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FTIL opposes merger of NSEL with itself

Written By komp limpulima on Selasa, 16 September 2014 | 23.25

FTIL today opposed the merger of scam-hit NSEL with itself as proposed by regulator FMC for speedy recovery of dues, saying that such a move would affect the Jignesh Shah-led company and 60,000 shareholders.

Instead,  Financial Technologies India Ltd (FTIL) has suggested that government agencies, brokers and trading clients should "join forces" with National Spot Exchange Ltd (NSEL) to ensure recovery of Rs 5,300 crore from 24 defaulters.

"...while investigations and various legal proceedings are pending, where the actual facts are yet to be established, any action based on FMC's recommendations towards merging NSEL with the FTIL will irreparably prejudice and harm FTIL and its over 60,000 shareholders, 1000 plus employees, lenders and other stakeholders," FTIL said in a statement.

FTIL group is in big trouble after over Rs 5,500 crore payment crisis surfaced at its subsidiary NSEL last year. After FMC declared FTIL as 'unfit' to run any bourses, the company had to exit from its commodity exchange MCX and lose management control in the stock exchange, MCX-SX.

In a letter to BSE and NSE, FTIL said its Board is opposed to FMC's recommendations that NSEL be merged with FTIL and the government should take over management of FTIL.

"Should more than 60,000 public shareholders of FTIL suffer a non-existent liability of Rs 5,500 crore by the device of a forced merger when the very existence of any legal liability of NSEL and consequently of FTIL as its holding company, is sub judice before the Bombay High Court," it said.

Stating that the government can merge two companies in public interest, FTIL said that interest of 13,000 clients of the brokers who traded on NSEL platform for higher return cannot be "termed as public interest".

The company said about 66 per cent of the entire outstanding amount is due to 781 persons. Asserting that it has fully supported NSEL in recovery process, FTIL said it has given a loan of Rs 179 crore to the spot exchange to make part payment of dues to 6,600 small investors.

It also informed that NSEL has recovered more than Rs 360 crore from 24 defaulters and same has been distributed proportionately amongst the investors.

"NSEL with support from FTIL and under guidance from FMC has been making all efforts for recovery of the money from the defaulters including but not limited to filing various recovery suits and criminal complaints for dishonour of cheques against defaulters," it said.

FTIL said it has also supported NSEL in meeting administrative and legal expenses.

Financial Tech stock price

On September 16, 2014, Financial Technologies closed at Rs 244.05, down Rs 7.4, or 2.94 percent. The 52-week high of the share was Rs 403.60 and the 52-week low was Rs 129.95.


The latest book value of the company is Rs 522.91 per share. At current value, the price-to-book value of the company was 0.47.


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KPMG to do forensic audit of UCX: FMC

Commodity markets regulator FMC today said auditing firm KPMG has been appointed to conduct a forensic audit of the Universal Commodity Exchange after it found that its promoter allegedly siphoned off funds from the exchange. The auditing firm will submit a detailed report in 4-6 weeks. Meanwhile, the exchange has been directed to maintain the current cash balance of Rs 52.52 lakh intact in the Settlement Guarantee Fund (SGF) and not to withdraw any amount without the regulator's approval, it said.

FMC has also directed UCX, the country's sixth national level commodity bourse, to convert other investments in Optional Convertible Debentures (OCDs) and advances made out of SGF fund into liquid assets immediately. "The exchange on August 28, 2014, has engaged M/s KPMG as the forensic auditor to carry out the forensic audit at UCX. KPMG is likely to submit its report to the Commission in 4-6 weeks," Forward Markets Commission said in its latest report.

KPMG will do forensic investigation into "the serious charges and allegations of misappropriation of funds by the promoter of UCX since the inception of the exchange," it said. A forensic auditing of UCX was ordered after taking into account preliminary findings on gross financial irregularities and diversion of funds from SDF and on the basis on feedback from the Board of Directors of the exchange, it added.

UCX is promoted by Commex Technologies chief Ketan Sheth, who owns 40 percent stake in the exchange. He was not available for comment when contacted. According to the FMC, the exchange has submitted a report on the 'Status of Funds availability in SGF' giving details of member-wise refundable amounts to registered members and also the break-up of various outstanding expenditure pending at the level of exchange.

The regulator was informed "that the Promoter has paid Rs 1 crore from one of his group companies to the exchange". FMC said it has directed UCX to maintain the cash balance of Rs 52.52 lakhs presently available in SGF intact and to convert other investments in OCD and advances made out of SGF fund into liquid assets immediately.

