Budget 2012-13 Unicon

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Union Budget 2012-

The Finance Minister in the backdr

political presented a pragmatic bu

for FY13) by containing the high fi

achievable and endeavors to foc

strengthen and revive the econo

implemented through

Addressing supply side bot Measures taken to provid

airlines, roads & bridges, p

Increasing the tax/GDP ratservice tax net.

Reducing cap on subsidie Higher outlays on agricul

multiplier effect

This budget is also perceived as po

comfort to aam aadmi from high in

& reduction of STT tax to be posi

income which leads to higher cons

The markets closed negatively as

substantial to offset it Most of the

impact on the market. However, g

and 5500 for few weeks and follo

results of FY12 and announcement

market. The Nifty then may move a

13 - Progressive but not Agg

p of global uncertainties and domestic constraints

get, preserving the growth momentum of the eco

cal deficit to 5.1% in FY13. The budget seems to be

s on crucial sectors like agriculture, infrastruct

y to achieve sustainable medium term growt

tlenecks in agriculture, transportation & infrastruct

low cost funds to some stressed infrastructure s

rts & shipyards, affordable housing, fertilizers & d

io through increase in indirect taxes, service tax

to 2% of GDP

ture, health, education and employment generat

pulist budget, with enhancement of exemption lim

flation. Also, the introduction of Rajiv Gandhi Equi

tive for the retail investors. This would result in

umption.

profit booking continued and the budget did

positive announcements were on expected lines

ing forward we expect the market to stay range bo

global cues. The domestic events like interest ra

of reforms in the first quarter of FY13 may give a n

head towards the 6000 mark in the second half of th

essive

oth economic and

omy (est. at 7.6%

more realistic and

re and power to

. This would be

re.

ectors like power,

ms.

nd broadening of

ion would have

it to provide some

y Savings Scheme

higher disposable

ot have anything

nd had negligible

und between 5100

e cut, last quarter

w direction to the

is year.

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Macro Economy

The major challenge for the gover

deficit increased to 5.9% against 4

increased subsidies. This forced the

of Finance Bill, 2012. Firstly, conce

the revenue account is being brou

Expenditure Framework Statement

the growth drivers of the economy

Proposal/Announcement

Direct Tax

The net borrowings of the gover

4.79 tn in FY13

Endeavour to keep central subsi

2012-13. Over next 3 year, to be

1.75% of GDP.

Exemption limit for the gener

taxpayers proposed to be enhan

INR 1,80,000

To provide low cost funds to stre

rate of withholding tax on in

proposed to be reduced from 2

certain sectors.

Reduction in securities transacti

delivery transactions.

Proposal to extend weighted de

expenditure in an inhouse facilit

years beyond March 31, 2012

Proposal to provide weighted

expenditure incurred for agri-exte

Exemption from Capital Gains

property, if sale consideration is

equity of a manufacturing SME f

and machinery

Transfer Pricing Regulations totransactions


Indirect Tax

Service tax rate hiked from 10% t

services except those in the neg

heads

Standard rate of excise duty to b

ment has been fiscal balance which has deteriora

.6% targeted last budget, due to slippage in direc

Finance Minister to introduce amendments to the F

t of Effective Revenue Deficit to address the struct

ght in as a fiscal parameter. Secondly, provision

is being introduced in the Act. Further the FM h

hrough various measures as indicated below.

