Xed General CA Newsletter July14 July20

8/2/2019 Xed General CA Newsletter July14 July20

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11 Pages 14 th JULY 2011 – 20 th JULY 2011 www.xedintellect.com

BUSINESS NEWS

CONOMIC INDICATORS 2 COVER STORY 3 PERSONALITIES OF THE WEEK 4 BUSINESS NEWS 5-8

NTERNATIONAL NEWS 9 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11

NEWS DIGEST …

IN BRIEF

PERSONALITIES OF THE

WEEK

COMPILED BY

INDUSTRY ANALYSIS

BSE SENSEX 18,446NSE NIFTY 5,541RS/$ 44.43

(as on 21 st July 2011 )

ECONOMICINDICATOR

India may nolonger be

outsourcing hub

COVER STORY

MISCELLANEOUSNEWS

Sachin Tendulkaron Coca-Cola cans

INTERNATIONALNEWS

FB Vs Google Plustech wars

XED NEWSLETTER… a weekly news bullet

ANYTHING FOR NEWS



TOP 10 HEADLINES OF THE WEEK

1. India may no longer be outsourcing hub.2. IIM graduates choose manufacturing over finance roles.3. Global slump in economy a boon for India, only if it doesn't get worse.4. Vodafone, Bharti Airtel, Idea in pact to offer Pan India 3G services.5. Final 'Harry Potter' wields big wand at box office.6. India’s share in global video gaming business set to increase. 7. FB vs Google Plus tech wars: Why Facebook should begin to worry.8. Mercedes’ Ti ny Smart Takes on Big Boys in China.9. Sachin Tendulkar on Coca-Cola cans as part of 100th century celebrations.10. Bombs explode at rush hour in Mumbai’s crowded business areas.

ECONOMIC INDICATORS

GLOBAL HUNGER INDEX

The Global Hunger Index is justone of the indicators that convey avariety of information in a discretebit of information. The GHI as it‘scalled gives developing countriesscores based on three otherindicators: the proportion of peoplewho are undernourished, theproportion of children under five whoare underweight, and the childmortality rate. The worst possiblescore is 100, but in practice,

anything over 25 is considered ―alarming‖ .

Hunger in Indian states: Alarming

Twelve Indian states have "alarming" levels of hunger while the situation is "extremelyalarming" in the state of Madhya Pradesh,says a new report.

Stock Market Indices as on 21 st July’11 ValuesBSE SENSEX 18,446NSE (NIFTY) 5,541

Current Market Rates as on 21 st July’11 ValuesRupee/US Dollar 44.43Rupee/Pound 71.89





PERSONALITIES OF THE WEEK

Shahrukh Khan: The Baadshah Shahrukh Khan the inimitable king of the silver screen is also thebaadshah of the biggest brands. Right from TAG Heuer to ITCSunfeast biscuits to Airtel he is a favorite of many brands. He has alsobeen roped in as the brand ambassador for the B school IIPM. His lifehas been an inspiration for the youth. The fact is that you cannot misshis name while you scroll TV channels or newspaper. He is undeniablyan instant brand reminder. There are no qualms in referring him as agiant of the silver screen.

Capturing the silver screen:The journey of Shahrukh Khan to becoming the King Khan startedwith TV serial called "Fauji" (1988), that won him instant recognition.He made his debut on the silver screen with the film ‗Dewaana‘ andsince then there is no looking back. Today, he charges around 12crore for a movie. In 2005, the Government of India honored him with the Padma Shri for his contributionstowards Indian Cinema. Though Shah Rukh Khan believes that he is an actor not a businessman, his ventures speakotherwise. He has made some smart business moves.