"The exchange has also been instructed to keep the Commission apprised of all its future receipts, from whatever source and not to withdraw any amount from such receipts without prior approval of the Commission," it added. UCX, which was launched in April 2013, suspended trading in all commodities on July 19. It offered futures trading in oil seeds, pulses, crude oil and natural gas. Currently, NCDEX, MCX, NMCE and ACE derivatives are the commodity exchanges that are active in the country.


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Apple on the brink of another 'super cycle'

With the launch of the iPhone 6, Apple is poised to begin another `super cycle`, analysts at Cantor Fitzgerald told CNBC.

"We believe Apple is in the midst of another `super cycle` that begins with the rapidly growing `phablet` market via the iPhone 6 Plus and extends into the wearable category in early 2015 with Apple Watch," said Brian White, managing director and global head of technology hardware, software and equity research at Cantor Fitzgerald.

White drew parallels with the success Apple enjoyed after launching the iPod in 2001, the iPhone in 2007 and the iPad in 2010. He said the technology giant, which has fallen out of favor with some investors due concerns it had lost its ability to innovate, is in for another period of strong performance.

Apple dominated the global smartphone market for years after launching the original iPhone in 2007. However, later models weren`t as successful and the firm lost considerable market share to Samsung, which tapped consumers` desire for large-screened smartphones far earlier.

Four years after Samsung, Apple has finally made its foray into the `phablet` market - a hybrid of a phone and tablet - with the launch of the 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus last week. It also unveiled the long-awaited Apple Watch, which won`t be available until 2015.

Pre-orders for the two new iPhone models totaled four million units in the first 24 hours, twice the number of iPhone 5 pre-orders received in 2012, smashing all previous records.

"In our view, Apple demonstrated to the world last week that it is innovating like never before, expanding its addressable market with new product categories, strengthening its digital matrix, and eyeing new categories," said White. He expects Apple`s price-to-earnings multiple to expand and sees the share price rising 21 percent to $123 over the next 12 months.

White is equally bullish on Apple`s foray into the wearable tech sector: "We believe Apple Watch will prove to be a home run with the fastest, new product, first-year unit sales volume in the company`s history, giving Apple a foothold in what we believe will be a large, wearable tech market," he said. He also expects that a more robust Apple TV is on the horizon.

But not all analysts agree are upbeat.

"It`s right that it is a new category [for Apple] but it`s not right to say it`s similar to an iPhone or an iPod or iPad because those products were totally new," Mark Newman, senior analyst at sell-side research and brokerage firm Sanford C. Bernstein told CNBC.

"I don`t really think `super cycle` is the right word, but the iPhone 6 is going to be a significant product. I think this year they are going to gain a bit of share back from Samsung... it will make a pretty big impact," he added.

Although Apple`s fresh products could see the firm regain market share, Newman pointed out that some of the damage was not repairable.

"Some of it they can gain back but some of it has gone forever... It was their mistake and incompetence because they refused to understand what the customers were telling them," he said, referring to demand for larger-screened phones.Copyright 2011 cnbc.com


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ITC plans to open new hotel in Sri Lanka within 5 years

Cigarettes-to-hotels major ITC is looking to set shop in Sri Lanka within the next 5 years. Besides that, he also said Indian conglomerate will open new hotels in Ahmedabad, Hyderabad, Kolkata, Amritsar, Delhi and Chennai.

Cigarettes-to-hotels major  ITC is looking to set shop in Sri Lanka within the next 5 years, says chairman YC Deveshwar. Besides that, he also said Indian conglomerate will open new hotels in Ahmedabad, Hyderabad, Kolkata, Amritsar, Delhi and Chennai.  

"There's one that has come up, Fortune Hotel in Bangalore. So there are many projects underway. There's a second hotel in Calcutta," he told CNBC-TV18.

ITC stock price

On September 16, 2014, ITC closed at Rs 353.15, up Rs 1.50, or 0.43 percent. The 52-week high of the share was Rs 386.75 and the 52-week low was Rs 307.60.


The company's trailing 12-month (TTM) EPS was at Rs 11.40 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 30.98. The latest book value of the company is Rs 32.97 per share. At current value, the price-to-book value of the company is 10.71.


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Apollo Tyres starts business rescue proceedings in S Africa

Apollo Tyres had entered South Africa in 2006 with the acquisition of Dunlop Tires International for Rs 290 crore in an all-cash deal. However, it hasn't been able to make the best out of the business there.

