MUMBAI/BHUBANESWAR: Anil Agarwal of Vedanta has found an ally in Larsen & Tourbo (L&T) to bail himself out of the raw material crisis ailing his flagship Odisha aluminium project.
The London-listed Vedanta, promoted by Agarwal, has entered into a tripartite agreement with L&T and its partner Dubai Aluminium Company (Dubal) to buy them out from their aluminium venture in Odisha, called Raykal Aluminium. Raykal was the SPV (special purpose vehicle) floated by the two partners.
In a filing with the US regulator, SEC, Vedanta has said it has already acquired 24.5 per cent stake in Raykal for Rs 200.70 crore and has the right to acquire the entire 100 per cent over a period of time for a total consideration of Rs 1,811 crore, “subject to certain milestones being achieved.”
Analysts say the company’s value will rise exponentially with the progress of the mining development programme.
Since 1993, L&T has been sitting on two to three prospecting licences (PLs) for bauxite mines in Sijmali and Kurumali of Rayagad and Kalahandi districts in Odisha. Under the original agreement, the entire bauxite excavated from these mines was to be used by Raykal for its own proposed alumina refinery and smelter project in the state. But with the project not taking off due to various reasons, Dubal walked out of the venture and will now be replaced by Vedanta Aluminium (VAL).
According to the Directory of Geology in Odisha, the two mines are estimated to have 250-280 million tonnes of bauxite reserves, good enough to take care of VAL’s current requirement for 50-90 years. Such a long-term bauxite supply agreement is bound to give Vedanta’s Lanjigargh project a much needed lifeline.
Vedanta had entered into an agreement with L&T and Dubal on February 23 this year, but the disclosures were revealed only last week. There is also widespread expectation that Vedanta or its Indian arm Sterlite will make a detailed announcement this weekend, which even saw the Sterlite stock react positively by 3.5 per cent to close the day at Rs 100.60 when the Sensex ended flat. The L&T stock moved up 2.53 per cent to Rs 1,309 apiece.
When contacted, L&T’s spokesperson did not want to comment on the subject, citing compliance issues. Vedanta’s spokesperson said beyond the SEC communiqué, they had nothing to add.
Analysts cheered the positive news expected to give a major relief to Vedanta Aluminium on the raw material security front. Its massive Rs 60,000-crore project to expand its alumina refining capacity from a million tonnes to five million tonnes has been facing problems over the past few years after environment clearances were not sanctioned for its captive bauxite mines in the Niyamgiri hills. The company has already pumped in Rs 45,000 crore into the project, but with no raw material linkages it has been desperately seeking alternatives to revive sinking production.
VAL has an ambitious plan of integrated aluminium facilities, including an operating alumina refinery at Lanjigarh and an aluminium smelter at Jharsuguda.
“With this acquisition of Raykal, a major chunk of VAL’s raw material issues will get solved,” said Ravindra Deshpande, metals analyst, Elara Securities. According to his calculations, the cost of production of VAL can come down by around $150 per tonne, thanks to this strategic acquisition.
VAL, in its business plan, had said with the captive raw material, the cost of producing aluminium would be around $1,200 per tonne, one of the lowest in the world. Currently, the aluminium LME is ruling at less than $2,000 per tonne. Since VAL is now forced to buy bauxite from outside — local suppliers, BALCO and Orissa Mining Company — its cost of making one tonne of aluminium is over $2,100, causing cash losses to the company. This is the reason VAL is not running at its full capacity. But, a secure bauxite supply will help turn around VAL’s finances and bring down its $4-billion debt. These depressed numbers have also upset the Sterlite and Vedanta shareholders. They are believed to be unhappy with VAL getting merged into Sesa-Sterlite, scheduled later this month.
According to senior officers at the Odisha steel and mines department, with the change of shareholders in Raykal, L&T’s prospecting licence that has lapsed due to inactivity will get “revived” and subsequently get upgraded into a proper mining licence.
The state is also expected to earn a minimum of Rs 400 crore in mining levies. “L&T was allotted two mines nearly 20 years back for prospecting. However, a mining licence was not granted in favour of the company as it had no end-use plant at the time of expiry of the prospecting licence period. They can be renewed in favour of the company if the project gathers some pace following the restructuring of the promoter JV company.”
