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11 Pages 20th MAY 2011 – 26th MAY 2011 www.xedintellect.com

IN BRIEF
COVER STORY ECONOMIC
INDICATORS
India Vs China: Racing for Global Supremacy (as on 26.05.2011)
BSE SENSEX 18,040
NSE NIFTY 5,411
RS/Pound 73.84
PERSONALITIES OF THE WEEK

45

PERSONAL COMPUTER
INDUSTRY

NEWS DIGEST…

BUSINESS NEWS INTERNATIONAL MISCELLANEOUS COMPILED BY

NEWS NEWS

India Beats China “Dabangg” Wins

in Internet China Is Now Wholesome
Contribution to GDP Top Gold Bug Entertainment
Award
ECONOMIC INDICATORS 2 COVER STORY 3 PERSONALITIES OF THE WEEK 4 BUSINESS NEWS 5-8
INTERNATIONAL NEWS 9 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11
 TOP 10 HEADLINES OF THE WEEK

1. India Beats China in Internet Contribution to GDP.

2. India Inc faces talent shortage: Manpower.
3. Indian Bank tops RoA chart of PSU banks.
4. Lower rates, hedging costs make dollar loans a hit among Indian corporates.
5. Government decides to sit on taxpayers' money; may delay income-tax refunds.
6. Counter the Dragon: India ups Africa Game.
7. China Is Now Top Gold Bug.
8. Luxury brands under M&A pressure.
9. “Dabangg” Wins Wholesome Entertainment Award.
10. Kanimozhi Denied Bail, Sent to Tihar.

ECONOMIC INDICATORS
th
Current Market Rates as on 26 May‟11 Values Stock Market Indices as on 26th May‟11 Values
Rupee / Euro 64.18 BSE SENSEX 18,040
Rupee / Pound 73.84 NSE (NIFTY) 5,411

The Gini Coefficient is one way to measure how evenly the income
(or wealth) is distributed throughout a country.

There will always be rich and poor, but we are interested in

understanding how evenly wealth is distributed and most governments‘
at-least the ones with socialistic outlook put effort into keeping the Gini
coefficient as low as possible.

Each year since 1990 the Human Development Report has published
the Human Development Index which was introduced as an
alternative to conventional measures of national development, such as
GDP growth rate. The HDI provides a composite measure of three basic
dimensions of human development: health, education and income.
Between 1980 and 2010 India's HDI rose by 1.6% annually from 0.320
to 0.519 today, which gives the country a rank of 119 out of 169
countries with comparable data.
 COVER STORY: India v/s China: Racing for Global Supremacy

Lets make things clear first, despite all the talk about Indian software engineers and Nobel laureates and Chinese
engineering whizzes, India‘s illiteracy rate is nearly 40 percent and China‘s is nearly 10 percent according to World
Bank statistics. Of the total of 2.3 bn people in these two countries, nearly 1.5 bn earn less than US$2 a day. The
opportunities in both these countries are of course substantial but the challenges are also large.

China vs. India- Current Scenario In terms of political systems, China is a communist country which
Facts India China economically is following market reforms that encourage free trade
GDP growth 8.90% 9.60% and capitalist-based business models. India, by comparison, is the
Per capital GDP $1,124 $7,518 world‘s largest democracy and has been reforming itself to follow
Inflation 7.48% 5.10% more free trade and capitalist-based models. China has been
Fiscal Deficit 5.50% 21.50%
reforming its economy since 1978; India has been working since
Foreign Direct Investment $12.4 bn $9.7 bn 1991 but at a faster rate of speed.
Gold Reserves 15% 11%
Foreign Exchange Reserves $2.41 bn $2.65tn China is the world‘s third largest nation in terms of manufacturing
World Prosperity Index 88Th 58th after the U.S. and Japan. India is at number 12th. India however
Mobile Users(in mn) 842 687.71 remains the leader raking in an estimated $70 bn annual IT
Internet Users(in mn) 123.16 81 services revenues (both domestic and offshore outsourcing), while
China has about $20 bn overall. India has introduced a tax regime
that is more advantageous in the Special Economic Zones than China. SEZs in India do not discriminate between
manufacturing and services and either can offer the tax incentives, which is not the case in China where Service
companies are treated less favorably for incentives.

Company Development: Indian capital markets far exceed their Chinese counterparts in terms of transparency and
predictability. Indian companies can list domestically on the Bombay Stock Exchange which is Asia‘s oldest exchange.
Though China has both the Shanghai and Shenzhen stock exchanges but the difference is that BSE runs on
international standards and has tremendous stability in the quality of its companies. On the other hand, China‘s
Securities Commission has no powers to impose punishments. Further, as the government is the major stockholder of
its State-owned enterprises, all these firms are not subject to independent policing and true financial analysis.

