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SHIP AGENCY SERVICES TARIFF

Ships Agents Services tariff prepared in accordance with Law No.5590, relating to vessels calling at
Turkish ports or transitting through the Dardanelles or Bosphorous, is revised as follows by resolution
No. ‘’ Interior Trade 1994/2 ‘’ of the Ministry of Industry and Trade and published in the Official Gazette
No. 21818 dated January 14th, 1994.

SUBJECT:
Art.I – These services consist of Agency, Commission and Brokerage services rendered in connection
with foreign vessels calling at Turkish ports and/or territorial waters and passing through the
Dardanelles and Bosphorous.

SCOPE:
Art.2 – This tariff comprises Agency, Protecting Agency, Commission and Brokerage services rendered
by individuals or legal entities established in Turkey to Shipowners, Ship-Operators, Ship-Charterers
for vessels calling calling at Turkish ports and/or territorial waters and passing through the Dardanelles
and Bosphorous and appertaining to the carriage of cargo and or passengers.

SPHERE OF APPLICATION:
Art.3 – This tariff is applied to foreign flag vessels calling at Turkish ports and/or territorial waters and
passing through the Dardanelles and Bosphorous.

DESCRIPTIONS:
A.4 – The undermentioned descriptions have been uesd for this tariff:

AGENCY SERVICE
Customary work and services which, in accordance with Turkish laws, regulations and by bilateral or
multilateral agreements to which Turkey is a party, the Agent is required to render to the Shipowner,
Ship-Operator and Ship-Charterer in connection with the vessel, her cargo and passengers, to the
vessel, to he passengers and the cargo carried.

PROTECTING AGENCY SERVICE:
Additional work and services rendered byan Agent, appointed by the Shipowner or Operator for
husbandry matters, when the vessel is chartered out.

SUPERVISION SERVICE:
In addition to Agency and Protecting Agency Services as above, this covers organising and pursuing
vessels business with the parties and departments concerned, expediting operations, enduring
reception and delivery or loading of the cargo without delaying the vessel, documentation, cargo
claims, cargo short or overlandings and other matters and services, concerning the vessel, her hargo
and passengers.

FREIGHT:
Total of all monies paid in favour of and for account of the Carrier, related to the carriage of cargo and
passengers. All kins of surcharges and additional revenues appertaining to sea carriage are port of the
freight.

PRIMAGE:
This is a premium payable in addition to outward freight and covers care and attention given during
loading at the port of origin. This premium is paid at the port of loading or discharging in favour of the
Agent in Turkey by the party paying the freight. Primage is not part of the freight.

DISBURSEMENTS NOT INCLUDED IN THE FEES:
Art.5 – The fees in each tariff scaleconstitute remuneration for works and services performed, as
described.
Taxes, dues, fees, fiscal stamps as well as expenses which have to be incurred owing to the vessel,
her cargo and passengers status not being in conformity with laws and regulations, freight collection
and remittance charges appertaining to the vessel, her cargo and passengers are not included in the
Agency fees.
MINIMUM FEES:
Art.6 – The fees indicated in the attached scale 1-6 are MINIMUM fees. The fees to be charged cannot
be less than those indicated in this tariff.
As per Trade Chamber’s Law No. 5590 and because exchange control tax legislation legal action will
be taken against those who provide services for less than the fees shown in this tariff.

PARTY RESPONSIBLE FOR PAYMENT OF THE FEES:
Art.7 – The fees indicated in this tariff (Excludin Primage)
Are payable to the Agent by the Shipowner, Ship-Operator, Ship-Charterer or the Master of the vessel.
All Agency, Protecting Agency and Supervision fees, Brokerages and Commissions must be paid in a
convertible Foreign Currency acceptable by the Turkish Cenral Bank and will be collected by the
Agent.
Relevent exchange regulations will apply for the paymet of service fees other than those shown
above.
If the freight is collectible at destination the primage as well may be paid by the freight payers at
destination.

TARIFF NO LONGER EFFECTIVE:
Art.8 – The ‘’ Ship Agency Service Fees Tariff’’ published in the Official Gazette No. 19647 dated
27.11.1987 is superceded by this tariff.

VALIDITY:
Art.9 – The tariff is valid as from the date it was issued in the Official Gazette. Dated 14th January
1994 and No. 21818.

DUES AND FEES AS APPLICABLE TO VESSELS PASSING IN
TRANSIT THROUGH THE DARDANELLES
AND BOSPHOROUS
1- SANITARY DUES:
(Coefficient is 0.0604)

Calculation of Sanitary Dues as follows:
0,0604 x U.S. $ daily buying rate x vessel’s N.R.T.
These dues cover the transit passages (i.e up and down) if the return passage made within six
months.
Up and down passages mean northbound and southbound in geographical sense.

2- LIGTH DUES:
(Aegean/Black Sea and vice – versa)

Per N.R.T.
Up to 800 tons Over 800 tons
U.S.Dollars U.S.Dollars

Up and down passages 0,338646 0,169323

3- SALVAGE DUES:
U.S. Dollar 0,08063 per N.R.T. (up and down passages)

If a vessel proceeds from a Turkish port in the Mediterranean or Marmara to a foreign Black Sea port,
the upward dues for passing throug the Straits are payable on the ‘’Operating Vessels’’ basis. The
transit passage only commences when the ship returns from the Black Sea, always provided that she
again proceeds to a foreign (non Turkish) port in the Mediterranean, without operating in Turkish
Territorial Waters. In such an event, it is up to the Agents to submit a letter to the Authorities stating
that the ship is only performing a one way transit passage. In that case only 50% of the transit dues
are collected.
For vessels which complete the full Transit Passage ( up and down or vice versa) within a period
exceeding six months, the full Transit Passage Dues are payable twice. However, if the Agent is aware
on either passage (up or down as the case may be) that the six monthy period will be exceeded, a
similar letter as above will serve to pay only 50% of the dues for each passage and thus avoid
duplication.
4- Conditions which violate transit status
Any vessel paying transit sanitary dues by declaring that it will pass the Dardanelles straits, Marmara
sea and the Bosphorous, in transit; but then proceeds to a port at the straits or Marmara sea, or
anchor off Istanbul to supply emergency requirements and remain there more than 48 hours or
offloads/loads cargo or embark or disembark crew or passengers, instead of proceeding to a foreign
port, then it vilolates the transit status.
The difference between transit and calling vessel dues are to be paid.
If any vessel on transit return, violates the transit status then the dues payable in full.

5- Conditions which do not violates the transit status.
Vessels in transit are not permitted to have any contact with land.

Those vessels that transit the Istanbul and Çanakkale Straits and the Sea of Marmara

a) Need to be inspected or attended by by a repairman, due to break down on board.
b) Landing of the Captain or personnel concerned, to purchase some mechanical or other
material in order to be able to continue the voyage.
c) Changing ot crew members, in the case of death, illness or similar force majeure cases, do
not violate the transit status, provided the number of crew and their ranks and duties remain
the same as those of at the commencement of the voyage and subject to the approval of the
harbour master and the permission and under supervision of the sanitary ispection office
doctor and officer on duty.

Should any of the above exceptions or circumstances last more than 48 hours, then transit status is
violated.

Should any vessel which has already paid transit dues, sailing at the straits or Sea of Marmara is
obliged to call at any Turkish port for the force majeure reasons like bad ewather, engine breakdown,
accident of fire, it’s transit status is not violated.

6- PILOTAGE TARIFF: For ships larger than 1001
GT, for each 1000 GT
For ships up to and its fraction, in
1000 GT, for addition to the fee for
each Service 1000 GT
Type of Service U.S. Dollars U.S. Dollars
----------------------- ------------------------- ----------------------------------------

1- OPTIONAL ZONES:
1.1 The Bosphorous Passage 176 58
1.2 From Mehmetçik to Gelibolu or
vice versa. 176 58
1.3 Çanakkale / Istanbul 176 58
1.4 Istanbul / Çanakkale 176 58
1.5 Anchoring, changing of anchorage or
heaving up of anchor at free anchorage
areas of the port. 20 18

Passages Through Istanbul Strait:

The passage of Istanbul Strait shall mean sailing between a line at the North connecting Türkeli
lighthouse to Anadolu Lighthouse and another line at the South connecting Ahirkapi Lighthouse to
Kadıköy, Inciburnu, Breakwater Lighthouse.
This service may be interrupted maximum for two hours. In case the service is resumed within two
hours of interruption, single service plus stand by fee; for the interruptions exceeding two hours
however, only a second service fee is collectible.
Vessels entering the area to transit through the Turkish Straits or entering a port in the area will
comply with the reporting system (TÜBRAP) established by the Administration.

7- TURKISH STRAITS REPORTING SYSTEM(TUBRAP)
NAME OF REPORT : SP.1
FROM : SHIP/AGENT/OWNER
TO : TRAFFIC CONTROL CENTRE – ISTANBUL – ÇANAKKALE
TL :
TLX :
TLGRF :
FAX :

A SHIP’S NAME, CALL SIGN, FLAG
B TIME (DATE AND TIME)
C POSITION (REPORTING POSITION)
F SEA SPEED
MAX.CONTINUOUS MANEOUVERING SPEED
G PORT OF DEPARTURE
H DATE, TIME AND POINT OF ENTRY INTO TRAFFIC SEPARATION SCHEME
I PORT OF DESTINATION
J REQUEST PILOT YES/NO
STRAIT OF ISTANBUL
SEA OF MARMARA
STRAIT OF ÇANAKKALE
O FORWARD AND AFT DRAUGHT (METER)
MAX. AIR DRAUGHT (METER)
P CARGO (TYPE OF CARGO)
Q DEFECT/DAMAGE/DEFICIENCIES/OTHER LIMITATIONS
R DESCRIPTION OF DANGEROUS, NUCLEAR AND POLLUTING GOODS
T SHIP’S TYPE/SIZE
LENGTH OVERALL (LOA METERS)
GRT
PRESENT DISPLACEMENT
X ANY OTHER INFORMATIONS
REF: IMO RES A.648 (16)

8- TURKISH STRAITS REPORTING SYSTEM (TUBRAP)
NAME OF REPORT : SP.2
FROM : SHIP
TO : TRAFFIC CONTROL ISTANBUL / ÇANAKKALE
A SHIP’S NAME, CALL SIGN, FLAG
D POSITION, (BEARING – DISTANCE)
H DATE, TIME AND POINT OF ENTRY INTO TRAFFIC SEPERATION SCHEME
J REQUEST PILOT YES/NO
STRAIT OF ISTANBUL
SEA OF MARMARA
STRAIT OF ÇANAKKALE
Q DEFECTS/DAMAGE/DEFICIENCIES/OTHER LIMITATIONS
X ANY OTHER INFORMATIONS

NOTE : Reference points in the position of the article D
Türkeli Light
Ahırkapı Light
Gelibolu Light
Mehmetçik Light
TARIFF NO. 2
AGENCY SERVICES
BASIC FEES FOR VESSELS PASSING THROUGH THE STRAITS OF
DARDANELLES AND BOSPHOROUS

Basic Fees for each passage
Through
Vessels’ N.R.T. one Strait, in U.S.Dollars
---------------------- ------------------------------------------
0- 300 50
301 - 500 75
501 - 1000 100
1001 - 2000 125
2001 - 3000 150
3001 - 4000 175
4001 - 5000 200
5001 - 6000 225
6001 - 8000 250
8001 - 10000 275
10001 - 13000 300
13001 - 16000 350
16001 - 25000 400
25001 - 50000 450
Over - 50000 500

These Basic Fees are for one passage through one of the Straits irrespective of direction.