Apollo Tyres  is undertaking a an exercise to 'rescue' operations of its South African arm in the wake of uncompetitive cost structure, continuous labour unrest and related issues.

The company has roped in a specialist to re-structure its operations there.

"Apollo Tyres Africa (Pty) Ltd has voluntarily initiated the Business Rescue proceedings, and has appointed a specialist to re-structure its operations and to secure the best value for all stakeholders," a company spokesperson said in a statement.

The evaluation by the independent Business Rescue Practitioner will decide the future course of action for the company in South Africa, the statement added.

"This move by the company, has been prompted by the uncompetitive cost structure in the South African market, along with the continuous labour unrest and related issues," the statement said.

Apollo Tyres had entered South Africa in 2006 with the acquisition of Dunlop Tires International for Rs 290 crore in an all-cash deal. However, it hasn't been able to make the best out of the business there.

In December last year, the company closed transaction to sell its South African business along with a passenger car tyre plant to Sumitomo Rubber Industries in a deal valued at USD 60 million.

The sale included Apollo Tyres South Africa (ATSA), including the Ladysmith passenger car tyre plant, and the Dunlop brand rights that Apollo had in 32 countries of Africa.

Apollo retained the Durban plant which manufactures Truck & Bus Radial (TBR) tyres and Off Highway tyres (OHT) used in the mining and construction industries.

Post the transaction, Apollo Tyres continued to sell Apollo, Vredestein and Regal branded tyres in Africa, and focussed on creating and strengthening its sales and distribution network across the continent.

Apollo Tyres stock price

On September 16, 2014, Apollo Tyres closed at Rs 195.60, down Rs 14.1, or 6.72 percent. The 52-week high of the share was Rs 217.70 and the 52-week low was Rs 61.00.


The company's trailing 12-month (TTM) EPS was at Rs 9.59 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 20.4. The latest book value of the company is Rs 53.62 per share. At current value, the price-to-book value of the company is 3.65.


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Allahabad Bank seeks Rs 900cr capital from govt

The government has budgeted only Rs 11,200 for capital infusion in public sector banks during this fiscal. Sethi further said the bank has board approval to raise Rs 320 crore from the government and a decision would be taken only if there is higher demand for credit.

State-run  Allahabad Bank said today that it has sought a Rs 900-crore capital infusion from the government during the current financial year. "We have asked for Rs 900 crore from the government. Usually it comes after September," Allahabad Bank's Chairman and Managing Director Rakesh Sethi told reporters on the sidelines of an annual banking event organised by FICCI and IBA today.

The government has budgeted only Rs 11,200 for capital infusion in public sector banks during this fiscal. Sethi further said the bank has board approval to raise Rs 320 crore from the government and a decision would be taken only if there is higher demand for credit.

"We have permission for a Rs 320 crore QIP, but (since) there is no demand for credit now, what do I do with that money," he asked.

When asked whether the bank plans to cut its lending rates, Sethi said that the decision would be taken by the asset liability committee. The largest bank, State Bank of India cut the deposit rate today by 25 basis points to 8.75 per cent in the one to three years category, effective from September 18.

SBI has also increased its deposit rate by 25 basis points in the 180 days to 210 days category.

When asked whether Allahabad Bank plans a festive season offer on loans, Sethi said, "Our base rate is already at 10.25 per cent. So, how much lower can we go".

Allahabad Bank stock price

On September 16, 2014, Allahabad Bank closed at Rs 119.90, down Rs 5.4, or 4.31 percent. The 52-week high of the share was Rs 148.45 and the 52-week low was Rs 72.45.


The company's trailing 12-month (TTM) EPS was at Rs 16.00 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 7.49. The latest book value of the company is Rs 216.68 per share. At current value, the price-to-book value of the company is 0.55.


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Fare war now on global routes

Written By komp limpulima on Senin, 15 September 2014 | 23.25

Initiating a fare war on global routes, Qatar Airways and Singaporean budget carrier Tigerair today announced massive limited-period discounts hoping to corner a chunk of the Indian travel market share.

While Tigerair announced a special one-way base fare of Rs 10 only to Singapore for Indian passengers to commemorate completion of decade-long operations, Qatar Airways launched a global promotional offer of up to 25 percent savings on its tickets to over 140 destinations across the world.

Tigerair's Rs 10 one-way fare offer to Singapore would be applicable only on round trip tickets from India, under which the fare could be as low as Rs 7,499 including taxes, the airline said in a statement.

