce by 1,350 during the quarter.
Motorola swings to hefty loss in Q4
             Motorola Inc. has reported a $3.6 bn loss for the fourth quarter, hurt by goodwill impairment
             charges and plunging mobile devices sales. The Schaumburg, Illinois-based Company has
             reported $3.58 bn net loss in Q4, as against $100 mn profit in the previous year period. In the
             preceding third quarter, the company's net loss was $397 mn on sales of $7.48 bn. Segment-
wise, Mobile Devices sales in the fourth quarter plunged 51% YoY to $2.35 bn. During Q4, the Company
shipped 19.2 mn handsets and estimates its share of the global handset market was 6.5%. Quarterly sales
in Home and Networks Mobility segment were $2.6 bn, down 5% from last year. However, Enterprise
Mobility Solutions sales rose 4% to $2.2 bn. In the quarter, gross margin fell to $2.12 bn from $2.54 bn last
year, while gross margin as a percentage of total sales rose to 29.7% in the quarter from last year's 26.3%.
For the full year 2008, Motorola posted $4.16 bn net loss, as against prior year's net loss of $49 mn. Annual
sales fell to $30.15 bn from $36.62 bn a year ago. Looking forward, for Q1, Motorola expects a loss in the
range of $0.10 to $0.12 per share, excluding items. For Q1, Motorola expects a loss, which is wider than
both last year's reported loss and analysts' current estimates.
Ford Jan US sales drop 40.2% YoY
Ford Motor has announced that its January US sales dropped 40.2% from a year ago,
hurt by sharp decline in vehicle demand due to the ongoing recession and tight credit
conditions. The Dearborn, Michigan-based automaker said it sold 93,506 vehicles in
January, down from 156,391 vehicles sold in the same month last year. For December
2008, the automaker had reported a 32.4% drop in U.S. vehicle sales. This marks the fourteenth
consecutive decline of monthly US sales for Ford. Retail sales to individual customers were down 27% in
January, and fleet sales fell 65%, including a 90% decline in sales to daily rental customers. For the full year
2008, Ford reported a net loss of $14.6 bn, compared to a net loss of $2.7 bn for the full year 2007.
Revenue for the full year 2008 fell to $146.3 bn from $172.5 bn in the previous year.
Dow Chemical slips to loss in Q4
                  Diversified chemical firm The Dow Chemical has reported a loss for the fourth quarter,
                  compared with a profit last year, hurt by charges, sharp declines in sales and volumes as
                  well as lower prices, reflecting the global economic downturn. For Q4, its net loss was
$1.55 bn, compared with a net income of $472 mn, in the year-ago quarter. Excluding items, the loss per
share for the quarter was $0.62, versus a profit per share of $0.84 in the prior-year period. Dow's quarterly
net sales declined 23% to $10.9 bn from $14.23 bn in the prior-year quarter. The Company also witnessed a
6% fall in price during the quarter, as a 4% increase in its Performance segments was more than offset by a
15% decline in its Basics segments. For Fiscal 2008, Dow earned $579 mn lower than $2.89 bn a year ago.
Full-year net sales rose 7% to $57.51 bn from $53.51 bn in fiscal 2007.
Merck turns to profit in Q4; reaffirms FY09 outlook
Merck & Company has reported a $1.6 bn profit in Q4, as against $1.6 bn loss last year. The
Whitehouse Station, New Jersey-based company has reported GAAP net income for the
fourth quarter of $1.64 bn, compared to a GAAP net loss of $1.63 bn for the year-ago quarter. Excluding
items, non-GAAP earnings for the fourth quarter were $0.87 per share, compared to $0.80 per share in the
prior year quarter. In CY08, the Company reported GAAP net income of $7.8 bn, compared to $3.3 bn in
CY07. Sales for the full year 2008 declined 1% to $23.85 bn from $24.20 bn in 2007. Looking forward,
Merck reaffirmed its full year 2009 financial outlook, which calls for revenue of $23.7 bn to $24.2 bn, GAAP
earnings of $2.95 to $3.17 per share and non-GAAP earnings of $3.15 to $3.30 per share.
•   Mattel Inc. has reported a 46% fall in Q4 profit, hurt by lower sales mainly in its Girls & Boys Brands and Fisher-Price Brands.
    Worldwide gross sales for the company's core brands such as Barbie, Hot Wheels and Core Fisher-Price were down 21%, 22% and
    9%, respectively. In Q4, Mattel reported net income of $176.4 mn, as against $328.5 mn in a year quarter. Quarterly net sales were
    $1.94 bn, an 11% decline from $2.19 bn last year.



