In India, retail fuel prices are regulated by Govt. If the crude oil prices are high, Oil Marketing Companies (OMCs) bear under recoveries on sale of fuel at lower prices. As per Govt., public upstream companies has to bear a part of subsidies losses of OMCs, whereas private companies like RIL, Cairn don?t have obligation from Govt. to share subsidy losses of downstream companies.

I find private upstream companies better, as they are not obliged to share under recoveries and can sell their crude oil at the same prices as public upstream companies (discount to Brent), domestically.

2. What is the subsidy sharing model between the following?

a- Upstream and downstream companies (quantify)

b- What will happen when the crude prices will go up and vice versa( Quantify)

a- As of now, there is no transparent subsidy sharing mechanism, proposed by Govt. But generally, the practice in the industry is as follows:

33% of total under recoveries to OMC:?? Shared by upstream companies (ONGC, GAIL, OIL in the ratio of 75:15:10)

33% of total under recoveries to OMC:?? Shared by Govt. (Cash subsidy/Oil bonds)

33% of total under recoveries to OMC:?? Shared by downstream companies itself (BPCL, HPCL, IOCL)

b- If crude oil prices goes up, that means, the raw material cost (i.e. crude oil) for downstream companies will go up. The OMCs has to sell the fuel at Govt. governed prices, irrespective of their cost. Thus, they bear loss.

On the other hand if crude oil prices get down, better for OMCs as their input cost also get lower.

3. What is proposed in Kritik Pareikh report for the upstream and downstream companies (Quantify)?

4. Peer comparison between the companies like Oil India, Cairn India, ONGC, HOEC related with the total reserves of oil and gas.

ONGC is the largest public upstream company on the basis of 2P reserve. At present, Cairn is not fully operational but commencement of Mangala field makes it attractive. If we look at the reserve and total assets, HOEC seems bit expansive to its peers.

OIL is better in terms of reserve and production growth in the past with a high success ratio of 70-80% of exploratory wells drilled as compared with 36% for ONGC and 34 % for global average, which is best in the world.

In terms of raising cost including taxes, OIL and Cairn enjoy benefit of being onshore players. They have total raising cost of around $11/barrel.

Rating: Positive

In 3Q 2010, our coverage universe reported positive growth in Net interest income (NII) with decent growth in advances except ICICI Bank. Net interest margins has grown up on back of falling cost of deposit as banks have bolstered their CASA base. We continue to have bullish view on sector since IIP (Index of Industrial production) can surprise on upside which will ignite private capital expenditure cycle. Banking credit growth stands at 13% YTD 2010 compared to 24% in 2005-09. We believe revival in private capital expenditure will fuel credit growth resulting in sector re rating. We expect our coverage universe to report credit growth of 19-23% over next two years.

Top pick: Axis bank remains our top pick with target price Rs 1241 (2.6 PBV times FY 11 BV of Rs 477).

IT Sector

Rating: Positive

We believe IT Software exports will grow by at least 10-12% in FY 2010-11(last estimated at 4% in Market Outlook dated Nov 2009) on the back of rise in discretionary IT Spending in US. In 3Q 2010 most of leading IT Players appears to be sanguine on US IT spending outlook as evidenced by rising geographical contribution by US (Infosys & Wipro have observed rising sequential revenues growth from US). We believe with restoration of macro environment global IT budget will be flat to marginally positive. IT vendors continues to report client addition suggesting decent revenue visibility on stable Re (we estimate INR/USD at Rs 44 for FY 2011). Our coverage universe reported rise in employee utilization which will be margin accretive in near future.

Top pick: TCS remains our top pick with target price of Rs 850 (22 times PER FY 11 EPS.

Engineering

Rating: Positive

The power T&D business in energy segment is witnessing increased competition from domestic players & Chinese/Korean imports resulting in pressure on margins for the engineering firms such as Larsen & Toubro and Siemens. On the other hand, there are still not clear signs of sustained recovery in corporate capex which affects the industry segment. The country has embarked on a confident growth path. The growth is likely to be fuelled by increased capacity creation to meet the huge shortage of power and need for building India’s infrastructure. The recovery and firming up of oil prices also makes us positive on the prospects for oil and gas business. Though the inflationary pressures in the economy may lead to tightening of liquidity in the system, Government’s resolve to target a 7-8% growth rate should present many exciting business opportunities.