TARIFF NO. 2 - A
PROTECTING AGENCY SERVICES
BASIC FEES FOR VESSELS PASSING THROUGH THE STRAITS OF
DARDANELLES AND BOSPHOROUS

Basic Fees for each passage
Through
Vessels’ N.R.T. one Strait, in U.S.Dollars
---------------------- ------------------------------------------
0- 300 25
301 - 500 35
501 - 1000 50
1001 - 2000 65
2001 - 3000 75
3001 - 4000 90
4001 - 5000 100
5001 - 6000 110
6001 - 8000 125
8001 - 10000 140
10001 - 13000 150
13001 - 16000 175
16001 - 25000 200
25001 - 50000 225
Over - 50000 250

These Basic Fees are for one passage through one of the Straits irrespective of direction.
9 – MOTOR LAUNCH SERVICE:
A – KARAKOY LAUNCH HIRE CHARGES:
DESTINED TO U.S.Dollars

Beşiktaş, Haydarpaşa 65,-
Ortaköy, Moda, Ahırkapı 90,-
Samatya 100,-
Kuruçeşme, Kumkapı, Yenikapı 90,-
Yedikule, Zeytinburnu 115,-
Bakırköy, Ataköy 135,-
Yeşilköy 150,-
Tourist Ships 55,-
Buoys 45,-
STAND BY : (Waiting time per hour or fraction thereof) 30,-

B – BUYUKDERE LAUNCH HIRE CHARGES:
DESTINED TO U.S.Dollars

1- Anchorage 60,-
2- Transit Vessels at Filburnu, Beykoz,
Yeniköy, Kavaklar and beyond 90,-

A – ÇANAKKALE LAUNCH HIRE CHARGES:
DESTINED TO U.S.Dollars

The vessels either in transit or calling, awaiting
clearance at the south of the line, connecting the
karanfil and kanlıdere lights. 75,-

10- FAX, TELEXES: As incurred 50,-
11- TAXI:
As used at cost.
12- POSTAGE, FISCAL STAMPS, PETTIES AND FACILITIES : 75,- / 150,-
13- CASH TO MASTER:
Banking charges as applicable
14- SPARE PARTS:
$ 1.00 per/KG MINIMUM: $ 100 MAXIMUM: $ 500 Plus Expenses

15- ESCORT:
In accordance with the regulations for for passage thru the straits any craft effecting towage and
vessels over 300 m long are obliged to take an escort.
For each strait the charge per escort is about USD 2.000,-

N.B : The strait of Istanbul, Sea of Marmara and The Strait of Çanakkale Routeing
Guide1.3. Planning Factors:
1-. The owner or manager of larger vessels which plan to pass through the Straits shall provide
information to the Administration on the vessel and it’s cargo at the planning stage of the passage.
The Administration, taking into consideration the morphological and physical structure of the
Straits, the vessel’s dimensions and maneouvre capability, the safety of life, property and the
environment, and maritime traffic conditions, shall inform the applicants of the outcate tug-boat
escorts.

16- CONTRIBUTION TO THE MARITIME ASSOCIATON:
$ 12 for the Up and Down passages.
OFFICIAL CALL DUES, CHARGES AND
FEES AS APPLICABLE TO VESSELS
OPERATING IN THE BLACK SEA AND MARMARA AREAS
1- SANITARY DUES:

Calculation of sanitary dues as follows:
Sanitary Dues=Vessel’s N.R.T.x60.000,- TL (For the year 1998)
Tourist ships, Private Yachts and Scientific Research ships benefit a 50 percent reduction on Sanitary
Dues.

N.B.: Sanitary Dues are not payable if vessel arrives from another Turkish port where these dues have
already been collected, provided geographical rotation is maintained i.e; South to North or vice-versa
and without deviation.

2- LIGHT DUES:

Per N.R.T.
Up to 800 tons Over 800 tons
U.S.Dollars U.S.Dollars

a) Entry to Dardanelles (Çanakkale) 0,18 0,09
b) Exit from Dardanelles 0,18 0,09
c) Entry to Bosphorous 0,18 0,09
d) Exit from Bosphorous 0,18 0,09
e) Entry to harbours or ports 0,16 0,08
f ) Exit from harbours or ports 0,16 0,08

Exemptions:
a) Vessels of less than 5 NRT.
b) Naval and Auxiliary Naval vessels.
c) Vessels taking refuge in port for reasons of adverse weather conditions, or for repairs, or accidents
or which, after leaving port, are returning to shelter and do not perform any commercial operation.

3- LIFE SAVING DUES: PER NRT.
U.S.Dollars

a) Entry to Bosphorous from Black Sea 0,09
b) Exit from Bosphorous to Black Sea 0,09

4- PORT DUES:

From 11 to 150 NRT TL. 939.500
From 151 to 500 NRT TL. 1.569.400
From 501 to 3000 NRT TL. 3.160.200
From 3001 and over TL. 3.939.500

N.B:
Sanitary dues and port dues basic rates are valid for only one calendar year

5- TARIFF FOR WHARFAGE SERVICES
(OCCUPATION-UNLAWFUL OCCUPATION)

Scope of the Tariff:
This Tariff comprises wharfage services rendered to ships whenever staying alongside the piers,
jetties and breakwater or alongside piers and jetties owned by other organizations, or moored o buoys.
6- BASIC FEES:
WHARFAGE BASIC FEES SCALE

Description of Service Day, 100 GT/U.S.Dollars

Mooring alongside quay or stern to quay 1,50
Mooring at buoys 1,20
Laying at Anchor (inside breakwater) 1,00
Per hour, 100 GT/U.S.Dollars

Unlawful occupation 3,00

A) Principles on the wharfage services.
Scope of Basic Fees:
‘’Scope of basic fees comprises the fees collectible against wharfage services provided to the ships, at
the administration’s piers, jetties, buoys or anchorages, or other organisation’s, within the break
waters, until their operations are completed.
The fees shall be collected for each day they remained at the berthing place indicated in the Scope
and for each 100 GT and/or its fraction.
- The day when the ship was moored or anchored and the day of departure from such places sahll be
counted as one full day.

B) Principles on the unlawful occupation scope of basic fees:

Scope of basic fees, comprise the fees collectible on the basis of per hour or fraction thereof in the
cases of:
- Any vessel, which does not vacate the berth within 2 hours of completion of cargo operations
or not to proceed to the berth allocated, or not to shift to another berth, although instucted to
do so.
- Occupy a berth without permission of the administration.
- Remains at berth without ordering gangs. (Except in case the administration does not allocate
any gang for the shift works.)

7- PILOTAGE AND TOWAGE SERVICES:
Scope of the Tariff:
This Tariff comprises the services rendered to the ships when entering into or departing from the
harbour or coming alongside piers and jetties and leaving these places, or moored to buoys and
breakwaters, including anchorage mooring by stern, leaving such places or changing these places
(shifting) for any reason whatsoever.
Definition of Services:
a) Pilotage Service:
Shall mean the services rendered by the Pilot Service Boat provided to ships at the places
described under the scope of the above article.
b) Towage Service:
Shall mean services rendered by Tugboat and Mooringboat provided to ships at places described
under the scope of the above article.
BASIC FEES:
BASIC FEES SCALE
DESCRIPTION OF SERVICE SHIP’S TONNAGE (GT) US DOLLARS
For ships up to
1000 GT, for each service. 202

For ships larger than 1000 GT,
PILOTAGE for each 1000 GT and its fraction
in addition to the fee for 1000 GT, for each service 85

For ships up to 3000 GT, for one
service and for each Tugboat. 354
For ships larger than
TOWAGE 3000 GT, for each 1000 GT
and its fraction, in addition to
the fee for 3000 GT, for each
Service and for each Tugboat. 66
P.S: (The GT’s shown on the schedule shall be applied as displacement tons for War Ships)

For ships larger than 1001
PILOTAGE TARIFF GT, for each 1000 GT
For ships up to and its fraction, in
1000 GT, for addition to the fee for
each Service 1000 GT
Type of Service U.S. Dollars U.S. Dollars

1- COMPULSORY ZONES

1.1 Entering Bosphorous and sailing to any
one point at the northern area of the
outer Harbour of İstanbul outside of
pilot embarkation / disembarkation
points for transiting Bosphorous and/or
vice versa. 180 60
1.2 Entering Bosphorous and sailing to any
one point at the southern area of the
outer Harbour of İstanbul outside of
pilot embarkation / disembarkation
points for transiting Bosphorous and/or
vice versa. 208 90

1.3 Entering Bosphorous, sailing to any one point
of Marmara Sea outside of the boundaries of
the Port of İstanbul or vice versa. 300 176

1.4 Anchoring or heaving up of anchor at the
port of İstanbul Büyükdere, Paşabahçe,
Dolmabahçe. 180 58

1.5 Anchoring or heaving up of anchor at
Ahirkapi, for the vessels berthing alongside
The piers. 75 20

For ships larger than 1001
GT, for each 1000 GT
For ships up to and its fraction, in
1000 GT, for addition to the fee for
each Service 1000 GT
Type of Service U.S. Dollars U.S. Dollars

1.6 In the case of vessels entering
the Dardanelles and proceeding
towards one of the ports of the
Marmara Sea when within the
limits of the port of Çanakkale
or vice versa. 180 60
1.7 Anchoring or heaving up of
anchor inside the port
of Dardanelles Karanlık Liman 75 20

2- OPTIONAL ZONES:
2.1 The Bosphorous Passage 176 58

2.2 From Mehmetçik to Gelibolu or vice versa 176 58

2.3 From Gelibolu to any one point of the
Marmara Sea or vice versa, or shifting from
one point to another within the Marmara Sea. 176 58

2.4 Anchoring, changing of anchorage or heaving
up of anchor at anchorage areas of the port. 20 18
2.5 Shifting from one point to another within the
boundaires of İstanbul (Bosphorous excluded.) 148 30

PASSAGES THROUGH ISTANBUL STRAIT:

The passage of Istanbul Strait shall mean sailing between a line at the North connecting Türkeli
lighthouse to Anadolu Lighthouse and another line at the South connecting Ahırkapı Lighthouse to
Kadıköy, İnceburnu, Breakwater Lighthouse.
This service may be interrupted maximum for two hours for any reason. In case the service rendering
is resumed within these two hours, only fee for attendance and single service fee, to be charged for
interruptions exceeding two hours, a second service fee shall be collected.