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



                                                   GLOBAL
Panasonic reports ¥63,116 mn loss in Q3
                     Japanese consumer electronics giant Panasonic Corporation has reported ¥63,116 mn
                     ¥net loss in Q3FY09, compared to ¥115,183 mn in Q3FY08. Its quarterly net sales
decreased 20% to ¥1,879.9 bn from ¥2,344.6 bn in the comparable quarter last year. While domestic sales
for the quarter decreased 10% to ¥1,023.4 bn, overseas sales dropped 29% to ¥856.5 bn, compared to a
year before. In light of the continuing deterioration in both domestic and overseas markets conditions, the
company also revised down its financial outlook for FY09. Panasonic now expects to report a loss of ¥380 bn,
down from the previous forecast of a profit of ¥30 bn. The Company now expects net sales of ¥7,750 bn,
down from its prior guidance of ¥8,500 bn. Panasonic also lowered its consolidated operating profit to ¥60
bn, down from the previous forecast of ¥340 bn. Panasonic said that it is planning to close 27 manufacturing
sites (13 in Japan and 14 overseas) resulting in 15,000 job cuts by the end of March 2010.
Deutsche Bank incurs € 4.81 bn loss in Q4
German financial services firm Deutsche Bank AG has reported a hefty loss for the fourth quarter,
as significant losses in key businesses drove negative revenues under challenging operating
conditions. Its Q4 net loss stood at €4.81 bn, as against €969 mn net income in the year ago
quarter. During the quarter, its net interest income grew to €3.76 bn from €2.69 bn in a year ago. The
Company posted a non-interest loss of €4.65 bn, in comparison with a total non-interest income of €4.6 bn
in the prior-year quarter. Net revenues for the quarter were negative €885 mn, versus positive €7.3 bn in
Q4CY07.. The Bank sees the difficult conditions for the global economy to continue going forward, posing
significant challenges for its clients and industry.
Roche expects to continue to perform strongly in 2009
             Roche has reported fiscal 2008 net income of Swiss ₣10.84 bn, compared to Swiss ₣11.44 bn
             last year. Sales declined to Swiss ₣45.62 bn from Swiss ₣46.13 bn a year ago. Roche Group
             expects to continue to perform strongly in 2009. Full-year sales in both the pharmaceuticals
and the diagnostics division are expected to grow ahead of the market, with increases in the mid-single-digit
range in local currencies. Despite the higher research and development costs involved and the expected
lower net financial result, the group is aiming for Core Earnings per share at constant exchange rates to
remain at the same high level as in 2008.
SAS to cut at least 3,000 jobs, raise capital
Scandinavian Airlines System (SAS) is planning to cut at least 3,000 jobs and seek Kronor 6-
bn (about US$718.5 mn) capital increase. The airline is launching a Core SAS program of
reorganizations which would be supported by a new Rights Issue, supported by SAS's three
government owners and the airline's largest private shareholder, the Wallenberg Foundations.
JP Morgan, Nordea and SEB have also confirmed their intention to participate in the deal. The reorganization
will affect about 9,000 employees, including 3,000 outright redundancies. An additional 5,600 positions are
expected to be eliminated through outsourcing or divestment, including 3,000 employees who left SAS when
it sold Spanair. The plan would help streamline the operations of SAS and save Kronor 4 bn (about US$479
mn) between 2009 and 2011. The Stockholm-based company has posted Kronor 6.32 bn net loss (about
US$757 mn) last year, after a profit of Kronor 636 mn (about US$76.2 mn) in 2007.
Pfizer suspends trial of pancreatic cancer drug Axitinib
               Pfizer Inc. has discontinued a late-stage trial of its investigational agent Axitinib for advanced
               pancreatic cancer, as no further improvement in the primary endpoint of survival was seen.
               The development is yet another blow for Pfizer that is presently undergoing a tough time with
               a slump in sales and lower profit. Based on an interim analysis, an independent Data Safety
Monitoring Board found no evidence of improvement in the primary endpoint of survival in patients treated
with Axitinib and Gemcitabine, compared to Gemcitabine alone, the current standard of care for patients
with advanced pancreatic cancer. It notified all clinical trial investigators involved in the study and regulatory
agencies of these interim findings and recommended that patients discontinue treatment with Axitinib.
Walt Disney Q1 profit declines
Diversified media and entertainment company Walt Disney Company has announced that
its first quarter earnings fell 32% from last year, as many of its businesses were impacted
by the economic downturn. The Burbank, California-based company reported net income
for the first quarter of $845 mn, compared to $1.25 bn for the year-ago quarter. Total
revenues for the first quarter fell 8% to $9.60 bn from $10.45 bn in the same quarter last year. Nineteen
analysts had a consensus revenue estimate of $10.07 bn for the first quarter.