The Extravagance:Shahrukh Khan lives for a purpose and believes that he is born for a purpose. He believes he needs to give back tothe entertainment industry which made him so successful. Though he believes he is not a businessman he has alwaysbeen entrepreneurial. He started his production company, Red Chillies Entertainment, and produced and starredin Main Hoon Na, which has been a hit. He further carved the path of a shrewd businessman when his productionhouse in 2008, Red Chillies Entertainment became the owner of the Kolkata Knight Riders in the BCCIbacked IPL cricket competition. His extravagance has been under the scanner of the IT department . The I-Tdepartment has questioned whether the Rs. 17.84 crore Signature Villa on The Palm Jumeirah was a gift, as the actorclaims, or payment for Shah Rukh Khan's endorsement of the Palm Jumeirah.His latest movie RA One is anticipated to be in 3D. To cash in on the movie‘s popularity Ra One is all set to become aSony Playstation Game. The video game version will simply be called Ra. One – The Game and it has been developedexclusively for PS2 and PS3 by Sony in London. With so many successful ventures Shahrukh Khan surely seesbusiness in all his ventures.

Rebekah Mary Brooks: Brute Power Referred to as the flame haired Queen of Fleet Street Rebekah Brooks wasthe chief executive of News International from 2009 to 2011. She hasserved as the youngest editor of a British national newspaper, News of theWorld and is the first female editor of The Sun. Her thirst for beingassociated with the big wigs led to being questioned for her allegedinvolvement in the News International phone hacking scandal and isaccused of corruption. Her rise up the corporate ladder reflects a mix of ruthlessness and dazzling charm.

The mercurial rise:Rebekah Brooks started her life as a secretary and 22 years later sheended up as the right hand woman of the most powerful man in the world of journalism, Mr Rupert Murdoch. Coupledwith her charm she has an extraordinary ability to make friends in high places which was evident in the guest list toher wedding, two years ago which read like a Who's Who of modern Britain. Her proximity to the Rupert Murdochfamily is evident in the fact that it took 12 days to finally let her go from the News International. After Brooks tookover as an editor of The News International at the age of 31, she broadened the appeal of the newspaper by flashingthe front page with celebrity news. Rebekah Brooks the ―fifth daughter‖ of the Murdoch family wrote to the ScotlandYard offering to be interviewed as a witness in phone-hacking scandal. She was later on arrested.

The fall:Mrs. Brooks was defended by both Rupert and James Murdoch during the investigations of the News of the Worldscandal. But she was arrested by the police for her involvement in the phone hacking scandal and the policecorruption investigations. Liberal Democrat MP Adrian Sanders questioned the timing of the arrest. Just two daysbefore she had to appear in front of the various MPs she was arrested. Bury your mistakes,‖ Rupert Murdoch is fond of saying. This time it surely will cost a lot for him. Life of Mrs. Brooks has been like a rollercoaster ride from a swift riseto a sudden fall. With the support offered by her boss she might be left scot free.



BUSINESS NEWS

1) India may no longer be outsourcing hub- ET 15 July India may no longer be outsourcing hub as UK companies such as Aviva, BT & Santander move work to home country. A high UK jobless rate & a need to betterconnect with their customers, coupled with rising costs in India compel Aviva, BT & Santander to move work back home. Last week, another UK-based telecom firm NewCall Telecom decided to move its call centre back to Lancashire from Mumbai. OnTuesday, shares of MphasiS fell over 6% as banking group, Santander, moved itsretail banking-related call centre services from the Indian vendor back to the UK. Formany, having a UK customer call centre has also become a differentiator incommoditised markets such as voice telephony services, say experts. It is also

viewed as 'patriotic'.

"The whole issue around accents just became really big in the UK, for some reason it was never seen as a problem inthe US. It just got highlighted a lot in the UK and then some companies started using it as marketing tool too," saidPramod Bhasin, ex-CEO and non- executive vice chairman of the country's largest BPO firm Genpact.