However, Vedanta group officials said mining would start in a few years, once the MLs were in place. The payout from Vedanta is also gradual and is based on gradual development of the mining programme. “There is still a long way to go. Both central and state clearances are required before the project can take off. So, it’s premature to say all the issues have been sorted,” an official in the know added. Parts of the land where the mines are located are also under ‘village forest’ category, thereby requiring forest clearance under Stage 2 of Ministry of Environment & Forests approvals.
GCPL EYES ACQUISITIONS OVERSEAS IN PERSONAL CARE AND HAIR COLOUR SEGMENTS
MUMBAI: Godrej Consumer Products (GCPL), part of the R19,000-crore Godrej Group, is scouting for acquisitions in the personal care and hair colour categories in Africa, Asia and Latin America. The company is also looking for acquisitions in domestic markets in the personal care sector. In 2011, GCPL had clinched seven acquisitions globally, which include Megasari (Indonesia), Argencos (Argentina), Tura (Nigeria), Selectives (UK) and Genteel & Swastik (India). In June last year, GCPL had announced the acquisition of a 51% stake in African hair-care company, Darling Group Holdings. “We are looking for acquisitions in Africa, Asia and Latin Americaas part of our inorganic growth strategy,” Adi Godrej, chairman, Godrej Group, told FE. “Our acquisition strategy globally is to acquire in businesses that we know very well, and in which we have great strength in India— hair care, household insecticides and personal wash.” (For details log on to : http://www.financialexpress.com/news/gcpl-eyes-acquisitions-overseas-in-personal-care-and-hair-colour-segments/959648/)
M&A DEALS DIP 29% IN MAY
MUMBAI: Merger and acquisition deals in May dipped 29 per cent to Rs 21,450 crore against Rs 30,030 crore. The number of deals executed was also down at 68 against 100 logged in May 2011. Private equity investments plunged 97 per cent to Rs 192 crore in May from Rs 6,270 crore registered in same period last year, according to “Deal Tracker” released by Grant Thornton, a global auditing and business consultancy firm. The sharp fall in M&A activity was attributed to global economic slowdown, especially in Europe and concerns over Government policies in India. Besides, depreciation of rupee against dollar has also played a key role in hampering M&A deals. There were only eight deals (worth Rs 522 crore) in May involving Indian companies acquiring assets overseas against 20 (valued Rs 12,430 crore) in the same period last year. Foreign companies acquired assets in India worth Rs 11,550 crore in nine deals against Rs 7,260 crore in eight deals last year. Banking and Financial Services topped the list of deals accounting for 54 per cent of the total value of M&A deals. It was followed by other sectors such as pharma, IT, telecom and travel and tourism. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3506552.ece)
GAIL MAY BECOME PARTNER IN TAPI GAS PIPELINE PROJECT
NEW DELHI: GAIL (India) may take equity participation in the consortium mandated to construct the Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline project, which will transport gas from Turkmenistan. Sources privy to the development said the Government-to-Government agreement allows Indiato become a partner in the consortium, if so desired. The road-show to invite players to participate in the project is expected to kick off in September. In the TAPI project, which has US backing, big American companies such as Chevron and ExxonMobil, and Russian company Gazprom, are said to be interested in becoming part of the consortium. The decision with regard to the consortium will be made jointly by member-countries in consultation with the Asian Development Bank (ADB), which will render technical advice with regard to the terms and conditions for potential consortium partners. ADB will also be involved in the final selection process. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3506553.ece)
APOORVA RENEWABLE ENERGY TO MAKE SOLAR-ELECTRIC BUSES FOR TRANSPORT BODY
BANGALORE: Buses in Bangaloremay soon be powered by solar energy. The Bangalore Metropolitan Transport Corporation (BMTC) has placed orders with Apoorva Renewable Energy Products to design solar-electric hybrid buses, the company CEO, Mr Suresh Babu, said on the sidelines of the Global Investors Meet 2012. “The BMTC has asked us to provide a sample hybrid vehicle and we have accepted the order and will start working on it,” Mr Babu said. Several other government bodies such as the Bruhat Bengaluru Mahanagara Palike (BBMP) are in talks with the company too, he said. The company makes three-wheeled vehicles powered by electric and solar power, and customises products for Indian conditions. “Using a common technology, we design products as per customer requirements and outsource the manufacturing,” Mr Babu said. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3506551.ece)