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



                                                            GLOBAL
BHP Billiton H1 profit drops 57%
         World's largest miner BHP Billiton Group has reported a 56.5% plunge in profit for the first half of
         fiscal year 2009, hurt by impairment charges as well as a slump in prices and waning demand. The
         Melbourne, Australia-based mining giant reported attributable profit of US$2.62 bn for the first half,
         56.5% lower than US$6.02 bn in the same period last year. Pre-tax profit was US$6.89 bn for the
period, down from US$9.15 bn last year. Its revenues for the first half rose 16.6% to US$29.78 bn from
US$25.54 bn in the same period last year. For the first half, petroleum revenues rose 28.8% YoY to US$4.21
bn, but base metals revenues dropped 49.9% to US$3.29 bn. Iron ore revenues soared 68.3% to US$6.02
bn, energy coal revenues climbed 50.1% to US$4.36 bn, metallurgical coal revenues jumped 158.6% to
US$4.91 bn and manganese revenues surged 89.1% to US$1.92 bn. Meanwhile, aluminum revenues
dropped 8.2%, and stainless steel materials revenues plunged 54.5% from last year.
Suzuki cuts full-year profit outlook
Suzuki Motor Corporation has cut its full-year net profit forecast by 63% and operating profit
outlook by a third as a chronic global recession hits demand for new automobiles and a stronger
¥erodes the value of its exports. Suzuki cut its forecast on slowing sales in Europe and India and
a stronger yen. Industry-wide car sales in India, the biggest market for Suzuki, have fallen in five
of the past six months. Car sales in India have been slipping due to tight credit and a slowing
economy, but not as fast as the drops in the US and Europe. Suzuki said that it is also decided to review its
three-year plan, announced in April last year, to achieve ¥4 trillion in consolidated sales because of a
substantial change in the economic environment. It lowered its 2008-09 revenue forecast to ¥3 trillion from
¥3.2 trillion, and said that it would try to become leaner to be able to make money on revenues of just ¥2.5
trillion.
Chevron Q4 profit edges up to $4.9 bn
            Chevron Corporation, the second largest US oil company, has announced that its fourth quarter
            profit rose slightly despite a 26% revenue drop, as a hefty gain on asset swap and sharply
            higher earnings from its downstream operations more than offset lower income from its
            upstream business. San Ramon, California-based Chevron reported $4.90 bn net income in
            Q4CY08, as compared to $4.88 bn net income in Q4CY07. Total revenue and other income fell to
$45.20 bn from $61.41 bn a year ago, while the sales and other operating revenues declined to $43.15 bn
in Q4CY08, as against $59.90 bn in Q4CY07. In CY08, the Company reported $23.93 bn net income,
compared to $18.69 bn in CY07. Total revenue and other income in CY08 rose to $273.01 bn from $220.9
bn in 2007.
Chevron to hike daily output by 1 lakh barrels
The US oil company Chevron is to increase its crude oil production from 520,000 barrels per day (BPD) now
to 620,000 BPD at the end of this year. The increase of oil production is due to the official operation of the
Tombwa-Landana oilfield situated on the Block 14 in the Angolan offshore water territory, a Chevron official
has been cited as saying in a news report. The reservoir will have a production capacity of 100,000 BPD,
under US$1 bn investment in seismic, prospecting, drilling and project implementation works. Chevron will
continue upgrading its workforce involving 3,000 Angolans in order to improve work efficiency and safety
while increasing oil productivity. Chevron's investments and its associates are expected to increase to over
US$10 bn by 2010. As one of the world's leading oil companies, Chevron operates oil exploration and
production activities in Angola's northern Cabinda and Zaire provinces. Its main projects will include the
construction of an LNG plant in Soyo, Zaire province with a processing capacity of 5 MTPA.
Exxon Mobil reports 33% drop in Q4 profit
Exxon Mobil Corporation, the world's largest oil company, has reported a 33% drop
in fourth quarter profit, hurt by lower crude oil prices, higher operating expenses,
lower chemical volumes and the impact of the Gulf Coast hurricanes. However, the Company's quarterly
earnings per share came in above analysts' expectations. Irving, Texas-based Exxon Mobil has reported
$7.82 bn net income in Q4CY08, as compared to $11.66 bn net income in Q4CY07. Total revenues and other
income for the quarter declined 27% to $84.70 bn from $116.64 bn in the previous year period. However,
Exxon Mobil's full year 2008 net income increased to $45.22 bn from $40.61 bn in 2007, thus creating a US
record for annual profit.
•   Europe's largest oil company Royal Dutch Shell plc has posted a loss in Q4 on lower oil prices and lower production volumes due to
    the impact of the hurricanes. This is the first loss for the company in a decade. The Hague, Netherlands-based company posted
    $2.81 bn net loss, as against $8.48 bn net income in a year-ago quarter.



