Apna money: Investment Strategy

Many large-cap companies are pursuing growth plans through subsidiaries byadditional investment or demerger

  The quarterly results reveal the financial and operational performance of companies.Along with the numbers, the notes to accounts accompanying the quarterly results areequally important as they provide crucial information to the investors and shareholders.The disclosures include investors’ grievances, segmental results and matters decidedat board meetings. Many companies also share off-the-track information through thesenotes. Hence, it is essential to have a glance at the notes to accounts to make informeddecision.
  
The number of firms revealing critical information through the notes could be small.However, the quality of information shared could be significantly important for theinvestors. This comprises operational information such as industry trend, businessstrategy, factors impacting profitability like raw material cost, and non-viable plantoperations. Also, companies share key events like mergers and acquisitions, substantialinvestments made, commencement of business operations, and contingent liabilities.Companies also share negative developments like phasing out of manufacturing operationsand temporary disturbance in production.
  Not only this, the notes to accounts ensure apple-to-apple comparison to arrive at theright conclusions and appreciate the operational performance of companies in the correctperspective. One-off profit or loss either in the quarter under review or in the previousquarter could make financials non-comparable. This can be fixed as additional informationabout extraordinary and exceptional items is provided in the notes to accounts.


 Capital Market went through the notes to accounts accompanying the quarterlyresults of over 1,500 companies that are fairly liquid for the period ended 30 June 2011.For convenience, companies are divided into three categories: large caps with marketcapitalisation of Rs 10000 crore and above, mid caps with market capitalisation ofRs 500 crore to Rs 10000, and small caps with market capitalisation of less thanRs 500 crore. This is the first part of a two-part series that cover large-capcompanies.

  Several large-cap companies are pursuing growth plans through subsidiaries includingadditional equity investment in subsidiaries, incorporation of subsidiary companies,corporate restructuring, dilution of equity stake in subsidiary, and demerger of businessinto subsidiary company.
  Asian Paints incorporated a subsidiary to form joint venture (JV) with PPG IndustriesInc, US, to strengthen its industrial business segment. Bharti Airtel made additionalequity investments in its subsidiaries Bharti Airtel International (Mauritius), BhartiInternational (Singapore) Pte Ltd, and Airtel M Commerce Services. So, too, CadilaHealthcare in Zydus BSV Pharma Pvt Ltd. Infosys Technologies pumped in Rs 58 crore in theequity capital of its subsidiary, Infosys Technologies (Shanghai) Company. JSW Steelassigned additional capital of Rs 237.1 crore in subsidiary, associate and JV companies.On the contrary, Hindustan Unilever (HUL) diluted its equity stake in its subsidiary,Hindustan Field Services Pvt Ltd, from 51% to 7.69%.
  
Godrej Consumer Products amalgamated wholly-owned subsidiaries Naturesse Consumer CareProducts and Essence Consumer Care Products with itself. As against this, HUL approved thedemerger of the FMCG exports business into a wholly-owned subsidiary, Unilever IndiaExports. This is to exploit opportunities in the exports market through dedicatedresources.
  Mergers and acquisitions seem to be another crucial activity. Godrej Consumer Productsentered into an agreement to acquire a majority equity stake in the Darling group, Africa,which is a market leader in hair extension products. In a similar transaction, the boardof directors of ABB approved the acquisition of 100% shares of Baldor Electric India PvtLtd, Pune, in August 2011.

  Ambuja Cements acquired 85% of Dang Cement Industries Pvt Ltd, Nepal. Ambuja Cementsbought 50% equity stake in Counto Micrnfine, a JV company, after reporting date, that is30 June 2011. Grasim Industries purchased one-third equity interest in Aditya Holding AB,Sweden, which, in turn, acquired Domsjo Fabriker AB, Sweden, a pulp manufacturing company.This is expected to strengthen its pulp supplies.
  Apart from acquisition, Ambuja Cements commissioned one cement mill of nine lakh-tonnecapacity at its unit at Chandrapur, Maharashtra. Divi’s Laboratories commencedcommercial operations at its special economic zone unit at Visakhapatnam in Andhra PradeshJune 2011.
  Firms have also updated their shareholders about adverse and negative developmentsthrough the notes to accounts. Castrol India decided to phase out manufacturing activitiesat its Tamil Nadu due to commercial viability issues. It offered voluntary retirementscheme to employees, accounting this as ‘Staff cost’. The firm is in the processof reviewing the usage of plant assets. Grasim Industries’s production of viscosestaple fibre at its Nagda Plant in Madhya Pradesh was suspended for almost a month due towater shortage. Now with the onset of monsoon, operations resumed at full capacity from 30June 2011.
  Information about liabilities in the nature of contingent liabilities has also beenmade available through the notes to accounts by companies. Certain litigations are goingon for years. However, such litigations cannot be ignored if the amount involved is huge,like in the case of pharmaceutical manufacturer Cipla. The pharmaceutical company isfighting a legal battle with the National Pharmaceutical Pricing Authority over allegationof overcharging of certain drugs under the Drug Price Control Order since 2003. The amountinvolved is Rs 1230 crore for the period July 1995 to April 2009.

