XED NEWSLETTER a weekly news bulletin

11 Pages 04th AUG 2011 10th AUG 2011 www.xedintellect.com

IN BRIEF
COVER STORY
INS AND OUTS OF CREDIT RATING AGENCIES
ECONOMIC INDICATORS
BSE SENSEX 17,130 10 gm Gold Price Rs 25,561 RS/$ 45.2 th (as on 10 Aug 2011)
PERSONALITIES OF THE WEEK

INDUSTRY ANALYSIS

NEWS DIGEST
BUSINESS NEWS INTERNATIONAL NEWS MISCELLANEOUS NEWS

COMPILED BY

Recession 2011: India to pitch for rating upgrade ECONOMIC INDICATORS 2 INTERNATIONAL NEWS 9

Apple blocks Samsung from selling Galaxy in EU

'Working in posh, sterile offices bad for brain'

COVER STORY 3 PERSONALITIES OF THE WEEK 4 BUSINESS NEWS 5-8 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11

TOP 10 HEADLINES OF THE WEEK

1. Recession 2011: India to pitch for rating upgrade. 2. Indian companies doing business in Britain to fall under new Bribery Act. 3. Attrition is a blessing for ITeS companies. 4. 127 mills employing 41,118 people shutdown in past 3 yrs: Govt. 5. Bears and Bulls Fight it Out in Skittish Market. 6. 2011 Economy to Get a Boost to Power of 10 7. Kingdom Holding Co signs deal with SaudiBin laden Group to build world's tallest tower. 8. Facebook, Twitter abuzz with S&P's Deven Sharma's US economy downgrade from AAA. 9. 'Working in posh, sterile offices bad for brain'. 10. Katrina Rules TV as Cricketers Lose Out.

ECONOMIC INDICATORS
Current Market Rates as on 10th Aug11 Rupee/US Dollar Rupee/Euro Values 45.20 64.76 Stock Market Indices as on 10th Aug11 BSE SENSEX Price of 10 Gram Gold Values 17,130 25,561

How the world will use the internet in 2015

CISCO, the worlds biggest maker of networking gear predicts that internet traffic will quadruple and reach 80.5 Exabytes per month (80 Exabytes would fill 20 billion DVDs) by 2015. That year, for the first time, Asia will generate more traffic (24.1 Exabytes per month) than North America (22.3 Exabytes per month)although America still beats China (6.9 versus 5.6 Exabytes per month). Yet if traffic figures are divided by population, a somewhat different (and more meaningful) picture emerges.

South Korea is and will be the world's most data-hungry country in Cisco's sample. Even Canada and France (and, by 2015, Britain) will consume more gigabytes per month per person than America. As for China, it drops down the list and will be overtaken by Brazil, but remains way ahead of India.

INS AND OUTS OF CREDIT RATING AGENCIES

US still seems to be in the hangover of losing its coveted AAA credit rating. Standard and Poors analytical tools meant to evaluate credit worthiness of any Nation would have us believe that people holding US treasury bonds may have to tread cautiously in the market. Though the US considers the downgrading of its rating to AA+ a gross miscalculation, the agency doing so is not budging from its stance. The time could not have been better to get a peek into these credit rating agencies modus operandi and credibility. What they do: A credit agency evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information of a company or government; including non-public information obtained by the credit rating agencies analysts. Uses of rating: Credit ratings are used by investors, issuers, investment banks, broker-dealers, and governments to determine the likelihood that issuer will pay its bond obligations. Higher rating means less probability of default and vice versa. For investors, credit rating agencies increase the range of investment alternatives and provide independent, easy-to-use measurements of relative credit risk. In most cases, a significant bond issuance must have at least one rating from a respected CRA(Credit Rating Agency) for the issuance to be successful; without such a rating, the issuance may be undersubscribed or the price offered by investors may be too low for the issuer's purposes. Banking regulators can also allow banks to use credit ratings from certain approved CRAs when calculating their net capital reserve requirements. How credible they are: Large corporate rating agencies have been criticized for having too familiar a relationship with company management, possibly opening themselves to undue influence or the vulnerability of being misled. Credit Rating Agencies have made errors of judgment in rating structured products, particularly in assigning AAA ratings to structured debt, which in a large number of cases has subsequently been downgraded or defaulted. US housing crisis is a stellar example of that. Moodys and S&P continued to give top ratings to mortgage-backed securities months after the housing market started to collapse only to worsen the financial crisis. And in more recent news, Moodys came under sharp criticism from the European commission following the downgrading of Portugals debt status to junk. The commission claims that Moodys are guilty of making assumptions that Portugal might need a second bail-out based on their credit rating. Ratings agencies, in particular Fitch, Moody's and Standard & Poors have also been implicitly allowed by governments to fill a quasi-regulatory role. Taking ratings at face value: While investors may use credit ratings in making investment decisions, ratings are not indications of investment merit. In other words, the ratings are not buy, sell, or hold recommendations, or a measure of asset value. Nor are they intended to signal the suitability of an investment. They speak to one aspect of an investment decision - credit quality - which in some cases may include the view of what investors can expect to recover in the event of default. Why ratings change: The reasons for ratings adjustments vary, and may be broadly related to overall shifts in the economy or business environment or more narrowly focused on circumstances affecting a specific industry, entity, or individual debt issue. In some cases, changes in the business climate can affect the credit risk of a wide array of issuers and securities. For instance, new competition or technology, beyond what might have been expected and factored into the ratings, may hurt a company's expected earnings performance, which could lead to one or more rating downgrades over time. Growing or shrinking debt burdens, hefty capital spending requirements and regulatory changes may also trigger ratings changes. How things can go wrong: Some of the biggest investors in the world which include pension funds and mutual funds have a mandate to invest only in very, very safe financial securities. So rather than depending upon their individual intellect they rely on these Rating agencies to tell them what is safe and what is not. With the downgrade there is a fear that holders might sell off US securities. But it seems unlikely as big countries are their major holders. China holds around $1.1tn of these securities. So it is in their interest that they continue holding on to these securities, simply because if they try and sell, the value of these securities will fall and thus hurt them in the process. An imminent sell-off though is unlikely but the times have sure become turbulent for the US. It still is a safe haven for investors but if other rating agencies like Moodys and Fitch follow S&Ps way. Investors (even countries) might kiss US Securities Good bye. And the US sure is not going to enjoy that.