2) IIM graduates choose manufacturing over finance roles- TOI 14 July10% more students across IIMs choose manufacturing over finance. The figure is set togo up further in next 3 years.The slower-than-expected growth in the country's factory output may send markets in atizzy every now and then. But, management graduates passing out of premier B-schoolsare betting big on manufacturing. Volatility in the global financial markets is pushingfresh graduates to brick and mortar industries. An increasing number of students passingout from the Indian Institutes of Management (IIMs) are choosing careers inmanufacturing over traditional finance roles post-slowdown. On an average, 10% morestudents across IIMs have taken up jobs in core sectors this year as compared to previous years.Traditionally, MBAs prefer services sector with finance, marketing and consulting roles.

3) Global slump in economy a boon for India, only if it doesn't get worse- ET 16 July Together with China, India will stand out as an island of growth in an otherwise bleak globaleconomic landscape, helping it attract more capital flows and investments. The renewedcrisis of confidence in the global economy could well benefit India, if it does not blow upinto something bigger. Recent evidence points towards a moderation in global growth asthe developed world is struggling with debt and unemployment, and the emerging marketsare fighting inflation by sacrificing growth. Search for returns is likely to send investorsscurrying to India, expected to expand at about 8% in 2011-12 while the rest of the worldsees a moderation in growth to 3.2% during 2011.

India's relative insulation from the rest of the world is another tick mark in its favour.Exports have a small 13% share in GDP, though rising fast at over 30% after the financial

crisis, and its public debt is mostly internal. Public and private consumption combined has a 70% share in India'sGDP. The strong domestic orientation of the economy was largely the reason India managed a 6.8% growth in 2008-09, the high point of the financial crisis.

4) Vodafone, Bharti Airtel, Idea in pact to offer Pan India 3G services- ET 14 July In an effort to reduce cost and offer Pan India 3G service, Vodafone, Bharti Airtel and IdeaCellular have started sharing their networks to provide seamless service to theircustomers. The three will now use each other's networks through inter and intra-circleroaming arrangements where they do not have licences. " Vodafone has entered into abilateral roaming agreement, both inter and intra circle, with Idea and Airtel to provide 3Gservices to our customers in the circles where we have not built our own 3G network, inorder to bring a pan-India experience of 3G services to our customers," Vodafone said in astatement. However, nobody divulged the revenue sharing arrangement among theoperators.

5) Final 'Harry Potter' wields big wand at box office- Reuters 17 JulyDeathly Hallows II is the 8th & final movie in the Harry Potter franchise & the first in 3D. It raked in$82.5 mn worldwide in 3 days. Harry Potter's final film adventure has bolted to a big start at worldwidebox offices, breaking the record for midnight screenings in the U.S. and Canada with $43.5 millionand setting the stage for a massive weekend debut. Box office watchers predict domestic (U.S. andCanada) sales for the three-day weekend will hit $125 million to $150 million, but with the midnightrecord that range could be low. Even if the box office total hits that forecast, it would be the highest-

grossing "Harry Potter" debut and put the movie within striking distance of the biggest opening weekend ever.



6) India’s share in global video gaming business set to increase - WSJ 15 JulyIndias share of the $67bn global video gaming business is just $0.2bn, but muchof that is set to change with improved connection speeds & bandwidth as now wehave 3G. India's gamers and mobile-phone companies are betting that the rest of the world's fascination with mobile-phone games and applications will catch onhere, and are looking for a cricket-based game that could become all the rage likeAngry Birds (a game developed by Finland-based Rovio Mobile). India plays asmall part in the world's video-gaming industry -- 10 billion rupees ($225.12million) in 2010, according to KPMG, vs. $67 billion globally, according to Gartner,-- but much of that is set to change with third generation telephony. The next

phase for mobile phones was launched this year and has improved connectionspeeds and bandwidth that are needed for online and mobile gaming – the mainreasons that gaming in India hadn't picked up. Mobile operator‘s view has changed toward mobile gaming. "They areslowly realizing the importance of games as a premium (value-added) segment, especially to drive the adoption of faster data speeds provided by 3G," according to the Ernst & Young report on India's gaming industry released in2010.