 In another case, real estate major DLF received an assessment order for 2008-09 fromthe income tax authorities, with demand of Rs 546.8 crore. The firm has challenged theorder and no provision has been made in the books of accounts. A customer of OracleFinancial Services Software has filed a lawsuit against the company and one of itssubsidiaries, claiming damages of Rs 544.9 crore. Oracle has raised counterclaims forbreach of contract and outstanding fees. No provision has been made in this regard.
One point that needs a mention is that companies should put the quarterly results in aformat that is legible. Several companies have posted scanned copies of their quarterlyresults in PDF format that are not readable.
  Investors should treat the information in the notes to accounts as trigger points andneed to dig deeper to determine the real impact of the information shared. Standaloneresults are taken into consideration unless specified otherwise.

ABB: The results include businesses of transformer insulation (boards andcomponents), low voltage breakers and switches, and vacuum interrupters, which wereacquired from ABB Global Industries and Services from 1 April 2011. At its meeting held in August 2011, the board approved the acquisition of 100% sharesof Baldor Electric India Pvt Ltd, Pune, for Rs 35.7 crore.
  Ambuja Cements: Other operating income included sale of power of Rs 4 crore in theJune 2011 quarter (Rs 14.9 crore in the previous period). Commissioned one cement mill of nine lakh-tonne capacity at its unit at Chandrapur,Maharashtra. Acquired 85% of Dang Cement Industries Pvt Ltd, Nepal, for Rs 19.1 crore.
   As per the share subscription agreement with the shareholders of Counto MicrofineProducts Pvt Ltd, acquired 50% equity in Counto Micrnfine, a joint venture (JV) company,for Rs 10 crore subsequent to the quarter ended June 2011.

 Asian Paints: As a first step to formation of a second JV with PPG Industries Inc,US, a new company, AP Coatings, was incorporated in 2010-11 as a wholly-owned subsidiary.On 1 June 2011, the net working capital aggregating to Rs 55.7 crore for its industrialbusiness was transferred to AP Coatings, for which equity shares aggregating to Rs 50crore were allotted to Asian Paints and the balance was received in cash from thesubsidiary. Till the formation of the new JV, the industrial business will be carried outby AP Coatings. Net sales included Rs 42.4 crore of inventory sold to AP Coatings as partof net working capital.
* Invested Rs 15 crore in the equity shares of AP Coatings, a wholly-owned subsidiary.
  Bharat Heavy Electricals: Outstanding order book position stood at Rs 159600 croreon 30 June 2011.
   
Bharti Airtel: Made equity investments in its subsidiaries: US$ 4.5 million inBharti Airtel International (Mauritius), US$ 4.7 million in Bharti International(Singapore) Pte Ltd, and Rs 8 crore in Airtel M Commerce Services.
  * In June 2010, Bharti Airtel International (Netherlands), a subsidiary, acquired 100%equity stake in Zain Africa for US$ 9 billion. In line with International FinancialReporting Standards on business combination, initially fair valued identified assets andliabilities on provisional basis. Concluded fair value allocation including payment ofbalance purchase consideration. This resulted in reduction in goodwill of Rs 525.8 crore.Further, Rs 42.9 crore for depreciation and amortisation recognised in the incomestatement from the date of acquisition. Does not consider the change to be material incontext of the overall financial statements.

  * In March 2011, the high court (HC) of Delhi approved the scheme of arrangementbetween Bharti Infratel (BIL) and Bharti Infratel Ventures (BIVL) entitling transfer ofpassive telecom infrastructure from BIL to BIVL. Now, approval of the Registrar ofCompanies is awaited. The effective date of the scheme is 5 May 2011.