Company Management Capabilities: An important factor behind China not doing well in the business forefront is
that most of the countries came to China and manufactured their goods. It was not China‘s exports that drove the
economy; instead it was the export products of outsiders. Even in the case of mergers and acquisitions China still has
not managed to do too well. On the other hand Indian companies are rapidly expanding mergers and acquisitions.
Some of the recent examples include; Tata Steel's $13.6 Billion Acquisition of Corus, Tata Tea's purchase of a
controlling stake in Britain's Tetley for US$407 million etc.
China vs. India 2030 Global Forecast
The Manufacturing Hub: China‘s rapidly aging population, Item China India
followed by its one-child policy, is set to dramatically shrink its Size of economy globally 2nd 4th
Position in purchasing power parity 2nd 3rd
workforce and effectively pass the baton to India as the world‘s
Position in fast growing economies 20th 12th
manufacturing hub. Moreover, China is becoming a consumer
Per capita income (US $) 10,700 8,900
market to sell to, rather than a global manufacturing hub.
Number of workers(mn) 175 600
Population growth rate 0.82% 1.01%
Comparison in Sourcing Potential: Two-thirds of India and Percentage of global trade 8% 5.50%
Chinas‘ domestic suppliers of automotive industry were able to Total rail track(km) 200,000 130,000
provide inputs with defect rates of less than 100 parts per Total highway length(km in mn) 1.8 0.9
million – the typical threshold for suppliers in the US, Europe, Total English speakers(mn) 10 250
and Japan. The study also favored India for higher levels of
productivity; but in terms of capital intensity, delivery frequency and stock-turn ratios, China had the edge. The
average number of days a product sits in inventory favored China at 24.2 compared to India‘s 32.5.

China has more transport options available to its supply chains. Goods can be flown in and out of China by way of 500
airports whereas there are only 334 locations to take to the sky in India. China scores high in customs clearance,
infrastructure adequacy, logistics, timeliness and tracking ability than India. These infrastructure and logistical
differences may explain why India is a more common site for the outsourcing of services, particularly IT services,
which do not require a physical good to be brought to market. Even the levels of corruption is different in both the
places – with that at China being more of disguised as favors and connections; rather than in the form of ‗baksheesh‘
that is prevalent in India.

India catching up with Chinese economy: The country has just started to come in lime-light and its growth
patterns have mirrored that of China‘s at an average of about 8% annually until the financial crisis hit. India‘s
economy currently is in 12th position, and is likely to break into global top 10 in terms of size. By 2030, India will
have overtaken China both in terms of population and GDP growth rates.
 PERSONALITIES OF THE WEEK

Chanda Kochhar: The first woman boss of ICICI Bank

She is the MD and CEO of ICICI Bank, India‘s largest Private lender. In 2009 she was
ranked 20th in the Forbes ‗World's 100 Most Powerful Women list‘, she was the second
Indian just behind UPA head Sonia Gandhi at number 13.

Background: Chanda Kochhar was born in Nov 17, 1961 Jodhpur, Rajasthan. She joined
Jai Hind College for a Bachelor of Arts degree in Mumbai. After graduating in 1982 she
then pursued Cost Accountancy. Later, she acquired the Masters Degree in Management
Studies from Jamnalal Bajaj Institute of Management Studies, Mumbai

Climbing Success Ladder: She began her career with ICICI as a Management Trainee in
1984 and has thereon successfully risen through the ranks since then. In 1993 when ICICI
decided to enter commercial banking, she was deputed to ICICI Bank as a part of the core
team to set up the bank.

When ICICI set up the Infrastructure Industry Group in 1996 to create dedicated industry expertise in the areas of
Power, Telecom and Transportation sector, she was handpicked and made Incharge of the Infrastructure Industry
Group. In July 2000, she was chosen to head the Retail Finance division of ICICI. In April 2006, she was appointed as
the Deputy Managing Director with responsibility for both Corporate and Retail banking business of ICICI Bank. In
October 2007, she was appointed as the Joint Managing Director & CFO.

Recognition and Affiliations: Under Kochhar's leadership, ICICI Bank won the ―Best Retail Bank in India‖ award in
from 2001 to 2005 every year and ―Excellence in Retail Banking Award‖ in 2002. Kochhar personally was awarded
"Retail Banker of the Year 2004 by the Asian Banker, "Business Woman of the Year 2005" by The Economic Times.
She is honoured with Padma Bhushan Award, the third highest civilian honour by the Government of India for the year
2010 for her services to banking sector. She is also a member of the Prime Minister's Council on Trade & Industry,
US-India CEO Forum and Executive Board of the Indian School of Business, Hyderabad.

On women empowerment: She once famously quoted "Women should not expect any special advantages or favors.
If they want to grow, they have to put in the hard work and the hours and the travel that's required".

Jayalalitha: The Iron Lady of India

She was born on 24th February 1948 in Mysore, Karnataka and was named as
Komalavalli in a Tamil Iyengar family. Her father Jeyaram died when she was 2 years
old. She had her formal education at the Bishop Cotton Girls' High School in Bangalore.