AT COMPULSORY AND OPTIONAL ZONES:

A- If more than one kind of service is rendered within or outside the port Monopoly areas, fees
Relative to that kind of service are collected separately.
B- In Pilotage and Towage, services.
a) Pilotage and Towage basic fees are reduced by 10 (ten) percent for Foreign Flag passenger /
tourist vessels calling at Turkish ports.
b) 50 fifty percent reduction is granted on basic fees of Pilotage/Towage for entering or leaving the
shipyards for vessels which are built anew, repaired or modofied overhauled.
c) Pilotage/Towage fees are increased by 30 (thirty) percent for tankers which are carrying petroleum
products or other hazardous/inflammable cargo.

8- STAND BY CHARGES:

Stand by means, the suspension of the service due to fault or neglect of the Master of the vessel or his
agents or the cargo owner or his servants.
In case the vehicles and the personnel allocated for the pilotage and towage services on order from
the Master or his agents are kept waiting at stand by, due to the vessel’s failing to berth alongside, or
mooring at buoys or to leave such places in time:

a) If the services required are performed, following such delay ; the pilotage service thus provided, is
subject to a surcharge of US.Doll.120.00 per hour and fraction thereof; and the towage service thus
provided is subject to a surcharge of US.Doll. 180.00 per hour and fraction thereof.

b) If, no service is required following the waiting at standby, 50 percent of the basic fees as per scale,
is collectible in addition to the surcharges as above for the time lost at standby.

c) In case, no service is required upon arrival of the vehicles and the personnel at the place where the
service is to be performed, and return without loss of time, 50 percent of the basic fees as per scale
are collectible.

TARIFF NO.1
AGENCY SERVICES
BASIC FEES FOR VESSELS IN PORT AND/OR TERRITORIAL WATERS:

Vessels’ N.R.T. Basic Fees for each call, in U.S.Dollars
---------------------- ----------------------------------------------------
0- 300 300
301 - 750 375
751 - 1000 500
1001 - 1500 625
1501 - 2000 750
2001 - 3000 925
3001 - 4000 1125
4001 - 5000 1375
5001 - 7500 1625
7501 - 10000 2000
10001 - 20000 Over 10000 additional per 1000
NRT or fraction thereof 60
20001 - 30000 Over 20000 additional per 1000
1000 NRT or fraction thereof 50
30001 - 40000 Over 30000 additional per 1000
1000 NRT or fraction thereof 40
40001 - 50000 Over 40000 additional per 1000
1000 NRT or fraction thereof 30
Over 50000 Additional, per 1000 NRT or 1000
fraction thereof 20

a) The above Basic Fees are charged for vessels’ stay in ports and/or territorial waters upto
7(seven) calendar days (incl.) irrespective of reason of stay.

b) When a vessels stay exceeds 7 (seven) days, 25% (twentyfive) of Basic Fees will be added
for each period of 3 (three) days or fraction thereof exceeding 7 (seven) days.

c) Should a vessel’s cargo and passenger services be performed at different locations within the
same harbour limits (excluding shifting of the vessel by own means alond the same quay)
10% (ten) will be added to the Basic Fees for the first shifting and 5% (five) to the Basic Fee
for all subsequent shiftings.

d) 25% (twentyfive) will be added to the Basic Fees in cases of General and particular Average,
Collision, Grounding, Fire, Salvage – assistance, Drydocking, Repairs, excluding any special
attendance and services required by the Shipowners.

e) A reduction of upto 10% (ten) on the Basic Fees can be applied to passenger vessels only.

TARIFF NO.1-A
PROTECTING AGENCY SERVICES
BASIC FEES FOR VESSELS IN PORT AND/OR TERRITORIAL WATERS:

Vessels’ N.R.T. Basic Fees for each call, in U.S.Dollars
---------------------- ----------------------------------------------------
0- 300 150
301 - 750 185
751 - 1000 250
1001 - 1500 315
1501 - 2000 375
2001 - 3000 465
3001 - 4000 550
4001 - 5000 680
5001 - 7500 800
7501 - 10000 1000
10001 - 20000 Over 10000 additional per 1000
NRT or fraction thereof 30
20001 - 30000 Over 20000 additional per 1000
1000 NRT or fraction thereof 25
30001 - 40000 Over 30000 additional per 1000
1000 NRT or fraction thereof 20
40001 - 50000 Over 40000 additional per 1000
1000 NRT or fraction thereof 15
Over 50000 Additional, per 1000 NRT or 1000
fraction thereof 10

a) The above Basic Fees are charged for vessels’ stay in ports and/or territorial waters upto
7(seven) calendar days (incl.) irrespective of reason of stay.

b) When a vessels stay exceeds 7 (seven) days, 25% (twentyfive) of Basic Fees will be added
for each period of 3 (three) days or fraction thereof exceeding 7 (seven) days.

c) 25% (twentyfive) will be added to the Basic Fees in cases of performance of services such as
general and Particular Average, Collision, Grounding, Fire, Salvage – Assistance, Drydocking,
Repairs, excluding any special surveillance and services required by the Shipowners.

TARIFF NO.3
SUPERVISION SERVICES
(For vessels in ports and/or territorial waters)

Loading/Discharging U.S.Dollars per freight ton

A) BULK CARGO:
a) Dry Cargo (Ores, minerals, scrap, pig iron,
coal, carob, animals foodstuff, oilcakes,
cement, klinker, pumice stones, fertilizers,
grit)
I- Up to - 10000 tons 0,15
II- 10001 - 20000 tons 0,10
III- For part over - 20000 tons 0,05

b) Grains and Seeds:
(Wheat, barley, oats, rye, rice, maize,
sunflower seeds, soya beans, vetches)
I- Up to - 20000 tons 0,075
II- For part over - 20000 tons 0,045

c) Pulses:
(Horsebeans, black-eyed beans, haricot
beans, lentils, chickpeas)
I- Up to - 5000 tons 0,30
II- For part over - 5000 tons 0,15
d) Crude oil and petroleum products:
I- Up to - 35000 tons 0,030
II- For part over - 35000 tons 0,015

e) LPG and LNG:
I- Up to - 15000 tons 0,15
II- For part over - 15000 tons 0,05

f) Chemical products (including petroleum
derivates), wine, olive oil, molasses, edible
liquid oils, mineral oil, tallow. 0,15

B- NON BULK CARGO:
(Including those hereunder)

a) Grains and flour, fertilizers, sugar, cement,
rice, semolina, carob, minerals, marble blocks.
I- Up to - 20000 tons 0,15
II- For part over - 20000 tons 0,05

b) Fresh fruits and vegetables, citrus, pulses,
seeds. 1,00

c) Stell and iron products and semi-products:
Iron plates, iron coils, profiles, iron billets, iron
bars, round bars, all kinds of pipes, rolled sheets.
I- Up to - 5000 tons 0,30
II- 5001 - 10000 tons 0,20
III- For part over - 10000 tons 0,10

d) Wood logs and heavy logs:
I- Up to - 3000 tons 0,60
II- 3001 - 5000 tons 0,40
III- For part over - 5001 tons 0,10

C- EMPTY CONTAINERS AND TRAILERS: (Per unit) 10,00
D- LIVESTOCK: (Per unit)
a) Small heads (Sheep, goats, etc.) 0,05
b) Large heads (Cattle, horses, etc.) 0,15

E- OTHER CARGOES – BREAKBULK CARGOES, AND
ALL THE CARGOES INCLUDING THE ABOVE MENTIONED,
CARGOES IF CONTAINERIZED:
I- In case the carrier pays the cost
of loading and/or discharging 1,00
II- In case the shipper and/or the
consignee pays the cost of loading
and/or discharging 0,60

F- MOTOR CARS: (Per unit)
In case the carrier, shipper and/or the consignee
pay the cost of loading and/or discharging 10,00

Quantity Rebate:

000- upto 300 units (300 INCLUDED) 0%
301- upto 500 ‘’ 25%
501- upto 750 ‘’ 35%
751- upto 1000 ‘’ 50%
More than 1000 ‘’ 60%

G- ALL SELF DRIVEN ROLLING STOCK,
CARRIED BY RO-RO VESSELS:

Per linear meter of the vehicle 3,00

H- If the total supervision fee according to the above mentioned basic charges is less than U.S.
Dollars 150,- then a minumum amount of U.S. Dollars 150,- must be charged.