7) Realty Market Crisis Throw Up Opportunity for Group-Buying Sites- TOI 15 July Jitendra Rathod had spent almost three months looking for an apartment inMulund, a fast growing suburb in central Mumbai. He knew that developers werestruggling to find buyers and were sitting on huge inventories, so he expected agood discount. Much to his surprise, no builder was willing to budge an inch.Rathod‘s luck changed when he joined a group buying portal that brings buyerstogether for bulk deals. A few rounds of negotiations later he bought an apartment

from the same builder at a price 10% lower than what he was offered barely twoweeks ago . New players such as GemiDeal s .com, dealflats.com, 21flats.com,

groopoffers.com have popped up overnight.

8) IFFCO Kisan Sanchar Ltd wins Coffey International Award for 'm-Powering Farmers' - ET 14 July A unique mobile technology based concept to improve the yield, productivity, incomeand quality of living of illiterate farmers in rural India has scooped the CoffeyInternational Award as part of Business in the Community's 2011 Awards forExcellence on 5th July, 2011. Now in its 14th year, the Awards for Excellence is aprestigious annual showcase by UK of the best responsible businesses in action. TheAwards highlight the best examples of the positive impact businesses are having inthe environment, amongst their employees, through the supply chains and in thelocal communities in which they operate.

9) Trai adamant wants 74 permits cancelled- ET 16 JulyThe Telecom Regulatory Authority of India has told the government that about 210 MHz, orunits, of valuable 2G spectrum can be freed up if the telecom department accepts itsrecommendations for cancelling 74 mobile service licenses.

The telecom regulator has told the government that about 210 MHz, or units, of valuable 2Gspectrum can be freed up if the telecom department accepts its recommendations for cancelling74 mobile service licences for failure to roll out services. The regulator has reminded thegovernment that airwaves thus freed up can be auctioned, which will bring in revenues for theexchequer.

10) NSSO survey shows poverty is coming down and rural wages are rising - TOI 16 July Real spending by each person in rural India rose 6.3% in 5 years of Congress rule ascompared to 1.2% during 5 years of BJP rule according to the NSSO survey. Finally, there‘ssome good news for the United Progressive Alliance government. Consumption numbers forthe past six years show that real incomes have grown much faster under the Congress-ledcoalition than during the Natio nal Democratic Alliance era. What‘s more, poverty is trendingdown and rural wages are growing smartly. The 2009-10 survey by the National StatisticalSurvey Organisation (NSSO) shows real spending by each person in rural India rose 6.3% inthe five-year period from 2004-05 to 2009-10, when the UPA in power.

Urban Indians did even better. The average person‘s spending in urban areas went up 12.9% under the UPA (2004 -2009) compared to a 6.7% jump under the NDA regime (1999-2004). The numbers also show that the percentage of poor Indians, using the Suresh Tendulkar methodology, also fell to about 32% of the population in 2009-10 from 37%in 2004- 05. This seems to validate the UPA government‘s claim that its policies and schemes have eased poverty.

http://execlinktarget%28%27gemideals.com%27%2C%27url%27%29/








16) N- shot in arm: AP uranium mine could be among world’s largest -ET 19 JulyIndia‘s nuclear power aspirations just got a boost thanks to a luc ky find. The Department of Atomic Energy has discovered that the upcoming uranium mine in Andhra Pradesh‘s Tumalapallihas close to 49,000 tonnes of uranium, three times the original estimate. In fact, there areindications that the total quantity may go up to 1.5 lakh tonnes, which would make it among thelargest uranium mines in the world.

The quantity is sufficient to support a nuclear power plant of 8,000mw capacity for 40 years. Theproduction is expected to start in six months. Srikumar Banerjee, DAE secretary and chairman of the Atomic EnergyRegulatory Board, announced the huge discovery during the foundation stone-laying ceremony of the seventh and

eighth units of the Rawatbhata atomic power project on Monday.