UFO MOVIEZ LOOKS TO EXPAND OVERSEAS
KOLKATA: Digital cinema distribution company, UFO Moviez India Ltd, on Friday, said that it was looking to expand overseas to West Asian and Latin American nations in 2012. “Expansion will be through its acquired subsidiary Scrabble Entertainments and at an earmarked cost of Rs 250 crore,” Mr Rajesh Mishra, CEO, UFO Moviez, said. The company plans to expand its footprint in Egypt, Syria, Jordanand Brazil. Headquartered in Mumbai, UFO Moviez installs equipments, on a rental basis, at cinema halls that help in distribution of movies on a digital platform via satellites. Of the 9,000 screens in India, equipments (called DCI compliant screens) have been rolled out in 3,000 screens by UFO, while Scrabble, its subsidiary, has deployed 500-odd DCI compliant screens. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-marketing/article3506610.ece)
PATEL REALTY GETS 147 ACRES FOR INTEGRATED PROJECT EXPANSION
BANGALORE: Real estate developer Patel Realty plans an extension of its existing 103-acre integrated project in Bangalore. The company signed an MoU with the Government of Karnataka for expanding this project, and has been allotted 147 acres, which is contiguous to the existing project – Neotown in ElectronicsCity. “About 8 million sq. ft development is under construction at the project currently, and 2.5 million sq ft has already been delivered,” Mr Pravin Malkani, Managing Director, Patel Realty, said. The space delivered include 1.5 million sq. ft of IT space and offices, and one million sq. ft of residential space. Neotown’s residential space consists of 2,000 apartments, of which 1,000 apartments have been delivered, he explained. The turnover from the apartments delivered is about Rs 700 crore. The first phase also has an 8 lakh sq-ft of retail development including a hospitality component. Plans for the second phase have not been firmed up yet. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3506549.ece)
GOVT OKAYS FDI FROM PAK; SAME STATUS AS BANGLA FUNDS
NEW DELHI: The Centre has given the green signal for Foreign Direct Investments (FDI) from Pakistanand treating it on a par with such investments from Bangladesh. “Since they were similarly banned, we had to give Pakistanwhat we already gave to Bangladesh,” official sources told Business Line. Currently, a Bangladeshi citizen or an entity incorporated there is allowed to invest in Indiawith the Foreign Investment Promotion Board’s (FIPB) approval. The FDI policy permits Indian companies to issue employee stock options to Bangladeshi citizens, also with the FIPB’s nod. These norms for Bangladeshwill now be applicable to Pakistantoo. The FIPB clearance is also meant to take care of security concerns. (For details log on to : http://www.thehindubusinessline.com/todays-paper/article3506579.ece)
CBI SHADOW ON OIL, COAL MINISTRIES
NEW DELHI: The Central Bureau of Investigation (CBI) has launched a wide-ranging probe into the energy sector, with daily visits to the coal ministry to scrutinise files on coal blocks, and has issued notices to two former oil ministry officials on procedural issues. The CBI is studying the allotment of coal blocks, eligibility of companies that were awarded the mines, and whether the coal is being used for captive purposes, or being illegally sold in the open market, government officials said. “While studying the files, if the CBI finds any other matter that looks irregular or suspicious, it can investigate further in that direction also,” said a government official, who did not want to be identified as the matter is sensitive. Coal ministry officials said regular visits of CBI officials had affected routine work of their junior staff, which is assisting the agency in the lengthy and time-consuming process of obtaining various records. However, decision-making has not been affected as officials in key positions are not directly interacting with the agency. (For details log on to : http://economictimes.indiatimes.com/news/politics/nation/cbis-probe-into-coal-oil-ministries-affects-work-and-scares-bureaucrats/articleshow/13943302.cms)
FACTORY OUTPUT MAY EKE OUT 1.7% GROWTH IN APRIL, SPARKING POLICY RATE CUT