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



                                                                GLOBAL
Rio Tinto to sell potash assets, Brazilian iron ore operations to Vale
                    Rio Tinto has ed to sell its undeveloped potash assets and Brazilian Iron Ore operations to
                    Companhia Vale do Rio Doce SA, Brazil's largest miner. The total sales proceeds of US$1.6
                    bn comprise US$850 mn for the potash assets and US$750 mn for the Corumbá mine
                    assets. The proceeds from the divestments will be used in Rio Tinto's plans to reduce its
                    hefty debt by US$10 bn in 2009. Rio Tinto's latest announcement is part various cost
cutting and debt reduction measures announced in December in response to the unprecedented rapidity and
severity of the global economic downturn, which has caused sharp falls in commodity prices and a
significantly weaker outlook. Rio Tinto, which combines UK-based Rio Tinto plc, and Australia-based Rio
Tinto Ltd., noted that the latest divestment of potash assets largely encompassed the first potash project in
Argentina, Potasio Rio Colorado or PRC, which is a tier 1 asset in the Malargüe department in the province of
Mendoza. The sale also includes Regina Potash, a large 1,200km property east of the Belle Plaine mine in
Saskatchewan, Canada, which is currently at early evaluation stage and is located close to existing
infrastructure.
Caterpillar to cut another 2,110 jobs at Illinois facilities
                         Construction and mining equipment maker Caterpillar Inc. has announced that it
                         would lay off another 2,110 production employees at its three Illinois manufacturing
facilities, in order to bring the production levels in line with current demand. The Company also noted that it
is currently determining the level of layoffs and separations needed in other business units. In addition to
the production employees, the Company said it would lay off 416 support and management employees in
Aurora, Decatur and East Peoria. This includes 96 support and management staff in Aurora, 146 in Decatur
and 174 in East Peoria. Peoria, Illinois-based Caterpillar said it is currently determining the level of layoffs
and separations needed in other business units to reach the previously announced plan to reduce the
company's support and management workforce. The company cited lower demand for products made at the
Illinois facilities for the workforce reduction. Earlier this Monday, Caterpillar, while reporting its fourth
quarter results, said it has initiated actions to remove about 20,000 workers, which include full-time
employees, as well as temporary, contract and agency workers.
Amazon.com Q4 earnings up 9% YoY
Online retailer Amazon.com, Inc. has announced that its Q4 earnings rose 9%
from last year, as strong promotions and discounts lured more shoppers to its
website during the holiday shopping season. The Seattle, Washington-based
company reported net income for the fourth quarter of $225 mn, compared to $207 mn for the year-ago
quarter. Operating income for the quarter edged up to $272 mn from $271 mn year ago, while the net sales
for the quarter increased 18% to $6.70 bn from $5.67 bn in Q4CY08. For CY08, the Company reported net
income of $645 mn, compared to $476 mn in CY07, while the net sales in CY08 increased 29% to $19.17 bn
from $14.84 bn in CY07. Looking forward to the first quarter, the company expects operating income of
$125 mn to $210 mn and net sales of $4.525 bn to $4.925 bn. Analysts currently expect the company to
earn $0.31 per share on revenue of $4.57 bn for the first quarter.
•   Brazilian mining giant Companhia Vale do Rio Doce (Vale) has announced that an agreement has been reached with eight trade
    unions on sending 17,800 workers on temporary paid-leave. Under the agreement, Vale employees will receive half of their regular
    wages per month plus a compensation of Reais 856 (US$368) while on leave. The Company committed to maintaining, until May 31,
    the jobs of all workers who accept the leave deal.
•   Samsung has launched an online mobile applications store. The online store called Samsung Mobile Applications allows innovator
    members to sell their applications via the website. The online store is initially focused on the UK. The store will be officially launched
    at the Mobile World Congress in Barcelona with 1,100 applications. The store will support both Symbian S60 and Windows Mobile
    applications, with further upgrades planned for later this year.
•   Convergys Corporation, a global leader in relationship management, has reached an agreement with its largest shareholder, JANA
    Partners LLC, to expand its Board to 14 directors with three new directors, one of whom is affiliated with JANA.
•   ConocoPhillips has posted $31.76 bn net loss, as compared $4.37 bn net income in the prior year quarter. The result for the latest
    quarter included a $25.443 bn impairment of Exploration & Production segment goodwill, a $7.410 bn impairment related to its
    investment in Russian producer OAO Lukoil, and other asset impairments of $1.251 bn.
•   Murphy Oil Corporation has reported net income for the fourth quarter of $158.5 mn or $0.83 per share, compared to $206.1 mn
    or $1.07 per share for the year-ago quarter. Revenue for the third quarter fell 21% to $4.43 bn from $5.61 bn in the same quarter
    last year.
•   Gameloft has signed a licensing agreement with News Corporation Fox Mobile Entertainment to develop, publish and distribute the
    official mobile game of the upcoming Fox action adventure-comedy Night at the Museum: Battle of the Smithsonian.
•   Time Warner has reported a $16 bn loss for its fourth quarter, hurt by huge asset impairments in its AOL, Cable and Publishing
    segments. Time Warner's total fourth quarter revenues declined 3% to $12.31 bn from $12.64 bn a year ago.
•   New York-based media conglomerate News Corporation has posted a $6.42 bn loss in second quarter, as against $832 mn net
    income in the year-ago quarter. The Company has reported $7.6 bn operating loss in Q2, as against $1.4 bn operating income
    reported a year ago, while the Q2 revenues fell 8.4% to $7.87 bn, as against $8.59 bn in the same quarter last year.