 Cadila Healthcare: Made additional investment of Rs 3.1 crore in Zydus BSV PharmaPvt Ltd in the June 2011 quarter.

  Castrol India: Net of excess provision written back stood at Rs 8.9 crore in theJune 2011 quarter.
  * Decided to phase out manufacturing activities at the Tondiarpet plant in Tamil Naduas it was not commercially viable and offered voluntary retirement scheme to employeesworking in this plant, which has been accounted for in staff cost. In the process ofreviewing the usage of plant assets.
   
Cipla: In 2003, received notice of demand from the National Pharmaceutical PricingAuthority (NPPA) for alleged overcharging of certain drugs under the Drug Price ControlOrder. This was contested, with the HC deriding in favour of the company. The orders werechallenged before the Supreme Court (SC) by the NPPA. By separate orders, the SC restoredthe matter to the HC for interpreting the drug policy and also restrained the governmentfrom taking any coercive action against the company. The company has been legally advisedthat, on the basis of these orders, there is no probability of demand crystallising.Hence, no provision made towards demand of Rs 1230.2 crore for the period July 1995 toApril 2009.

 
Colgate-Palmolive (India): Net profit before tax declined to Rs 138.1 crore asagainst Rs 157 crore due to substantial investments in board and equity-buildingactivities.

  Container Corporation of India: Involved in multiple litigations on tax deductionsfor island ports and rail system under the IT Act. Total disputed income tax liabilitiesstood at Rs 200.5 crore from assessment years (AYs) 2003-04 to 2008-09. Out of this, Rs131.9 crore was on account of regular assessment, while the balance Rs 68.6 crore was onaccount of penalty.
  Cummins India: Exceptional item of Rs 51.4 crore represented profit realisedon divestment of its entire share holdings in Cummins Exhaust India.
  Divi’s Laboratories: The special economic zone unit at Visakhapatnam in AndhraPradesh commenced commercial operations from 1 June 2011.
  DLF: Received an assessment order for AY 2008-09 from the income tax authorities,creating an additional demand of Rs 546.8 crore. Out of this, Rs 487.2 crore pertainsto demand on account of disallowance of SEZ profit under Section 80IAB of IT Act Thecompany has challenged the order and no provision has been made in books of accounts. * In 2010-11 received judgment from the HC of Punjab and Haryana cancelling the releaseor sale deed of land of the IT SEZ projects in Gurgaon. Filed special leave petitionchallenging the order in the SC. Based on the advice of the independent legal counsel andpending final decision, no adjustment made.

 Dr Reddys Laboratories: Announced in June 2011 a scheme for eligible employees toopt for voluntary retirement scheme (VRS). Employees whose applications are accepted willbe paid termination benefit in accordance with the methodology prescribed in the scheme.The termination benefit, however, is restricted to a maximum of Rs 8 lakh per employee. Ason 30 June 2011, the company estimated and provided Rs 13.5 crore for the liability.

Glaxosmithkline Pharma: Exceptional items net of tax included cost of Rs 6.1 croreon separation of workmen at the Thane factory in Maharashtra and actuarial gain ongratuity, post retirement medical and leave benefits of Rs 2.4 crore.
 Godrej Consumer Products: As per the scheme of amalgamation of erstwhile GodrejHousehold Products with the company, which was sanctioned by the HC, Rs 13.1 croreequivalent to amortisation of the Goodknight and Hit brands directly debited to thegeneral reserve account instead of the P&L account.
  * Amalgamated wholly-owned subsidiaries Naturesse Consumer Care Products (NCCPL) andEssence Consumer Care Products (ECCPL) with itself from 18 May 2011. The assets andliabilities of NCCPL and ECCPL have been taken over at book value (BV). The differencebetween BV of assets and liabilities taken over amounting to Rs 37.6 crore debited tothe general reserve in accordance with the scheme.
   The Kiwi manufacturing and distribution licence for the use of Kiwi shoe care andKiwi Kleen brands in India and Sri Lanka granted to erstwhile Godrej Household Products bySara Lee Corporation, US, terminated from 3 April 2011. The company received Rs 156.1crore and its wholly-owned subsidiary Godrej Household Products Lanka (Pvt) Ltd Rs18.9crore as one-time exit compensation.
  Entered into an agreement to acquire 91% stake in the Darling group, Africa. TheDarling group is a market leader in hair extension products.