TARIFF NO.4
COMMISSION

Commission is applicable only on cargoes as per Section E,F,G of tariff No.3 and is charged in
addition to Agency Fees as per Tariff No.1

A) CARGOES Percentage on Gross
Freight Revenue

I. Outward 5
II. Inward 2,5

B) CARGO IN TRANSIT
I. Outward 2,5
II. Inward 1,5

Percentage on tickets
Sold in Turkey
C) CARRIAGE OF PASSENGERS 12,5

TARIFF NO.5
PRIMAGE
a) Primage is only applicable on cargo Loadings as per section E,F,G of Tariff No.3 and is charged in
addition to Agency Fees as per Tariff No.1
b) However, primage chargeable per B/L is limited to USD 3500,-

Percentage on Gross
Freight Revenue

a) For Mediterranean and Black Sea ports 5
b) For ports outside Gibraltar Strait and Suez Canal 3

TARIFF NO.6
BROKERAGE
a) Brokerage is applicable to transportation under Charter Parties only.
b) In order to be entitled to Brokerage, the Agents intervention in the chartering of the ship or securing
the cargo is necessary.
Percentage on Gross
Freight Revenue

Loading and/or discharging 1,25

9- STEVEDORING:
Either of the two following alternatives to serve as a basis of agency contract terms between Owners
and Agents when the loading and discharging expenses are for owners account. (Liner terms – Berth
Terms)
a) LUMPSUM SYSTEM:
For usual break bulk cargo not carried in containers, lash, Ro-Ro and other systems, services of
loading/discharging and/or shifting into the vessel are chargeable as follows.

Per ton
U.S.Dollars
Unloading 15
Loading 15

b) COST PLUS FEE:
‘’ The agent debits the owner, by adding the fees as per terms of his special agreement, on to the cost
of port monopoly’s or other invoices or expenses.’’
The following surcharges must be taken into account in the above operations of discharging/loading
and shifting.
1- Apart from the cargo being loaded or discharged in to the ship’s holds; if the already loaded cargo in
the same hold or the hold itself dirties the stevedores clothes and human skin, or need a cleaning well
beyong the normal standards, due to dirtiness or polluting nature thereof 30 percent surchase is
applied to the basic rates for the amount of cargo actually loaded, discharged or shifted.’’
2- Discharging of any vessel which lost it’s normal position in consequence of heavy weather or
casualty is subject to 30 percent surcharge.
3- Discharging of heavy weather damaged cargo (i.e.wet, scattered etc.) subject to 30 percent
surcharge.
4- 20% charged in addition to the regular charges in the handling of Dangerous good (IMO).

c) LOADING / DISCHARGING CONTAINERS, LINER TERMS:

full container (unloading) $ 140 per container
empty container (unloading) $ 52 per container
full container (loading) $ 105 per container
empty container (loading) $ 52 per container

OPENING / CLOSING HATCHES AND RIGGING:
a) Opening or closing holds $ 40 per operation/per hatch
b) Opening or closing tweendecks $ 50 per operation/per tweendeck
c) Rigging cargo gear $ 90 per operaiton/per set
d) Rigging jumbo or frisco rig $ 150 per operation/per hatch
e) Securing jumbo or frisco rig boom to its place $ 150 per operation/per hatch

10- STAND BY:

In Case of keeping the personnel vehicles and tools assigned by the Administration upon the request
of client to execute loading unloading shifting and transshipment services, in stand by for the reasons
mentioned General Basis of the Tariff, for each gang, which includes the employees and workers on
duty in such gang (including the personnel of the sea craft) and machinery and fraction of stand by
shall be collected under general tems and conditions:
(See TDI – Istanbul tariff sec. 1.3.11)

11- AGENT SUPERVISORS, TALLYMEN, FOREMEN ANDEXTRA LABOURERS:

Cargo Supervisor $ 100,- per man per shift
Chief Tally Clerk $ 80,- per man per shift
Tally Clerk $ 70,- per man per shift
Foreman $ 70,- per man per shift
Labourer $ 60,- per man per shift

12- TRANSHIPMENTS:
For each transhipment in addition to costs:
One Dollar per freight ton minimum 100 Dollars.

13- MOTOR LAUNCH SERVICE:

A- KARAKOY LAUNCH HIRE CHARGES
DESTINED TO U.S.Dollars

Beşiktaş, Haydarpaşa 65,-
Ortaköy, Moda, Ahırkapı 90,-
Kuruçeşme, Kumkapı, Yenikapı 90,-
Samatya 100,-
Yedikule, Zeytinburnu 115,-
Bakırköy, Ataköy 135,-
Yeşilköy 150,-
Tourist Ships 55,-
Buoys 45,-
Stand by: (Time in stand by per hour or fraction thereof) 30,-
B- BUYUKDERE LAUNCH HIRE CHARGES
DESTINED TO U.S.Dollars

1- Anchorage 60,-
2- The vessels either in transit or calling, at Filburnu, Beykoz,
Yeniköy, Kavaklar and beyond 90,-

C- ÇANAKKALE LAUNCH HIRE CHARGES

DESTINED TO U.S.Dollars

The vessels either in transit or calling, awaiting clearance at the
South of the line, connecting the karanfil and kanlıdere lights. 75,-

14- WATCHMEN (Per 8 hour shift) $ 50,-

15- FAX, TELEXS: As incurred.

16- LOCAL PHONE CALLS, POSTAGE, FISCAL STAMPS and PETTIES:
Per call. $ 75,- / $ 150,-

17- TAXI: As used at cost.

18- NOTARIAL POWER OF ATTORNEY:
As per official receipt of the Notary Public.

19- LEGALISATION OF MANIFESTS:
A fee of $ 50,- per Consulate is chargeable in addition to Consular fees.

20- EMBARKING – DISEMBARKING / FEE PER PERSON
(Shore accommodation, on forwarding etc...)
Per operation (Embarking od disembarking)
One to two men $ 75,-
Each additional man $ 20,-
At out ports (Marmara Sea) double the above scale.
Plus expenses at cost.

21- MEDICAL ATTENDANCE AT ISTANBUL
For each patient to be taken to the doctor $ 30,- (thirty) plus expenses.
At ( Marmara Sea) out ports double the above scale.

22- LAUNDRY:
Because of special formalities incumbent on the Agent, a fee of $ 30,- (thirty) is chargeable for
any laundry service, in addition to the shipchandler’s.

23- FACILITIES AND SUNDRIES:
Including clearance on arrival and departure, sundry services, various outlays and co-operation):
From $ 200,- to $ 400,- per call, according to volume of cargo, number of passengers, nature of
operations and duration of ship’s stay.

24- TAXES ON FREIGHT AND CONTRIBUTION TO THE CHAMBER OF SHIPPING:
(Only for loading export cargoes) on freight and passage money earnings, for owner’s account.)

Freight tax : % 6,60
Contribution to the Chamber of Shipping : % 0,40

However contribution to the Chamber of Shipping will be maximum 400,-

25- FUNDS FOR DISBURSEMENTS:
In accordance with Exchange Control requirements Owners are obliged to remit all ships
disbursements in advance of the vessels arrival in foreign exchange.
Such funds should be received by the agents anyhow before vessel’s departure.
Should the Owners or Disponents delay to remit requested funds until the departure of the vessel,
agents have the right to charge a disbursement commission of 2.5 %.
26- SPARE PARTS:
For the services performed by the agents, in delivery of the stores and/or the spare parts arriving
from abroad, a fee of usd 1,00 per kg weight of the parcel is charged.
The delivery service fee is payable in addition to the delivery expenses, and limited to minimum
usd 100,- and maximum usd 500,- per call or per passage.

27- ESCORT:
In accordance with the regulations for passage thru the straits, craft effecting towage and vessels
over 300 m long are obliged to take an escort.
For each strait the charge per escort is minumum usd 2000,-

28- CASH TO THE MASTER:
Banking charges as aplicable.

29- CONTRIBUTION TO THE MARITIME ASSOCIATION:
Annual subscription for membership 15.000.000 TL
Up to 500 tons cargo $ 15
From 501 to 1000 cargo $ 20
From 1001 to 2000 cargo $ 30
From 2001 to 5000 cargo $ 40
From 5001 to and upwards $ 50
Ferro Alloys - Outcome of AGM

News Body: Ferro Alloys Corporation Ltd has informed BSE that the members at the 51st
Annual General Meeting (AGM) of the Company held on August 14, 2007, inter alia,
have accorded to the following:

1. Adoption of the Audited Balance Sheet of the Company as at March 31, 2007
and the Profit & Loss Account for the year ended on that date and the Report of the
Board of Directors and the Auditors thereon.

2. (a) Declaration of dividend of Rs 5/- per Preference share on preference shares
of Rs 100/- each for the year ended March 31, 2007.

(b) Declaration of dividend at Re 0.15 per share, on Equity Shares of Re 1/- each
for the year ended March 31, 2007.

3. Re-appointment of Shri. V J Trivedi, Shri. R K Saraf, Shri. Rohit Saraf & Shri.
Ashish Saraf, as Directors of the Company.

5. Re-appointment of Messrs. Salve And Company, Chartered Accountants, as
Auditors of the Company to hold office from the conclusion of this meeting until the
conclusion of the next Annual General Meeting of the Company, on remuneration,
terms & conditions.