NEW DELHI: India’s industrial output may have expanded a mere 1.7% in April compared with a 3.5% decline in March, pointing to a gloomy outlook and strengthening the case for an interest rate cut of at least 25 bps at the central bank’s mid-quarter policy review on June 18. Responses to an FE poll of 15 economists on forecasts on the index of industrial production (IIP) swung from a 0.5% decline to a 3.2% rise, reflecting the uncertainty over the recovery process amid global economic turmoil and the lack of fiscal and monetary steps to spur investment and growth. “There may be an upturn in IIP growth in April, but it will still be subdued. We can’t rule out some volatility in the capital goods sector,” said Saugata Bhattacharya, head of research at Axis Bank. (For details log on to : http://www.financialexpress.com/news/factory-output-may-eke-out-1.7-growth-in-april-sparking-policy-rate-cut/959873/)
RS 1.5L CRORE LOAN RECAST FOR POWER DISTRIBUTION COMPANIES
NEW DELHI: In one of the biggest-ever restructuring exercise, the Centre has agreed to a loan relief for ailing power distribution companies (discoms) but is insisting that state governments and the utilities take over the entire burden of Rs 1.5 lakh crore, instead of banks taking over half the liability. With the latest recast, the government has taken total loan restructuring to near Rs 2 lakh crore over the last two months, including Rs 35,000 debt relief for textile mills and Rs 18,000 crore for ailing Air India, with demand from several others, including private airlines, pending with lenders. Separately, banks have been restructuring loans of private players either on their own or through the corporate debt restructuring mechanism where a record number of proposals are being filed. Banks have also seen a rise in non-performing assets due to lingering global economic woes and a slowdown in the country. A decision to restructure the power sector liabilities was taken at a meeting at the Prime Minister’s Office on Wednesday, which will result in state governments issuing bonds of about Rs 1.5 lakh crore along with the discoms. While the final package will be finalized by the Union Cabinet by June-end, sources said it will not be in line with the recommendations of a committee headed by Planning Commission member B K Chaturvedi that had suggested that the burden be split between the states and lenders, which were asked to provide a moratorium on interest payment. (For details log on to : http://timesofindia.indiatimes.com/business/india-business/Rs-1-5L-crore-loan-recast-for-power-distribution-companies/articleshow/13945313.cms)
ESSAR STEEL, RINL SEE RED OVER NMDC ORE PRICING
NEW DELHI: Two domestic steel manufacturers — Essar Steel and the state-owned RINL — which do not have captive iron ore mines and mainly buy the raw material from the country’s largest iron ore producer, NMDC, have accused it of charging higher prices despite falling international prices. In a letter to the NMDC chairman, Essar Steel said that the mining PSU increased the price of iron ore with effect from April 1, 2012, for long-term customers even though international prices of ore were continuously falling. The increase has been in the range of 40-90% for Baila fines and lumps, which are being supplied by NMDC to steel mills in Japanat much lower rates, the company said. Sources said Rashtriya Ispat Nigam has also pointed out the ‘undue’ price increase by NMDC and brought it to the notice of officials in the steel ministry to build pressure on the miner to make domestic iron ore prices reflective of the global prices. “It’s unfair that when the price of the commodity falls nearly 19% in China, we are being forced to pay higher. We are waiting for the next month to see whether better sense prevails and NMDC actually cuts ore prices for the second quarter,” said a senior official of RINL, asking not to be named. (For details log on to : http://www.financialexpress.com/news/essar-steel-rinl-see-red-over-nmdc-ore-pricing/959647/)
FOUR MORE KUDANKULAM REACTORS TO GET GREEN SIGNAL
NEW DELHI: New nuclear reactors at the Kudankulam nuclear plant will withstand crash of Cessna-type aircraft and tsunami waves several times more intense than the ones that damaged Fukushimanuclear plant in Japanlast year. These are some of the reasons likely to be cited by the environment ministry for giving approval to four new reactors at the Kudankulam nuclear plant which has witnessed a long spell of protests from local residents. The Nuclear Power Corporation of India Limited (NPCIL) has sought the ministry’s clearance under the coastal regulation zone act for the 6,000-MW plant being set up with a loan from the Russian government. The two reactors have already been built and NPCIL had sought permission to construct four more. The ministry’s expert appraisal committee (EAC) has asked it to approve the expansion stating that the plant has most advanced safety features. (For details log on to : http://www.hindustantimes.com/India-news/NewDelhi/Four-more-Kudankulam-reactors-to-get-green-signal/Article1-868020.aspx)