The Qatar Airways' promotional fare tickets under its three-day 'The World is Yours' global sale would have to be bought between today and Wednesday for travel from September 25 till June 15 next year, the airline said in a statement.

The discount of up to 25 percent is being offered for return travel in all classes for travel from India via its Doha hub, a Qatar Airways statement said, adding that there were limited seats on offer subject to availability.

The airline connects 12 cities in India via Doha to an array of destinations like Barcelona, Dallas, London, Miami, New York, Paris, Rome and several others.

In the statement, its Chief Executive Akbar Al Baker said, "Qatar Airways' global sale is eagerly awaited by our passengers and with up to 25 percent discount on return fares, there will never be a better time for our customers to plan leisure or business trips."

Tigerair's tickets which can be booked till September 21 would be valid for travel commencing January 12 to March 31, 2015, and July 21 to September 22, it said.

The airline was also offering special all-in return fares starting Rs 11,999 to destinations like, Bali, Jakarta, Perth, Manila, Hong Kong, Sydney, Gold coast via Singapore. Flights to Sydney and Gold Coast would be operated in collaboration with Scoot, another Singapore-based low-cost long-haul airline, the statement said.

The offers can be availed of on Tigerair's official website from any of the five cities of Bangalore, Chennai, Hyderabad, Kochi and Tiruchirappalli. Tigerair operates total 37 weekly flights to Singapore from six Indian destinations.


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Android One to cater 1 bn Indian users: Google's Pichai

Sundar Pichai, VP-Android, Google said Android One would give the company a chance to address one billion users in India who do not have an access to internet.

The phones will be high quality smart phones with latest software backed by Google but at the same time we are also helping our partners to build the hardware needed to affordable high quality smart phones, said Pichai.

Google launched the first smart phones under its Android One project in India , pricing them at around Rs 6,399 to capture the low-cost segment of the world's fastest growing smart phone market.

It has tied up with Indian mobile players Micromax, Karbonn and Spice Mobiles to launch the affordable phones, which are powered by its operating system and aimed at emerging markets.

With regards to the tie-up, he said the company will provide the base platform which will be maintained and updated by them but will allow partners to customise them.
 
Answering a query on why Samsung has not been a part of this project, he said "We are two big companies, so there are times when we do stuff different from each other." However, Samsung still remains our largest partner and we owe them a lot for the success of android, he added.

According to Caesar Sengupta, product management director, Google said Android one is an extension of the android program.

Also read: Why Android One is a historic launch for Indian phonemakers

Below is the transcript of Sundar Pichai's and Caesar Sengupta's interview with CNBC-TV18's Malvika Jain.

Q: You are the man of the moment. Google has unveiled Android One today – the much awaited device. How are you positioning it in the market and how is it going to be a differentiator as far as Google is concerned?

Pichai: For us Android One is really important because it gives us a chance to address the one billion users in India who don't have access to internet. Our differentiated approach is we are building high quality smart phones with software backed by Google. We will make sure it is the latest and the greatest software running Android but at the same time we are helping our partners with building the hardware needed so that you can actually build a affordable yet high quality smart phone.

Q: Initially if I am correct you have partnered with three companies, Spice, Karbonn and Micromax. However if you are giving them an interface how are these devices going to be any different? Where does the creativity component come in?

Pichai: We provide a base platform which we maintain and we update but we allow them to customise on top of it. You have to understand, the launch of today is just the first step in our journey. We launched all of Android few years ago with one phone. Similarly we are doing it with three phones but you will see choice and customisation on top of Android One increase very widely over time.

Q: So, all the rumours that relationship between Samsung and Google are tensed right now are baseless?

Pichai: It is quite boring to write that things between Google and Samsung are actually working well. I think that is the source of lot of this.

Q: Spice being one of the companies that you have partnered with, the price point of the current product Android One starts from Rs 6300 approximately. There are Smartphone's in the market which Spice has launched, Intex has launched in partnership with Firefox which are priced at less than half of this price. So, how are you going to meet that price point?

Pichai: I am very comfortable and I have always said this over time, people in India are very demanding, they have the same aspirations as that of people in the United States etc. It is very important to deliver a minimum high quality experience. You want this to be a real computing experience and so for us that being the goal, we are trying to do that at the best possible price. I don't think today it is possible to do that at a price which is half of what we have done.

I think what matters much more is that we actually onboard people and give them really powerful experienced which is what we are trying to do.

Q: The sense that one gets is that you are optimistic that in future it might be possible to bring down the price?