Queen of Silver Screen: Jayalalitha made her debut as a teenager in a Kannada film
titled Chinnada Gombe (1964), which was a major hit and made her star overnight. She
also acted in an English movie, Epistle released in 1961. She made her Bollywood debut
through Izzat, in which she was paired opposite Dharmendra. She has also rendered her
voice for few songs in Tamil films picturised on herself.

Foray into Politics: She was nominated to the Rajya Sabha in 1988. Her association
with politics grew from her association with the Late M. G. Ramachandran, popularly known as M.G.R, a movie star
and Chief Minister of Tamil Nadu. After M.G.R's death, she was alienated by the party. Drawing on her massive
popularity, she won the elections to the Tamil Nadu legislative assembly in 1989. In 1991, following the assassination
of Rajiv Gandhi, her alliance with the Indian National Congress won with a massive victory. She then became the first
elected woman chief minister of Tamil Nadu.

Controversies: In 2001, a specially designated court convicted her of criminal breach of trust and of illegally
acquiring governmental land. She was sentenced to five years' imprisonment. On 21 st Sep 2001, Supreme Court of
India ruled that "a person who is convicted of a criminal offence and sentenced to imprisonment for a period of not
less than two years cannot be appointed the Chief Minister of a State‖. In effect, her appointment as Chief Minister
was declared null and invalid. In 2003, the Supreme Court acquitted her in the specific case. She then contested a
mid-term poll and won by a handsome margin to took over the Chief Ministership again.

DMK swept off: After winning the 2011 elections she immediately approved the distribution of four gram gold for
making thali (mangalsutra) free, along with marriage assistance of Rs. 50,000 to women with graduate degrees or
diplomas. She increased the monthly assistance from Rs. 500 to Rs. 1,000 for senior citizens and destitute women
and approved a six-month-long maternity leave for government women employees. She cleared these proposals as
part of fulfilling the electoral promises of her party.
 BUSINESS NEWS

1. India Beats China in Internet Contribution to GDP-ET May 25

Internet is changing our lives—the way we work, shop, search for information,
communicate, and meet people. Two billion people are now connected to the
internet, and this number is growing by 200 million a year. But the magnitude of the
economic impact of internet-related activities is not obvious.

A new McKinsey study finds that the internet has delivered significant economic
growth, created swathes of jobs and created wealth. In India, the internet
contributed 5% to GDP growth in the past 5 years compared with the average 3%
for Bric economies, says the study. Here is how internet contributes to
growth: Companies are able to keep costs down, target customers better and bring
goods and services to markets around the world much more easily. Individuals are
able to compare prices, search hard-tofind items or information, communicate and learn in new, improved
ways. Governments can serve citizens much more quickly and at a much lower cost through e-governance.

2. India Inc faces talent shortage: Manpower-ET May 20

Talent shortage is again becoming a worrying factor for Indian employers, said a
survey conducted by HR consulting firm Manpower. According to the survey, 67% of
employers in India are struggling to fill jobs, second only to Japan , where 80%
employers reported struggling to fill positions. The India figure is almost double of the
global average, which stood at 34%.

The survey further revealed that Indian employers are experiencing difficulty filling
critical positions within their organisations, which includes positions in research &
development, sales managerial positions and IT staff, compared to last year's jobs of
skilled trades, cleaners & domestic staff and accounting & finance staff. In fact, one in
three employers world-wide is struggling to fill key vacancies.

3. Indian Bank tops RoA chart of PSU banks-ET May 22

State-owned Indian Bank has fared better among the PSU banks by recording
highest returns on assets for the financial year ended March, 2011, according to an
analysis of the annual results. The Chennai based lender clocked an Return on Assets
(RoA) of 1.53 per cent for 2010-11, highest among 21 public sector banks. The
lowest RoA was generated by Bank of Maharashtra at 0.47 per cent.

RoA is an indicator of how profitable a company is relative to its total assets. It gives
an idea of the efficiency of the management in using its assets to generate earnings.
However, the country's largest lender State Bank of India (SBI) in its results declared
this week announced RoA of 0.71 per cent.

4. Lower rates, hedging costs make dollar loans a hit among Indian corporates- TNN May 26
Foreign loans have suddenly emerged as a very attractive proposition for Indian corporates
given the interest rate differential and a sharp drop in hedging costs. Top Indian
corporates can now raise fully hedge foreign loans at 100 to 200 basis points below
domestic loans. This arbitrage opportunity has led to banks seeing rising inquiries.

While Reserve Bank of India has been steadily raising rates for more than a year, the US
Federal Reserve has stayed away from rate hikes. "US dollar benchmark interest rates are
close to their historical lows. This, coupled with very tight credit spreads, have made
borrowing in USD a very attractive proposition. Even after swapping to INR, the all-in cost
works out to be attractive than rates available in the INR markets currently ," said Rajiv
Nayar, MD & head of Capital Markets Origination, Citi India.

5. Government decides to sit on taxpayers' money; may delay income-tax refunds-ET May 25
The finance ministry may delay income-tax refunds to cushion strained resources as
it fears a drop in revenue collection because of rising inflation and moderation in
growth.