 Grasim Industries: Production of viscose staple fibre at the Nagda Plant in MadhyaPradesh was suspended from 3 June 2011 on account of water shortage. With the onset ofmonsoon, operations have been resumed at full capacity from 30 June 2011. The chemicalplant at Nagda, was operating at almost 50% capacity in this period. In the previous year,too, operations were impacted from 31 May 2010 to 26 July 2010. Acquired one-third equity interest in Aditya Holding AB, Sweden, for Rs 274.8 crore.The latter acquired Domsjo Fabriker AB, Sweden, a pulp manufacturing company, tostrengthen pulp supplies.

 Hindustan Unilever: Exceptional items included profit of Rs 50.9 crore on sale ofproperties (Rs 18.4 crore in the previous period), profit of Rs nil on sale of long-termtrade investments (Rs 4.4 crore in the previous period), restructuring costs of Rs 5.9crore (Rs 4.4 crore in the previous period) and writeback of provision of Rs 9.5 crorepertaining to brand disposed in an earlier year (Rs nil in the previous period).
 Hindustan Field Services Pvt Ltd ceased to be a subsidiary consequent to dilution ofthe company’s stake from 51% to 7.69%.  To fully exploit opportunities in the exports market and to provide necessary focus,flexibility and speed to business, the board approved the proposal for demerger of theFMCG exports business including specific exports related manufacturing units into awholly-owned subsidiary, Unilever India Exports, from 1 April 2011. Pending approval ofthe shareholders and court, financial results of the FMCG exports business continue to bereported as part of the company’s results.

 Hindustan Zinc: Consistent with the treatment followed in the earlier years,investment in equity shares of power company considered as intangible asset, resultinginto additional amortisation charge of Rs 1.17 crore in the June 2011 quarter (Rs 1.17crore in the previous period). PAT was lower by Rs 79 lakh. This treatment is inpreference to the requirements of AS. Exceptional item represented amount incurred on VRS for the zinc, lead and silversegments.

 Idea Cellular: The national long-distance business, which predominantly providescaptive connectivity to mobility services, merged with the mobility business from 16 April2011. Accordingly, the previous-period segmental figures regrouped. In the auction held in 2010-11, was allotted 3G spectrum for the Punjab service area.However, right for commercial use of allotted 3G spectrum for Punjab is still awaited. Hasapproached the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) for directionto the Department of Telecommunication to allow commercial use of allotted 3G spectrum.TDSAT has directed the company to approach it again, if required, on the final disposal ofthe matters of merger of Spice Communications and overlapping licences. Of the total demands and showcause notices for alleged violation of licenseconditions and non-fulfilment of roll-out obligations under non-operational licensesamounting to Rs 377.6 crore, demands amounting to Rs 327.6 crore have been stayed by TDSATin the June 2011 quarter. For the balance, is in the process of taking suitable action.
  Infosys: Additional investments of Rs 58 crore (US$ 13 million) made in InfosysTechnologies (Shanghai) Company, a wholly owned subsidiary. Had invested Rs 69 crore (US$16 million) in this subsidiary on 30 June 2011.
  ITC: The launch and rollout costs of brands, Fiama Di Wills, Vivel Di Wills, Viveland Superia, covering a range of personalcare products of soaps, shampoos, conditionersand shower gels, and continuing significant brand building costs of the foods businessreflected under, ‘Other expenditure’ and in segment results under, ‘FMCG– Others’.
  JSW Steel: Made additional investments of Rs 237.1 crore in subsidiary, associateand joint venture companies.
  Mahindra & Mahindra: Bristlecone International AG became a subsidiary.
  Mundra Port & Special Economic Zone: Finance cost disclosed on net basis, thatis including gain or loss on derivatives contracts. Interest income of Rs 5.6 crore, Rs20.2 crore and Rs 70.4 crore, gain or loss on account of derivatives contracts of Rs 1.8crore (gain), Rs 4.6 crore (loss) and Rs 4.5 crore (loss) in the quarter ended June2011, corresponding quarter ended June 2010, and previous year 2010-11, respectively,included in finance cost Provision for tax made after considering eligibility to avail benefit under Section80 IAB of the IT Act. Though has filed public interest litigation against levy of MAT onSEZ developer, MAT provisions as per Section 115JB have been made. Also considered MATcredit of Rs 52.8 crore in the June 2011 quarter.Adani Abbot Point Terminal Pty Ltd, Australia, became a stepdown subsidiary of MundraPort Pty Ltd, a subsidiary of the company, from 1 June 2011.