Top pick: BHEL remains our top pick with target price of Rs 2850 (30 times PER FY 11 EPS of Rs 95).

Metals

Rating: Positive

During 3Q FY 2010, the ferrous metal results were in line with our expectations. The stellar profitability y-o-y growth reported during 3Q FY 2010 was due to the low base effect. Tata Steel (standalone), Steel Authority of India Limited, JSW Steel Limited and Sesa Goa Limited reported robust earnings growth. Amongst, non-ferrous metals, Sterlite Industries reported lower-than-expected profitability due to rising costs. In light of sharp run-up in stock prices and our analysis of 3Q FY 2010 results, we downgrade our sector view from positive to neutral. Nevertheless, we continue to remain bullish on Sesa Goa, while we have downgraded JSW Steel from to a HOLD after it achieved our target price.

Power

Rating: Positive

During 3Q 10 the result of the power companies were as per our expectations. The net realizations of the power unit have increased during the quarter due to merchant power sale. Some companies like Torrent power; CESC has shown robust growth visibility more than the big players like NTPC, Tata Power etc. In Power Transmission segment the market leader power grid has shown a good performance and we are bullish on it as we believe that it will remain be market leader in transmission segment in coming years. It is estimated that 47,488 MW of capacity addition will take place during the Eleventh plan. We believe that in order to maintain the current growth, the country will require faster capacity additions in the Eleventh plan. Further, additions to generation capacity will require high capacity additions in transmission and distribution (T&D) as well. A total investment of around Rs 3 trillion in the power sector in the eleventh plan is estimated. Of this, a major chunk of Rs 2.1 trillion is expected to be towards power generation and the rest towards T&D segment.

Top pick: Power grid remains our top pick-The Company has reported growth of 24% CAGR in revenue over FY06 to FY09. It is currently trading at 22 x FY10E EPS, 17 times FY11E of EPS. We believe that the company will continue to earn minimum RoE of 12% and an EPS growth rate of 34%. We re-rate the stock and recommend a “BUY” rating with a target price of Rs. 137 at 20 x FY11E EPS of Rs 6.9.

Media

Rating: Positive

We have upgraded advertising industry growth estimate from 2-4% to 10% over 2010-12. In 3Q 2010, broadcasters like SUNTV, Zee Entertainment reported positive revenues growth with improvement in margins. The regional GEC market would grow 20-25% compared to television advertising industry growth of 10% over next two years. Print advertising players have disappointed in terms of advertising growth with falling margins thanks to stable newsprint prices.

Top pick: SUNTV remains our top pick with target price of Rs 450 (25 times PER FY 11 EPS of 18).

Cement

Rating: Positive

As India’s GDP is expected to move on 8% plus path and consequently we believe that the cement consumption too would grow with multiplier co-efficient of 1.2 to 1.3 over GDP that is about 10%. During 3Q FY 2010, most of the cement companies have shown a growth in its revenues despite any demand from housing segment. Production between April-January 2009 has moved up 4.77% to 26 MT from 25 MT in the same period last year. Dispatches grew 4.74% to 26 MT (25 MT). The dispatches in December were the largest so far in the current financial year at 17.74 million tones. With this the industry has recorded the highest sequential growth rate at 12.78%, whereas on the year-on-year (y-o-y) basis, after a gap of three months since August last year, the growth was in double digits at 10%. Though fresh capacities will increase supply but we believe capacity utilization will remain stand at 80%

Top pick: Dalmia Cements remain our top pick with target price of Rs 301 on S.O.T.P basis where in standalone valuation stands at Rs 280 (i.e. 8 PER times FY 11 E EPS of Rs 35.1) and OCL is valued at Rs 21 per share on basis of its market capitalization.