In 2010-11, the board (CBDT) issued 8.5 million refunds totalling Rs 74,000 crore. In
April this year, it issued another 2 million refunds worth about Rs 23,000 crore. The
board's charter says it should aspire to refund excess tax, along with interest, within
six months in case of e-filing of returns and nine months when filed manually.
6. Counter the Dragon: India ups Africa Game-TNN May 25
India took a diplomatic leap in Africa on Tuesday, with PM Manmohan Singh pledging $5
billion for the continent‘s development. To put the figure in perspective, India‘s
healthcare budget is around $ 5.9 billion. This credit would be apart from $700 million
pledged for new institutions in Africa. Spreading out Indian presence from agriculture to
IT, tele-medicine to a virtual university, India now rivals China for top honours in the new
Great Game in Africa.

Hosting the second Africa-India Forum summit in Addis Ababa, Singh said, ―There is a
new growth story emerging from Africa. It possesses all the prerequisites to become a major growth pole of the world.
The India-Africa partnership is unique and owes its origins to history and our struggle against colonialism, apartheid,
poverty, disease and illiteracy. India will work with Africa to realize its vast potential.‖ And for all those who said only
China builds infrastructure for Africa, India announced a railway line between Ethiopia and Djibouti at a cost of $300
million.

7. Singur Minus 400 Acres is Yours: Mamata to Tatas-ET May 21

Chief Minister Mamata Banerjee has invited the Tatas to set up any factory they want on
600 acres at Singur, on the 997-acre plot leased out to them by the West Bengal
government. This was practically the first decision of her maiden cabinet meeting after
Banerjee stepped into Writers‘ Building on Friday.

―We have decided to return 400 acres to the farmers in Singur. But the Tatas are welcome
to set up a factory on the remaining 600 acres,‖ she announced. Last Friday, after the
election results were declared, Banerjee told ET that her government would invite large
private sector investments.The Singur fiasco had raged from 2006 to 2008, and even at its
worst, Banerjee had always stuck to two things: first, that 400 acres would have to be
returned to farmers who had unwillingly given up land, and, second, that she wasn‘t anti-
industry. She proved both right on Friday.

8. India allows FDI in limited liability partnership firms-IANS May 24

India Tuesday announced it would allow foreign direct investment (FDI) in limited liability
partnership (LLP) firms in a calibrated manner, a move that would help attract greater overseas
funds and latest technologies in the country.

Limited liability partnership firm is a new business structure in India formed under the Limited
Liability Partnership Act, 2008. A hybrid of existing partnership firms and full-fledged companies,
it is a separate legal entity, liable to the full extent of its assets with the liability of the partners
being limited to their agreed contribution in the firm. The Cabinet Committee on Economic Affairs
recently gave its approval to such investments.

9. NSE guilty of unfair trade practices: CCI- Financial Express May 25

Competition watchdog CCI today pronounced the National Stock Exchange (NSE) guilty
of abusing its dominant market position by adopting unfair trade practices in
connection with currency derivatives trading. However, the quantum of fine to be levied
on NSE is yet to be ascertained. This is second time CCI has sent a show cause notice
to NSE on the issue before taking a decision on the quantum of fine to be slapped on it.
The earlier show cause notice was challenged at the Bombay High Court.

Under the law, companies can be fined up to 10 per cent of their three year average profit. The MCX-SX in its
representation to the CCI in November 2009 had alleged that NSE had substantially reduced admission and trade
related fees to eliminate competition and discourage other entities from entering the market.

10. Non-banking finance companies to accept „paper gold‟ portfolios as security-ET May 24
Several non-banking finance companies have started disbursing loans on the back of
gold exchange traded funds and e-gold certificates, taken as lien on the borrowed
amount. Low know-your-client requirements and high-purity levels in gold are prompting
lenders to accept 'paper gold' portfolios as security.

According to Mr Srinivasan, know-your-client (KYC) requirements, quantity and purity of

physical gold and price of gold are the prime concerns while giving loan against gold. All
these factors are addressed if loans are disbursed using gold ETFs or savings fund
certificates as collateral deposit. The trend to pledge gold ETFs and gold savings
certificates (also called e-gold) is slowly catching up among affluent, savvy investors. NBFCs keep a 30-35% margin
on loans backed by gold ETFs and e-gold portfolios. Interest on portfolio borrowings are between 13% and 15%,
industry sources said.
11. Jet Airways Sinks to $44 Million Loss-TNN May 20
Jet Airways (India) Ltd. swung to a bigger-than-expected consolidated net loss for the fourth
quarter, as high jet fuel costs offset a rise in ticket prices. Jet Airways posted a net loss of 2
billion rupees ($44 million) for the January-March quarter, against a net profit of 2.25 billion
rupees a year earlier, said M. Shivkumar, the company's vice president for finance. Sales rose
15% to 36.56 billion rupees from 31.83 billion rupees, he said.