Unicons View

ment would stand at INR This will impact fi

process of governmen

ies under 2% of GDP in

further brought down to

Positive for the econo

in reducing the fi

roadmap is not clear

l category of individual

ced to INR 2,00,000 fromit will increase the di

the hands of common

ssed infrastructure sectors,

erest payment on ECBs

% to 5% for 3 years for

Positive for the indus

Infrastructure sector

capital constraints

on tax by 20% on cash Positive for the retai

expected to boost themarkets

uction of 200% for R&D

for a further period of 5 Positive for the Pharm

deduction of 150% on

sion services.Positive for the Agri s

ax on sale of residential

used for subscription in

or purchase of new plantPositive for the SME s

apply to certain domestic Negative for certain se

Unicons View

12% & proposal to tax all

tive list comprising of 17

Service tax expected t

revenue of INR 186.6

inflationary in nature

raised from 10% to 12%, Hike is expected to g

ed in FY12. Fiscal

t tax revenue and

RBM Act as a part

ural imbalances in

or Medium-term

s tried to focus on

cal consolidation

my as it will help

scal deficit, but

posable income in

an

ries especially for

hich is facing the

investors and is

volumes in capital

a sector

ctors

ctor

ctor

o yield additional

bn, however it is

arner net revenue

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merit rate from 5% to 6% and the

to 2% with few exemptions

Excise duty on large cars also prop

Full exemption from basic cust

equipment for expansion or settiupto March 31, 2015

Full exemption from basic duty p

power generation, coal mining pr

Full exemption from import dut

specified equipment needed for

boring machines and parts of their

Cess on crude petroleum oil pro

INR 4,500 per metric tonne

Increase basic customs duty on i

precious metals, Levy of excise

precious metal jewellery to

unbranded jewellery.

lower merit rate from 1% gain of INR 272.8

inflationary in nature

osed to be enhanced Negative for Auto co

oms duty for import of

g up of fertiliser projects Positive for the fertiliz

ovided to certain fuels for

ject imports.Positive for the powe

facing the delays in ex

on certain categories of

road construction, tunnel

assembly

Positive for the inf

which are facing exec

duced in India revised to This will help the gov

more revenues

mports of gold and other

duty of 1% on branded

e extended to include

This will help the gov

more revenues. Thi

impact the deman

increasing demand f

instruments

n, however it is

panies

er sector

sector which are

ecution

astructure sector

tion delays

ernment to garner

ernment to garner

will marginally

of gold and

r other financial

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BFSI


The government has allocated IN158.88bn in FY13 for investment i

the public sector banks through a

holding company route.

Focus on Infra & Agri sectors

The INR 100 bn short term refinan

fund for regional rural banks

Reduction of STT to 0.1%

Increase in Limits for FII's

Investment in Long term Infra bo

has been hiked to INR 600 bn &

Reduce withholding tax to 5% on

ECB for 3 years

Permitting two-way fungibility in

Indian Depository Receipts subjec

to a ceiling with the objective of

encouraging greater foreign

participation in Indian capitalmarket

Union Budget 2012-13 was positive

The focus of the budget was agricul

fee income for banks. Also, captalis

may put pressure on the interest ra

post healthy growth on the back of

Current Status

In FY12 governmentinfused INR 120 bn in

PSBs

On expected linesfor infusion int

positive for banks

holding like SBI,

- Positive for banks

ce - P

Currently at 0.125% Removal

transaction c

participation.stoc

ds

Long term Infra bonds at

INR 300 bn &

withholding tax

currently at 20%

Positiv

-

Positive for Sta

for the banking and financial sector in terms of poli

ture & infrastructure sector this would lead to incr

ation of PSU banks will be positive, but large gover

es going forward. We expect banks, NBFCs & Fina

igher fund allocation.

Unicons View

. Allocation of capitalo PSU banks will be a

ith low government

nion bank of India &

IDBI

which is witnessing a

slowdown in credit

sitive for all regional

rural banks

of STT would reduce

st to encourage retail

arginally positive forbroking companies.

e for IDFC, PFC, REC

ndard Chartered IDR

cy announcement.

ase loan growth &

nment borrowings

cial institutions to

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Power


Tax-free bonds worth INR 100bnpower sector

ECB to part finance rupee debt

existing power plants

Extending sunset date for setting

power generation undertakings

claiming 100% deduction of pro

for 10 years by 2 years till March

2013Extension of depreciation of 20%

the initial year for new ass

acquired by power generati

companies

Full exempt from basic duty

certain fuels for power generati

(Natural Gas, LNG, Urani

concentrate, Sintered Urani

Dioxide in natural and

pellet form)

Reduction in Withholding tax

interest payments on ECB to 5%

three years

Full exemption from basic custo

duty and a concessional CVD of 1%

Steam coal for a period of two ye

till March 31, 2014

Coal linkage agreement with C

India for power players with Lo

term Power Purchase Agreeme

with DISCOMs and to th

commissioning on or before Ma31, 2015

Power sector gained major focus in

for power generators, reduction in

ECB, etc to increase ROE of power

for the power equipments sector.