PERSONALITIES OF THE WEEK

ANSHUMAN JAIN: DYNAMIC DEMEANOR
Anshuman Jain 48, the head of Deutsche Bank's highly successful investment banking division based in London, is set to take over the leadership of Germany's largest bank together with his management board colleague, Juergen Fitschen. As he sets to be the head of one of the most conservative (in cultural terms) global institutions, the honour speaks volumes of his talent and ability. Early Life: Jain studied economics at University of Delhi's Shri Ram College of Commerce, earning a bachelor's degree with honors in 1983. He also holds an MBA in Finance from the University of Massachusetts Amherst. After having finished his studies there, he started as an analyst in derivatives research at Kidder, Peabody & Co. (now part of UBS) where he worked from 1985 to 1988. After three years, he joined Merrill Lynch in New York where he founded and led the securities industrys first dedicated hedge fund coverage group. While at Deutsche Bank, Jain stopped the practice of proprietary trading. Before the 2008 crisis, many banks, including Deutsche Bank, traded in stocks, currencies, and bonds using their own money rather than that of the clients. In most cases, investment banks borrowed money to engage in risky trading activity. Jain ended this proprietary trading in Deutsche Bank even before the US Government mooted a proposal in 2010, to ban such trading in deposit taking institutions. In 2010, he was quoted telling an audience with a refreshing honesty that Investment banks, just like regulators and governments, have to accept that some of their activities contributed to the crisis. His peers admired his straightforward style. Accolades: Anshu Jain received Risk Magazine Lifetime Achievement Award in 2010, as well as the annual Business Leader Award from NASSCOM. He is a 2005 recipient of the American Indian Foundations Achievement Award for philanthropy and ongoing involvement in development. He won Euromoney Magazine Capital Markets Achievement Award in 2003.

ALAN GREENSPAN: THE UNDERTAKER

Nick named by Ayn Rand The undertaker because of his penchant for dark clothing and reserved demeanor, Alan Greenspan is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006 . Six months after taking the job, Greenspan presided over the biggest stock market crash in Wall Streets history, the 1987 stock market crash. As Fed chairman, he set interest rates, and as such was largely responsible for directing U.S. national monetary policy. In the wake of the subprime mortgage and credit crisis in 2007, Greenspan stated that there was a bubble in the US housing market, warning in 2007 of "large double digit declines" in home values "larger than most people expect." However, Greenspan also noted, "I really didn't get it until very late in 2005 and 2006." Time magazine placed him third on a list of 25 people to blame for the financial crisis. The successive lowering of interest rates by the Federal Reserve was seen as the reason of the subprime crisis. Early Life: Greenspan attended George Washington High School from 1940 until he graduated in June 1943. He played clarinet and saxophone. He further studied clarinet at the Juilliard School from 1943 to 1944. In 1945 Greenspan attended New York University where he earned a B.S. degree in economics summa cum laude in 1948 and an M.A. degree in economics in 1950. At Columbia University, under the tutelage of Arthur Burns, he pursued advanced economic studies but dropped out. In 1977, Greenspan obtained a Ph.D. degree in economics from New York University. Objectivism: Association with Ayn Rand In the early 1950s, Greenspan began an association with famed novelist and philosopher Ayn Rand. He became one of the members of Rand's inner circle, the Ayn Rand Collective, who read Atlas Shrugged while it was being written. During the 1950s and 1960s Greenspan was a proponent of Objectivism, writing articles for Objectivist newsletters and contributing several essays for Rand's 1966 book Capitalism: the Unknown Ideal, including an essay supporting the gold standard. Future of Capitalism: Greenspan wrote a memoir titled The Age of Turbulence: Adventures in a New World, published September 17, 2007. Greenspan discusses in his book, among other things, his history in government and economics, capitalism and other economic systems, current issues in the global economy, and future issues that face the global economy. Accolades: His honorary titles include Commander of the French Lgion d'honneur (Legion of Honor, 2000) and Knight Commander of the British Empire (2002). In 2006, Greenspan was awarded the Department of Defense Medal for Distinguished Public Service.

BUSINESS NEWS
1) Recession 2011: India to pitch for rating upgrade-ET 08 Aug India will pitch for a significant upgrade of its credit rating by global rating agencies in the hope that a better rating will offset some of the negative consequences of Friday's US downgrade. Two of the world's top ratings agencies - Standard and Poor's (S&P) and Fitch Ratings - are expected to review India's rating in November. Ratings reflect the creditworthiness of countries and help investors understand better the risks their investments face. S&P, which on Friday stripped the US long-term sovereign credit rating of the triple A it had enjoyed for 70 years, has given India a rating of BBB-, the lowest investment grade. Debtridden Spain has AA rating while Italy enjoys an A+. Fitch has projected India's potential medium term gross domestic product (GDP) growth at over 8% and has given the country the same rating as S&P. "We will seek a decently higher rating in the November review," the finance ministry official said. 2) Indian companies doing business in Britain to fall under new Bribery Act-ET 08 Aug The Indian companies which have business relations with Britain, raise finance or have subsidiaries there, will soon find themselves prosecutable under the new British Bribery Act which came into effect on July 1 in place of the old Victorian law. According to accounting professionals and lawyers who gathered here over the weekend to discuss the implications of the law on domestic firms, the scope of the new anti-bribery law is too wide to be ignored. A firm headquartered in India will find itself answerable to the British Serious Frauds Office (SFO) even if any of its arms in any other country had indulged in bribery or any corrupt practices, and if this resulted in loss of business to British companies or interests. 3) Attrition is a blessing for ITeS companies-TOI 09 Aug Attrition is not always a dirty word. For many organizations in the information technology enabled sector (ITeS), it spells cost savings. Take Symphony Services, a mid-sized product manufacturing company with an employee base of 3,300, and an attrition of 15%. The company saves nearly Rs 9.6 crore every year by preferring to hire "attrition backfills" -- positions that become vacant when an employee leaves -- at junior levels. There is a reason for this: the sector battles 35% un-employability, and companies are forced to make do with those who very often don't make the cut. Attrition in this sector is seen mainly at the junior levels, where those who have work experience of a few months to a few years are difficult to retain. Night shifts, higher education, better salaries and positions offered by competitors are the main reasons for the shift. 4) 127 mills employing 41,118 people shutdown in past 3 yrs: Govt-ET 08 Aug Over 125 textile mills providing employment to 41,118 people have been shut down in the past three years on account of restrictions on cotton yarn exports and piling up of huge inventories, Parliament was informed today. "As on May 31, 2011, 127 cotton/man-made fibre textiles mills (non-small scale units) were closed during the last three years," Minister of State for Textiles Panabaaka Lakshmi said in a written reply to the Lok Sabha. She said the government has received representations from the industry with regard to a supply and demand mismatch, huge inventories of finished goods piling up, restrictions on the export of cotton yarn and rising input prices. Lakshmi said out of 127 mills closed, 38 mills were registered with the Board for Industrial and Financial Reconstruction (BIFR) as of March 31, 2010. The BIFR decides on reliefs or concessions to be given to sick units. 5) Bears and Bulls Fight it Out in Skittish Market-ET 09 Aug A world, fearing the worst, had little time for the usual Monday morning blues. Investors tracking stock prices on handhelds on way to work after an anxious weekend sensed that the turmoil may not end in a hurry. Stocks in Japan, Hong Kong, South Korea and Taiwan were in the red; Dalal Street dropped more than 500 points and then went for a scary rollercoaster ride; European markets wiped out initial gains and stocks tumbled as soon as the US market opened. Trading came to a halt for some time in Koreas junior index, while Israel paid the price of a historical friendship when its sovereign bonds, guaranteed by the US, were downgraded by S&P. According to banking circles, the RBI, which is monitoring the market, may hold an internal meeting on Tuesday to consider a possible intervention in the currency market.