The average of estimates in a poll of seven analysts was for India's biggest airline by market
share to post a loss of 1.6 billion rupees on sales of 33.85 billion rupees. Fuel costs surged 54%
to 15.23 billion rupees from 9.92 billion rupees, Mr. Shivkumar said. He didn't provide other quarterly figures. Thanks
to brisk growth in air travel demand over the past year, airlines in India have lifted ticket prices, registering a rise in
sales. But rising prices of jet fuel--the biggest cost chunk for a local carrier--have severely dented margins.

12. HUL Finds New Buddies for its Rural Shakti-TNN May 25
In a bid to viably cover each of India‘s 6.38 lakh villages in which some 775 million people reside,
Hindustan Unilever (HUL) has initiated discussions with top telecom and banks & financial services
companies to create a joint distribution model. The maker of Lifebuoy soaps, Surf detergents and
Dove shampoos plans to ride on the progress made by its alternative distribution channel called
Project Shakti to penetrate deeper into rural India in a cost-effective manner.

HUL, which hopes to have a million outlets by end-2011 — up from 5.50 lakh last year, has unveiled a blueprint titled
Gateway to Rural: Beyond FMCG. HUL has initiated a pilot project with India‘s largest bank, State Bank of India, in
Maharashtra and Karnataka. HUL‘s Shakti Ammas — women who sell HUL‘s consumer products in rural India — have
doubled up as customer service providers and opened around 1,000 accounts for rural folk. The Indian rural market is
expected to grow more than 10-fold to become a $100-billion opportunity for retail spending in the next 15
years, according to market research firm The Nielsen Company.

13. Samsung zips past LG in India market after over 10 years-ET May 25
Samsung has overtaken arch rival LG in India after more than a decade of pitched battle to
become a bigger player in the Rs 1,10,000-crore Indian consumer electronics and mobile
handset market, thanks to its booming mobile handset business .

Data disclosed by the two firms to the Registrar of Companies (RoC) for 2009-10 show that
Samsung has, for the first time, outgrown LG in the country, both in revenues and profit.
Samsung India reported net sales of Rs 11,663 crore and net profit of Rs 402 crore for the year
ended March 2010, against LG India's Rs 10,691-crore net sales and Rs 347-crore net profit. The
success of the mobile handset business has been the game changer for Samsung in India, where it still trails LG in
most other consumer electronics and appliance categories, including refrigerators, washing machines, microwave
ovens, air-conditioners and televisions. But Samsung leads LG in the premium flat-panel TV market.

14. Mahindras Seal 27 Deals During Downturn-ET May 23

The $11-billion Mahindra Group snapped up as many as 27 assets, from software to automobiles
to aviation, in the last three years, taking advantage of the global economic downturn, but feels
that with the global recovery gaining momentum, the company may go slow.

―In the past three years, we did 27 transactions ... we are a very conservative group and we could
close so many transactions because of the slowdown when valuations were low,‖ said Mahindra
Group senior general manager for mergers and acquisitions Vijay Paradkar. However, he added: ―In the next two-
three years if the going is good, there will be only fewer such deals.‖ The best way to approach a transaction, said Mr
Paradkar, is to show no interest in the asset at all which ensures better valuation. Also, it is important to be low-key
and not let your name do the rounds of those interested in an asset, he said.

15. No children in Indian apparels, US told-ET May 23

Indian garment industry defended itself against charges of child labour and said the report
giving it a clean chit was prepared by a professional agency and not by the government as
believed by the US labour department. Northern India Textile Research Association (NITRA) is
an autonomous body , and not a government agency, the US was told on May 20 in
Washington , the day Indian textile industry officials asserted there were no instances of child
labour in the garment sector.

The country exports apparels worth $11.16 billion every year and runs the risk of losing clients
like GAP, Reebok or Adidas if it does not get off a US blacklist on countries countries employing
child labour. The US sources 30% of its global requirements from Indian units and believes child labour is engaged by
Indian clothes manufacturers.
16. LinkedIn Debut Heralds Dot Com Boom 2.0-ET May 21
It‘s not 1999, but the big internet IPO is back. Shares of LinkedIn, the professional social
network, more than doubled on their first day of trading, a surprising market debut that both
echoed the giddy exuberance of the last tech boom and heralded the coming of several
multibilliondollar internet companies, like Facebook, that are expected to go public in the next
12 months.

LinkedIn‘s shares opened on the New York Stock Exchange at $83 and closed at $94.25, giving the company a market
value of roughly $9 billion — more than four times the value of an early internet king, AOL. But this internet boom is
different in many ways from the last one. The companies going public have more than just ‗eyeballs‘ of Web users;
they have real businesses that report earnings and revenue. LinkedIn, for example, which makes money from
advertising, subscriptions and recruitment services, made $15.4 million last year on $243.1 million in revenue. And
unlike the late 1990s, there is no flood of new companies coming to market.