Oil & Gas

Rating: Positive

Oil prices are hovering around $70-$75 a barrel. If we follow the pattern of the past 15 years, then Jan-Feb has typically been the months, in which, the seasonal oil price starts moving up again as markets prepare for the summer driving season.

We downgraded our rating on downstream companies to ?Sell? but the much awaited Mr. Kirit S. Parikh? panel report on retail fuel prices is out. This report supports market-determined pricing for petrol and diesel, Rs.100/cylinder hike in LPG and Rs. 6/liter hike in kerosene. Though the Oil ministry has to give its final words, as it has to ensure the consumer interest as well as the financial health of PSU fuel retailers, but still this report, focusing on minimizing under recoveries and subsidies, provides positive undertone to the earnings of OMCs. So, we remain Neutral to OMCs.

Considering the huge demand-supply gap, huge growth potential market, potential upside in transmission volumes on account of additional gas availability from RIL?s KG Basin gas, PLL?s RLNG and ONGC?s marginal fields in FY10-FY11, we are positive on gas transmission companies like GAIL (India) Ltd. and Indraprastha Gas Ltd.

Top pick:?? Indraprastha Gas Ltd. remains our top pick with target price of Rs 280, valued at 14x FY11E EPS of Rs. 20 with a target of one year.

Telecom

Rating: Neutral

In 3Q 2010, our coverage universe continues to report decline in its KPI like RPM, MOU & ARPU due to increase in competition plus greater share of rural areas in net incremental addition. In 3Q 2010, coverage universe observed steep fall in RPM which resulted in sequential degrowth in revenues along with falling margins. We believe telecom industry will indeed consolidate but that is still 12-18 months away as the new entrants would not be able to be profitable in long term and the prevailing price war will shake out the sector and eventually work the overcapacity out and probably only the incumbents will emerge as winners.

Infrastructure

Rating: Neutral

Our discussions with companies suggest that funding constraints could increase the near-term risk of execution on Andhra Pradesh irrigation projects. Payments to contractors are getting delayed, engineering and construction companies are going slowly on execution of these projects given lack of funding clarity, and future order inflows could also be at risk if the funding situation doesn’t improve.

Auto

Rating: Neutral

Auto sector continues to report robust volume growth on back of domestic consumption plus renewed exports orders. In 3Q 2010, two wheeler major Hero Honda?s volume registered 30% growth (YoY) whereas Maruti?s volume grew by 48% on YoY basis. Auto players continued to enhance their margin due to falling commodity prices like steel, aluminum & copper. But going forward excise rollback, monetary tightening & rising commodity prices will certainly limit earning growth. Auto stocks are trading at 20 PER times FY 11 EPS which are at premium to historical Price Earning Ratio (PER) band of 15 PER.

Top pick: M&M remain our top pick with target price of Rs 1450 on S.O.T.P basis where in standalone valuation stands at Rs 1050 (15 PER times FY11 EPS of 70) and subsidiaries are valued at Rs 400.

Bharat Forge, a steel forging and general engineering company, posted good results in Q3 FY10. The net sales rose 14% and the net profit was up at Rs.38 cr. as against Rs.4.3 cr. on YoY basis.

Bharat Forge operates in auto and non-auto sector. In the non-auto sector, the company has received some good orders from the energy sector and going forward, the management expects to achieve the target of 40% of its sales from non-auto sector by 2012.

The company has also signed deals with Alsthom and Areva. These deals are expected to start generating revenues from 2012. The management is very positive on the growth prospect of domestic automotive sector and the export business from North America and China.

Technically, the stock had a very good really from its lows near 70 in Jan 2009. It took a one way really to make a high of near 307 and since last 4 months, the stock is in a sideways-consolidation zone. The stock has multiple support between the levels of 220-230 where one can buy the stock, with a stop loss of closing below 220 from the next higher targets of 340+.

Currently, the natural gas is trading below its average rate of US$ 5.5 per mmbtu. In the economic recovery, it would be preferred as cheap energy alternative. As there is huge inventory buildup in natural gas, we expect the upside is limited to US$ 6.5-7 per mmbtu. Given that the vast demand-supply gap in natural gas, gas transmission companies would be highly benefited.