6. Appointment of Mr. M D Saraf, as a Director of the Company, liable to retirement
by rotation.

7(a) Authority to the Board of Directors of the Company for mortgaging and / or
charging subject to such, consents, if any, as may be necessary from the existing
mortgages and charge holders, on such terms and conditions and at such time or
times and in such form and manner and with such ranking as to priority as the
Board may in its absolute discretion think fit, the whole or substantially the whole of
the Company’s any one or more undertaking(s) or of all the undertakings, including
the present and / or future properties, wheresoever situate, whether movable or
immovable, belonging or to belong to the Company, comprised in any undertaking
or undertakings of the Company, as the case may be, to or in favour of all or any of
the Financial Institution(s) or Bank(s) for securing any Loans or Financial
Assistance / Working Capital Facilities granted or to be granted by or any obligation
incurred or to be incurred towards such Financial Institution(s) or Bank(s) subject to
the limit of Rs 500 Crores as per the resolution passed by the Company under
Section 293(1)(d) of the Companies Act, 1956 at its Annual General Meeting held
on September 25, 1995 together with interest thereon at the respective agreed
rates, compound interest, additional interest, liquidated damages, commitment
charges, premia on prepayment, costs, charges, expenses including any increase
as a result of devaluation / revaluation / fluctuation in the rates of exchange and any
moneys payable to them in connection therewith under their respective heads of
agreement(s) / loan agreement(s) / letter(s) of sanction (memorandum of terms and
conditions or any other document entered into / to be entered into by the Company
in respect of the loans etc. granted / to be granted to the Company and as may be
agreed to by the Board and in particular in favour of all or any of:

1. Bank of India (BOI)
2. Central Bank of India (CBI)
3. State Bank of India (SBI)
4. State Bank of Bikaner & Jaipur (SBBJ)
5. Syndicate Bank (SB)

to secure Working Capital / facilities (including Term Loans) of Rs 9417 lacs from
Consortium Banks as under:

1. Bank of India: Rs 3274 lacs
2. Central Bank of India: Rs 3676 lacs
3. State Bank of India: Rs 1291 lacs
4. State Bank of Bikaner & Jaipur: Rs 900 lacs
5. Syndicate Bank: Rs 276 lacs

and also such further additions to the aforesaid limits as may be made / granted by
the said Bank(s) from time to time subject to the condition that the aggregate
amount of working capital / facilities including term loans to be secured in respect of
borrowings from all the aforesaid Banks shall not exceed Rs 12,500 lacs with liberty
and authority to the Directors to accept the change in the limits of individual Bank
consequent to such further additions to above limits within the aforesaid overall
maximum limit of Rs 12,500 lacs, together with interest at the respective agreed
rates, compound interest and additional interest, wherever applicable, liquidated
damages, costs, charges, expenses and all other moneys payable by the Company
to BOI, CBI, SRI, SBBJ and SB respectively under their respective loan
agreement(s) / letter(s) of sanction or any other document / agreement entered into
/ to be entered into by the Company in respect of the said working capital facilities
including term loans as may be agreed to by the Board of Directors.
7(b) Authority to the Board of Directors of the Company to sell, lease, transfer or
otherwise dispose of in any manner the Power Plant Unit comprising of 20 MW
Diesel based Power Plant consisting of 2 nos D.G. Sets of 10 MW each located at
the Charge Chrome Plant of the Company at Randia Dist. Bhadrak in Orissa, with
or without land and building in which the power plant is installed, to any one or
more of the prospective buyer(s) at such consideration and on such terms and
conditions, in such manner and with effect from such date as the Board of Directors
of the Company may think fit and that the Board of Directors be and is hereby
authorized to complete the sale, lease, transfer or disposal of the said Power Plant
with such modifications as may be required by any of the concerned authorities or
prospective buyer(s) or which it may deem to be in the best interest of the
Company and to finalise and execute necessary documents including agreements,
deeds of sale / lease / assignment / conveyance, under the Common Seal of the
Company, if required, to be affixed to such documents in the presence of any one of
the Directors of the Company, and to do all such acts, deeds, matters and things as
may be deemed necessary and / or expedient in its discretion for completion of the
transactions as aforesaid in the best interest of the Company.

8. Amendments in the Objects Clause III of the Memorandum of Association of the
Company by inserting after the existing sub-clause 8 the following new sub-
clauses:

8(A) To purchase, acquire, take on lease, sell, deal in, exchange, develop land
(agricultural, non - agricultural and forest), buildings and other immovable
properties including Real Estates, Tea, Coffee and Rubber Plantations and
Plantations of any other kind and any accretion thereto in the form of area or in any
other form whatsoever.

8(b) To carry on, promote, and / or engage in the business of Builders, Colonirers,
Developers, Constructional Engineers, Masonry and General Maintenance,
Construction, Contractors and haulers and Real Estate and to Construct, Build,
Purchase, Sell, Execute, Develop, Maintain, Operate, Run, Obtain, Grant Lease,
Sub-lease, License, Let out and / or Sell Departmental Stores, Offices, Residential
Apartments and Complexes, Bungalows, Townships, Godowns, Housing
Complexes of all types, Multi Storeyed Buildings / Flats, Warehouses, Pent Houses,
Rest Houses, Resorts, Entertainment Complex, Commercial and Industrial
Complexes, Malls, Restaurants, Studios, Stores, Shopping Centers / Complexes,
Satellite Townships, Industrial / IT Parks, Entertainment and Techno Parks,
Hospitals, Seminar Halls, Meditation Centers, Marketing Arcades, Farm Houses,
Theatres, Cinema Halls, Radio / TV Towers / Stations, Residential and Non-
residential Schools, Colleges and Technical Institutes, Universities, Playgrounds &
Gardens, Health Clubs, Water Sports, Bowling Alleys, Recreation Centers / Clubs,
Special Economic Zones, Airports, Docks, Harbours, Ports, Wharves, Water
Courses, Reservoirs, Embankments, Irrigation Projects, Reclamations, Sewage,
Drainage and other Sanitary Works, Gas / Oil / Water pipeline Works, Houses,
Buildings and Erections of every kind and to promote, establish, acquire, purchase,
sale, construct, develop new Townships of any kind and act as real estate agents.

8(C) To promote, construct, build, acquire, develop, provide, supply, take / give on
lease / licence, maintain various infrastructure facilities and to undertake
development of infrastructure projects in all areas of infrastructure including basic
infrastructure such as Power including Hydel, Thermal, Nuclear, Solar and Wind
Power / Energy, Roads, Bridges, Flyovers, Sub-ways, Tunnels, Airways, Railways,
Highways, Water, Water management system, sewerages, residual and industrial
infrastructure, Villages, Semi-urban and urban infrastructure and entertainment as
well as tourism infrastructure.

8(D) To carry on in India or elsewhere the business to generate, receive, produce,
improve, buy, sell, resell, acquire, use, transmit, accumulate, employ, distribute,
develop, handle, protect, supply and to act as agent, broker, representative,
consultant, collaborator, or otherwise to deal in electric power in all its branches
including Thermal, Hydel, Atomic, Solar and Wind Power at such place or places as
may be permitted by appropriate authorities by establishment of thermal power
plants, hydel power plants, atomic power plants, wind power plants, solar power
plants and other power plants based on any source of energy as may be developed
or invented in future.

8(E) To construct, laydown, establish, promote, erect, build, install, commission,
carry out and run all necessary power sub-stations, work shops, repair shops,
wires, cables, transmission lines, accumulators, street lights for the purpose of
conservation, transmission, distribution, and supply of electricity to participating
industries, State Electricity Boards and other Boards for industrial, commercial,
domestic, public and other purposes and also to provide regular services for
repairing and maintenance of all distribution and supply lines.

8(F) To carry on in India or elsewhere the business of trading in power, whether by
way of buying, selling, reselling, acquiring, transmitting, accumulating, employing,
distributing power supply or otherwise, and to act as agent, broker, representative,
consultant, collaborator or otherwise to deal in power in all its branches at such
place or places as may be permitted by appropriate authorities.
Further resolved that, authority to the Company pursuant to Section 149(2A) and
other applicable provisions, if any, of the Companies Act, 1956, for commencing or
undertaking or carrying on all or any of the new businesses and activities, including
in particular Real Estate and Infrastructure development and setting up Wind Power
Plant for the generation, distribution and transmission of Wind Power, covered by
Sub-clauses 8(A) to 8(F) of Clause III of the Memorandum of Association of the
Company as referred to above, as well as for commencing or undertaking or
carrying on the new business and activities of Coal Mining and Stainless Steel
manufacturing in pursuance of the existing objects covered by sub-clauses 2, 4 and
7 of Clause III of the Memorandum of Association of the Company either alone or in
joint venture with any other Company / bodies corporate, at such time(s) as may be
deemed fit by the Board of Directors who be and is hereby also authorized and
empowered to do all acts, deeds, matters and things necessary for the said
purpose.

9.(a) Authority to the Board of Directors:

(i) to give guarantee and / or to continue the guarantee already given to the
following consortium banks for Term Loans and other fund based and non-fund
based working capital / facilities availed / to be availed from them by Facor Alloys
Ltd (FAL) and Facor Steels Ltd (FSL) as per details in respect of the said facilities
given below: (Rs / lacs)

Amount of Fund based and Non-fund based Working Capital / facilities availed / to
be availed from Consortium Banks by

-------------------------------------------------
------------------------------------
FAL FSL
-------------------------------------------------
-----------------------------------------
Bank of India 1738
3167
Central Sank of India 2149
3302
State Bank of India 611
1100
Syndicate Bank 541
813
State Bank of Bikaner & Jaipur 129
253
-------------------------------------------------
-----------------------------------------
Total 5168
8635
-------------------------------------------------
-----------------------------------

subject to a maximum limit of Rs 100 crores, in respect of FAL and Rs 150 crores in
respect of FSL for all the above Banks taken together with liberty and authority to
Board of Directors to provide guarantee for such further limits as and when granted
by individual Bank over and above their respective aforesaid limits within the overall
limit of Rs 100 crores and Rs 150 crores in respect of FAL and FSL respectively.

(ii) to give loan to the following bodies corporate at a rate of interest not lower than
the prevailing bank rate being the standard rate made public u/s 49 of the Reserve
Bank of India Act, 1934 or such other rate as may be fixed from time to time by the
Reserve Rank of India up to a sum of Rs 75.00 crores, as per following details:

-------------------------------------------------
------------------------------------
Name of Body Corporate Amount of loan
given / to
be given not to
exceed
-------------------------------------------------
-----------------------------------------
Facor Steels Ltd. Rs 25.00 crores
Facor Alloys Ltd. Rs 50.00 crores
-------------------------------------------------
-----------------------------------
and such guarantees and loans as mentioned in (i) and (ii) above will be over and
above the limits, if any, available to the Board of Directors of the Company u/s 372A
of the Companies Act, 1956.

9(b) Authority to the Board of Directors to acquire by way of subscription, purchase
or otherwise the securities of the following bodies corporate up to Rs 261 crores in
such tranches as may be considered appropriate by the Board of Directors of the
Company as per details set out below:

-------------------------------------------------
------------------------------------
Name of Body Corporate / Project
Amount to be invested upto
-------------------------------------------------
-----------------------------------------
- Facor Realty & Infrastructure Ltd Rs
1.00 crore
- Pioneer Facor IT Infradevelopers Pvt. Ltd Rs
10.00 crores
- For Stainless Steel Project Rs
100.00 crores
- For Coal Project Rs
50.00 crores
-------------------------------------------------
-----------------------------------

10. Appointment of Shri. R K Saraf as Managing Director of the Company for a
period of 3 years w.e.f. June 29, 2007, on remuneration, terms and conditions.