SIGN COAL SUPPLY PACTS SOON: SHINDE
MUMBAI: Undeterred by supply constraints, the power ministry has assured Prime Minister Manmohan Singh of capacity addition of 18,000 Mw in 2012-13. The ministry, however, said Coal India (CIL) should sign fuel supply agreements (FSA) soon, and accordingly, supply coal to power producers. Power Minister Sushil Kumar Shinde, who was present at the meeting on the infrastructure sector called by the prime minister, told Business Standard, “During the meeting, 18,000 Mw of capacity addition was proposed. Give me coal and gas, and we will cross the 18,000 Mw target by the end of the current financial year. In 2011-12, the concluding year of the 11th Plan, more than 20,000 Mw of capacity was added.” Shinde, however, said CIL should expedite the signing of FSAs, crucial for assured availability of coal to power generating companies. The power ministry has been insisting if CIL found it difficult to meet the mandated minimum supply level of 80 per cent, it should at least supply 65 per cent of the committed coal. However, CIL has indicated supplying 80 per cent of the committed coal was not possible, saying it could supply only up to 60 per cent. (For details log on to : http://www.business-standard.com/india/news/sign-coal-supply-pacts-soon-shinde/476815/)
MINEMAKERS, AN AUSTRALIAN ROCK PHOSPHATE FIRM DROPS NMDC FROM ITS WONARAH PROJECT
HYDERABAD: In a setback to India’s plans to secure rock phosphate resources for its fertiliser industry and NMDC’s overseas acquisition plans, Australian rock phosphate firm Minemakers has decided to call off the agreement with the state-owned iron ore producer. In June last year, NMDC had entered into a pact with Minemakers to buy 50% stake and it was in the process of obtaining necessary clearances from the Union fertilisers ministry. The Australian firm, in a communique to the local stock exchange on Thursday, said it has lost hopes on NMDC to take the deal forward and it will now start the process of scouting for a new strategic partner. In 2010, Minemakers began the process of roping in a strategic partner for its Wonarah phosphate project in Australia’s Northern Territorygiven the large resource size and proximity to key regional markets. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/minemakers-an-australian-rock-phosphate-firm-drops-nmdc-from-its-wonarah-project/articleshow/13915393.cms)
TAX TRIBUNAL LETS CO CLAIM BENEFIT FOR BRIBE
MUMBAI: Debunking a norm that income-tax laws in India strictly prohibit any allowance to illegal payments, including kickbacks, a Kolkata bench of the Income-Tax Appellate Tribunal (ITAT) has allowed deduction for illegal kickbacks paid by an Indian company to authorities in Iraq, on the ground that the Indian company did not know its payment would ultimately end up as a bribe. Explanation to Section 37 (I) of the Income-tax Act does not allow tax benefits for illegal payments. Yet, the ITAT justified its decision by holding that there was no material to suggest the taxpayer company, Rajarani Exports, was aware that the payment it made would end up as kickbacks. The transaction in question was made under the “oil for food” programme administered by the United Nations for helping the people of Iraq. Under this scheme, Iraqwas allowed to export oil and deposit the proceedings in an escrow account for importing essential items for its people. (For details log on to : http://economictimes.indiatimes.com/news/economy/finance/kolkata-bench-of-itat-allows-rajarani-exports-to-claim-benefit-for-bribe/articleshow/13943486.cms)
SURGING PETROL PRICE BOOSTS SALES OF CNG-FUELLED VEHICLES
NEW DELHI: Just as diesel transformed the automobile industry in Indiaover the past year, thanks to its considerable price differential with petrol, compressed natural gas (CNG) is now enjoying its day in the sun. The six sharp spurts in petrol prices have doubled the demand for vehicles run on CNG in the year. Maruti Suzuki, the only manufacturer offering factory-fitted CNG variants across its portfolio of small cars, sedans and utility vehicles, has seen volumes from CNG vehicles shoot up from a monthly average of 1,700 units to over 4,000 units over 18 months. “Despite the limited number of dispensing stations, sales of CNG cars have been on a rise. The running cost of a CNG car is a third of that for a petrol car, which is making an increasing number of customers opt for the fuel variant,” said Shashank Srivastava, chief general manager (marketing), Maruti Suzuki India Ltd (MSIL). The company has CNG variants of the Alto, WagonR and Estilo small cars, the multi-utility Eeco and the Swift sedan. (For details log on to : http://www.business-standard.com/india/news/surging-petrol-price-boosts-salescng-fuelled-vehicles/476799/)