Power, Adani Power, JSW Energy,

Current Status Unico

for Announced in Budget2012-13

Inline with Unicannouncement wo

raising plans of po

of Announced in Budget

2012-13

Inline with Unic

announcement wou

power generation

Power, Reliance Po

up

for

its

31,

Announced in Budget

2012-13Inline with Unic

announcement wo

(Ultra Mega powe

accelerate new cape

in

ets

on

Announced in Budget

2012-13

This announceme

UMPP (Ultra M

players, who delay

high coal prices.

for

on

m

m

Announced in Budget

2012-13 This announcem

margins for powe

(using these fuel

investments.

on

for

Existing rate at 20% Partially Inline wit

This announceme

margin expansion

attract new investm

ms

to

ars

Existing custom duty at

5%This announceme

margin expansion

power players.

oal

ng

nts

se

ch

Announced in Budget

2012-13Inline with Unic

announcement

investments in pow

Budget 2012-13, with various relaxations like exten

duty on certain fuels, announcement of tax-free bo

rojects and attract investment in the sector. No refo

Relaxations in Budget would be beneficial for co

ESC, etc.

s View

n Pre-Budget. Thisuld support capital

er companies.

n Pre-Budget. This

ld improve margin of

players like Tata

er, NTPC, etc.

n Pre-Budget. This

uld support UMPP

project) and would

x deployments.

nt would support

ega power project)

d capex plans due to

nt would expand

r generation players

s) and attract new

Unicon Pre-Budget.

nt would support

f power players and

ents.

nt would support

of steam coal based

n Pre-Budget. This

would support

er generation sector.

sion of sunset date

ds, concessions in

rms were declared

mpanies like Tata

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Infrastructure & Capital Goo


Tax free bonds limit raised to I

600 bn

Increased allocation for ru

infrastructure development fund

INR 20 bn to INR 200 bn

8,800 km of road projects to be

awarded in FY13 & Allocation of

Road Transport

and Highways Ministry enhanced14% to INR 253.6 bnIrrigation projects,

Oil & Gas/LNG storage facilities a

oil & gas pipelines etc.

now qualify for viability Funding

Rate of withholding tax on inter

payment on ECBs

for power, airlines, roads & bridg

ports & shipyards, afforda

housing and dams reduced to 5%3 years

Allocation for AIBP increased to I

142.4 bn up 13%

Delhi Mumbai Industrial Corrido

central assistance of INR 185

spread over 5 years approved. U

4.5 bn as Japanese participation

the project.Customs duty on coating

material for manufacturing of

electrical steel reduced to 5%

Union Budget 2012-13 has provide

various development projects. Acc

from 8.0% of GDP in the base year

infrastructure would translate to o

targeted 9% GDP growth. The bu

finance ; supply bottlenecks to en

country.

ds

Current Status Unico

R Existing exemption is

INR 300 bn

In line with our pr

infrastructure comp

increased availabilit

Finances (companie

ral

by

The existing allocation

is INR 180 bn

In line with our pr

Infrastructure com

IRB Infra.

