Steel

Tata Steel

SAIL

JSW Steel

JSPL

Bhushan Steel

Essar Steel

Ispat Industries

Usha Martin

Mukand

Jindal SAW

Welspun Corp

Man Industries

Lloyd Steel

Ramsarup Industries

Monnet Ispat

Jai Balaji

Visa Steel

Adhunik Metaliks

Tata Sponge Iron

Tata Metaliks

Kalyani Steel

Surya Roshni

Sunflag Iron & STeel

ISMT

Ratnamani Metal

Uttam Galva

PSL

Convergence with IFRS

All listed companies will have to report their FY12 numbers in compliance with International Financial Reporting Standards ('IFRS') issued by IASB.

how different is IFRS from the existing Indian GAAP ?

Valuation of Investments:
Indian GAAP classifies Investments as Current & Long Term.
IFRS requires classification into AFS, HFT and HTM. Both AFS and HFT are recorded at MARKET VALUE under IFRS. only HTM is allowed to be recorded at carrying cost.

Aditya Bhartia & Aniruddha Dutta of CLSA have analysed it very well in their Dec09 report.

Under IFRS, Reedemable Preference Shares carrying fixed dividend is treated as Debt Funds

Goodwill Amortisation:
Unlike Indian GAAP, IFRS does not require amortisation of goodwill. Instead, it needs to be tested annually for impairment indicators.

Impairment provisions are stricter under IFRS


IFRS requires an additional disclosure of Customer Concentration, which is not made mandatory by Indian GAAP.

M&A Accounting
Indian GAAP allows Purchase Method as well as Pooling of Interests method.
IFRS does NOT allow pooling of interest method. Thus Assets & Liabilities need to be recorded in the new books at Fair Values only

Indian GAAP requires negatve Goodwill on amalgamation (difference between net worth and price paid) to be added to Capital Reserve.
IFRS allows such gain to be credited to P&L.

Contingent Liabilities are required to be recognised under IFRS in the new books.

Gainers & Losers

Monthly gainers:

Jain Irrigation - 33%
Sesa Goa - 20%
Hero Honda - 20%
Fortis Healthcare - 20%
ACC - 20%

Ferro Alloys - 66%
Goodyear - 50%
Fortune Financial - 40%
Aeries Agro - 40%
Glodyne Tech - 40%
Hanung Toys - 40%
Mukand Engineers - 33%
Lloyd Steel - 30%
JK Cement - 30%
Dalmia Cement - 30%

Monthly losers


Crompton Greaves - 42%
NMDC - 16%
Chambal Fertilisers - 16%
KLG Systel - 20%

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GOLDen opportunity in SILVER ?

read an article in DNA Money by Jeff Neilson from Canada,

Forget gold, buy silver mhane..


The supply/ demand dynamics of the silver market are vastly different from the gold market.

There are two key differences between the gold and silver markets.

First, silver is the world's most-versatile metal. It has been the source of more new patents than for any other metal. It is because of the vast uses for silver in a nearly infinite number of current and future industrial applications that the second, different dynamic exists: most of the world's refined silver has been effectively consumed — and is gone forever.

In many of silver's industrial uses, it is used in trace-amounts. In such tiny quantities, there is no practical/ economic way to recycle this silver. More than 90% of the world's silver stockpiles and inventories are gone, forever.

Yet, the gold/ silver price ratio remains near an historical extreme — in favour of gold.

With the amount of elemental silver in the Earth's crust approximately 17 times the amount of elemental gold, it is no surprise that for 5,000 years the gold-silver price-ratio has averaged 15:1.
Today, that price-ratio has been ranging between 60:1 and 70:1. This ratio would be totally unsustainable even if all of the world's silver were still available for demand, rather than gone forever.
While it is very difficult to come up with estimates of total, available gold versus total available silver, some analysts have attempted to make such estimates. They vary widely, and thus do not have much analytical value — except to observe that the highest ratio of available silver to available gold that is seen is 6:1.


Unlike gold, which must only satisfy investment/ monetary demands, silver is becoming an essential raw material of the 21st century global economy. This can be illustrated by simply listing some of its current and future industrial uses.

Power: Silver has reflective, chemical, and conductive properties which are superior to all other metals. This provides two key uses for silver in the production of solar energy. As the world's most-reflective metal (reflecting 97% of all solar energy),

silver is used to make the world's best mirrors — a vital component of solar energy production. In addition, because silver is such a superb catalyst, it also can improve the efficiency of solar cells, by being blended with these semi-conductor materials to increase the power-output of any such power unit by approximately 12%.