INDIA INC LOOKS WITHIN FOR C-LEVEL HIRING
MUMBAI: The slowdown has given India Inc an important lesson: The best candidate for a job could be a cubicle away. So, if a couple of months ago, companies were hiring an external agency to hunt for a C-level executive, they are now searching only within the network of their large groups. C-suite is a widely-used term to collectively refer to a company’s most important senior executives. “Companies are holding themselves back on hiring. They are exploring internal upgradation of candidates more rigorously than hiring them from outside. Simply because it’s always better to promote an internal official. Also, the lucrative rise that candidates are looking for while switching jobs, is a thing of the past,” said R Suresh, managing director, Stanton Chase. This is probably what Essar Group had in mind while it was scouting for a chief executive officer (CEO) for its group company Essar Steel and decided to elevate Dilip Oommen as the CEO and MD of the company after that position was left vacant. Prior to this, Oommen was the head of the company’s Hazira complex in Gujarat. (For details log on to : http://www.business-standard.com/india/news/india-inc-looks-within-for-c-level-hiring/476804/)
I&B MINISTRY SETS TIMELINE FOR DECISION ON DIGITISATION
NEW DELHI: With all eyes on the Ministry of Information & Broadcasting’s decision on this crucial matter, the meeting on Friday with cable industry stakeholders in Delhi’s Vigyan Bhawan assumed importance. Speculation had been rife that the meeting would see which way the wind was blowing. However, at the end of the meeting, chaired by the Information and Broadcasting Minister, Ms Ambika Soni, and attended by broadcasters, multi system operators (MSOs) and local cable operators, the Ministry said it would take a call on extension after June 15, according to sources. It however, reaffirmed its commitment to the digital addressable system (DAS). Industry sources said that the stakeholders have been asked to provide their feedback in a structured form giving details on the progress of digitisation to the Ministry by June 11. Companies have been asked to give updates on the timeline by when they will be able to deploy boxes, conclude their agreements with partners among other issues. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-marketing/article3506611.ece)
ESSAR EXITS DURABLES, ELECTRONICS RETAIL BIZ
MUMBAI: The $30-billion Essar Group, which has interests in steel, oil, energy, real estate and telecom, has exited its consumer durables and IT (CDIT) retail business citing poor margins. In December 2009, Essar, through its telecom retail chain The Mobile Store (TMS), had acquired X-cite — a chain of large format electronics stores run by Impact Retail, a franchisee of Kuwait’s Al Ghanim Industries. Essar has shut down all of X-cite’s 15 stores in India. When contacted by FE, a TMS spokesperson said: “We are currently studying the CDIT retail market to make a meaningful impact on the consumer experience. As of now, we have closed our unprofitable big box and neighbourhood store format and, once our plan is finalised, we will approach the category with a meaningful and differentiated proposition for the consumer.” (For details log on to : http://www.financialexpress.com/news/essar-exits-durables-electronics-retail-biz/959645/)
ADVISORY COMPANY SAYS VOTE AGAINST REAPPOINTMENT OF INFOSYS AUDITOR
NEW DELHI: Advisory firm Institutional Investors Advisory Services (IIAS) has advised investors to vote against a resolution seeking the reappointment of the statutory auditor of technology major Infosys. Among other things, the company is seeking shareholders’ approval for the reappointment of BSR & Co as statutory auditor at its annual general meeting to be held in Bangaloreon Saturday. While IIAS is opposed to this resolution, it is in favour of all the other resolutions up for shareholders’ approval, including the adoption of accounts, appointment of directors and on executives’ compensation. IIAS calls itself an advisory firm dedicated to providing participants in the Indian market “with independent opinions, research and data on corporate governance issues”. In a report dated June 5, IIAS said the continuation of the auditor for six years and the same partner signing the report for more than three years were events carrying “moderate risk”. According to the report, BSR & Co has been the statutory auditor of Infosys “since at least FY1999”. The report says, “Further, as per annual reports, audit partner (Natrajh Ramakrishna) has been the signing partner since FY2007.” (For details log on to : http://www.business-standard.com/india/news/advisory-company-says-vote-against-reappointmentinfosys-auditor/476807/)