Another factor that can impact oil and gas industry is ?movement in Rupee?. We expect rupee is strong in the near term, on account of higher economic activities and FII inflows to India. This would be a positive factor for OMCs like IOC, BPCL, HPCL etc. as it will reduce the oil procurement costs, thus reducing subsidy losses and it would also be good for Gujarat Gas as its procurement is dollar denominated and the selling price is rupee-based.

Whereas, rupee appreciation could be negative for stand-alone refineries like Chennai Petroleum as their GRMs are dollar denominated and for upstream companies – ONGC and OIL as crude realisation is US$ denominated but some negative impact is mitigated due to lower subsidies.

As per the guidelines, anchor investors will apply for the shares a day before the subscription opens for other investors. They will pay 25% of the purchase price when placing the order and the remaining 75% within two days after the IPO has closed. There will be a firm allotment to this anchor investor and therefore there will be a lock-in of 30 days after the issue gets listed. No person related to the promoter, promoter group or the book running lead managers will be allowed to apply as an anchor investor. This is a good move as it brings a certainty to the issue and would help the promoters of the IPO create demand for their shares and get a better price.
This step is expected to stabilize public offerings and give an overall boost to the primary market. This could lead to concentrated shareholdings, though, and it is likely the general norms of any single investor holding over 34% stake in a company having to make an open offer will still hold.

IPO: ASBA
SEBI has recently introduced a new process applicable to retail individual investors popularly referred to as ASBA (Application Supported by Blocked amount) process. Under this process, the bid amount is blocked in the investor account at the time of bidding. If and when an allotment is made against the investors’ application to the extent of money due on the shares allotted, his account will be debited and the money will be remitted to the company. Therefore, the bid amount remains in his account earning interest during the whole process period. Investor’s account will be debited only to the extent of shares allotted, if any, and the remaining amount will be unblocked. There will be no refund as such and therefore the investor will not encounter the problems related to non-receipt of refund. This is a facility extended by some self certified syndicate bankers (SCSBs) who have registered as such with SEBI. Currently almost all major banks have been identified as SCSB banks.

IPO: QIB limit
Earlier, QIB had to pay 10% of the total investment amount in an IPO, but this limit has increased to 25%, so that only serious players bid for the IPO. This will not unnecessary oversubscribe the IPO.

IPO card validity
SEBI has increased the IPO card validity from 3 months to 1 year, so that IPO compny can bring the IPO in the market at a right time (say in a bull trend), This will provide better opportunity for the investors.

Mutual fund: No entry Load
SEBI has decided to do away with the entry load of around 2.5% of the money invested, for direct applications for mutual fund investments. Any commission will be disclosed and paid upfront by the investor to the distributor, bringing much-needed transparency into mutual fund investing. According to SEBI, mutual fund investors will be exempted from payment of entry fee on applications, which are received through the Internet, directly submitted to AMCs’ or to the collection centre/investor services centers that are not routed through any distributor, agent or broker. The new rule also applies to additional purchases done directly by the investor under the same folio and to switch-ins to one scheme from another, if such a transaction is done directly by the investor. The proposed move will only benefit investors who are smart enough to pick the right scheme from the universe of MF offerings.

No issuance of shares of superior voting rights
No listed company will be allowed to issue shares with superior voting rights. There could also be no preferential issues with superior voting rights.

Rights issue
SEBI has also tinkered with some norms in the rights issue. One of the representations from the market was that the disclosure documents for rights issues tends to be extremely bulky because it is treated like a public issue, whereas that company is already listed and has continuing disclosure requirements. Investors know not only the price of the shares but also know the continuing disclosures. So SEBI has decided to do away with certain earlier requirements, including disclosing the summary of the industry and business of the issuer company. This will hasten the process for companies and also help reduce the costs.

Warrants
Earlier 10% of the installment, now 25%. Only serious investor will apply for this.

IDRs (Indian Depository recipts)
SEBI is seriously thinking of bringing IDRs in the Indian markets, so that retail investors can also apply in a foreign company. Now, SEBI has eased some norms for bringing IDRs in the market.