17) At 5cr, state has most city-dwellers in India- TNN 19 JulyMaharashtra‘s urban population grew by around 97 lakh in the last decade, taking itsnumber of city dwellers to 5.08 crore, the highest for any state in the country, revealprovisional figures of Census 2011, released on Monday. In terms of urbanizationhowever, it ranks third among major states. Of Maharashtra‘s 11.23 crore population,45.23% live in urban areas now, up from 42.43% in 2001, said Ranjit Singh Deol,director, Census operations, Maharashtra. This, though, is behind Tamil Nadu andKerala, where the share of the urban population is 48.45% and 47.72%, respectively.

Within cities like Mumbai, it is the suburban areas that are powering the urban growth. ―Mumbai‘s growth percentage is nothing in comparison to those of tier two cities. Take,

for instance, Thane which registered 35.94% urban growth or Pune which clocked 30.34% growth in the last deca de,‖

explained Arokiasamy. He added that Tamil Nadu always leads in terms of urbanization because it has notified manyvillages as town panchayats. In earlier censuses, Kerala used to have the lowest urban rate because it had classifiedmany small towns as villages.

18) Dangerous levels of caffeine found in energy drinks -TNN 19 JulyEnergy drinks being sold in India have dangerous levels of caffeine, a Delhi-based NGO, the

Centre for Science and Environment (CSE), has said after conducting lab tests. According tothe tests, 44% of the samples violate the maximum permissible limits of caffeine prescribedby the government.

The CSE tested leading ‗energy‘ drink brands like Red Bull and Cloud 9, and found thatmany samples had breached the government set standard of 145 parts per million of caffeine. The NGO also warned that the industry was pushing for the relaxation of government norms, which wouldmake it legitimate for the drinks to have much higher concentrations of the energy booster, laced with dangerous

chemicals in them. Under the new rules, the industry wants to more than double the limits of infusing caffeine into thedrinks that are usually targeted at youth and health enthusiasts.

19) Black money: $2.5 billion stashed in Swiss banks by Indian clients- ET 17 JulyThe Swiss National Bank, the central bank of Switzerland, has estimated that Indianclients had deposits of about $2.5 billion in banks in the European nation in 2010.This is just a fraction of the $1.5-trillion figure that had been projected by politicalparties and non-governmental organizations, who have attacked the UPA governmentwith their anti-corruption movement over the last few months.

the liabilities of Swiss banks towards Indian holders were Swiss francs 1.965 billion($2.7 billion) in 2009 and Swiss francs 2.4 billion (about $3 billion) in 2008. In theaftermath of the financial crisis that engulfed the West after the collapse of theLehman Bank in the US in 2008, Swiss private banks, particularly their largest bank

UBS, had suffered huge losses. Subsequently, there were substantial withdrawals of funds from Swiss banks.

20) IndiGo Hires 35 Pilots from KF -TNN July 18 Budget carrier IndiGo has hired 35 pilots from rival Kingfisher Airlines over the past six toeight months, sources told ET. Gurgaon-based IndiGo, which kicked off its expansion planswith one of the largest aircraft orders in the industry earlier this year, is looking to hireaggressively. At least half of them are from Kingfisher‘ ATR fleet (turboprop aircraft with 60 -70seats capacity). India‘s aviation sector does not allow poaching and pilots must serve a six -month notice to their employer before moving on to a new assignment. But industry sourcessaid airlines have been cross hiring over the past one year, as some airlines, such as VijayMallya-promoted Kingfisher, are expanding slowly while some struggling ones, such as Air India, have pilots scoutingfor jobs. Such pilots serve as a good resource for the fast-growing domestic aviation sector that is grappling with ashortage of trained pilots.