Futher the Company has informed that, the point no 7, 8 & 9 have been passed by
way of postal ballot with requisite majority.
Ferro Alloys - Updates

Ferro Alloys Corporation Ltd has informed BSE that the Company has been discharged by
the
Board for Industrial & Financial Reconstruction (BIFR) from the purview of Sick Industrial
Companies (Special Provisions) Act, 1985 (SICA) as per Summary Record of Proceedings
of the Review Hearing held at BIFR on August 30, 2007, forwarded to us vide their letter
dated September 21, 2007.

Accordingly, the Company is no more a SICK COMPANY and is having a positive net worth
of Rs 83.75 Crores as of March 31, 2007.

Further, with the said discharge from BIFR, the Facor Group of Companies are now moving
ahead with the envisaged expansion plans involving investment of Rs 2,500 Crores for
setting up a Coal based 250 MW Independent Power Plant and 0.5 Million TPA Stainless
Steel Plant.

FACOR's wholly owned subsidiary M/s. Eacor Power Ltd is soiling up a Cool based 45 MW
News Body: Captive Power Plant with a capital outlay of Rs 200 Crores. Loan Rs 100 Crores from (REC)
is sanctioned. This plant will be located at the existing site of the 60,000 TPA Charge
Chrome Plant at Randia, Bhadrak.

FACOR has applied for a Coal Block in Orissa which is under consideration in the Ministry of
Coal.

The power produced from this Plant shall be used for the production of High Carbon Ferro
Chrome as may be required at Company's Charge Chrome Plant Randia in Orissa. This will
not only help in reducing the dependence on State Electricity Authorities but is also likely to
reduce the cost of power in the production of Charge Chrome as the Company is a power
intensive industry.

The Company had a Turnover of Rs 195.19 Crores for year ended 2006-07 and Net Profit of
Rs 16.09 Crores. The Turnover and Net Profit for 1st Quarter ending June 30, 2007 has
been Rs 50.26 Crores and Rs 7.40 Crores respectively.

Scrip Code:500141 Company Name:FERRO ALLO C

envisage
Issues In Participatory Notes
Arun Gargi
1

Introduction
The moment one recalls the word, Participatory Notes, it sends shivers across the mind of any 
ordinary Indian or an ordinary Indian investor. Participatory notes were one of the reasons for the 
largest fall witnessed ever in Indian stock markets. Participatory notes had been in news for all the 
wrong reasons, every second or third day, some or the other controversy associated with them 
props up. The most important regulators in Indian economy, i.e. SEBI and RBI are also seen in 
picture, day in or day out, issuing notices or warning signs to the parties concerned or related to 
this   instrument.   But   the   analysts   associated   with   stock   markets   are   not   much   concerned   or 
bothered about this instrument. As some of them, don’t have any relationship with this instrument. 
Indeed,  this  instrument   is  much   talked   about  when   we   name  or   see   the   Foreign   Institutional 
Investors (FIIs). Although FIIs have contributed to the Indian economy, in more ways than one, 
but still they have not been able to earn the respect for themselves as they should be. RBI and 
SEBI, every now and then, are bothered about their activities and moves that might affect the 
economy   and   the   markets   adversely.   The   recently   out,   Lahiri   Committee   Report,   also   lays 
emphasis on participatory notes, its role and functioning. The question that arises in a person’s 
mind is that what is a participatory note, how it functions, and why is it famous for its notoriety, 
etc. We will try to seek the answers of the above said questions and various other aspects of 
participatory notes in the following discussion.

What are participatory notes?
In the magazine, Business World, dated December 15 th , 2003, the feature on participatory
note stated that, “The past month has seen our stock market regulator, the Securities and
Exchange Board of India (SEBI), nervously rattling its sabre against a shadowy enemy -
hedge funds that trade in Indian stocks through something called the participatory note (P-
note), an offshore financial instrument.” (2) Participatory notes are instruments used by
foreign funds / investors who are not registered with the SEBI but are interested in taking
exposure in Indian securities Participatory notes are generally issued overseas by the
associates of India-based foreign brokerages. (3.FIIs that do not wish to register with the
SEBI but would like to take exposure in Indian securities also use the participatory notes.
Brokers buy or sell securities on behalf of their clients on their proprietary account and issue
such notes in favour of such foreign investors. Participatory Notes are simple derivative
instruments that investors not registered in India or Mauritius use to trade in Indian markets.
These investors place their order through brokerage houses that have Mauritius-based FII
accounts. The brokerage houses then repatriate the dividends and capital gains back to these 
entities. In this case, the broker acts like an exchange: it executes the  trade and uses its internal 
accounts to settle the trade. They keep the investor’s name anonymous. That is why capital market 
regulators dislike P­notes.
What are FII’s?
FII means an entity established or incorporated outside India which proposes to make investment 
in India. *** FII work in a very tight and scheduled environment and have to act in parlance with 
the guidelines framed by SEBI, (Foreign Institutional Investors) guidelines, 1995 and they also 
have to comply with regulatory notifications of RBI, as RBI acts directly on them, for matters 
specifically concerning foreign exchange. The SEBI (FII) guidelines, 1995 prescribes

** Who can register as FII?
** What are the parameters for their eligibility?
** What are the requisite fee and how it should be made?
** What is the process of their registration?
** What is the validity period and the renewal process?
** What all are the Pre­Registration formalities?
** What are the different aspects of sub­account?
** What are the investment opportunities and investment limits?
** What are the restrictions on investment?

Above said questions are few of them, which have been answered in the SEBI (FII) guidelines,
1995.
dlaw.com
Functioning of Participatory Notes
Source: See Footnote 

**6  Participatory   Notes,   somewhere   down   the   line,   hide   in   themselves   the   functions   and 
properties of Hedge Funds. Although SEBI, as a regulator had issued KYC (Know Your Client) 
guidelines, which include that, FIIs must know all the requisites details about their client and be 
able to furnish the details of the same, as and when demanded or asked by the regulator, to which 
there should be strict compliance, failing which they have to face the wrath of the regulator. UBS 
Securities case was on this basis, they were barred from trading in Indian markets by SEBI on this 
premise only as they failed to furnish the information regarding their clients. Contrary to the fact 
that SAT reversed the SEBI’s order. The bigger question after the debate is about hedge funds and 
why regulators like SEBI and RBI are wary of them. Hedge funds are those funds which are not 
defined in any legislation in this world and have been deliberately excluded from trading in stock 
markets and are not allowed to function or work in any stock market of the world on paper. Hedge 
funds are generally recognized by their characteristics, rather than any term or legislation. Rapid 
growth, big money, market manipulators, etc. are some of the popular terms related to them. They 
don’t   advertise   in   papers,   they   cannot   be   registered   under   any   statute.   Yet   they   function   and 
extremely popular because of the attention they grab and the limelight they find in the local and 
national newspapers of all the emerging and developed economies of the world. 
Retail  investors  are  not   their   clients.  Market   players   or   high  net  worth   individuals  (HNIs)  or 
professional investors (pension funds or mutual funds) are their clients. However, US Securities 
Exchange Commission (SEC) provides some clarity on the issue. They are approximately 8000 
hedge   funds,   operating   globally,   with   the   major   chunk   of   them   operating   in   USA,   and   few 
hundreds   are  in   UK  and   the   other   lot  of   few   is   disseminated   across   the   globe.  Hedge  funds 
promise hefty profits, with the hedge fund manager taking the percentage of the profits as his fees 
for managing the funds. Generally the rate is 20%, which the hedge fund managers charge for their 
services   in   addition   to   1%,   which   they   charge   as   fixed   management   fee.   Speculative   funds 
managing investments for private investors (in the US, such funds are unregulated if the number of 
investors does not exceed one hundred).
7** These are funds usually used by wealthy private investor or institutions. Hedge funds are 
restricted by law to no more than 100 investors; the minimum contribution is typically $1m. The 
first hedge fund started in New York on 1 January 1949. Hedge fund managers sell stock short and 
trade in options of the shares they hold.