Interest rate swaps
SEBI is also thinking of bring “Interest rate swaps” in the market. Eg. We can exchange fixed interest rate with floating rate of various country and vice versa.  (same as currency swap)

Currency Markets
Earlier, Currency market was not open for all, but now, retail investors can also participate in the currency market.

ONGC made 28 oil and gas discoveries in FY09 and the management has clarified that these 3 oil discoveries are a part of discoveries made in the last fiscal i.e. FY09. Earlier, there was news that the K-G basin find could have an estimated reserve of 10 trillion cubic feet (TCF) of gas against the Reliance KG gas discovery of 11.5 TCF. But the mgt has said that drilling is needed to estimate the size of these three.

According to ONGC, the discoveries are confirmed and after the approval of the Directorate General of Hydrocarbon (DGH), it will take around three to four years to commence production from these fields.

India has been an energy-starved country’s with a huge demand-supply gap in the natural gas sector. India currently imports almost 80% of its energy needs. Currently, the natural gas demand is 197 mmscmd, where as the supply is just 154 mmscmd. The demand is expected to increase to 280 mmscmd in FY12.

IE block in KG basin:
This is the second discovery made by the company in the KG basin. Here, the production volumes are expected to be very promising and ONGC is exploring the possibility of producing this high-pressure gas fields “by subsea to onshore terminal” concept, so that its proximity can shore.

Charada-3 oil flield:
It is not easy to produce oil discovered from Charada with conventional methods. But ONGC has well experience of handling oil production issues of similar nature in oil fields such as Santhal, Balol and Lanwa, so, here we are expecting oil production soon. To gain maximum recovery of oil from the field, ONGC is analyzing many options such as thermal in-situ, steam injection and microbial-based solutions.

Matar oil and gas field:
Here , the oil in the well is flowing at the rate of 40 m3/d from the second interval. Location wise, this field is on the eastern margin of the Bharuch block, hence, this oil discovery is very important for ONGC.

How these discoveries are important?
These discoveries at this stage will impact positively, as far as investor perception of India’s hydrocarbon reserves is concerned, especially since it comes two months ahead of the next round of bidding for oil and gas blocks under NELP-VIII.

The discoveries are important in the sense that ONGC needs to scale up its share of new oil and gas find vis a vis to its older fields. ONGC is constantly replacing its old and depleting reserves of oil and gas with new discoveries. Point to be noted here that ONGC’ reserve-to-replacement ratio is almost 1:4, compared to global averages of 1:1. So , the company has to discover new oil fields to maintain this ratio.

In a few days, India will have a new Prime Minister. It’s as good a time as any to take stock of the men — and one woman — who have served us. Who’s been the best PM India’s had, and who’s done the most damage?

Before I begin my analysis, I’d like to emphasise that these are purely my views, and do not reflect the opinion of The Times of India as an organization in any way. I’ve tried to be neutral and objective, and mentioned both the faults and positives of all the PMs. But I’m sure many people will vehemently disagree with my opinion, which of course is their democratic right. So, let the debate begin!

Jawaharlal Nehru: India suffered heavily because of his misplaced sense of idealism over Kashmir, resulting in a problem that troubles us to this day, and his naivete over China. But the fact is that much that is good about India today, including world-class institutes of higher learning, our space programme and the widespread use of English that gives India a competitive advantage in a globalised world, are the result of his vision. Unlike many other colonised countries that got freedom at the same time as India and promptly become tinpot dictatorships, India is still a vibrant democracy – and that is surely Nehru’s biggest achievement. It has been rightly observed that if Nehru had been a different kind of man, India would have been a different kind of country. For helping make it a rare success story in South Asia, I think he deserves the title of our best PM ever.

 
Indira Gandhi: A poll conducted by a leading Indian magazine some years ago rated her as India’s all-time best Prime Minister. I’m afraid I don’t share that opinion. The Emergency was arguably the worst assault ever on Indian democracy. Much of the ills that plague our politics, including corruption, criminalisation and the degradation of institutions like the Presidency, first flourished in her tenure. She effectively killed inner-party democracy in the Congress, and set the stage for the kind of cliques that are today the bane of Indian political parties. And she encouraged cynical misuse of religion — the rise of Bhindranwale was originally encouraged by the Congress in a bid to embarrass the Akali Dal.On the positive side, though, she did lead India to one of its finest hours — victory in the 1971 war. She was also in charge when India conducted the Pokhran tests. And she held India together during a deeply turbulent time.