17. Japanese investors exiting emerging markets; dump Indian stocks-TNN May 23
Japanese funds have redeemed investments in Indian equities worth close to ¥19 billion or
$0.25 billion in April alone, as they increasingly look to reinvest in stocks of companies back
home which are now finding favour with some of the top global investors.

The trigger for this selloff has been the renewed interest among investors, including Marc
Faber, author of the Gloom, Boom and Doom report and a global investor, Goldman Sachs and
Deutsche Bank , who are now bullish on Japanese stocks, saying returns could be higher with
more firms there adding cash on their books. The rise in Nikkei close to 13% since March this
year, when the country was hit by a devastating earthquake, corresponded with losses in the
Indian markets with the 30-share Sensex sliding over 11% since the start of this year.

18. French car major Renault's 'Fluence' to roar on Indian roads-ET May 22
Following its global success, French car major Renault is all set to hit Indian roads with its
flagship luxury sedan "Fluence" tomorrow. After testing the vehicle for over one lakh
kilometres in the Indian roads, the auto major will formally launch the car in the country's
capital on Monday. According to industry experts, the sedan is likely to come with a price tag
in the range of Rs 10 lakh-Rs 12 lakh.

Both Nissan and Renault have embarked on a Rs 4,500 crore joint investment at the Chennai
plant spread over a period of seven years. The plant has a initial capacity of two lakh units,
which can be ramped up to four lakh units. Fluence would be available at 12 dealership outlets across the country
initially.

19. No withholding tax on foreign cos discounting subsidiary's bills-PTI May 25

Foreign corporates with subsidiaries in the country are not subject to payment of withholding tax
for financial services like discounting of bills provided to their Indian arms. In a ruling, the
Authority of Advanced Rulings (AAR) also held such companies are also not liable to pay income
tax in case the firm is based in a country which has a Double Taxation Avoidance Agreement
(DTAA) agreement with India.

The ruling came in response to an application filed by US-based ABC International. The firm has an
Indian subsidiary -- ABC India Pvt Ltd -- which is engaged in the business of trading food products and other
activities. ABC International provides various financial services to its subsidiary, including discounting of bills of
exchange or promissory notes and buying and underwriting negotiable instruments and commercial papers. The
company had sought to know whether income earned by it by way of providing financial services to its subsidiary is
liable to be taxed in India under the Income Tax Act, 1961, or the Double Taxation Avoidance Agreement between the
country and USA.

20. US realty turns hot property; Indians snapping up big housing deals-ET May 23
India-born American realtor Jaswant Lalwani hasn't been this busy since the housing crisis in
the US in 2008. "I have closed 10 deals with Indian buyers in the last three months. And I am
working on another 30," he says. The Manhattan-based realtor deals with all kinds of buyers,
but of late, he has got more business from Indian clients.

Rohit Prakash, based in Austin, Texas, has for long been doing brisk business helping
Americans and foreigners buy and sell property in the capital of one of America's biggest states. Recently, he set up
American Full House to cater to Indians looking to buy homes in locations that have seen a huge price drop. An Indian
buyer who contacted him sometime ago is close to doing two deals in a suburb of Los Angeles at $82,000 and
$85,000 each for a three-bedroom condominium. At the peak of the housing boom, these properties were selling at
close to $250,000.
 INTERNATIONAL NEWS

21. China Is Now Top Gold Bug-Yahoo News May 20

Chinese investors are snapping up gold bars and coins, buying more than ever before in the
first quarter of 2011 and overtaking Indian buyers as the world's biggest purchasers of the
metal. A growing middle-class in China is raising the appetite for gold there. Just before
investing in gold began to take off globally, India's physical gold demand accounted for 61%
of the world's total. China's was 9%.

China's investment demand for gold more than doubled to 90.9 metric tons in the first three
months of the year, outpacing India's modest rise to 85.6 tons, the World Gold Council said
in its quarterly report on Thursday. China now accounts for 25% of gold investment
demand, compared with India's 23%. Fears of the country's soaring inflation, as well as a search for new investments,
is luring investors to gold, and marketing of the precious metal has also increased in recent months.

22. Luxury brands under M&A pressure- Reuters May 25

Big luxury goods companies will be pressured to make acquisitions to grow even as stocks of
high-end retailers and brands make deals pricey and some targets are reluctant to even
listen to offers. "If I'm a Gucci or LVMH , I am confident I can do more faster with a given
asset by the virtue of owning it," said Shawn Kravetz, president of Esplanade Capital.

So far this year, luxury mergers and acquisitions have doubled the pace set for all of 2010,
according to data from Thomson Reuters. Luxury M& A totaled nearly $6.0 billion
through May 20, compared with $2.9 billion for full-year 2010. Retailers operating in greater
China, such as Trinity and YGM Trading Ltd , have been acquiring European brands as
increasingly wealthy Chinese consumers turn to expensive foreign brands for suits, handbags
and shoes.