6) 2011 Economy to Get a Boost to Power of 10-ET 08 Aug The government is about to announce a series of big-bang economic measures as part of a determined push to arrest a sense of despondency spreading through industry and counter perception that policymaking has all but come to a grinding halt. The next few weeks will see up to 10 announcements comprising big-ticket policy reform measures and clearances of high-visibility projects, two officials familiar with these plans told ET. This list has been finalised by the Prime Ministers Office in concert with the finance ministry, after being shortlisted from a range of options put up by various economic ministries. The announcements could include the launch of a quick bidding process for a new international airport in Mumbai, immediate allocation of coal blocks for power projects stuck for fuel, fast-track clearance of all pending foreign investment proposals and possibly even a phased rollout of FDI in multi-brand retail. 7) Maruti engineers to develop new 800cc vehicle in India-TNN 10 Aug Maruti Suzuki is aggressively working on an all-new car, as Maruti's engineers embark on an independent full-model change capability, something not attempted before, managing executive officer (engineering) IV Rao said. Rao, who declined to speak about the pricing of the new vehicle, said the idea was to develop a car that would co-exist with the Alto, the country's largest-selling car with monthly volumes averaging over 30,000 units and to constantly introduce new models while also developing the company's R&D capability to develop, design and engineer a model on its own. He shot down suggestions that the new car would be a renewed version, or fresh attempt, to revive the M800 model that has already made its way out of 13 top metros (due to stricter emission norms) and will be phased out gradually from the rest of the country in the coming years. 8) Search committee interviews 14 so far to succeed Ratan Tata-TNN 10 Aug The search committee set up to find Ratan Tata's successor will announce the next chairman of the telecom-to-tea conglomerate by the end of this year, RK Krishnakumar, one of the panel members, reportedly said on the sidelines of a recent annual general meeting of a group company. The successor will be the new chairman of Tata Sons, which is the holding company of the group, having shareholding across group companies. The timeline has been extended because of challenges faced by the committee in identifying the right candidate who would not only take the $72-billion Group to the next level of growth, but also preserve its strong culture and values. Tata, whose term ends in December 2012, when he turns 75, is however, keen that his successor spends at least two years working with him before taking charge. 9) Gold at record 24K, could soar higher- TOI 4 Aug Over the last 1 year, gold prices in India have risen by 34%. Gold prices rose to a new record level in India, of over Rs 24,000 per 10 grams, tracking international prices which neared the $1,700 per ounce mark on Wednesday. While this is good news for investors in the yellow metal, it is bad news for those who are planning to buy gold jewellery. Spot gold prices closed at Rs 24,330 in Delhi, and Rs 23,995 in Mumbai; at 9pm IST, gold was trading at $1,670 on Comex in New York, all new peaks. Over the last one year, gold prices in India have risen by 34%, and this is attributed to the current gloomy outlook for the global economy, growing inflationary pressures and the weakness of the US dollar against other major currencies like Japanese Yen and Swiss Franc, according to market players. Going forward, they expect gold prices to rise further from the current levels. 10) Possible flood of Chinese goods holds up FDI in retail-TNN 04 Aug Ministries have raised fears of Chinese goods flooding shelves in retail chains if the doors are opened to foreign players to set up multi-brand stores in the country. This has prompted the government to work out a safety valve for the reform to go through. Senior government officials said the ministries of telecom and IT, and micro, small and medium enterprises suggested that riders be put in place first to ensure that the local industry was protected. The department of industrial policy and promotion (DIPP), which is pushing the proposal for FDI in multi-brand retail, had suggested that foreign retailers be mandated to source 30% of their requirements from small-scale industry. Secretaries from textiles, MSME and telecom and information technology will suggest how to balance the twin objectives of protecting local electronics and smallscale players and yet get around global trade rules. The industry department will prepare the Cabinet note to allow foreign stores such as Walmart and Tesco to acquire up to 51% stake in joint ventures in multi-brand retail business.