Pichai: In the future both will happen. I think you will see things which are cheaper but almost all the people who come in, just like we see everywhere else will aspire to upgrade and to get better experiences over time. So, there will be demand for even better quality phones in the future.

Q: As far as Android One as a program is concerned this is your first global launch which kick starts from India. However is this program going to expand to other parts of the world?

Pichai: For us it is exciting because we actually are viewing India as our trial country. So, we want to launch this in India and learn but use it as a place from where we take it to other places around the world. So, it is unique for us. Normally, we do stuff in the US and US is our trial country and we take it elsewhere but we are doing this differently.

Q: Which are those countries going to be and who all are you going to partner with in those countries?

Pichai: We are excited to take this to Indonesia and Philippines as well as countries in South Asia, Pakistan, Bangladesh, Nepal and Sri Lanka. We have invited more than 10 new partners to the fold. So, you will be seeing a much wider choice of Android One devices, larger phones etc over time. So, it is very exciting.

Q: As far as the manufacturing base in India is concerned, the government is providing a lot of incentives. Is there a possibility that Google would setup its own manufacturing facility or this program is going to be implemented only in partnership with other companies?

Pichai: Everything we do in Android is in partnership with other companies. However, since we develop reference hardware, at the right point in time if there is a vendor in India who can manufacture a lot of these components, we would be happy to qualify them and work with them and we would do that as a priority.

Q: When you talk about partnering with other companies, is that a strategic move? We are talking on the sidelines of a NASSCOM event where you spoke to entrepreneurs, is there any project that Google is going to be launching or has already launched to foster entrepreneurship in India and is there any message that you would like to give to entrepreneurs?

Pichai: At a high level I see a palpable excitement in India. The level of confidence, the maturity I see in startups is noticeably different than what I had seen in my past visits. India is unique because it is a big local market. When you look at China, a lot of startups there succeed because they have a large user base. India is poised to reach half a billion internet users and so my advice to entrepreneurs here would be to think bigger. We are trying to create a platform so that they can reach these uses at scale and if entrepreneurs here think bigger, they have the access to the resources, and they have the capability to make a big impact on the global stage.

Q: App developers around the world have complained though Android is the biggest platform on which they are operating that the customisation, the ability to customise that Android provides actually sometimes poses a challenge for them. So, do you see Androids flexibility as a double-edged sword?

Pichai: It is both an opportunity and cause for some challenges. It is some of what we are trying to address with Android One. With Android One when I talked about a consistent base platform, it also makes it consistent for developers as well. So, we are trying to preserve the flexibility and innovation on top of Android while at the same time make it more consistent both for users and developers; so it is the balancing act.

Q: How is it going to be any different from the usual Android phones which are available in the market?

Sengupta: Android One is an extension of the Android program. The software is the same; the big differences are the software on this is directly from Google. What we have done is worked with our partners to create a turnkey solution that lets our hardware OEM partners, phone manufacturers bring products to market at a very low cost at a very high quality.

Q: Samsung is nowhere on the list. Is this in some manner a way to move away from Samsung even though it continues to be a market leader? They are working on their own operating systems, so is this like some sort of a back up plan that Google has come up with?

Sengupta: Absolutely not, Samsung is a very close partner. They are one of the most important partners for us on Android. They have shipped amazing phones on Android and we actually work together with them on many initiatives. In fact as Sundar said we are now working on more initiatives on Samsung than ever before.


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Wipro bags deal from Saudi Electricity Company

"As part of this engagement, Wipro will implement and rollout the plant maintenance and project system functionality of the SAP ERP application for SEC's distribution business line across KSA," it said in a statement.

Wipro Arabia, a subsidiary of India's third largest IT firm Wipro, has bagged a contract from Saudi-based Saudi Electricity Company (SEC) for implementing and rolling out plant maintenance and project system functionality of SAP ERP application.

No financial details were disclosed.

SEC is the largest power utility company in the Middle East serving approximately five million customers in the Kingdom of Saudi Arabia (KSA).

"As part of this engagement, Wipro will implement and rollout the plant maintenance and project system functionality of the SAP ERP application for SEC's distribution business line across KSA," it said in a statement.

The SAP ERP-based system is expected to go live in the next 10 months.

Once implemented, it is expected to enable the power utility company to have an integrated system that offers centralised and standardised processes across its plants, it added.

This will help ensure uptime of distribution networks, expense controls and effective utilisation of assets.