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



                                              FINANCIAL SCOREBOARD
ACC has posted Rs. 12,127.843 mn (Audited & Standalone) net profit in FY09, as against Rs. 14,385.87 mn in FY07, registering a decline
of 15.7% on YoY basis. The Group has posted Rs. 10,996.465 mn (Audited & Consolidated) net profit in FY09, as against Rs. 14,273.365
mn in FY007. Its Board of Directors has recommended payment of 100% final dividend i.e. Rs. 10 per equity share of Rs. 10 each.
Adlabs Films has posted Rs. 335.444 mn (Unaudited & Standalone) net loss in Q3FY09, as against Rs. 204.969 mn net profit in Q3FY08.
The Group has posted Rs. 268.688 mn (Unaudited & Consolidated) net loss in Q3FY09, as against Rs. 217.272 mn net profit for the
quarter ended December 31, 2007.
Bhushan Steel has posted Rs. 207.4 mn (Unaudited) net profit in Q3FY09, as against Rs. 745.7 mn in Q3FY08, registering a decline of
72.2% on YoY basis. Its total income has increased to Rs. 10,064 mn in Q3FY09 from Rs. 9,906 mn in Q3FY08.
DLF has posted Rs. 1,780.6 mn (Unaudited & Standalone) net profit in Q3FY09, as against Rs. 6,058.4 mn net profit in Q3FY08,
registering a decline of 70.6% on YoY basis. The Group has posted Rs. 6,707.9 mn (Unaudited & Consolidated) net profit in Q3FY09, as
against Rs. 21,449.8 mn net profit in Q3FY08.
Essar Oil has posted Rs. 12,300 mn (Unaudited) net loss in Q3FY09, as against Rs. 140 mn net loss in Q3FY08. Its total income has
increased to Rs. 84,270 mn in Q3FY09 from Rs. 1,500 mn in Q3FY08.
Gujarat State Petronet has posted Rs. 276.387 mn (Unaudited) net profit in Q3FY09, as against Rs. 251.982 mn in Q3FY08, registering
a rise of 9.7% on YoY basis. Its total income has increased to Rs. 1232.828 mn in Q3FY09, as against Rs. 1202.583 mn in Q3FY08.
Grasim Industries has posted Rs. 3,295.6 mn (Unaudited & Standalone) net profit in Q3FY09, as against Rs. 5,537.9 mn net profit in
Q3FY08, registering a decline of 40.5% on YoY basis. The Group has posted Rs. 4,595.5 mn (Unaudited & Consolidated) net profit in
Q3FY09, as against Rs. 7,209.9 mn net profit in Q3FY08.
GVK Power & Infrastructure has posted Rs. 330 mn (Unaudited & Standalone) net profit in Q3FY09, as against Rs. 355.5 mn net profit
in Q3FY08, registering a decline of 7.2% on YoY basis. The Group has posted Rs. 223 mn (Unaudited & Consolidated after minority
interest) for net profit the quarter ended December 31, 2008 as compared to Rs. 403.5 mn in Q3FY08.
Ispat Industries has posted Rs. 6,517.1 mn (Unaudited) net loss in Q3FY09, as compared to Rs. 360 mn net loss in Q3FY08. Its total
income has decreased to Rs. 11,235.5 mn in Q3FY09 from Rs. 21,805.6 mn in Q3FY08.