11) HDFC Bank starts income tax payment service through ATMs- The Hindu 4 July Private sector lender HDFC Bank on Wednesday launched a service whereby its 115 lakh debit card holders can pay income tax through the bank's ATMs. "With this facility, the bank has given its vast customer base the freedom from waiting in long queues at counters or logging into the internet to pay their taxes," the bank said in a statement. The service can now be accessed by the bank's 115 lakh debit card holders at 5,998 HDFC Bank ATMs in 1,111 cities across the country. For availing the service, customers will have to register themselves and the ATM payment option will be activated immediately, it said. 12) Chinese banks have offered cheap yuan loans to finance power equipment for Indian firms- ET 5 Aug Chinese banks have offered yuan loans to finance more than $50 billion of power equipment for Indian firms at lower interest rates, giving a shot in the arm to credit-starved power companies but posing a serious threat to Indian suppliers such as BHEL and L&T. Chinese lenders have approached the government for accepting renminbi as a currency for external commercial borrowing by Indian power firms. Private power firms said direct overseas borrowings are restricted to a few currencies such as the US and Australian dollars, yen and euro. Indian power firms are strongly backing the Chinese move as they are struggling to finance projects after local interest rates rose to 13% from 9% in the past two years. Orders for 80,000 mw of equipment worth $50 b is placed with Chinese companies. Reliance Power alone has placed orders for 30,000 mw of equipment worth $10 billion. 13) As law and order improves, private companies are rushing in for infrastructure projects in Bihar- TOI 5 Aug Today, Bihar is attracting private funds in infrastructure projects, a complete turnaround after six years of Chief Minister Nitish Kumars rule. These investments are even more remarkable because two of these projects will be toll roads, where the operator has to be confident of his ability to collect toll, a confidence that was lacking during Lalu Yadavled RJDs 15-year reign. Officials of the Bihar State Road Development Corporation now keep tabs on how projects are progressing using smartphones running Googles Android OS, from their offices in district headquarters. Bihar is the first state in India to put mobile technology to this use. Of the two private road projects, the first is a . 1,602-crore project to build a 5.5-km bridge across the river Ganga, connecting Bakhtiyarpur with Shahpur along with a four-lane 45.5 km approach road. The second is a . 917crore project to widen the two-lane road between Ara and Mohania into a four-lane one. This will improve connectivity in Bihar. 14) Car owners may not get subsidized diesel: Government- TOI 5 Aug With passenger cars consuming about 15 % of the diesel, the Government today indicated that it might do away with the subsidy enjoyed by such vehicle owners. The Government gives a subsidy of Rs 6.08 per litre on diesel. While the prices of petrol are linked to market rates, the government directly and indirectly compensates the oil marketing companies for losses on account of sale of diesel, kerosene and LPG through subsidies and oil bonds. Under pressure to keep its finances under control the government has already indicated that it was keen on freeing prices of diesel and cooking gas (LPG) but retaining subsidy on kerosene which was used by poor. In June, while increasing prices of kerosene, diesel and LPG, the government had slashed customs and excise duties on petroleum products to mitigate the impact of price hike on common man. It took a revenue hit of Rs 49,000 core per annum. 15) Taiwanese computer firm MSI to launch low cost tablets 'Enjoy' in India starting at Rs 13,999- ET 5 Aug Taiwanese computer firm MSI said it would launch low cost tablets starting Rs.13,999 in the Indian market from Friday. The tablet series - Enjoy - will include two variants -- a 10-inch Enjoy 10 for Rs.13,999 and 7-inch Enjoy 7 for Rs.14,999. Speaking on the company's low cost strategy, MSI India general manager Eric Kuo told IANS: "Our products do not have some prominent features such as 3G and GPS because we do not see enough market for the same in a country like India currently which reduces the cost of the products to a great extent." "'Enjoy' series has been designed keeping the ultimate enduser in mind, it offers productivity while on the go and provides more ways to have fun and connect with friends," he added. The android tablets are equipped with dual 2 mega pixel cameras, 4 GB internal storage space micro-SD card slot (max 32 GB) and has a battery life of 5 hours

16) Europes & US debt crisis reaches India- ET 6 Aug Rs1,33,000cr of investor wealth was wiped out, as the Sensex fell 387 points. India and Asia, stocks plunged in the absence of a European policy package and growing risk aversion. Close to Rs.1,33,000 crore of investor wealth was wiped out, as the Sensex fell 387.31 points (or 2.19%) to 17,305.87. The drop was unnerving in mid-morning trade when the Sensex crashed 660 points to slip below 17,000. FIIs or offshore portfolio managers sold stocks worth Rs.1,789 crore. The risk aversion to equities has gone up as markets are turning hypersensitive to news flow from the US and Europe, said Vikas Khemani, president, Edelweiss Securities. The impact of concerns over the US faltering was more severe on other Asian markets. After all the chaos, US treasury bills the paper that the US government floats to borrow is still selling. But a divided Europe may have an uphill task in making European Central Bank create new money to bail out Italy and Spain. 17) Gujarat auto sector to employ 8 lakh in 3 years- ET 6 Aug Gujarat is set to step into the big league of India's auto hubs by employing 8 lakh people over the next three years. The state is attracting an increasing number of carmakers keen to set up production facilities here as Gujarat offers better port connectivity, a key requirement for exports. At present, Gurgaon, Chennai and Pune are the country's top vehicle producing centres, together employing 13 million people directly and indirectly. Ford Motors, the latest entrant to the state, said it will generate 30,000 direct and indirect jobs in Gujarat. Maruti Suzuki's RC Bhargav estimates his upcoming plant in Gujarat will grant employment to 1.5 lakh. Since 1991 when Apollo Tyres came to Gujarat, the state has seen its workforce swell to 4 lakh across original equipment manufacturers and auto component makers. The likes of General Motors, Atul Auto, Electrotherm and Asia Motor Works set shop in Gujarat over the years. The state now manufactures 6 lakh cars, 48,000 three wheelers, 50,000 trucks and 2.5 lakh e-bikes every year. Experts say production of one car helps five persons earn their livelihood. 18) BSNL, MTNL lost around 6.5 lakh subscribers post mobile number portability- ET 6 Aug State-owned telecom operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have lost over 5,84,261 and 55,605 customers respectively as on June 30 after mobile number portability (MNP) was introduced in the country, the government said. Number of subscribers who ported out of the BSNL and MTNL networks stood at 9,33,750 and 67,198 while those porting in the network included 3,49,489 and 11,593 subscribers respectively, said Milind Deora, Minister of State for Communications and IT, in a written reply to the Rajya Sabha. Both BSNL and MTNL have been taking various initiatives to retain their subscribers, including measures like forming special cell to contact customers and address their grievances, forgoing porting fees from subscribers coming into BSNL network and increasing points where customers can make payments. The companies have also reduced the tariff rates. 19) India's appetite for power consumption huge but infrastructure inadequate- ET 6 Aug The ministry of power's ambitious vision to provide electricity to all is expected to remain a distant dream for now at least. Policy makers and professionals in the field believe that India is yet to have its policies and infrastructure in place to generate enough power and commission transmission and distribution network. The School of Petroleum Management of Gandhinagar (SPMG) based Pandit Deendayal Petroleum University ( PDPU) hosted 'Power Sector India Roundtable 2011' on Friday. The event focused on power sector in the 11th Five Year Plan and its contribution in the overall economic development. Commenting on the limitations of the infrastructure, Essar Group resident director Jayesh Buch said, "Indians consume one fourth of electricity compared with Chinese and Brazilians. India has huge appetite for power consumption. However, issues related to policies, infrastructure and fuel prices are hindrances in the power sector." Among other issues, experts believe that financial conditions of the ailing state utilities and lack of desirable talent are also creating road block for the sector. "Annual losses of power utilities stand at 75,000 crore to one lakh crore, which is as high as 1% of Indian GDP. 20) Africa Big Drag on Bharti, Hope Rests on India- TOI 4 Aug Price wars in the African market destroy margins. Bharti Airtels net profit fell for the 6th straight quarter. Bharti Airtels net profit fell for the sixth straight quarter hurt by high debt and African tariff wars, but the companys stock came off its lows on Wednesday on hopes that recent call rate hikes in India may mean better times for the beleaguered company. Devastated by the orgy of tariff cuts in the past few years and groaning under the weight of debt, Indian mobile firms have started to slowly increase prices, ending two years of savage price wars that destroyed industry margins and affected sales and profitability of all telcos. Bharti was first off the block last month, followed by Vodafone and Idea Cellular. The hikes were only modest, but enough to spark hopes of a revival.