 
Rajiv Gandhi: The 1984 Sikh riots and the Bofors scam will always remain blots on his record. So will his clumsy efforts to woo Muslim fundamentalists through the Shah Bano case while courting the Hindu right wing through his decision to open the locked Ayodhya gates. But he has been proved right on many things, which were scoffed at during his lifetime, including his belief in computers and economic liberalisation. Rajiv was the first to talk of taking India into the 21st century, and he did a fair bit to help us get there. His contribution in triggering the country’s IT and communications revolution has not got the credit it deserved. Nor have his other worthy initiatives, like panchayati raj. His tragically early death left many wondering what might have been.

 
Narasimha Rao: Slumbered through the demolition of the Babri mosque and was plagued with charges of graft and buying support in Parliament. But played an important role as the godfather of India’s much-needed economic reforms. Had the sense to induct Manmohan Singh as finance minister and back him to a large extent. Is also significant as the first non-Gandhi to complete a five-year term.

 
A B Vajpayee: The first non-Congress PM to complete at least one full tenure, which marked an important landmark in Indian politics. His failure to do anything as Gujarat burned is a negative mark against him. Also, even though the BJP flaunts its anti-terror credentials, the fact remains that Vajpayee presided over one of the most humiliating moments in Indian history: the escorting of three terrorists to Kandahar by Jaswant Singh in exchange for hostages.But Vajpayee’s tenure also saw India turn an initial setback into a proud victory at Kargil. He finally took India openly nuclear. And despite gloomy predictions to the contrary, the economy didn’t collapse under the weight of the sanctions that followed. Ultimately, the US came around to India’s N-programme and the economy boomed during Vajpayee’s last years. The irony is, the BJP’s proud claim of India Shining boomeranged on it in the 2004 elections.

 
Manmohan Singh: His critics deride him as India’s weakest PM ever. But the way he pushed through the N-deal with the US in the face of overwhelming political opposition would seem to belie that charge. The economy didn’t do as spectacularly under him as his past record as finance minister had led one to hope. But it stayed on an even keel till it hit the speedbreaker of the global recession. His biggest failure, perhaps, was that his government seemed to be a mute spectator as India reeled under a string of terror serial blasts, and it finally took a 26/11 to shake it out of its stupor.

As you might have noticed, I’ve only looked at the PMs who completed at least one, or more, full terms in office. The others hardly did anything of significance, though Chandrashekhar’s decision to mortgage India’s gold was a much-needed wake-up call that we could no longer continue with our misguided economic policies. However, there was one man among this bunch who, I believe, did the most damage to India.

 
V P Singh wrecked efforts made over decades to turn caste into an irrelevant relic of medieval times, and brought it to the front and centre of Indian politics. Call me naive, but I made it all the way to college without ever knowing — or caring — what my caste was. It was enough for me to be an Indian. I’d like to believe it was the same way for many other young Indians. Idealistically, we believed that caste was an evil that had been made redundant in major Indian cities, and would one day be banished from small towns and villages too. VP’s cynical use of the Mandal Report to try and counter the rise of the BJP shattered that hope forever. Worse, it led to the rise of many small parties based on identity politics, which have no vision for India beyond their narrow vested interests. Today, sub-castes actually agitate to be declared backward. India has, thankfully, managed to avoid full-blown caste conflict but that’s no thanks to VP. Rarely could a person who spent so little time in office have done so much damage to a country.

 
P.S: Before I’m accused of being casteist, I’d like to clarify my stand. I believe that one of the foremost duties of government — Centre and states alike — is to ensure affordable (if not free), high-quality education to all citizens, regardless of caste or community. Thereafter, there should be free and fair competition for jobs, based on equality of opportunity. Having failed to achieve this basic goal, politicians have resorted to lazy, and ultimately deeply divisive tactics like reservations. It’s a shame we haven’t managed to see through their ploys.