Jai Corp has posted Rs. 148.7 mn (Unaudited) net profit in Q3FY09, as against Rs. 388.1 mn in Q3FY08, registering a decline of 61.7%
on YoY basis. Its total income has decreased to Rs. 980.2 mn in Q3FY09 from Rs. 1,295 mn in Q3FY08.
Lanco Infratech has posted Rs. 587.319 mn (Unaudited & Standalone) net profit in Q3FY09, as against Rs. 389.14 mn in Q3FY08,
registering a rise of 50.9% on YoY basis. The Group has posted Rs. 798.788 mn (Unaudited & Consolidated) net profit in Q3FY09, as
against Rs. 795.44 mn in Q3FY08.
Mahindra & Mahindra has posted Rs. 11.966 mn (Unaudited & Standalone after special adjustments) net profit in Q3FY09, as against
Rs. 4,051.533 mn in Q3FY08, registering a substantial decline of 99.7% on YoY basis. The Group has posted Rs. 266.7 mn (Unaudited &
Consolidated after minority interest) net profit in Q3FY09, as against Rs. 4,029.1 mn in Q3FY08. Its Gross Revenue & Other Income has
to Rs. 63,540.4 mn in Q3FY09 decreased from Rs. 67,740.7 mn in Q3FY08.
Parsvnath Developers has posted Rs. 53.379 mn (Unaudited & Standalone) net profit in Q3FY09, as against Rs. 1,146.57 mn in
Q3FY08, registering a massive decline of 95.3% on YoY basis. The Group has posted Rs. 54.217 mn (Unaudited & Consolidated) net profit
in Q3FY09, as against Rs. 1,125.72 mn in Q3FY08.
Rashtriya Chemicals & Fertilizers (RCF) has posted Rs. 687.8 mn (Unaudited) net profit in Q3FY09, as against Rs. 601.2 mn in
Q3FY08, registering a rise of 14.4% on YoY basis. Its total income has increased to Rs. 23,336.9 mn in Q3FY09 from Rs. 14,042.6 mn in
Q3FY08.
Sun Pharmaceutical Industries has posted Rs. 2,566.8 mn (Unaudited & Standalone) net profit in Q3FY09, as against Rs. 3,459.3 mn
in Q3FY08, registering a decline of 25.8% on YoY basis. The Group has posted Rs. 4,086.4 (Unaudited & Consolidated) mn net profit in
Q3FY09, as against Rs. 3,183.5 mn in Q3FY08.
Steel Strips Wheels has posted Rs. 286 mn net profit in Q3FY09, as against Rs. 364 mn net profit in Q3FY08, registering a decline of %
on YoY basis. Its net profit stood at Rs. 746 mn for the 9 months ending on December 31, 2008, as against Rs. 1,133 mn in the year ago
period.
Unitech has posted Rs. 195 mn (Unaudited & Standalone) net profit in Q3FY09, as against Rs. 3,689.2 mn net profit in Q3FY08,
registering a whopping decline of 94.7% on YoY basis. The Group has posted Rs. 1,360.5 mn (Unaudited & Consolidated) net profit in
Q3FY09, as against Rs. 5257.80 mn in Q3FY08.
Videocon Industries has posted a net profit of Rs. 604.3 mn (Unaudited) in Oct-Dec’08 quarter, as against Rs. 2,494.9 mn in Oct-
Dec’07 quarter, registering a massive decline of 75.8% on YoY basis. Its total income has decreased to Rs. 20,806.2 mn in Oct-Dec’08
quarter, as against Rs. 23,968.8 mn in Oct-Dec’07 quarter.