he

by

In FY12, 7300 km of

road projects has been

awarded

Positive for compa

Infrastructure like

IVRCL Infra, ILFS tr

nd

Irrigation projects were

not having this benefit

Positive for IVRCL

est

es,

ble

for

Current at 20%

Positive for Infrastr

in long term fundin

R Allocation was INR 124

bn in 2011-12

Positive for IVRCL

r -

.bn

SD

in

Announced in budget

2012-13

Positive for Infrastr

Current stands at 7.5% Positive for capital

like - BHEL, ABB

some relief to the infrastructure sector, with incre

rding to the 12TH plan the infrastructure investme

(2011-12) to about 10 % of GDP in 2016-17. The t

er INR. 45 tn or USD 1 tn during the 12TH Plan pe

get has tried to address some of the core proble

ure long term commitment to development of in

s View

e-budget. Positive for

anies as it will lead to

y of

s like L&T,GMR, IRB)

e-budget. Positive for

anies. IVRCL infra,

ies involved in road

IRB, Sadbhav, L&T,

ansport.

nfra,Ramky Infra

cture sector, will help

.

nfra

cture sector

goods manufactures

se in allocation on

t need to increase

otal investment in

iod to achieve the

ms like long term

rastructure in the

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Real Estate


Provisions under rural housing fuincreased to INR 40 bn and Inter

subvention of 1 percent on housi

loans upto INR 15 lakh extended

one more year

Various proposals to address

shortage of housing for low inco

groups in major cities and to

including allowing ECB for low c

housing

projects and setting up of a cre

guarantee trust fund

TDS of 1% on transfer of cert

immovable property (other t

agriculture land)

Indian real estate industry has bee

the sector. Slower allied industry g

RBI and developers emphasis on

Government focus on the affordabl

accelerate the demand and investm

Current Status Unicon

ndest

ng

for

Currently at INR 30 bn Positive for realty s

he

me

ns

ost

dit

Announced in budget

2012-13

Positive for realty s

ain

an

On transfer of

immovable property by

a non-resident

Help in reportin

transactions in the

and improve transp

battling with multiple headwinds, which has affe

rowth coupled with a series of monetary tightenin

eeping the prices high has affected the volume ac

e housing and initiative in increasing the transpar

ent in the sector.

s View

ctor

ctor

mechanism of

real estate sector

arency.

cted the growth in

g measures by the

ross the segments.

ncy is expected to

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Auto


Rise in Excise duty by 2% to 12%

Excise duty increased for petrol a

diesel engine up to 1,000cc by 2% t

12%

Increase in excise duty on large

diesel cars to 27% (Ad vole rum)

Chassis for building of commercia

vehicle bodies to be charged excis

duty at an ad valorem rate instead

mixed rate. (Rate increased to 15%

The Union budget 2012-13 has m

market expectation, the Budget h

special duty has been levied on diwhich would have otherwise affec

duty, we expect auto companies to

would have an insignificant impact

Current Status

Existing 10% Negative for all auburdens would be

used gradually so

in the prices of Ve

d

o

10% Although the impa

will be negative, a

market expectatio

Negative: Maruti (

22% + INR 15000 per

vehicle

Diesel run UVs wil

and prima facie ne

Motors & M&M bcustomer would b

hike.

l

of

)

Existing 12% + Rs 10000

for outsourcing of body

building

The extra cost wou

would result in in

so negative for Tat

Leyland, Eicher,

Force Motors.

rginally negative impact for the auto industry. A

s increased excise duty by 2% across the catego

esel engine vehicles, which was by and large exped M&M substantially. On the base of overall inc

take price hikes and pass on the extra burden to e

on the companys bottom-line.

Unicons View

omobile but extratransfer to the end

here would be increase

icles.

ct on the sales volumes

it is in line with the

.

0% portfolio is petrol)

l get dearer negative

ative for TATA

t we believe the targetable to it to take the

ld be passed on which

rease in the CV prices

a Motors, Ashok

s in line with the

ies. However, no

cted in the street,rease in the excise

d customers. This

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Fertilisers & Agri


Viability Gap Funding to suppPPP in capital investment in fertili

sector

Withholding tax on inter

payments on ECB is proposed to

reduced to 5% for three years

Increase in investment lin

deduction of capital expenditure

Reduce basic customs duty on so

water soluble fertilisers, other t

urea to 5%

Reduce basic customs duty on liq

fertilisers, other than urea to 2.5%

Imports of equipment for ini

setting up or substantial expansi

of fertiliser projects are being f

exempted for a period of three ye

up to March 31, 2015

Weighted deduction of 150%

expenditure incurred for a

extension services

Allocating a sum of INR 2bn

incentivizing research thro

rewards

Subsidy for Fertilisers is inline wi

fertilisers has been the targeted spa

gap funding, exemption in equip

reforms are positive for compani

operations in urea manufacturing.