INTERNATIONAL NEWS

21) FB vs Google Plus tech wars: Why Facebook should begin to worry- ET 17 JulyGoogle, the most popular Web site on earth, is worried about the second mostpopular site. That, of course, would be Facebook. Why else would Google keep trying,over and over again, to create a social network of the same type? At first, Google+looks like a shameless Facebook duplicate, but there's one towering, brilliantdifference: Circles. On Google+, you put the people of your life's different socialcircles into - well, into Circles. That is, groups or Categories. You drag each contactinto an on-screen circle, where they tumble into place. You can drag a person intomore than one circle. From now on, every time you share something - a news item, a

thought, a photo, a chat invitation -you can specify exactly which Circles receive it.

In one fell swoop, Google has solved the layers-of-privacy problem that has dogged Facebook for years. Google+ hasa few more attractions, though, besides this clever privacy control feature. There's Sparks, which is like a personalpress-clipping service (and akin to Google Alerts).

22) Mercedes’ Tiny Smart Takes on Big Boys in China -TNN 20 July Dong Han is an ideal customer for Mercedes Benz's booming car sales in China. A 27-year-old advertising agent with a double-income household and no children, she'supwardly mobile and highly conscious of style. But it's not Mercedes' SLK sports car ortop-end S class that strikes her fancy. Like a fast-growing number of affluent, hipChinese, Dong is enamored with Daimler's other brand, Smart, the tiny but nimble,colorful two-seater that looks almost more toy than transport.

Smart, along with the compact A class and B class, is part of Merc's drive to transformitself from a luxury car maker into a full-range producer. The division tallied 5,440 salesin China in the first half of this year, surpassing its entire 2010 total, and challenging sales in US, which have stalledafter a promising start.

23) Lupin Looking for Buyers to Sell its Unit in India - Bloomberg 19 JulyLupin, the world‘s largest tuber culosis drug maker, is considering selling its unit that marketsdrugs in India, said two people with knowledge of the matter. Founding shareholders who own acombined 47% of the Mumbai-based company have started the process of finding a buyer for theoperations. The Indian business may be worth at least $1 billion, one person said.

57.1 billion of revenue in the year ended March 31, may help finance investments in moreprofitable markets overseas. Lupin is the fifth-largest supplier of generic drugs in the US based onprescriptions and US sales jumped 27% to. 20.5 billion last year. Lupin said it has no plans to sell

its domestic operations. By the start of the next decade, India‘s drug sales will be the largest after the US, Japan andChina, helped by rising household incomes, population growth and improved health insurance coverage.

24) Daimler to Launch Finance Co Next Week to Lift Sales - TOI 15 July German luxury car and commercial vehicle-maker Daimler will launch its non-bankingfinancial business, or NBFC, early next week to boost sales of its cars and commercialvehicles. Siddhartha Nair, former executive with Daimler‘s corporate headquarters inGermany, will head Mercedes Benz Financial Services. The company, with an initialinvestment of $50 million, will support the sales of Mercedes-Benz cars and, subsequently,Daimler trucks in the country. Bharat Benz is the truck arm in India.

Initially, the financial services arm will provide for the Mercedes Benz passenger carbusiness which will be followed by Daimler trucks sometime next year. With business activities in over 40 countries,Daimler Financial Services (DFS) is one of the leading captive automotive financial services companies in the world.

25) Huawei may Bag $120-m Aircel Deal - ET 16 JulyChina‘s Huawei is in advanced talks to land a four -circle managed services (MS) contractvalued in excess of $120 million from the country‘s fifth largest mobile phone company,Aircel, two people with direct knowledge of the matter told ET.

Indications are the Chinese telecom gear maker may ink a three-year MS deal for handling the gamut of networkmanagement, planning and maintenance of Aircel‘s GSM networks in Maharashtra & Goa, Karnataka, Andhra Pradeshand Kerala circles. Huawei will also be responsible for the upkeep of key performance indicators (KPIs) and servicelevel agreements (SLAs). Deal details remain under wraps but people familiar with the talks said the multi-yearcontract was likely to be benchmarked at roughly $15-20 million a year per circle, a senior executive familiar with thematter told ET.