INTERNATIONAL NEWS
21) Kingdom Holding Co signs deal with SaudiBin laden Group to build world's tallest tower-IST 03 Aug The investment firm headed by Saudi billionaire Prince Alwaleed bin Talal said Tuesday it signed a 4.6 billion riyal ($1.2 billion) deal with the Saudi Binladen Group to build the world's tallest tower. Kingdom Holding Co. said the more than 3,280 foot (1,000 meter) high Kingdom Tower, to be built north of the Red Sea city of Jiddah, is part of the first phase of the planned Kingdom City. The sprawling mega project, announced in 2008, is slated to cover a two-square mile area. Kingdom Tower will include a hotel, serviced apartments, luxury condominiums and offices occupying roughly 5.4 million square feet, KHC said. The project is but one of several ambitious mega-ventures in the kingdom, OPEC's top exporter, as it seeks to diversify its economic base from the crude oil that has fueled its growth for years. In June 2009, KHC signed a deal with Dubai-based Emaar Properties to develop and oversee the construction of Kingdom City and Kingdom Tower. Emaar, which is partly owned by Dubai's government, is the developer of the Burj Khalifa, currently the tallest building in the world. 22) Facebook, Twitter abuzz with S&P's Deven Sharma's US economy downgrade from AAA-ET 09 Aug Deven Sharma, the head of S&P, was the Twitter star who topped the social search for being the Jharkhand- born Indian-American who downgraded the US economy. It's not just the Obama Administration that is trying to figure out the meaning and consequences of America's credit downgrade. Workers in Indian IT firms, fresh college graduates, retail investors, NRIs and some proud residents of Jharkhand are all keen to figure out what the global economic and credit crisis means to them. They flocked to Internet and social media sites, trying to make sense of the downgrade of America's credit rating, express their views and understand how the development affects their lives. Jobs, particularly jobs in the software sector, were the main object of attention of people online as they tried to comprehend the fallout of Standard & Poor's downgrade of the gold standard AAA rating of the world's largest economy. 23) Apple blocks Samsung from selling Galaxy in EU-Reuters 10 Aug Apple Inc scored a major victory in its multi-country patent infringement battle against Samsung Electronics after a German court barred the Korean company from selling its Galaxy Tab 10.1 in the entire European Union except the Netherlands. This is the second big setback for Samsung, which has been locked in a battle with Apple over smartphones and tablets patents since April, and comes after it delayed the Australian launch of its latest Galaxy tablet because of similar lawsuits. Apple said that Samsung's Galaxy line of mobile phones and tablets "slavishly" copied the iPhone and iPad. It has sued in the United States, Australia and elsewhere. Samsung has countersued Apple 24) As Apple, Microsoft & Oracle gang-up, Google cries foul as it loses out in the race for buying patentsReuters 4 July Google Inc, fresh from losing a bid to buy thousands of patents from bankrupt Nortel, lashed out at its biggest rivals on Wednesday and accused them of banding together to block the Internet giant in the red-hot smartphone arena. In a rare public outburst, Google Chief Legal Officer David Drummond blasted Microsoft, Apple, Oracle and "other companies" for colluding to hamper the increasingly popular Android mobile software by buying up patents, effectively imposing a "tax" on Android cellphones. Apart from increasing costs for consumers, snapping up the patents will stifle technological innovation, he said. Google -- which is facing a federal antitrust probe in the Internet search market it dominates -- is forging ahead in the smartphone market. But it has been hampered by a lack of intellectual property in wireless telephony, which has exposed it to patent-infringement lawsuits from rivals like Oracle. 25) One in seven Americans lives on food stamps- ET 5 Aug Believe it or not, one in seven Americans - 15 per cent of the country - now need governmentprovided food stamps simply to survive, according to latest government figures. Nearly 46 million Americans receive food stamps out of a population of some 311 million people, the US Department of Agriculture, which administers what's officially called the Supplemental Nutrition Assistance Programme reported Thursday. The continued high unemployment and the weak US economy have contributed to the explosive growth of the food stamp programme with no end in sight to the monthly increases, CNN said noting that 27 million people were dependent on food stamps in October 2007. Under the food stamps programme, an eligible individual gets $200 a month in food stamps in the form of a debit card that can be used at supermarkets and stores to buy authorized food.