Current Status Unic

ortser

Announced in Budget2012-13

This announcem

investments in fert

est

be

Existing rate at 20%This announcem

margin of fertiliser

ed To be enhanced from

100% to 150%

This announcem

investments in fert

e

an

Existing duty at 7.5% This announce

demand for these

companies l

International, GSFid Existing duty at 5% This announce

demand for these

companies like GS

ial

on

lly

ars

Existing basic custom

duty at 5%This announcem

investments in fert

on

ri-

Announced in Budget

2012-13

This announceme

activities in all

especially seeds.like Rallis India, K

for

gh

Announced in Budget

2012-13

This announceme

activities in seed

companies like

seeds, etc.

h Unicon Pre-budget estimates around INR 600

e of the government in the Budget 2012-13; with re

ment import and increase in capex related ded

es like Chambal fertiliser, Zuari industries, etc l

ns View

ent would attract

liser sector.

ent would support

sector.

ent would attract

liser sector.

ent would boost

ertilisers. Positive for

ke Coromandel

, etc.ent would boost

ertilisers. Positive for

C, etc.

ent would attract

liser sector.

t would support R&D

agri-related sectors

ositive for companiesveri seeds, etc.

t would support R&D

sector. Positive for

Rallis India, Kaveri

n. Investments in

orms like viability

ctions. Budgetary

ooking to expand

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FMCG


FDI in multi-brand retail trade staquo

Increase in base central excise d

to 12%

Increase in service tax to 12%

Increase in excise duty on branready made garments to 12% w

abatement of 70%

Increase of excise duty on dem

goods such as certain cigarett

Hand rolled bidis and pan mas

gutkha, chewing tobac

unmanufactured tobacco and Zar

scented tobacco.

Reduction of basic custom duty

5% on specified coffee plantati

and processing machinery

Reduction in basic customs duty

Titanium dioxide to 7.5%

The Budget 2012-13 seems to be o

rural and farm development is exp

slabs is expected to increase the

positives are seemed to be negate

demand of products and increasing

Current Status

us Existing limit of 50% Negative as somwas expected in th

ty Current rate at 10% If passed on to co

demand moderati

companies like H

etc. in negative wa

Current rate at 10% This will increase t

the companies and

along with margin

are HUL, GlaxoS

Healthcare Ltd., Ni

edith The current excise dutyis at 10% with abatement

of 55 %

This will result inpercentage of retai

from 4.5% to 3.65%

rit

es,

la,

co,

da

Current rate lower at

8.8%Negative for c

Godfrey Phillips a

to

on Existing rate at 7.5%Positive for comp

Nestle etc

on Current rate at 10%Positive for paint

Paints, Berger Pain

erall neutral for FMCG sector. The increased allo

ected to improve the rural prosperity, also the revi

isposable income and increase the consumer sp

by increase in excise duty and service tax to 12

advertising expenses for FMCG companies.

Unicons View

clarification on thisbudget

sumers it may lead to

n. Thus affecting the

L, Nestle, ITC, Dabur

.

he advertising cost for

affect the bottom line

s. Companies affected

mithKline Consumer

rma etc

incidence of duty as al Sale Price to reduce

It is positive.

mpanies like ITC,

d VST industries.

nies like Tata Cofee,

companies like Asian

ts, etc

ation of funds for

sion of income tax

nding. The above

% moderating the

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Pharma / Healthcare


MAT rate kept unchanged

Extend the weighted deduction

200% for R&D expenditure in

in-house facility beyond March

2012 for a further period of f

years.