23. After tough year, Dubai expats pack up, eye Asia-ET May 20
For lawyer Wilfred Goh, the sign it was time to leave Dubai came early in 2009, when the financial
crisis took its toll, plunging the emirate's main stock index down roughly 70 percent in a matter of
months. After speaking to friends and government officials, Goh decided to return to Asia, with the
thought that Hong Kong, China or Singapore offered better job opportunities. Goh, 47, eventually
got a job back home in Singapore.

The $26 billion debt debacle sank Dubai's markets and spurred many foreign professionals to
hasten their retreat from the city-state for more job security. Precise numbers of job losses is
unknown, but estimates say thousands of foreigners have been fired or forced to leave Dubai this
year. The defection of executives from Dubai to places such as Hong Kong looks to reverse a trend
seen about four years ago when financial and legal executives from Asia flocked to the emirate to capitalize on its
rapid expansion and economic growth. Dubai's zero percent tax rate also helped lure executives.

24. Hackers hit Sony sites raising more security issues- Reuters May 20
Sony Corp has been hacked again, exposing more security issues for the company less than a
month after intruders stole personal information from more than 100 million online user
accounts. A hacked page on a Sony website in Thailand directed users to a fake site posing as an
Italian credit card company. The site was designed to steal information from customers, Internet
security firm F-Secure disclosed on Friday.

It is the latest in a series of security headaches for Sony, which discovered in April hackers had
broken into its PlayStation Network and stole data from more than 77 million accounts. The
PlayStation attack, considered the biggest in Internet history, prompted the Japanese electronics giant to shut down
its PlayStation Network and other services for close to a month.

25. Boeing: New plane would be 20 pct more efficient-ET May 25

Boeing says any new plane that replaces its hot-selling 737 could be 20 percent more fuel
efficient. Boeing is trying to decide whether to put a new engine on the 737, or make an all-new
plane that would be sold around the end of this decade. Jim Albaugh, who runs Boeing Co.'s
commercial airplane business, told analysts on Tuesday that the technology should be available to
improve fuel efficiency by 20 percent.

That would be better than the 15 percent promised by Boeing competitor Airbus for the new-
engine version of its A320. That plane is expected in 2016. Boeing CEO Jim McNerney said the
company is leaning toward making a new plane, but it will maintain the option to go with a new
engine.
 MISCELLANEOUS NEWS

26. “Dabangg” Wins Wholesome Entertainment Award-TNN May 22

The 58th National Film Awards were announced Thursday evening, with actor Salman Khan‘s
2010 hit film ―Dabangg‖ – a story about a Robin Hood-like fearless cop – winning the award for
the Best Popular Film for providing Wholesome Entertainment. The were announced Thursday
evening, with actor Salman Khan‘s 2010 hit film ―‖ – a story about a Robin Hood-like fearless
cop – The award, which includes 200,000 rupees ($4,438) prize money, ―answers the need of
cine-goers for entertainment rooted in Indian soil,‖ the jury said.

The annual awards were launched in 1953 by the Directorate of Film Festivals and Government
of India, with an aim of ―encouraging the production of films of aesthetic and technical
excellence and social relevance‖ and ―promoting national integrity.‖

27. Kanimozhi Denied Bail, Sent to Tihar-ET May 21

The beloved daughter of one of India‘s most prominent political leaders was bundled into
Tihar Jail on Friday, sending a message that the courts will show no leniency in high-profile
corruption cases. The special court trying cases related to alleged fraud in the allotment of
second-generation (2G) phone spectrum denied bail to Kanimozhi, a member of the Rajya
Sabha, and her business partner Sharad Kumar, saying the charges against them were
extremely grave and they could influence witnesses.

Former telecom minister A Raja and two government officials were the first to be arrested,
on February 2. They are accused of manipulating the 2008 sale of 2G spectrum to benefit a few companies. The
national auditor CAG estimates the loss to the government at 1.76 lakh crore, more than the size of India‘s defence
budget this year. The CBI‘s estimate of the loss is a more modest 30,984 crore.

28. IIT, IIM faculty not world class: Ex-IITian Ramesh- TNN May 24
The outspoken environment minister Jairam Ramesh kicked up yet another
controversy rubbishing the Indian Institutes of Technology and Indian Institutes of
Management saying that there is hardly any worthwhile research from our IITs.
The faculty in the IIT is not world class. It is the students in IITs who are world
class. So the IITs and IIMs are excellent because of the quality of students not
because of quality of research or faculty.

Ramesh is an IIT graduate himself. His comments struck as odd because he has
commissioned studies to IIT Delhi for the reforms he is making in environmental
clearance mechanism within the environment ministry. HRD sources expressed
surprise at the comment. A top source said, ―It‘s unbecoming on the part of a
Union minister to publically criticise institutions under another ministry.

29. Assets of corrupt babus may be seized and sold-TNN May 24

Activists against corruption have often pointed out that even the threat of jail hardly
serves as a deterrent for a corrupt person, as he can enjoy his ill-gotten gains after he
completes his sentence. Now, that is perhaps set to change. Assets amassed through
corrupt means by a public servant will be frozen during investigation and liquidated on
his being proved guilty, if the proposed Lokpal bill comes through.