MISCELLANEOUS NEWS
26) 'Working in posh, sterile offices bad for brain'-PTI 08 Aug Working in a posh open plan office? Well, it may be bad for your brain and can also make you less productive, scientists say. A new study has claimed that the hustle and bustle of modern offices can lead to a 32% drop in workers' wellbeing and reduce their productivity by 15%. Study researchers found that open-plan offices create unwanted activity in the brains of workers that can get in the way of them doing the task at hand. They also claimed that having a clean and sterile desk can also leave employees with smaller brains, the Daily Telegraph reported. Modern offices which refuse to allow personal decorations on walls or desks may also not be helping employees, said Craig Knight, a psychologist at Exeter University. "Employees respond better in spaces enriched with pictures and plants. If they are allowed to enrich the space with their own things it can increase their wellbeing by 32%, productivity by 15%," he said. 27) Katrina Rules TV as Cricketers Lose Out-ET 10 Aug Cricket may have been the flavour of the season with the backto-back World Cup and IPL in the first half of this year, but top advertisers such as Hindustan Unilever, Procter & Gamble, Idea Cellular and Panasonic have largely stuck to film actors to endorse their brands. Bollywood actress Katrina Kaif emerged the most visible celebrity on television in terms of advertising volumes during January-June, according data from television ratings firm TAM. She was followed by Shah Rukh Khan, M S Dhoni and Kareena Kapoor Commenting on the study, Katrina Kaif said, These studies are cyclical. What matters is consistent performance over the long term and this is what I choose to focus on, be it in my movies or my brands. Consistency clearly is one thing most Indian cricketers lack as is visible from the Indian team's disastrous performance so far in its England tour. And, despite India's success in the world cup, only two cricketers captain MS Dhoni and master batsman Sachin Tendulkarmade it to the Top 10 most visible celebrities. 28) Now, you can use RTI to re-evaluate answer-sheets-TNN 10 Aug The Supreme Court on Tuesday ruled that students aggrieved with their examination scores - class X and XII, entrance exam for professional courses as well as job recruitment tests can now take a look at how they were evaluated by moving an application under the Right to Information Act. So far, only re-tabulation of marks was possible. Now, the court has provided for re-evaluation of answer-sheets, which will include whether examiner missed out awarding marks for answers to some of the questions. Passing the path-breaking order that will be lapped up by students, but may cause consternation among the teaching fraternity, a bench of Justices R V Raveendran and A K Patnaik dismissed a bunch of appeals filed by the Central Board of Secondary Education, West Bengal Board of Secondary Education, Institute of Chartered Accountants of India (ICAI), University of Calcutta, West Bengal Central School Services Commission and Assam Public Services Commission. 29) Unequal growth fuels Londons nights of anger-TNN 09 Aug Two night of riots that rocked London point to deeper social unease in poor areas of the British capital, community leaders said on Monday, but police and politicians said much of the violence was opportunistic. The touch paper for the unrest was lit on Thursday when police shot dead Mark Duggan, a resident of the multi-ethnic district of Tottenham in north London, after officers stopped the taxi in which he was a passenger. Osagyefo Tongogara, a community activist who was in Tottenham during the Broadwater Farm riots, said: "There are a lot of parallels with 1985. I don't call it rioting, I call it rebellion. People are angry and frustrated. If you have a community with high levels of unemployment and cutbacks in welfare then this is what you are going to get. We are told that this is a global financial crisis and that we are all in this together but why should we be? But you can't put the unrest down to that or to criminality. That's a very simplistic explanation," he said. 30) Sonia Gandhi undergoes surgery in US. Congress keeps ailment a secret- TOI 5 Aug Congress President Sonia Gandhi underwent a surgery in a US hospital and would be away for 2-3 weeks. Party General Secretary Janardhan Dwivedi told reporters on Thursday that the 64-yearold leader was recently diagnosed with a medical condition that requires a surgery. The Congress or the party presidents office refused to disclose the details of the ailment that Sonia was suffering from or the hospital and the country where she is being treated. A statement on her condition is likely to be issued on Friday.

10

INDIAN MOBILE MANUFACTURERS

With a subscriber base of more than 851 million, the Mobile telecommunications system in India is the second largest in the world. India is the second largest mobile handset market in the world after China with a multitude of domestic and international players the hottest segment being the entry level segment for homegrown mobile manufacturers. Overview: The Indian mobile handset arena, at present offers models varying from the cheapest across the world, the Vodafone 150 sold for Rs 799 featuring only the basic attributes of a cell phone, to the likes of iPhone that feature some of the most sophisticated technologies. The Indian mobile market growth has been on the back of the rising wireless subscriber base and consistent decline in the Average Selling Price (ASP) of handsets, which has come down to Rs 2500 in 2010. Other key factors contributing to this phenomenal growth are rising disposable incomes and low SIM registration & airtime charges, making handsets increasingly affordable to masses in the past 10 years. The introduction of innovative features with advanced technologies that can live up to the customers growing expectations, has become more of an industry norm and a challenge for existing players to survive in the market. Local Advantage: With worlds leading handset players such as Nokia, Samsung, Blackberry, LG, Sony Ericsson and Motorola betting high on the fast-growing demand for mobile handsets across the country, the growing appetite of Indian consumers has made a large number of domestic players jump-in to reap profits on the back of local advantages such as relatively better consumer understanding. These domestic companies have managed to attract consumer attention away from the likes of Nokia, Sony Ericsson and Samsung with cheaper, feature-rich phones and aggressive advertising & branding. A key point which has enabled these players to grow so fast is the level of innovation they have brought into the market by introducing value-added features in mobiles such as 30 days of battery back-up & dual SIM card options, something even the leaders had to follow. Value-added Products: Leading domestic manufacturers is Gurgaon-based Micromax, registering a 42.9% increase in its revenue and emerging as the third largest mobile handset seller in India after Nokia & Samsung. While Micromax is targeting the low-cost smartphone segment, Zen Mobile plans to launch about 15 handsets in the below Rs 2000 price range to increase it rural presence & overall market share & has earmarked about Rs 30 crore for marketing this year. Olive Telecom has come out with a phone that runs on AAA battery, priced below Rs 2000 and targeted towards rural consumers. With its 3G phones likely to be launched next month, Wynn Telecom is looking at the sub Rs 3000 handsets for the entry level segment. Micromax, Spice and Videocon have launched their feature rich Android phones which are in the sub Rs 10,000 category, while Karbonn is on way to acquire a South Korean Android design company. Spice launched its first 3D mobile phone with dual SIM for Rs 4,299. Intex has a video chat phone with dual camera for Rs 2,990. The company also launched a projector-integrated mobile phone at Rs 13,000. Lava Mobiles has targeted users not comfortable with the Qwerty keypad, launching the Alpha keypad that arranges the keys in alphabetical order. The company has also launched a multilingual handset Lava KKT 15 that comes pre-loaded with 12 Indian languages -- Hindi, Marathi, Bengali, Tamil, Punjabi, Telugu, Gujarati, Kannada, Urdu, Malayalam, Oriya, and Assamese, priced at Rs 2,899. MAXX Mobile has come up with a gaming phone at Rs 2,300 with 250 preloaded games and a 2 GB data card, targeting gaming addicts. Global Markets: Karbonn Mobiles, Intex, Lava, Micromax and Maxx Mobile are among Indian mobile manufacturers that have entered markets in Bangladesh, Nepal, Sri Lanka, West Asia & Africa. Karbonn is the number two brand in Nepal, after Samsung. Maxx Mobile, which sells phones in Dubai & Bangladesh, believes these markets will fuel its growth in future. Intex has tied up with CityCell in Bangladesh for a bundle offer to increase penetration. Key Demand Drivers: The mobile handset tele-density (handsets per 100 inhabitants) in India currently stands at nearly 45%, representing a huge untapped market. Rural markets are in focus, where customers are highly price sensitive & the introduction of 3G services is expected to be another crucial growth driver in the domestic market. The high-end models are expected to witness a steep growth curve. Also low-cost handsets would still account for a majority share in the handset market in terms of volume sales. Performance & Industry Outlook: According to telecom industry journal Voice & Data, revenues in the Indian mobile handset market grew 15% to touch Rs 33,171 crore in 2010-11 from Rs 28,897 crore a year before. The Indian mobile handset market is expected to continue its upward trajectory & become even bigger with 208.4 million phones being shipped by 2016 at a CAGR of 11.4% between the 2010 2016 period. The mobile handset market expects the revenue to rise from US $255 billion to US $350 billion. The smartphone market is expected to grow tenfold to 30 Million units by 2016 from just about Rs 2.9 million units currently.