                                                                                                              Asim Mohapatra
                                                                                                                   Content Editor
                                                                                           asim.mohapatra@sushilfinance.com
                                                                                                      Tel: + 91 22 4093 5082




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



                    Rating Scale
                    This is a guide to the rating system used by our Equity Research Team. Our rating
                    system comprises of six rating categories, with a corresponding risk rating.
                    Risk Rating

                     Risk Description                Predictability of Earnings / Dividends; Price
                     Low Risk                        High predictability / Low volatility
                     Medium Risk                     Moderate predictability / volatility
                     High Risk                       Low predictability / High volatility

                    Total Expected Return Matrix

                          Rating                    Low Risk                      Medium                     High Risk
                          Buy                       Over 15 %                     Over 20%                   Over 25%
                          Accumulate                10 % to 15 %                  15%             to         20%             to
                          Hold                      0% to 10 %                    0% to 15%                  0% to 20%
                          Sell                      Negative                      Negative                   Negative
                          Neutral                   Not Applicable                Not                        Not
                          Not Rated                 Not Applicable                Not                        Not
                    Please Note
                        Recommendations with “Neutral” Rating imply reversal of our earlier opinion (i.e. Book
                    Profits / Losses).
                        ** Indicates that the stock is illiquid With a view to combat the higher acquisition cost for illiquid
                        stocks, we have enhanced our return criteria for such stocks by five percentage points.

                    “Desk Research Call” is based on the publicly available information on the companies we find interesting
                    and are quoting at attractive valuations. While we do not claim that we have compiled information based
                    on our meeting with the management, we have taken enough care to ensure that the content of the report is
                    reliable. Although we have christened the report as “Desk Research Calls” (DRC), we intend to release
                    regular updates on the company as is done in our other rated calls.

                    “Early Signals Stock Pick” is a follow-up report on the stocks covered earlier in our product “Early
                    Signals”. While we do not claim that we have compiled information based on our meeting with the
                    management, we have taken enough care to ensure that the content of the report is reliable. Although the
                    stock is not covered as a part of our normal rated calls, based on our analysis of the company, we find the
                    company interesting at the current valuations and believe it could give decent returns over the coming 12 to
                    18 months.

                    Additional information with respect to any securities referred to herein will be available upon
                    request.
                    This report has been prepared for information purposes only and is not a solicitation, or an offer, to buy or
                    sell any security It does not purport to be a complete description of the securities, markets or developments
                    referred to in the material. The information, on which the report is based, has been obtained from sources,
                    which we believe to be reliable, but we have not independently verified such information and we do not
                    guarantee that it is accurate or complete. All expressions of opinion are subject to change without notice.
                    Sushil Financial Services Private Limited and its connected companies, and their respective directors, officers
                    and employees (to be collectively known as SFSPL), may, from time to time, have a long or short position in
                    the securities mentioned and may sell or buy such securities. SFSPL may act upon or make use of
                    information contained herein prior to the publication thereof.




Weekly Newsletter                                                                                                               34

				
DOCUMENT INFO