budget 2012-13 unicon
TRANSCRIPT
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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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
Proposal/Announcement
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
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Media and Entertainment
Proposal/Announcement
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
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Unicon Financial Intermediaries P
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Ph: 022-3390 1469Email: [email protected] us at www.unicon.in
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