11

CURRENT AFFAIRS QUIZ

1. Which of the following is incorrect regarding the Indian mobile telecommunications system including mobile manufacturers & subscribers ? a. India is the third largest mobile handset market in the world after US & China. b. The Indian mobile market has a subscriber base of more than 851 million. c. While the wireless subscriber base has been rising, the Average Selling Price of handsets has been declining, coming down to Rs 2500 in 2010. d. Rising disposable incomes and low SIM registration & airtime charges have been key factors in the growth of the Indian mobile market. 2. Which a. b. c. of the following is incorrect regarding Indian mobile manufacturers ? They compete with global handset players in the entry-level segment in the Indian mobile market. A key point where they are unable to challenge global handset players is innovation in mobiles. They have a local advantage such as relatively better consumer understanding as compared to global handset players. d. They have managed to attract consumer attention with cheaper phones and aggressive advertising & branding.

3. Which of the following is incorrect regarding products offered by Indian mobile manufacturers ? a. Lava has launched mobiles with an Alpha keypad that arranges the keys in alphabetical order, targeting users not comfortable with Qwerty keypad. b. MAXX Mobile has launched a gaming phone at Rs 2,300 with 250 pre-loaded games and a 2 GB data card, targeting gaming addicts. c. Micromax has launched a multilingual handset that comes pre-loaded with 12 Indian languages priced at Rs 2,899. d. Intex has launched a projector-integrated mobile phone at Rs 13,000. 4. Which of the following facts is incorrect regarding Indian mobile market & Indian mobile manufacturers ? a. Revenues in the Indian mobile handset market grew 15% to touch Rs 33,171 crore in 2010-11 from Rs 28,897 crore a year before. b. While rural markets are in focus & low cost handsets are expected to drive volume sales, the introduction of 3G services will be a crucial growth driver in the domestic market. c. Micromax, registering a 42.9% increase in its revenue, is the largest Indian mobile handset seller in India. d. Many Indian mobile manufacturers also have an international presence like Spice mobiles, which is the number two brand in Nepal, after Samsung. 5. Which of the following is not a benefit that the income tax payer will get from HDFC's new service? a. It has launched a service whereby its 115 lakh debit card holders can pay income tax through the bank's ATMs. b. The tax payers will get freedom from waiting in long queues at counters or logging on to the internet to pay their taxes. c. The service can now be accessed by the bank's 115 lakh debit card holders at 5,998 HDFC Bank ATMs in 1,111 cities across the country. d. Customers need not register themselves to pay the tax through the ATM. 6. Which of the following is not true about Chinese loans being availed by Indian companies? a. Tata power alone has placed orders for 30,000 mw of equipment worth $10 billion. b. Indian power firms are struggling to finance projects after local interest rates rose to 13% from 9% in the past two years. c. Chinese banks have offered Yuan loans to finance more than $50 billion of power equipment, for Indian firms, at lower interest rates. d. Orders for 80,000 mw of equipment worth $50 b is placed with Chinese companies. 7. Which of the following is not correct regarding private funds in infrastructure projects in Bihar? a. Two of these projects will be toll roads, where the operator has to be confident of his ability to collect toll, a confidence that was lacking during Lalu Yadav led RJDs 15-year reign. b. Of the two private road projects, the first is a . 1,602-crore project to build a 5.5-km bridge across the river Yamuna, connecting Bakhtiyarpur with Shahpur along with a four-lane 45.5 km approach road. c. These projects are progressing using smart phones running Googles Android OS, from their offices in district headquarters. d. Bihar is the first state in India to put mobile technology to this use.

12

8. Which of the following is incorrect regarding the government giving diesel subsidies to vehicle owners? a. The Government gives a subsidy of Rs 6.08 per liter on diesel. b. The government is keen on freeing prices of diesel and cooking gas but retaining subsidy on kerosene which was used by poor. c. Passenger cars are consuming about 60 % of the diesel. d. Government had slashed customs and excise duties on petroleum products to mitigate the impact of price hike on common man. 9. Which of the following is incorrect about low cost tablets launched by Taiwanese computer firm MSI? a. MSI plans to launch low cost tablets starting Rs.13,999 in the Indian market. b. The tablet series, Enjoy will include two variants; a 10-inch Enjoy 10 for Rs.13,999 and 7-inch Enjoy 7 for Rs.14,999. c. Enjoy' series has been designed to offer productivity, while on the go and provide more ways to have fun and connect with friends. d. These tablets will have some prominent features such as 3G and GPS. 10. Which a. b. c. of the following is not true regarding the Europe and US debt crisis & its impact? The impact of concerns over the US faltering was less severe on other Asian markets. Rs 1,33,000cr of investor wealth was wiped out, as the Sensex fell 387 points. Indian & Asian stocks plunged in the absence of a European policy package and the risk aversion to equities has gone up. d. A divided Europe may have an uphill task in making European Central Bank create new money to bail out Italy and Spain.