In the US alone, 5 million ounces of silver are used each year in the production of mirrors. However, the vast majority of such production are of conventional mirrors (i.e. what we hang on our walls), since solar power is in its infancy. As this application grows in importance, those consumption numbers can be expected to jump dramatically. Projecting that consumption over the entire globe, and it is easy to see global demand for silver — just for mirrors/ solar energy — amounting to several, hundred million ounces per year.

In the massive, global battery market, the newest generation of batteries uses a silver-oxide compound, replacing the previous generation of lithium-ion batteries. The silver-based batteries are not only much more environmentally friendly than the lithium batteries, but also contain no flammable compounds — which have caused (for example) a number of lap-top computers to spontaneously burst into flame. This is making silver-based batteries the new battery of choice for mobile phones and lap-top computers (along with many other electrical applications). With these markets increasing exponentially on a global basis, silver consumption in batteries is also just in its infancy.

Medicinal/hygienic: As important as silver is becoming as a power source, that usage of silver is destined to be eclipsed by the consumption of silver due to another one of its superior properties: as an anti-bacterial agent. The number of potential applications in this area is nearly-infinite, thus the uses listed below comprise only a small sample of silver's potential in this area. Its anti-bacterial uses can be divided into hygiene-based applications along with genuine medical applications.
In the former category, the first use of silver on a massive, commercial level has been to use silver in clothing. It is used in socks, and other military-issue clothing because its anti-bacterial properties retard the development of bacterial infection — eliminating a hygiene problem which has plagued armies for thousands of years.

However, because it is bacteria which is the source of human odour from perspiration, the use of silver in sportswear has exploded into one of the largest, single applications of silver. The usage already consumes more than 1,200 tonnes of silver per year — used in the manufacturing of 50 million tonnes of polyester sportswear (annually), alone.

Once again, current consumption of silver for this usage is merely beginning.
What is most significant about silver's anti-bacterial properties (compared to every other anti-bacterial substance currently known to science) is that it is biologically impossible for bacteria to ever develop resistance to silver-based compounds.

[The writer is editor of bullionbullscanada.com and can be reached at j.nielson@shaw.com This is a condensed version of an article that appeared on www.bullionbullscanada.com.]

Union Budget 2010-11

fiscal consolidation was the theme of the budget says Vallabh Bhansali, Uday Kotak, Madhu Kela, Nirmal Jain, Narayana Murthy, Sandeep Sabharwal, Mark Mobius, Nilesh Jain, Sunil Mittal...nd many more.

so i am guessing, fiscal consolidation is the theme ! :I

No Bad news is Good news for the markets. The rollback of stimulus measures was on expected lines.

MAT (Minimum Alternate Tax) increase from 15% to 18% is negative but is mostly offset by reduction in surcharge from 10% to 7.5%

For Salaried Individuals, it was a windfall gain of upto 50,000 rupees per person!
only 10% tax on income upto Rs 5 lacs. 20% on 5-8lacs and 30% on income above 8 lacs.

Service Tax rate was maintaned at 10% which is a very positive surprise.

Direct Tax Code will be implemented from April 1, 2011 and datz very BAD bcoz the existing draft looks very bad in so much as it treats Long Term Capital Gains at par with Short Term Capital gains and taxes it at slab rates, which means upto 30%!

Nifty closed at 4925, below 4950 breakout level, so again, markets are direction less as of now..

Fiscal Deficit of 380,000 crores is expected to be maintained and hence the Bond markets did not see any major swings in the prices.

Nuclear Power, Railway Budget

RAILWAY BUDGET - no hike in passenger fares
No increase in Freight Tariff also.

NUCLEAR power

Macquarie's Inderjeet Bhatia and Somesh Agarwal have written a cool report on Nuclear sector opportunities in indian stocks.

Nuclear Power Corporation India Limited ('NPCIL') is the nodal agency for nuclear power generation in INdia just as PowerGrid is the nodal agency for power transmission across the national grid.

NPCIL has 17 running power plants of mostly 220MW each, aggregating 4,100MW and 5 more under construction with 2,660MW capacity in total, mostly at Kudankulam.