MISCELLANEOUS NEWS

26) Sachin Tendulkar on Coca-Cola cans as part of 100th century celebrations- ET 18 July The world's largest beverages brand plans a grand tribute to Sachin Tendulkar who is one centuryshort of becoming the first batsman to score 100 international centuries: launch some 6.5 millionspecial Coca-Cola cans with pictures of the master batsman.

The move will help the cola giant make the most out of its Rs 12-15-crore endorsement deal withTendulkar signed early this year, and make up for not leveraging the association during the CricketWorld Cup that India won. Coca-Cola is printing the cricketing legend's pictures along with statisticsof his select 10 centuries on about 6.5 million cans of brand Coke to celebrate Tendulkar's hundredthinternational century which everyone expects in England, where India will play four tests and fiveone-day internationals starting July 21.

27) Bombs explode at rush hour in Mumbai’s crowded b usiness areas – TOI 14 JulyRepeatedly hit —more than ten times —since 1993, citizens of India ‘ sfinancial capital are soft targets for terror outfits. Mumbaikars watchedwith impotent rage and sorrow as three explosions shook the citybetween 6.54pm and 7.06pm on Wednesday. People vented their angerat the Mumbai police who seem to be more interested in harassinginnocent patrons at a pub.

They also vented agear at politicians for their empty rhetoric and at the unknown faces behind yet another terrorattack. India Inc showed its resilience as business and corporate heads expressed shock, but followed up withassurances that India‘s economy will not be affected. Former city police commissioner M N Singh said ― Mumbai hasa strong network of Indian Mujahideen and SIMI. While the police upgraded its infrastructure and equipment after26/11 attack, the real focus should be on how to curb radicalisation of youth from the minority community.

28) Decade of low literacy growth slows down economic growth- ET 15 JulyThe 2011 census shows that literacy in the country is up from 65% in 2001 to 74%in 2011. Many have hailed that as good news: the right direction, a substantialincrease. It is completely agreed that it is the right direction, but we need to askourselves whether the increase is really substantial enough - enough in terms of thereturn on all the efforts being put behind education, enough in terms of meeting oureconomic growth goals and enough in terms of moving us towards a society whereeveryone is literate. In fact, the rate of growth of literacy has slowed down from thelast decade to this decade, and this has serious implications on how we need to go forward.

29) Don't corrupt our people, Antony tells defence companies- TOI 14 JulyAfter eliminating American, Russian & Swedish cos from race for supplying 126 fighter aircrafts,Defense Minister AK Antony warned defence companies, not to try to corrupt our people. He alsosaid that government would not hesitate to take extreme steps if it detects corruption in thedefence acquisition process. Antony said the defence acquisition process in India is not propelledby political decisions. Up to the trial stage, technical soundness of a product will determinewhether it will remain in race and after that it is the price which will determine its ultimateselection for procurement, he said.

The primary objective must be to "stay competitive and yet remain cost efficient, as well astechnologically and strategically reliable", he said. For this to happen, defence industrialization

will have to be accelerated. He also said the private sector will have to play a bigger role in collaboration with thepublic sector.

30) Rocked by Explosion, Diamond Traders may Shift to New Bourse- TOI 15 July Rocked by explosion, 50% diamond traders to shift to Bharat Diamond Bourse, Bandra, whichis like a fortress. Foreign buyers from the US, Japan, Hong Kong and Belgium are likely to viewWednesday‘s tragic bomb blasts with greater trepidation and may postpone fort hcoming visitsby a few weeks. After Wednesday, there is a growing feeling that a majority of the trade mayprefer to hasten their imminent relocation to Bharat Diamond Bourse (BDB), 15 km away insuburban Bandra, to alleviate fears of overseas clients and for better security of the trade.