 Nestle India: Net sales increased 20.2%. Domestic sales increased 20.9% on accountof volumes and selling prices. Export growth of 11.0% was adversely impacted by ban onexport of milk powder. Cost of materials for goods sold as percentage of net sales increased largely due tohigher commodity prices, mainly milk solids, green coffee and oils and fats. This waspartially offset by improved product and channel mix and operational efficiencies. Other income (OI) lower in comparison as there was positive impact due to maturity ofdiscounted treasury instruments in 2010-11.
A significant increase in tax expense due at the end of the first five years ofincome tax holiday of 100% of profit at the Pantnagar factory in Uttarakhand. For the nextfive years, tax holiday will continue at 30% of profit Fixed assets increased due to ongoing capacity expansion projects.
  Increase in debtors was mainly due to change in payment terms with Nestle Kuban LLCfor ensuring coffee sales to Russia. This change was necessitated due to discontinuationof rupee auctions by the Russian ministry of finance and, thus, the use of letters ofcredit in Indian rupees, which hitherto enabled realisation on dispatch in contrast tocustom clearance at port of destination now.

 Oracle Financial Services Software: Revenue from product licenses and relatedactivities included prior-year reversal of Rs 15.9 crore. A customer filed a lawsuit against the company and one of its subsidiaries claimingdamages upwards of Rs 544.9 crore. The claims are being rigorously defended and thecompany has raised counterclaims on the customer for breach of contract and outstandingfees. Future cash-flow determinable only on settlement of this case.
  Power Finance Corporation: Loan asset of one project, which is under implementationand with an outstanding balance of Rs 700 crore, treated as standard asset in terms of theRBI letter issued in January 2011. Provision of Rs 14 crore at 2% on the outstandingamount recognised in accordance with the RBI circular issued in May 2011. Income on thisasset recognised on receipt basis, as per the company’s accounting policy. Accordingto the financial realignment plan which is under implementation, interest and guaranteefee of Rs 53.7 crore due and zero coupon bonds of Rs 103.8 crore receivable towardsinterest from 1 October 2001 to 31 October 2005 are not recognised. Entered into derivatives contracts for mitigating exchange rate risk in foreigncurrency liabilities and interest-rate risk in foreign currency and rupee liabilities. Thederivatives entered into are in the nature of hedging and not in the nature of speculativeor trading. The derivatives in the nature of forwards have been dealt as per AS-11. Theother derivatives are not marked to market (MTM). Not adopted AS-30 on financialinstruments: recognition and measurements nor accounted for MTM losses for otherderivatives outstanding on 30 June 2011. AS-30 is presently not mandatory. Further, AS-30is not expected to continue in the present form, as per the announcement made by theInstitute of Chartered Accountants of India (ICAI) in February 2011.
  Power Grid Corporation of India: Pending tariff norms from Cerc, transmissionincome of Rs 840.2 crore (Rs 1569.1 crore in the previous period) provisionally recognisedbased on the Cerc norms for the block period 2009-14 and as per the accounting policy ofthe company Accounting of foreign exchange rate variation, as per the accounting policies adoptedby the company in accordance with the opinion of ICAI, resulted in increase in profit byRs 4.2 crore in the June 2011 quarter (decrease in profit of Rs 13 crore in the previousperiod).
  Reliance Industries: Revalued plant, equipment and buildings situated at Patalgangain Maharashtra, Hazira in Gujarat, Naroda in Gujarat, Jamnagar in Gujarat, Gandhar inGujarat, and Nagothane in Maharashtra in the earlier years. Consequent to the revaluation,there was an additional charge of Rs 582 crore for depreciation in the June 2011 quarter,which was withdrawn from reserves. Thus, it had no impact on profit.
  Sesa Goa: Outstanding foreign currency convertible bonds stood at 2168 of US$100,000 on 30 June 2011 (Rs 975.6 crore in rupee terms at the exchange rate of Rs 45 perUS dollar).
  Siemens: OI represented profit of Rs 2 crore on sale of its subsidiaries, iMetrexTechnologies Ireland, Europlex Technologies Ireland and Europlex Technologies UK, to asubsidiary of Siemens AG.