Investment Rationale
· The company is planning to invest around Rs 1,800 crore over the next two years for building new hospitals. The hospital would fund the expansion plan through debt and equity. The hospital is planning to add 2000 beds over the next two years with an investment of Rs 1,500 to Rs 1,600 crore. The rest of Rs. 200 crore will be invested through Western Hospital Corporation, a joint venture between Apollo Hospitals and One Equity Partners, the private equity arm of the J P Morgan, in different projects across Mumbai. The JV partners are planning to build 600 bed hospital in Navi Mumbai and Thane.

· Apollo Hospitals has entered into a partnership with Quintiles Transnational Corp, a service provider in drug development, to open a trial unit in Hyderabad. The unit would allow customers additional options to complete integrated Phase-I programmes across multiple geographies at this pivotal stage in medical research. Scheduled to open in the first quarter of 2010, the new unit would evaluate compounds developed both in India and in other countries.

· Apollo Hospitals has entered into an agreement with US-based Anthem Well Point through its subsidiaries for treating patients recommended by the insurance company. As per the agreement, Anthem Well Point will initially send the employees of Serigraph Inc, a corporate client of Anthem Well Point, to Apollo Hospitals in India. Apollo will cover 700 members of the US-based group and their dependents.

· The Apollo Hospitals in Bangalore and Delhi, have been accepted into Companion Global Healthcare’s network of international hospitals, meaning Companion Global Healthcare will arrange travel, set appointments and provide other services to its individual clients and U.S. employer group members who choose treatment at either facility. Both hospitals are part of India’s Apollo Hospitals Group.

Noida Toll Bridge Company Limited (NTBCL) is incorporated in India on April, 1996, was set up to develop, establish, construct, operate and maintain a project relating to the construction of the Delhi Noida Toll Bridge under the build-own-operate-transfer (BOOT) basis. The Delhi Noida Link Bridge comprises the Delhi Noida Link Bridge, adjoining roads, and other related facilities and the Ashram flyover, which has been constructed at the landfall of the Delhi Noida Link Bridge. The Company has a wholly owned subsidiary, DND Flyway Limited. DND Flyway Limited, promoted by Noida Toll Bridge Company Limited (NTBCL) was incorporated with the object of carrying out development activities on the surplus land around the Delhi Noida Bridge (DND Flyway). The surplus land from NTBCL was proposed to be transferred to the Company in one or more tranches.

Investment Rationale

· The DND Flyway, the name given to the Noida Toll Bridge facility, continues to compete with the two free bridges which cross the Yamuna River in the same influence area as the Delhi Noida Toll Bridge, namely Nizamuddin Bridge and Okhla Bridge. Both these bridges, however, are close to saturation point, particularly, during peak hours. The maximum capacity of the Delhi Noida Bridge is 220,000 vehicles per day. The main advantage of using the bridge is the savings in time, distance and fuel consumption for travelers between South Delhi and Noida.

· Despite the toll charges, NTBCL has seen an overall 15% growth in traffic volumes, which is expected to continue, given the increasing development activity in Noida and rise in the number of corresponding commuters.

· NTBCL was awarded the project “The Mayur Vihar Link Road “ to construct link between Mayur Vihar and Noida on a BOT basis. This road is fully operational now. The company expects the new link road to attract over 10,000 vehicles daily.

· NTBCL also has access to developmental rights of over 200 acres in Delhi and 30 acres in Noida as part of its current projects. This land bank is valued at 1500crores.

· Traffic levels on the Delhi Noida Bridge are expected to increase as Noida and Greater Noida experience development and population growth and with the onset of the Commonwealth Games in 2010.

· Currently, around 80,000-85,000 vehicles pass through the toll bridge every day, which translates to toll collections of about Rs60 crores in a year whereas the capacity of the bridge is 220,000 vehicles per day, so there is longevity and a huge scope for the increasing traffic.