Overseas clients of Indian diamond merchants come here to buy cut and polished diamonds"Nonetheless, we will speed up the process of moving to BDB. By Diwali, I expect 50-70% of trade to shift to the newpremises. Each (trader) was waiting for the other to move…now I think we will witness a more concerted exodus."



CORPORATE INTELLIGENCE

TATA CONSULTANCY SERVICES

Head Quarters: MumbaiRevenue: $8.2 billion

Company Statistics:A subsidiary of Indian multinational conglomerate, the Tata Group, Tata Consultancy Services (TCS) is an IT services,business solutions and outsourcing company offering a consulting-led integrated portfolio of IT and IT-enabledservices to global businesses, delivered through its unique Global Network Delivery Model. TCS has over 198,500 ITconsultants in 42 countries and more than 142 branches across the globe. As on March 31, 2011, TCS had a total of 54 subsidiaries.

Key People: Ratan Tata (Chairman); N Chandrasekaran (Chief Executive Officer and Managing Director)

TCS – the IT Pioneer: Founded by JRD Tata in 1968, TCS began as the "Tata Computer Centre"for the Tata Group. Faqir Chand Kohli, an Indian businessman often referred to as the "Father of the Indian Software Industry" was the first General Manager of TCS. In its early days, TCS, with astaff of 10 consultants and 200 operators, undertook IT assignments with other Tata Groupcompanies like managing the punch card operations of Tata Iron and Steel Company (TISCO). In1969, TCS bagged the first banking software project - the Inter Bank Reconciliation System

(IBRS) from the Central Bank of India (CBI). Its successful implementation enabled TCS to get similar orders from 14

other banks. In the early 1970s, TCS started exporting its services with its first offshore client in 1974. TCS's firstinternational order came from business computer manufacturers – Burroughs. TCS wrote code for the Burroughsmachines for several US-based clients. In 1979, TCS delivered an electronic depository and trading system calledSECOM for SIS SegaInterSettle, Switzerland, one of the most complex projects undertaken by an Indian IT company.

In late 1998, the company decided to concentrate on new revenueopportunities including Y2K and Euro conversion. A major area of focus inthe late 1990s was e-business. All TCS products and platforms were web-enabled. It also decided to specialize in e-business consulting offering e-business solutions in various functional processes including customerrelationship management (CRM), supply chain management (SCM),enterprise resource planning (ERP), business intelligence andmanagement information systems (MIS).

TCS Today: In 2008, the company went through an internal restructuringexercise to make the organization more responsive. Described by themedia as ―India's best kept secret‖, a serious challenge faced by the company was the business process outsourcing(BPO) backlash in the US. Today it is the largest provider of information technology services in Asia and secondlargest provider of business process outsourcing services in India. It has strategic partnerships (partnerships withmajor technology players) with Cisco, Google, HP, IBM, Microsoft, Oracle, RIM, SAP, Sun and Xerox. It has solutionspartnerships (partnerships with niche players) with Adobe , Red Hat , SAS , Symantec , TIBCO and Universal KUBE Inc.

INTELLIGENCE BYTES:TCS was the country's first infotech company to record a turnover inexcess of $1 billion.On 9 August 2004, TCS became a publicly listed company, much laterthan its rivals, Infosys, Wipro and Mahindra Satyam.TCS introduced the concept of Offshore Development Centres, where

TCS engineers based in India worked on projects for clients abroad andsaved costs for both TCS and its clients.TCS pioneered several best practices in the Indian IT industry, followinga unique factory approach in managing its functions including productdevelopment, creating new infrastructure and human resourcemanagement.TCS set up India's first software research and development centre, theTata Research Development and Design Center (TRDDC) in Pune in1981.TCS entered into an agreement with Ferrari in December 2008, for an enhanced technology and marketingpartnership. As part of the deal, the Tata logo was displayed on the Ferrari F1 car for the 2009 Formula 1 season.In 2011, the company entered the Small and Medium Enterprises (SME) market with cloud-based offerings.

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Xed General CA Newsletter July14 July20