The 1st 2 plants had boiler water reactor (BWR) while the rest are all Pressurised Heavy Water Reactor ('PHWR') Technology based.

all reactors operate on natural Uranium (99.3% U238 and 0.7% U235). The Dept of Atomic Energy ('DAE') refines Uranium and converts

This creates order opportunity for project players like L&T, BHEL. HCC, Siemens, Gammon.

post Agreement 123 and the Nuclear Supplies Group (NSG) waiver, India has recently signed fuel supply agreements with USA, France, Russia, Kazakastan and Mongolia.

Today, only 4% of India's Power Generation comes from Nuclear power, vis-a-vis
EU,Japan, S.Korea - 30%; USA - 20%. China is increasing from 9,000MW to 70,000MW by 2020, with 37 new reactors planned of which 20 are under construction.

ESSAR - Let's Begin !

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The Essar Group is a multinational conglomerate and a leading player in
Steel,
Oil & Gas,
Power,
Communications,
Shipping Ports & Logistics,
Construction and Minerals.

With operations in more than 20 countries across five continents, the group employs
60,000 people, with revenues of about USD 15 billion.

STEEL



• A global steel producer with 14 million tonnes per annum of current capacity, with an aim to achieve a global capacity of 20-25 million tonnes
• Presence in key markets in Asia and North America
• Fully integrated from mining to retail: Essar owns a global portfolio of coal and iron ore mines and has access to all key raw materials, ensuring steady supply to its plants
• Strong downstream capability with service centres and customer care centres, as well as a global network of retail outlets branded Essar Hypermart
• Specialised plants for value-added steel products, like pipes and plates
• Leadership position in the cold rolling, galvanizing and pre-coated segments

CURRENT OPERATIONS
• Hazira, Gujarat, India: 10-million tonne steel plant at Hazira, largest in Western India.
The plant is supported by a complete infrastructure setup,_including a captive port, power
plant, lime plant and oxygen plant.
o Downstream facilities
o Cold Rolling plant: 1.4 million tonnes
o Galvanizing plant: 0.5 million tonnes
o A 1.5-million tonne extra wide plate mill
o A 600,000-tonne pipe mill
• Visakhapatnam, Andhra Pradesh, India: 8-million tonne pellet plant
• Bailadila, Chattisgarh, India: 8-million tonne iron ore beneficiation plant
• Pune, Maharashtra, India:
o 600,000-tonne cold rolling plant
o 500,000-tonne galvanising plant
o 400,000-tonne colour coating plant
o 650,000-tonne pickling line
• Algoma, Ontario, Canada: 4-million tonne steel plant
• West Java, Jakarta, Indonesia:
o 400,000-tonne cold rolling mill and 150,000-tonne galvanising line
o Steel Service Center: 200,000 tonnes
o Essar Hypermart
• Retailing (across India): Over 230 steel retail outlets branded Essar Hypermart
• Services (across India): Largest Steel Service Center facilities in India with an annual
capacity of 2.5 million tonnes located in Pune (Maharashtra), Hazira (Gujarat),
Bahadurgarh (National Capital Region), and Chennai (Tamil Nadu).
UNDER EXECUTION
• Paradip, Orissa, India: A 12-million tonne pellet plant at Paradip close to the port
• Jodha-Barbil area, Orissa, India: A 12-million tonne iron ore beneficiation plant
• Bhuj, Gujarat, India: Steel Service Centre
• Minnesota, USA: A 6-million tonne pellet plant, a concentration plant and a directreduced
iron plant

OIL & GAS




• A fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to oil retail
• Global portfolio of onshore and offshore oil & gas blocks, with about 70,000 sq km available for exploration
• Over 300,000 bpd (barrels per day) of crude refining capacity that is being expanded to 750,000 bpd, with a goal to reach a global refining capacity of 1 million bpd
• Fifty percent stake in Kenya Petroleum Refineries Ltd, which operates a refinery in Mombasa, Kenya, with a capacity of 80,000 bpd
• Over 1,300 Essar-branded oil retail outlets in various parts of India, with plans to open over 2,500 outlets countrywide


POWER

• Current generation capacity of 1,220 MW that is being expanded to 6,100 MW by 2012, with a target to reach 11,470 MW in the near future
• Growing portfolio of gas, coal and liquid fuel-based power plants
• One of the lowest cost power producers
• Exploring new opportunities in conventional and renewable power generation globally
• Expanding in the transmission and distribution sectors; first private power company to get a transmission license
• Complete fuel linkages secured for all projects under execution
• Invested over USD 4 billion in projects under execution


COMMUNICATIONS

• A global player in the communications sector with presence in telecom services, telecom tower infrastructure, telecom retail and business process outsourcing services
• Telecom services in India and Africa
• Partnership with Vodafone PLC, with 33 percent stake in Vodafone Essar Ltd
• Majority stake in the telecom assets of the Dhabi Group in Uganda and the Republic of Congo
• 14 percent stake in Indus Towers
• India’s largest telecom retail network

HINDALCO

Hindalco's major products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil.