11. Which of the following is false about the auto sector in Gujarat? a. Gujarat is set to step into the big league of India's auto hubs by employing 8 lakh people over the next three years. b. Hyundai, the latest entrant to the state, said it will generate 30,000 direct and indirect jobs in Gujarat. c. It is attracting an increasing number of carmakers keen to set up production facilities. d. Maruti Suzuki's RC Bhargav estimates his upcoming plant in Gujarat will grant employment to 1.5 lakh. 12. Which of the following is incorrect regarding the effect of mobile number portability (MNP)on BSNL & MTNL? a. BSNL & MTNL have lost over 5,84,261 and 55,605 customers respectively as on June 30 after MNP was introduced in the country. b. Number of subscribers who ported in the network included 3,49,489 and 11,593 subscribers. c. Both BSNL and MTNL have been taking various initiatives to retain their subscribers like reducing the tariff rates. d. They are forgoing porting fees from subscribers coming into BSNL network. 13. Which a. b. c. of the following is incorrect regarding the power sector and power consumption of India? Indians consume one fourth of electricity compared with Chinese and Brazilians. Issues related to policies, infrastructure and fuel prices are hindrances in the power sector. Financial conditions of the ailing state utilities and lack of desirable talent are creating road block for the sector. d. Annual losses of power utilities stand at 75,000 crore to one lakh crore, which is as high as 20% of Indian GDP.

14. Which of the following states is set to step into the big league of India's auto hubs by employing 8 lakh people over the next three years? a. Gujarat b. West Bengal c. Maharashtra d. Karnataka 15. Which a. b. c. d. statement is false about the rising prices of gold in India? Gold prices in India have risen by 60%. Gold price has risen to a new record level in India, of over Rs 24,000 per 10 grams. Gold prices are set to rise further from the current levels. Spot gold prices closed at Rs 24,330 in Delhi, and Rs 23,995 in Mumbai as on 4th August 2011.

13

16. Which a. b. c. d.

of the following is not the reason for increasing gold prices in India? Current gloomy outlook for the global economy. Low interest rates in the international economy. Growing inflationary pressures. Weakness of the US dollar against other major currencies like Japanese Yen and Swiss Franc.

17. Which of the following is not a disadvantage of allowing foreign players to set up multi-brand stores in the country? a. Chinese goods will flood the retail stores. b. The local industry players will have to face competition from international brands. c. The quality of products will improve with increasing competition. d. Foreign stores like Wal-Mart and Tesco will have a 51% stake in joint ventures in multi-brand retail business. 18. Which of the following is not a benefit that the income tax payer will get from HDFC's new service? a. It has launched a service whereby its 115 lakh debit card holders can pay income tax through the bank's ATMs. b. The tax payers will get freedom from waiting in long queues at counters or logging on to the internet to pay their taxes. c. The service can now be accessed by the bank's 115 lakh debit card holders at 5,998 HDFC Bank ATMs in 1,111 cities across the country. d. Customers need not register themselves to pay the tax through the ATM. 19. Which of the following is not true about Chinese loans being availed by Indian companies? a. Tata power alone has placed orders for 30,000 mw of equipment worth $10 billion. b. Indian power firms are struggling to finance projects after local interest rates rose to 13% from 9% in the past two years. c. Chinese banks have offered Yuan loans to finance more than $50 billion of power equipment, for Indian firms, at lower interest rates. d. Orders for 80,000 mw of equipment worth $50 b is placed with Chinese companies. 20. Which of the following is not correct regarding private funds in infrastructure projects in Bihar? a. Two of these projects will be toll roads, where the operator has to be confident of his ability to collect toll, a confidence that was lacking during Lalu Yadav led RJDs 15-year reign. b. Of the two private road projects, the first is a . 1,602-crore project to build a 5.5-km bridge across the river Yamuna, connecting Bakhtiyarpur with Shahpur along with a four-lane 45.5 km approach road. c. These projects are progressing using smart phones running Googles Android OS, from their offices in district headquarters. d. Bihar is the first state in India to put mobile technology to this use. 21. Which of the following is incorrect regarding the government giving diesel subsidies to vehicle owners? a. The Government gives a subsidy of Rs 6.08 per liter on diesel. b. The government is keen on freeing prices of diesel and cooking gas but retaining subsidy on kerosene which was used by poor. c. Passenger cars are consuming about 60 % of the diesel. d. Government had slashed customs and excise duties on petroleum products to mitigate the impact of price hike on common man. 22. Which of the following is incorrect about low cost tablets launched by Taiwanese computer firm MSI? a. MSI plans to launch low cost tablets starting Rs.13,999 in the Indian market. b. The tablet series, Enjoy will include two variants; a 10-inch Enjoy 10 for Rs.13,999 and 7-inch Enjoy 7 for Rs.14,999. c. Enjoy' series has been designed to offer productivity, while on the go and provide more ways to have fun and connect with friends. d. These tablets will have some prominent features such as 3G and GPS. 23. Which a. b. c. of the following is not true regarding the Europe and US debt crisis & its impact? The impact of concerns over the US faltering was less severe on other Asian markets. Rs 1,33,000cr of investor wealth was wiped out, as the Sensex fell 387 points. Indian & Asian stocks plunged in the absence of a European policy package and the risk aversion to equities has gone up. d. A divided Europe may have an uphill task in making European Central Bank create new money to bail out Italy and Spain.

14

24. Which of the following is false about the auto sector in Gujarat? a. Gujarat is set to step into the big league of India's auto hubs by employing 8 lakh people over the next three years. b. Hyundai, the latest entrant to the state, said it will generate 30,000 direct and indirect jobs in Gujarat. c. It is attracting an increasing number of carmakers keen to set up production facilities. d. Maruti Suzuki's RC Bhargav estimates his upcoming plant in Gujarat will grant employment to 1.5 lakh. 25. Which of the following is incorrect regarding the effect of mobile number portability (MNP)on BSNL & MTNL? a. BSNL & MTNL have lost over 5,84,261 and 55,605 customers respectively as on June 30 after MNP was introduced in the country. b. Number of subscribers who ported in the network included 3,49,489 and 11,593 subscribers. c. Both BSNL and MTNL have been taking various initiatives to retain their subscribers like reducing the tariff rates. d. They are forgoing porting fees from subscribers coming into BSNL network.

ANSWER KEY:
Q 1 2 3 4 5
A

a b c d d

Q 6 7 8 9 10

a b c d a

Q 11 12 13 14 15

b c d a a

Q 16 17 18 19 20

b c d a b

Q 21 22 23 24 25

c d a b c

15