Increase in excise duty to 12%

Investment linked deduction

capital expenditure incurred

Hospital sector to be provided at

enhanced rate of 150 %

Extended concessional basic custo

duty of 5% with full exemption fr

excise duty/CVD to 6 specified lisaving drugs/ vaccines.

Increase in the basic exemption li

of Income Tax to 0.2 mn

Increase in allocation for NRHM

INR 208.22 bn

Reduction of custom duty

Probiotics to 5%

The Budget 2012-13 seems to be ov

of 200% on R&D expenditure ha

activities. However the unchange

expecting some relief on that meas

unlikely to affect the companies. Th

Current Status

Existing rate at 18.5% Negative for comReduction of

Companies affect

Cadila Healthcare,

of

an

31,

ive

The Current Weighted

deduction for R&D

expenditure at 200% was

till 2012.

Positive for com

expenses. It will

expenditure an

companies to tak

Positive for comp

Biocon, Dr. Reddy

Current rate at 10% Negative for MN

However if passenot affect the com

companies earn

locations.

of

in

he

The existing rate at 100%Positive for Healt

Hospitals in its Ca

to be benefited

Fortis Healthcare.

ms

om

fe-

Current exemption was

extended to 4 life saving

drugs

The move was ex

for companies lik

Cipla.

it Current Limit at 0.18 mn It will increase the

an individual,

healthcare relat

individual.

to Current allocation at 185

bnPositive for entire

on Existing rate at 10%Encourage sales of

erall Neutral for Pharma / Healthcare sector. The w

been extended for 5 yrs further, which will le

d MAT rate is taken as a negative proposal a

ure. The increase in Excise duty to 12% if passed

e increased allocation to NRHM will help boost the

Unicons View

panies paying MAT.AT was expected.

d are Sun Pharma,

Torrent Pharma.

panies having R&D

increase the R&D

encourage more

e up R&D projects.

anies like Glenmark,

s etc

Pharma companies.

to consumers it mayanies. Most Domestic

from excise exempt

care sector. It will aid

pex plans. Companies

re Apollo Hospitals,

ected and is positive

Lupin, Sun Pharma,

disposable income of

hus increasing the

d spend of an

harmaceutical Sector

Probiotics

eighted deduction

d to higher R&D

companies were

n to consumers is

rural sales.

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Education


Provide INR 25,555 crtowards the Right to

Education(RTE) and Sarva

Shiksha Abhiyan (SSA)

Repof 2

Setting up 6000 schools at

block level as modern

schools in the Twelfth Five

year plan

An

201

Provide INR 3124 cr to

Rashtriya Madhyamik

Shiksha Abhiyan (RMSA)

Rep

of 2

Set up a Credit Guarantee

Fund to provide better flow

of credit to students

An

201

Union Budget 2012-13 was modera

strong support to the education sec

regarding the public private partn

2025, hence the government has rig

by also providing universal access t

last but not least investments throu

institutions, thus making the countr

Information Technology


Allocation of funds to complete 40

additional AADHAR enrollments

(UID) and proposed implementati

of systems like payments under

MGNREGA & pensions and

disbursal of PDS, fertilisers & LPG

subsidies using AADHAAR asbackbone.

Union Budget 2012-13 was very su

on issues proposed by FICCI. Ther

only positive for the sector was

governance which will benefit IT

Positive for IT companies with

Infosystems, Redington, Glodyne,

Current Status Unicons Vi

resents an increase1.7% over 2011-2012

This announcement willimpact on the education se

increase infrastructure in

primary schools and college

ounced in Budget

-13This announcement will pr

primary and secondary edu

the youth

resents an increase

9% over 2011-12

This announcement will

impact on the education se

achieve universal acces

secondary educationounced in Budget

-13

This announcement will

access to credit to students

for their education

te for the education sector. The government has co

or. Although, the budget did not include any speci

rship (PPP) schemes. Over 70% of Indians will be

htly supported the sector not only by assuring prim

o higher education, the government has provided s

gh special grants to recognize excellence in univers

ys youth more employable.