The drafting committee on Monday agreed that assets obtained through corrupt means
must be confiscated to make good any loss to the exchequer. At the conclusion of the
probe, if the person is convicted for corruption, the court will have to decide the loss
caused to the government and allocate that loss to the guilty party.

30. Personalised tablets to the aid of IIT and IIM students-ET May 20
While modern gadgets and newer tech are constantly being introduced into present day
classrooms to make learning fun, for Gen Y, tablets are the new "in" thing. Personalized
tablets are now being used by students not merely for social networking but also to gain
entry into the IITs, IIMs and other business schools both inside the country and overseas.

Taking a cue from tech-savvy youth, various companies in the education sector are also
now coming up with innovative technology-based products to aid students preparing for
various competitive exams. According to market estimates the test preparatory market in
India is expected to reach $3 billion mark by 2013. The latest to enter the fray is iProf
whose tablet priced at Rs 8,000 and equipped with with audio-visual content, aims at aiding students unable to attend
classroom course to prepare for high-stake admissions exams such as CAT, GMAT and IIT/JEE.
 PERSONAL COMPUTER INDUSTRY

Indian PC Market: Indian PC market is price conscious and is dominated by assemblers. At present, assemblers
account for over 60 percent of it. One main advantage of these white box manufacturers is the zero cost incurred on
software, as they install pirated software. To overcome this problem, manufacturers are now installing Linux on their
machines. This keeps the customer happy as he gets to use legitimate software and the manufacturer also does not
have to incur any software-related expense.

Current Trends:
The combined desk-based and mobile PC market in India totalled nearly 2.7 million units in the fourth quarter of
2010, a 16.2 per cent increase over the fourth quarter of 2009, according to Gartner, Inc. This growth rate was more
than five times the worldwide PC market‘s growth average in the fourth quarter of 2010.Personal computer maker
Hewlett-Packard (HP) has regained its numero uno position in India after losing it for two consecutive quarters in
2010 to Dell. The company clocked a higher market share than Dell in the
Vendors 4Q10 Market Share (%)
October-December quarter last year.
HP 15.8
Dell 13.0 This growth was primarily driven by the mobile PC market which grew 39
Acer 10.7 percent in the fourth quarter of 2010.A fall in prices, large deals from
Lenovo 9.6 governments and demand from consumers and the education sector drove
HCL 7.8 Mobile PCs sales. Many small and midsize businesses are buying mobile
PC‘s which is further fuelling growth.
Others 43.1
Total 100.0 However according to market intelligence firm IDC Indian PC market grew
by 31% in 2010 and is expected to grow to 22% In 2011.The overall sales growth of 31% was largely led by
consumer spending. The growth of notebook PCs in 2011 will accelerate to 42% leading to an overall growth of 22%
in terms of unit sales year-on-year. IDC India attributes the relatively slower PC sales growth expected in 2011 to the
effect of a larger base. Government, education, ITeS and telecom verticals are expected to continue to invest in or
refresh their PCs. PC purchases by BFSI, retail and healthcare verticals are expected to pick up in 2011. Adoption of a
notebook PC as the first PC is likely to show growth in 2011. IDC India expects the overall average selling price of
desktop PCs to drop in 2011 by about 13 per cent and notebook PC prices to drop by about 5 per cent.

SWOT analysis of PC Industry:

Strengths: Several players like Dell have low operating

cost relative to revenue because they cut out the retailer
and supply directly to the customers. Many companies
assemble the components using cheap labor rather than
manufacturing it themselves further bringing down the
cost. The software products have high broad-based
corporate and consumer acceptance (Word, Excel,
PowerPoint, Access), and numerous powerful features
that are in use worldwide, thereby promoting
standardization and competitive advantage through their
ease of integration and cost-effectiveness.

Weakness: Since many companies are assembling firms

therefore their each product is custom-built according to
customer‘s specifications which might take days to finish, causing customer inconvenience. Products in the PC industry
tend to depreciate in value quickly and the new developments in technology routinely make old products obsolete.

Opportunities: Cheaper global telecommunication costs open new markets as people connect to the Internet. PC
companies are entering into contracts with the federal government as computers are increasingly used to collect data
and develop the military. The PC industry produces more than just desktop and laptop computers, with hand-held
devices, smart phones, servers, storage systems, networking equipment and computer-embedded industrial products
becoming growth areas. For example, many products such as automobiles now have computers embedded within
them. Multimedia devices with multiple capabilities, such as cell phones that can be used as video cameras, are
becoming increasingly popular.

Threats: New entrants to the market pose potential threats. The threat to become outmoded is a pulsating reality in
a computer business. With almost identical prices, price difference is no longer an issue for a customer. Currency
exchange rates affect demand for application/operation software and hardware, and fluctuating currencies can
negatively impact revenues in the global marketplace. Rapid development of mobile devices that will replace personal
computers is always a cause of concern. Software piracy of commercial and consumer applications software on a
global scale threatens revenue streams.