 Steel Authority of India: The MCA in June 2011 approved the scheme of amalgamationof Maharashtra Elektrosmelt, subsidiary, with the company. As per the scheme, theappointed date of amalgamation was 1 April 2010. The amalgamation will be given effect on13 July 2011, being the effective date of amalgamation. Net sales Rs 906.2 crore included sales to the government agencies recognised onprovisional contract prices in the quarter (Rs 864.7 crore in the previous period) and Rs12087.1 crore up to 30 June 2011 (Rs 8835.9 crore up to 30 June 2010). Intends to issue further public offer of equity shares in 2011-12.

 Sterlite Industries (India): Adopted AS-30 from 2007-08. Accordingly, 4%convertible senior notes issued in October 2009 accounted for as per AS-30, with theconversion option at fair value through the P&L account and the notes carried atamortised cost. If AS-30 had not been adopted, OI would have been lower by Rs 64.8 crore,interest & finance charges by Rs 27.7 crore, and profit after tax by Rs 26 crore inthe June 2011 quarter.On the special leave petition filed by the company, SC in October 2010 stayedoperation of the Madras HC order directing closure of the copper smelter at Tuticorin inTamil Nadu As directed by the SC, the National Environmental Engineering ResearchInstitute inspected the Tuticorin smelter and submitted its report. The matter was listedfor further hearing on 10 August 2011.
  Vedanta Aluminum (VAL), an associate company, is in the process of expanding itsalumina refinery and its aluminium smelter in Orissa. The ministry of environment andforests (MOEF) rejected forest clearance for the Niyamgiri mining lease of Orissa MiningCorporation (OMC), which is one of the sources of supply of bauxite to VAL. OMC has fileda petition in the SC and hearing is in progress. The MOEF has also denied VAL’sapplication for expansion of alumina refinery. VAL is in the process of examining thematter for appropriate action. The company has evaluated and considered good its loansgranted and investment made in VAL.

 Sun Pharmaceuticals Industries: Caraco Pharmaceutical Laboratories became awholly-owned subsidiary in June 2011.

Tata Consultancy Services: Consolidated OI included foreign exchange gain of Rs79.5 crore (loss of Rs 47.1 crore in the previous period).
  Tata Motors: Moved in October 2008 the Nano project from Singur in West Bengal toSanand in Gujarat. In pursuant to a legislation enacted in June 2011, the newly electedstate government of West Bengal expropriated the entire property consisting of buildingsand leasehold land at Singur. The company has challenged the legal validity of legislationin the court. The outcome is pending. Based on the management’s assessment, noprovision is considered necessary to the carrying cost of buildings at Singur.
  United Breweries: As Investment in Maltex Malsters Pvt Ltd is long-term andstrategic in nature, diminution in BV of this investment is considered temporary. Further,the company also obtained an independent valuation, which is in excess of BV and, hence,no provision for diminution considered necessary Arising out of amalgamation of EBL into UBL, UBL Benefit Trust held over 60 lakhequity shares in UBL, constituting 2.36% of UBL’s paid-up equity capital. The trustsold its entire shareholding in July 2011 and remitted the entire proceeds ofRs 283.5 crore to UBL.
   
Wipro: Recognised losses of Rs 135.4 crore on 30 June 2011 (Rs 647.7 crore on 30June 2010 and Rs 167.5 crore on March 2011) on derivatives designated as effectivecash-flow hedges in the shareholders’ fund. In April 2011 entered into definitive agreement to acquire the global oil and gasinformation technology practice of the commercial business services unit of ScienceApplications International Corporation (SAIC). SAIC’s global oil and gas practiceprovides consulting, system integration and outsourcing services to global oil majors withsignificant domain capabilities in digital oil field, petro-technical data management andpetroleum application services, addressing the upstream segment. Total consideration stoodat Rs 728.8 crore. The acquisition will further strengthen the company’s presence inthe energy, natural resources and utilities domain. The acquisition was completed on 10June 2011 after receipt of regulatory approvals.

  Zee Entertainment Enterprises: Consequent to further stake acquisitions, ITMDigital India Pvt Ltd became wholly-owned subsidiary of the company and Taj TV, Mauritius,of Zee Sports International, Mauritius.

source: capitalmarket