Funds   that   are   extremely   flexible   in   their   investment   options   because   they   use   financial 
instruments   generally   beyond   the   reach   of   mutual   funds,   which   have   SEC   regulations   and 
disclosure requirements that largely prevent them from using short­selling, leverage, concentrated 
investments and derivatives. This flexibility, which includes use of hedging strategies to protect 
downside risk, gives hedge funds the ability to best manage investment risks.
A   hedge   fund   can   be   classified   as   an   alternative   investment.   Alternative   investments   are 
investments other than stocks and bonds. A U.S. “hedge fund” usually is a U.S. private investment 
partnership invested primarily in publicly traded securities or financial derivatives. Because they 
are private investment partnerships, the SEC limits U.S. hedge funds to 99 investors, at least 65 of 
whom must be “accredited.” (“Accredited” investors often are defined as investors having a net 
worth of at least $1 million.) A relatively recent change in the law (section 3(c)7) allows certain 
funds to accept up to 500 “qualified purchasers.” In order to be able to invest in such a fund, the 
investor must be an individual with at least $5 million in investments or an entity with at least $25
million in investments. The majority of hedge funds employ some form of hedging – whether 
shorting stocks, utilizing “puts,” or other devices.
In the past, hedge funds had been blamed largely for the sudden sharp falls or volatile sessions in 
indices. Hedge funds are not directly registered with SEBI, but they can operate through sub­ 
accounts with FIIs. These funds are also said to operate through the issuance of  participatory 
notes. SEBI keeps a close watch on the activities of FIIs. As it is believed that nearly 30% of the 
money is coming from hedge funds through FII route. Hedge funds by their very nature hold 
stocks for short duration, and exit markets after booking profits, which upsets the sentiments of 
the market. dlaw.com
Hedge funds make money by identifying imbalances in the prices of asset classes, whether it is 
equities,   debt   or   forex.   These   overseas   funds   enter   and   exit   markets   based   on   arbitrage 
opportunities in different markets. Usually they cover their exposures in one market by taking a 
countervailing exposure in another. For example, they could go long in one scrip in the US and 
short it in India. 
Participatory notes are normally subscribed by investors who want to get rid of all the regulatory 
processes, so that they are adhered to minimum level of disclosure. But the FII with whom they  re 
functioning are required to comply with KYC guidelines of SEBI. Hedge funds are mostly short­
term   funds   and   they   rarely   buy   and   hold   any   stock   for   long   periods.   In   April   2003,   Infosys 
witnessed a crash because of weak guidance, due to sharp drops and spurt in prices.
Role of FIIs in stock market
The past booms in stock market in 2001­02, 2003­04, and 2005­06 have been attributed to the FIIs 
participation in the Indian stock market. But still FIIs are looked with a word of caution and a  nse 
of worry for market regulators. Black Monday has also been attributed to FIIs, over which the 
regulatory action also followed on UBS. If we carefully scan the financial newspapers, one can 
find this term on more than one occasions in almost every edition. The bottomline is FII are 
indeed a sought of blessing in disguise for the Indian financial system, although their due credit 
may not be given to them. The problem with foreign entities is that they want to enter every 
emerging market in the market and want to leave with plush green bags from that market. India 
being  one of the vibrant and emerging economies  of the world is an attractive destination of 
investment for them. Indian financial system or regulatory compliance does not allow foreign 
entities or individuals to directly participate in the capital markets. Foreign entities or individuals 
cannot invest directly or otherwise in Indian markets. So the only option left before them to enter 
the markets is the route through participatory notes. The past trends show a very good picture of 
FIIs contribution to the Indian stock markets. India has received net FII inflows of over $22 billion 
in three years (2000­2003).Over 40% of these inflows had come through the route of participatory 
notes. On April 25, 2003, the BSE Sensex gave a very dismal picture, nobody could have thought 
of 5000 mark. And the index had slumped to the levels of 2900 , as it was a bear phase and 
everybody was staying away from the markets.ndlaw.com
But still the Sensex closed past the levels of 4500 in the first week of October, which means that 
the index had jumped 55 percent between April to October, 2003. What was the force behind this 
entire bull rally in 2003? No doubt all the fundamentals of the economy were performing well in 
the NDA era, but still the biggest factor among them all was the participation seen in the markets 
from FIIs.
The rally in 2003 was an exception in more ways than one. FIIs were the biggest investors in that 
rally followed by retail participants. The year 2003 saw the record investments from FIIs which 
were close to Rs. 14,000 crore (precisely Rs. 13,911 crore ) and it was also marked by the entry of 
a number of new FIIs in the Indian stock markets. Golden year was the title conferred to the year 
2003; by most of the stock market bigwigs as in that year FIIs contributed more than $ 5 billions 
to the Indian markets. In that particular year, everybody knew that hedge funds had entered the 
Indian markets through the FII route and they are here to stay for now. But nobody was making 
fuss or complaining about the issue, as the markets were rising and economy was booming with 
the increasing dollar reserves with RBI. FIIs will continue investing in Indian markets so long as 
the valuations appear attractive to them. The second prominent reason was the strengthening of 
the   rupee   against   the   dollar.   Hedge   funds   use   arbitraging   techniques,   which   typically   invest 
through participatory notes, borrow money cheaply in the West and invest it in emerging market 
equity.   This   gives   them   a   double   advantage   ­­   appreciating   stocks   in   an   appreciating   local 
currency. The contribution of participatory notes in 2003 was estimated to be $ 1.5 billion by the 
FIIs.
ndlaw.com
Source: RBI website.
Data provided until August 2005 shows that PN issuance rose dramatically from 30.6% of net FII 
investment in April 2005 (the Sensex was 6,605 on April 1) to 46.73% in August (the Sensex was 
7,805 on August 31). Since then, the Sensex has crossed 9,000 and FII investment is up by at least 
a billion dollars.
The current bull run of year 2005 is no less than a story, as we have seen that the year started at 
6000 levels and is finishing at the 9000 levels, which are historic levels to be witnessed ever in
Indian stock markets.
Foreign Institutional Investors (FIIs) recorded net purchases in equities at Rs 15.914 billion (US $
365.6 million) for the trading week ended July 15, while mutual funds (MFs) were net sellers at 
Rs. 3.35 billion. The latest figures suggest that in the first 27 days of the month of December, 
2005, FIIs have pumped in $ 2 billion alone in this month. So this narrates their confidence in the 
Indian markets. The rally of this year is supported by the macro­economic fundamentals plus the 
huge confidence being showered by FIIs in the Indian growth story, as more than 100 new FIIs 
registered   with   SEBI   during   the   current   year,   which   took   the   total   tally   to   738   .   And   the 
participation   was   not   only   seen   from   western   experts   but   also   from   Japanese,   South   Asian, 
Europeans,   which   indicates   that   the   World   is   looking   at   Indian   markets   from   a   different 
perspective as has been the case in the past. Till July FIIs had contributed $ 5.44 billion to the 
stock markets.
indlaw.com
Recent Developments
FIIs have been part of the Indian success story right since the beginning of the current rally. But 
still the concern over their regulation sends shivers down the spine of the regulators (RBI and 
SEBI). The latest out Lahiri Committee Report, who had been specifically said to give emphasis 
on the role and position of participatory notes, as RBI had been howling and growling for not 
allowing FIIs to enter Indian markets through the route of participatory notes. In the recent press 
note, RBI had clarified that they do not have anything against the participatory notes, but their 
concern is that this instrument helps in concealing the original beneficiary of the instrument. It 
leads to multi­layering, which makes it more difficult to find out the beneficiary, when it is subject 
to inquiry. The RBIs stance is valid as has been seen in the case of UBS Securities, for which 
SEBI took one full year to investigate the matter, and in the process they almost circumvented the 
whole world to know who the ultimate beneficiaries were. The capital market regulator couldn’t 
even achieve success in that stance. As SAT ruled out SEBI’s penalty imposed on UBS. The 
findings lead to that UBS did not comply with KYC guidelines and basically there were some 
non­residential Indians (NRI’s), who would have ultimately benefited from the transactions. SEBI 
is   part   of   the   International   Organisation   of   Securities   Commissions   (IOSCO)   and   has   signed 
information­sharing   agreements   with   leading   regulators;   there   is   little   evidence   of   any   clear 
benefits. In UBS case, the letter of request for information sharing being sent by SEBI Chairman 
did   not   gave   any   desired   results   to   the   regulator.   The   regulator   found   itself   helpless   in   such 
circumstances, that inspite of all its efforts; the results did not bore any fruit. So the only 

option   left   was   to   ban   such   entity   or   entities.   The   Lahiri   Committee   Report   has   given   the 
recommendation of phasing out this instrument from Indian markets in a period of three to five 
years. The other issue which is concerning RBI is the investment limit to be imposed on FIIs. 
Currently the investment limit on FIIs is 24 per cent. Presently, out of the 5499 companies, which 
have   FII   investments,   only   100   companies   have   passed   resolutions   to   permit   increase   in   FII 
holding beyond the limit of 24 per cent. RBI concluded that  whether FII beyond 24 % should be 
allowed in a company or not, that power vests with the particular company and it can pass a 
special resolution in the annual general meeting (AGM) favouring or rejecting the same concept. 
The other issue of contention where the committee and RBI doesn’t seems to agree is the line of 
argument for enhancing operational flexibility to impart stability to the market. On one hand the 
members (other than RBI) of Lahiri committee suggest “greater flexibility for FIIs to participate 
in the bond market will induce more ‘balanced’ strategies, and mixing of equity and debt” and that 
can be done “if FIIs are able to switch between equity and debt investments in India, depending on 
their view about future equity returns.” The Lahiri committee describes PNs as akin to contract 
notes issued against an underlying security, usually to investors that are not otherwise eligible to 
invest in India. RBI reiterates that the stance that issuance of participatory notes should not be 
permitted. It is at loggerheads with finance ministry on this  issue. It further says that by not 
allowing suspicious funds in the markets, we can enhance the image of the markets, which will 
ultimately lead us to healthy flows in the economy. Tax payers’ money lent to businesses by public 
financial institutions and banks found their way into bank accounts abroad. Exporters too under 
invoiced to keep part of their proceeds abroad. All this happened in the decades before the 1990s 
when India was seen as a poor Third World economy with no future. RBI believes that the money 
coming through the route of FII’s is hot money, which can become cold at any point of time. More 
than 40% of FII’s at any given instance comprise of money through participatory notes. RBI feels 
that even if FIIs take 20% of the total invested money out of India, it might lead to financial crisis 
or destabilize the economy. RBI is perfectly right on its stand that the integrity of Indian markets 
must be maintained at any cost. There is a dire need to address these issues and take necessary 
measures   to   address   the   international   concerns   pertaining   to   the   origin   and   source   of   funds 
flowing   into   the   country.   SEBI   in   the   vague   of   such   situation   has   increased   the   disclosure 
requirements and made necessary changes in the registration process. Thus the expert committee 
has recommended that the dubious parties should be phased in a span of three years, but at the 
same instance  they have said that eligible participatory notes should be allowed to continue to 
operate in the markets for a period of two years. In the same breath they have expressed the fear of 
a possible market crash in future. The point of the matter, the committee has not come upto the 
expectations   that  the   economy   was  expecting  from  them.   In  fact,   the   committee   should   have 
emphasized on how the manipulations being done by FIIs can be reduced in future and also the 
adversarial impact of such transactions on the monetary policy and the exchange rate system of 
the economy, over which the RBI has been showing concerns over a period of time. The phasing 
out scheme or steps should have been clearly reiterated in the report. If the complete ban should 
have been imposed then some alternative for still allowing them to operate in Indian markets 
should have been brought on paper. 
The committee has further suggested that FDI and FIIs sectoral limits of investment should be 
separated to help eliminate misuse of the FIIs route by foreign direct investors. It has also said that 
in a transitional arrangement, the current policy of a composite limit may continue and it should 
be sufficiently raised to a high level. The composite limits should be immediately broken into 
specific limits for FDI and FIIs. As the economy is booming, efforts should and must be on to 
improve and bring forex reserves in the form of projects or some permanent source of income 
rather than this hot money.
Conclusion
The dubious role of FIIs and participatory notes as has been seen in reports cannot be denied. But 
yet seeing the bulls taking such a heavy charge on account of huge coming of FIIs can also not be 
overlooked. Black Monday has been attributed to these participatory notes only, but the very fact
remains that FIIs were the net buyers on that particular day. Rather it was the panic or the huge 
selling pressure witnessed was due to Indian investors, who were busy booking profits on that day. 
In 2003 also, after the falling of the bull, FIIs were the net buyers. This very fact has been pointed 
by finance ministry of India. The concerns of RBI and SEBI can also not be overlooked, being 
they the market regulators. The primary purpose of who is to protect the interest of the investors. 
SEBI should  look  that the client must provide all the  required details to be submitted  to the 
regulator, as and when sought by the regulator. At the same instance, it can be said that the Lahiri 
Committee Report did not achieve the purpose for which it had been constituted. Had it brought 
some ground breaking facts into picture to address the issues being put up by RBI or a solution to 
end the dilemma in which the regulators are operating? 
The   officials   of   SEBI   should   carry   out   raids   or   go   for   random   or   surprise   checking   of   the 
information to be supplied by FIIs, so that FIIs maintain the proper accounts as to where there 
funds  are  being  maintained  in   compliance   with  the  guidelines  framed  by SEBI.  Interestingly, 
Section 20 of SEBI’s FII rules clearly says every FII shall, as and when required by the market 
regulator or RBI, submit as the case may be, any information, record or documents in relation to 
its activities as required by the regulators. But still the purpose or the integrity of the same is not 
being maintained. Looking at the things from other perspective. Nowadays FIIs are the major 
contributors to the stock markets. They are very active on trade, day in and day out, the records are 
broken and new records are being recorded. Some of them, depict the reason for bullishness is the 
under   valuation   of   Indian   stock   markets   as   compared   to   markets   of   the   developed   nations. 
Moreover, the volumes they generate are not being traded by Indians in such huge capacity. So it 
indicates they will certainly trade primarily amongst themselves. So in most of the cases, we have 
seen that if an FII is selling than another FII is buying the same stocks. The primary concern over 
the   whole   issue   of   participatory   notes   can   be   subverted   in   case   we   allow   foreign 
individuals/investors of especially non­institutional in nature be allowed to operate freely in Indian 
markets. Simply banning participatory notes cannot be a solution. If the air is polluted, then we 
cannot close ourselves in an  enclosed box with no outlets,  so that the air might not harm us 
adversely. Under those circumstances, we might run into the risk of dying. But in fact, we can use 
filters and other gadgets to purify the air and then breathe it, so that even our health is not affected 
adversely. Thus it is up to the policy makers of India to allow participatory notes or FIIs to operate 
and provide them with more opportunities and reasons to invest in Indian markets. And in the 
process invent a series of check and balances system so as to protect the economy and look over to 
the fact that the economy works best with such kind of filters system. 
Posted by:
pss5588 on
(04-Dec-07
15:36 )
Price : BSE: Rs 22.85 ( 4.82 % )