Current Status

crs

on

Increase in UID spend by

13% to INR142.32 bn

We expect that all

improve the reve

whom the contrac

Wipro and TCS b

dued for the IT sector with no major announceme

e was no reduction of MAT on SEZ which is curr

the announcement by the government, of great

companies who have established contracts wit

domestic exposure like CMC, Wipro Infotech,

akrangee.

w

have a positivetor and will help

rural areas I

s.

ovide additional

cation facilities to

have a positive

tor and will help

s and quality

provide better

in need of funds

tinued to provide

ic announcements

of working age in

ary education, but

killed training and

ities and academic

Unicons View

ocated spend could

ues of IT companies to

ts have been awarded.

ing among them

ts or clarifications

ntly at 18.5%. The

r spending on e-

the government.

MindTree, HCL

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Metal, Mining & Minerals


Import duty on thermal coal has

been reduced to nil

Custom duty on steel increased to

7.5%

Import duty on machinery for pell

and beneficiation plant has been

reduced to 2.5%Basic customs duty on coating

material for manufacture of electri

steel reduced to 5%.

Custom duty on imported plant a

machinery for surveying and

prospecting for mining has been

reduced from to 2.5%.

Full exemption of custom duty for

coal mining equipment.

The Union Budget 2012-13 remain

provided to bridge the demand su

encourage technology up gradatio

material processing.

Current Status

5% Marginal benefit for

are dependent on t

However in case of

have to work out o

imported coal is stil

to domestic coal pri

Sterlite Ind., Hindal

Steel

5% Benefit the steel pla

Steel, SAIL, and Bh

et 7.5% Positive for NMDC

cal

7.5% Positive for Bhusha

d Ranges from 7.5% to

10%

positive for compan

backward integratio

JSPL,

Nalco.

d largely muted on the metal sector although fe

ply gap for Coal in the industry. However Gover

via reduction in custom duty in few of the proj

Unicons View

the DRI producers those

e imported thermal coal.

ower companies, they

the costing mechanism as

highly priced compared

ce. Positive for Nalco,

co, JSW Steel & TATA

ers like Tata Steel, JSW

shan Steel.

& JSPL.

Steel

ies prospecting for

n like NMDC, Coal India,

reliefs have been

nment is trying to

cts related to raw

7/31/2019 Budget 2012-13 Unicon

15/16

Media and Entertainment


Exemption of basic custom dutyLCD and LED panels (key input

flat LCD, LED sets).

Service tax hiked to 12%

Exempt the industry from service

on copyrights relating to recordi

of cinematographic films.

The weak macro economic environ

expected to hurt growth prospects

expected to remain the major g

digitization of cable TV (Jul2012 f

Media & Entertainment Industry gr

a growth of 11%. The sector is proj

the back of positive industry sentim

Current Status Unicon

onin Currently at 5% Positive for sectorincreasing penetrati

Current at 10% Negative as the con

to pay higher.

tax

ng

Current at 10% Positive for

distribution comp

Balaji etc.

ent has resulted in a slowdown in the advertisem

of most of the media companies. However, subsc

owth driver (on account of increasing digitiza

r metros and Mar13 for Tier1cities). According to

ew from INR 587 billion in 2009 to INR 652 billion i

cted to grow at a CAGR of 14% to reach INR 1,275

ent and growing media consumption.

s View

as it will help inon.

sumer is expected

roduction and

nies like EROS,

nt spend, which is

ription revenue is

tion - mandatory

KPMG the Indian

n 2010, registering

billion by 2015 on

7/31/2019 Budget 2012-13 Unicon

16/16

Address:

Unicon Financial Intermediaries P

VILCO Center, Near Garware Ho8, Subhash Road, Vile Parle (East),

Mumbai-400057

Ph: 022-3390 1469Email: [email protected] us at www.unicon.in

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