· Noida has become a hub for multinational firms outsourcing IT service, BPO, automobiles, prominent shopping malls which have become visitor attractions. Moreover, Upcoming townships are likely to cater traffic on the toll bridge.

· The company is one of the first toll road/bridge projects implemented on a BOOT basis in the country and has acquired an international reputation for high quality of services and deployment of state-of-art technology.

Oil & Natural Gas Corporation Ltd.(ONGC), originated in 1956, is mainly engaged in the oil exploration, development and production refining, transporting and marketing of Crude Oil, Natural Gas, LPG, natural gas liquid, ethane, propane and some other value added petroleum products such as NGL, C2-C3, Aromatic Rich Naphtha and Kerosene, both onshore and offshore. It owns and operates more than 11,000 Km of pipeline in India including nearly 3,200 Km of sub-sea pipelines. It is the only fully integrated petroleum company in India operating along the entire hydrocarbon value chain. It has established 6 billion tons of in-place hydrocarbon reserves with more than 300 discoveries of oil and gas. The company has discovered around six in India (Western Offshore Basin (Mumbai & Baroda), KG Basin (Rajamundary), Cauvery Basin (Chennai), Assam & Assam-Arakan Basin (Jorhat), CBM-BPM Basin (Kolkata) and Forntier Basin (Dehradun)). Co. has two plants situated in Uran and Hazira.. It holds 57.2%, the largest share of hydrocarbon acreages in India. The company going along with two of its folds namely ONGC Videsh Limited (OVL) and Manglore Refinery & Petrochemicals Limited (MRPL) and ten of Joint Ventures/Associates. OVL has 26 projects in 15 countries.

INVESTMENT RATIONALE

§ Recent Hydrocarbon Discoveries

- Linch-65 in Jotana-Warosan ML (Mining Lease) Block of Western Onshore Basin (Oil & Gas)
- South Kadi-144 in Balasar PEL (Petroleum Exploration License) Block of western Onshore Basin (Oil & Gas)
- Halisa-12 in Halisa ML Block of Western Onshore Basin (Oil)
- GS-15-14 in PEL Block IF of KG-PG Basin (Shallow Offshore) (Oil & Gas)

§ ONGC Board has approved a proposal for setting up additional process units at Uran Plant at an estimated cost of Rs. 1797 Crore. The project is expected to be completed in 38 months.

§ ONGC’s foreign arm OVL has gained two oil and gas blocks CPO-5 and SSJN-7 in Colambia through an international bid.

§ ONGC is envisaging an investment of over 5 billion USD to start production from deepwater blocks KG-DWN-98/2 and KG-OS-DW-IV by 2013.

§ ONGC has signed an MoU with Uranium Corporation of India Ltd (UCIL) for joint cooperation in uranium exploration and development. The cross-fertilisation of ideas and technologies are bound to synergise the new endeavour of uranium prospecting and mining.

§ ONGC may generate 400,000 carbon credits a year by 2012 as it cuts the output of gases blamed for global warming at its oil fields.

§ ONGC Videsh Ltd. has also set an ambitious target of 39.5 MTOE of Oil & Gas in XI Plan compared to 23.5 MTOE production during X plan. For this, E&P outlay of OVL for XI Plan has been raised by about 85% against its X Plan actual expenditure.

§ ONGC will commence pilot production of Coalbed Methane (CBM) gas from Parbatpur area of Jharia block in Jharkhand from Dec.’ 2008. Commencing with 5000 cubic metres a day, Peak commercial production of 3,00,000 cubic metres per day will be achieved from 2011, for 10 years. Rs. 300 Crore has already been invested in the project; and a total Rs. 1500 crore lined up till 2011.

§ ONGC’s maiden renewable Wind-farm venture got underway near Bhuj on 6th September 2008. The 50 MW turnkey projects, entailing an investment of around Rs. 308 Crore, comprises of a 34 unit-farm, with each Wind Turbine Generator (WTG) unit capable of generating 1.5 MW.

§ ONGC has entered into an agreement with Rocksource ASA, a Norwegian company for assignment of 10% participating interest (PI) in deep water block CY-DWN-2001/1 located in Eastern Offshore.