my posting was not to belittle u or to call u a fool. It was a figurative term and
not literal and was for the inference that postings in mmb have an effect to
raise or lower the price of any share and nothing more than that and not that u
are a fool but only that belief about mmb postings is foolhardy. for ur info i
too have 200 shares at 24 and am waiting to see only if there is some truth in
the land story for in hindsight i find they are fond of making announcements
only without implementation. i therefore spend atleast 4 hours in researching
a stock before i enter and as far as possible try to warn others of pitfalls or
possible good picks but it is not possible to visit all boards to see what is
going on. in fact if u r curious go to vipul infra board and u will find one
person posting detailed messages to buy tripex overseas and i followed to
caution borders. i am just one and halfyear into share market and therefore a
little older novice but in view of my limited capital i have learnt to be very
careful even though i know -nothing ventured nothing gained. but when i do
take risks as in western india ship it is a calculated and well researched
risk.see my following posting in western ind. mmbPosted by: pss5588 on (30-
Nov-07 16:15 )
Price : BSE: Rs 24.60 ( 1.23 % )

marsons, cablecorp and rpg cables will be debtfree shortly by sale of land and
they are out of bifr, zenith birla will do well post restructuring already going
up, noida toll and spel semiconductor are a must for long term, bhagyanagar
india is set to go places. marsons if it really turns around fast will go great
guns as it is into transformers and it is a very old co. filatex india is also a
good buy alongwith abc india ltd. filatex is rumored to be in real estate but
not reflected in b/s.however u may go to vipul infra mmb and look up posting
by a guest and take ur own decision. even otherwise if i remember rightly it is
a turnaround story expected to do well even without the real estate story. pls
do not take my word for the above recommendations and take an informed
decision. i generally do not buy more than 100 shares of stocks costing above
40. i have all the above shares including jhunjhunwala 400purchased at 75,
western i ship at 9 onwards in 3thousand. in view of limited capital at my
disposal i have been careful and do atleast 4 hrs of research before buying a
stock. for the long term cheap shares- noida toll and spel semiconductor and
costly shares -abg shipyard, ril, mundra, dlf, welspun gujarat, marg constrn
and rel comm as i believe that these shares have the inherent strength to
bounce back faster even if the market crashes. wishing u luck. pls buy in
small lots and dont jump into these suddenly for every share which hits upper
circuit has to breathe once again except those which are manipulated.
The thing about life is that one makes mistakes. Many mistakes were made in the second half of 2007
and those sins have to be washed away by blood, such is the way of financial markets. Some
participants will go down under and never be able to get back to the market again but most will
survive. The pain will linger for many months, maybe years but lessons have to be learnt. Every such
debacle has lessons for us and the sooner we forget them the more we suffer.

The first lesson is not to let stock price performance become the sole reason for buying, a mistake
which was made in abundance in the last 3 months. What couldn't be explained by fundamentals was
credited to liquidity. The present lost all relevance as people chose to focus on the distant future,
perhaps simply because the present could never justify those ticker prices; only a hazy dream of the
future could. Traders and investors had no time for fundamental analysts, in many cases they were
labelled "cribbing fools". Chartists became the most celebrated tribe on the street as only they could
see and predict the one way run to glory for many of the hot stocks even as fundamental watchers
cringed at valuations....till the music stopped. Don't get me wrong, charts do work in trending markets
but once stock prices veer away completely from fundamental value, people need to get careful. But
they never are. Now that the blinkers are off, people should ask themselves why stocks like RNRL,
Ispat, RPL, Essar oil and Nagarjuna fertilisers have lost 50-70% of their value. It is simply because
their stock prices had snapped all connection with underlying business fundamentals, earnings and
value. Their stock prices became the only reasons for buying them which works for a while but not
forever.

The other big lesson, one which should have been driven in earlier in May 2006, is the danger of
overextending oneself in the futures market. The lure of stock futures is easy to understand. Put in
some margin, take a big exposure on a fast moving stock, make a killing when prices shoot up.
Repeat exercise. Just that people forgot that prices may also come down and at a pace which noone
can even imagine, maybe their friendly stockbrokers forgot to tell them that part of the story. The result
: unbridled speculation that ran into lakhs of crores, excesses that we are paying for today. Even this
fall will not cure investors of their love for futures speculation but if at least some amount of caution is
injected it would have been a worthwhile learning. Futures are not toys for amateurs, they are time
bombs in the hands of inexpert and inexperienced traders, it's only a matter of when the fuse runs out.

The other learning which I hope will play out in the future, as it has in the past, is that it pays to be
brave in times of panic such as these. If I was allowed to invest myself , which I am not, I would have
no hesitation in deploying serious money into the market today, knowing fully well that prices may fall
more tomorrow. And I would be standing there tomorrow to buy more of the same, till my money ran
out. India is going to be a terrific stock market story for many years to come, even an intermediate
bearish patch cannot shake that conviction of mine. At best, one will have to wait a bit for the returns to
follow. That's alright. You are happy to put money in a bank FD and then wait for one full year to collect
that measly 8%, aren't you? Then why does the stock market need to give you 20% every month? In
the last one year, I haven't seen so many good stocks trade at such mouth watering levels. Forget
trading, avoid the duds which were fuelled up by operators, just go out and buy those bluechips. They
will deliver, even if there is a global market meltdown for a while, and if you are a bit patient you will be
rewarded. But do remember January 2008, as history will repeat itself again in the future. Just that our
memories tend to be too short and our greed too much.

Udayan Mukherjee

NOTE: This column was written at 2pm, even as the markets were trading.
Polaris Software - Mekong Housing Bank (MHB) Vietnam chooses Polaris
Software's Next-Generation Intellect 787 Global Banking Platform

News Body: Polaris
Software Lab Ltd has informed BSE that Mekong Housing Bank (MHB)
Vietnam on December 06, 2007 announced the selection of Polaris Software's
Next-Generation Intellect 787 Global Banking Platform to be the technology
enabler for its growth journey. MHB, Vietnam's 5th largest State owned bank,
chose Intellect 787 in order to enable fastest time to market for its rollout of
new products and services and for Intellect's unmatched ability to integrate
seamlessly with the bank's legacy as well as other systems.

Intellect 787 is a leading next generation global banking platform, built on a
robust Services Oriented Architecture (SOA) framework. Its modular and
customer centric design makes it the ideal solution for mission critical
transaction systems. Intellect solution for MHB will involve multiple platforms
such as Intellect Core banking, Intellect Lending, Intellect Treasury and
Intellect Trade Finance.

Asian economies are seeing a huge upsurge of growth and the pack is being
led by China, India and Vietnam.

Mr. Arun Jain, Chairman & Chief Executive Office, of the Company said:
"Intellect 787 meets the 'next generation' technological requirements of the
client. The modular design of Intellect gives it the ability to combine different
banking components into an overall integrated 'best of breed' solution, which
will help MHB in its quest to offer better products and services, while improving
its internal efficiencies and cost of maintaining and upgrading IT systems".
Role & Responsibilities:

· To provide month end accounting services, including control,
budgeting, forecasting and reporting of European trade related
expenses (brokerage. Clearance & exchange fees) for the European
Region.
· Role will be aligned to support the European Equity, Fixed
Income and Capital Markets Prime Services divisions through the
delivery of detailed Management Information and analysis.
· Production/development of daily/weekly/monthly Transaction> expense reports to assist
front office and regional senior managementwith strategic decision making.
· Production of a wide range of variance reporting commentary for
actual spend against budget, historical trends and forecasts / future targets to facilitate
senior management focus on key issues and to control a significant expense base.
· Responsible for ensuring firms financial books and records are
closed each month and reflect accurately the Firm"s position. Will be required to calculate
and post various accruals and adjustments during month end.
· Production of monthly balance sheets to highlight all firms"
transaction expense liabilities.