The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semi-fabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations.

Birla Copper, Hindalco’s copper unit, is located at Dahej in Gujarat, India.one of the largest single-location copper smelters in the world with a capacity of 500,000 tpa.

Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003

The Novelis acquisition carried out by Hindalco Industries Ltd. (HNDL.IN) (HALC.BO) for $6 bn two years ago turned out to be a drag on its stock price, mainly due to the former’s fixed price contracts, most of which expired by the end of CY09.
Hindalco has turned around Novelis faster by cutting costs and replacing old contracts with new
contracts which built in better margins and have costs as pass through.
Novelis has in fact, now announced expansion of capacity by 10% in the next two years.
Around 60% of Hindalco’s earnings comes from Novelis, which is not linked to aluminium prices, which, makes Hindalco a great defensive play with a strong growth option.

capacity expansion of Hindalco’s Muri alumina refinery from 1,10,000 tpa to 4,50,000 tpa is
technically complete and production at the facility is being ramped up in a phased manner

The Novelis turnaround is only the beginning; Hindalco is now on a strong growth path. At
8x PER, Hindalco is also the best valued stock regionally.


Sensitivity low to aluminium price: A 10% increase in aluminium prices will likely increase consolidated earnings for FY11 by about 8%. (Macq)

Tata Steel

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formerly known as TISCO and Tata Iron and Steel Company Limited, is the world's sixth largest steel company, with an annual crude steel capacity of 31 million tonnes

In August 2004, Tata Steel entered into definitive agreements with Singapore based NatSteel Ltd to acquire its steel business for Singapore $486.4 million (approximately Rs 1,313 crore) in an all cash transaction

31 January 2007 Tata Steel won their bid for Corus after offering 608 pence per share, valuing Corus at £6.7 billion

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Tata Steel’s Jamshedpur Works has a crude steel production capacity of 6.8 MTPA, which is slated to increase to 10 MTPA by 2011.
The Company also has proposed three Greenfield steel projects in Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam.

Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015

Tata Steel’s Indian operations are self-sufficient in iron ore through its captive mines.
It is 60% self sufficient for coking coal and the rest is procured mostly through imports.

For Corus operations, the Company needs to source raw materials through contracts with mining companies in UK and the Netherlands.

Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, it has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining.

L&T v/s BHEL

SBI, ICICI Bank, HDFC Bank

Infosys, TCS, Wipro

In the year 2008, the company established their first Latin American subsidiary, namely Infosys Technologies S de R L de C V in Mexico to improve proximity to their North American clients and a wholly owned Brazilian subsidiary, namely Infosys Technologia Do Brasil Ltda.

Reliance Ind & ONGC

RELIANCE INDUSTRIES LIMITED

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies,backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production.

- 7,400 acres Jamnagar - petroleum refinery and associated petrochemical plants

- 1850 acres Nagothane, Raigad - ethane and propane gas cracker and five downstream polymerization plants

- 1700 acres Dahej, Bharuch - thane / propane recovery unit, a gas cracker, a caustic chlorine plant

- 1200 acres Vadodara- naphtha cracker and 15 downstream polymerization plants

- 700 acres Hazira - naphtha cracker, plastics

- 200 acres Patalganga - polyester fibre and alklyl benzene manufacturing

- l05 acres polymerization and continuous polymerization facilitiesin Allahabad, Uttar Pradesh,

- 105 acres Barabanki Manufacturing Division near Lucknow, Uttar Pradesh makes Black Fibre

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ONGC

Revenues in excess of Rs 110,000 crores and 20,000 crores PAT!

2010 the New Year

what to expect in 2010 ?

apart from a :

- new company law

- new income-tax law

- new sales tax law

- new service tax law

_____________________________________________________________________

"experts" are predicting a phenomenal 2010..

the same experts - your Fund Managers, Technical Analysts, Fundamental Analysts, who predicted a "phenomenal 2008" and a "horrible 2009" :D