Also read:  Cognizant to acquire healthcare IT firm TriZetto for $2.7bn

"We have traditionally had a strong position in the utilities space in the global market, and this will allow us to further strengthen our leadership in this space in KSA," Wipro Arabia General Manager and Head Thomas George said.

The deployment will help SEC to methodically migrate existing data from current digitised and manually maintained systems to SAP Enterprise Resource Planning (ERP) solution.

In addition, the solution will help SEC to streamline day-to-day operations and increase operational and financial efficiencies.

"With this program, we will be able to scale up our operations in a significant way and seamlessly manage our distribution networks. Wipro's deep domain capability and technology-leadership will help us deliver cost-effective services and serve our large customer base in an efficient manner," Eng Mohammad A Al-Nahari, NEBRAS Program Executive Director, Saudi Electricity Company said.

Wipro stock price

On September 15, 2014, Wipro closed at Rs 567.80, down Rs 6.95, or 1.21 percent. The 52-week high of the share was Rs 610.50 and the 52-week low was Rs 447.00.


The company's trailing 12-month (TTM) EPS was at Rs 32.76 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 17.33. The latest book value of the company is Rs 118.96 per share. At current value, the price-to-book value of the company is 4.77.


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Any revenue from TriZetto will add to guidance: Cognizant

Cognizant on Monday said it will acquire US-based TriZetto Corporation for USD 2.7 billion in an all cash big-ticket deal, a move that will help the IT services firm tap the lucrative healthcare IT software and solutions market for revenue synergies.

Speaking to CNBC-TV18, Gordon Coburn, President, Cognizant said revenues from TriZetto will add to incremental guidance, no matter how big or small. "TriZetto's margins are comparable to us; this is a topline play," he says.

He expects TriZetto deal to close by Q4 of the current fiscal along with all regulatory approvals."US healthcare clients are desperate to cut costs and therefore, there cannot be a better time than today to buy TriZetto," he told the channel.

Cognizant-TriZetto combine can compete for larger deals, adds Coburn. Experts too believe that in terms of grabbing the healthcare pie, the firm may race ahead of Accenture, IBM, EMC and Capgemini, if the deal goes through.

Below is a verbatim transcript of the interview

Q: Can you break up the financial structure of this deal. It is a USD 2.7 billion deal, you have taken a financing of around USD 1 billion but the deal will be done in cash. Can you give us a break up of how you are funding this deal and how much of your cash reserves are you dipping into? You have a cash reserve of around USD 3.8 billion.

A: We are paying about USD 2.7 billion of cash for the deal. Obviously that is cash that is based in the United States. We have approximately USD 4 billion of cash on our balance sheet but that money is spread around the world. So, we do expect to take out about USD 1 billion in financing and the remaining USD 1.7 billion we will pay from our cash reserves that obviously leaves our balance sheet in very healthy shape to ensure that we the stability our clients are looking forward at. We continue to conservatively manage our business and it also leaves us cash available to continue with our share repurchase programme that we know is important to our investors.

Q: You have said that you will be completing the deal by Q4 of 2014. So, is it safe to say that the revenues from the deal will start coming in from Q1 of 2015 and can you tell us on an annual basis what is the kind of incremental revenue addition that you are expecting from this deal?

A: We expect the deal to close in Q4. We might get a little bit of revenue in Q4. Our guidance excluded any revenue that came from TriZetto. So, if we get any revenue that would be incremental.

TriZetto is currently for the last 12 months did a little over USD 700 million of revenue on a last 12 months basis. We would certainly expect growth in calendar 2015. We haven't given specific numbers but as we said we think a combination of TriZetto's organic growth combined with the significant revenue synergies that we see over the next five years, we think that will be about USD 1.5 billion plus of revenue synergies. Some of that will kick in 2015. So, for next year we would expect that revenue from TriZetto plus the synergies would be neutral to positive to Cognizant's overall growth rate.

Q: Would this possibly mean that you may hike up your guidance for 2014 because you had given a guidance before the deal. So, is there a possibility that by Q4 of 2014 we could see a revision in your full year guidance?

A: I think that entirely depends on when the acquisition closes. If we get some revenue from TriZetto in Q4 that will certainly be incremental to any guidance we have already given. Obviously we don't know the exact date that it will close.

Q: Can you give us an idea about the kind of approvals that are required and the timeline? Q4 is the higher limit that you are looking at or is there a possibility it could trickle into 2015 as well?

A: We think it is highly unlikely that it would roll into 2015. At this point we fully expect that the transaction will receive the necessary government clearances and remaining accounting things that have to be done post close during Q4 of calendar 2014.


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