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Business News/ Politics / News/  The Week in Review for 13 April 2012
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The Week in Review for 13 April 2012

The Week in Review for 13 April 2012

Infosys CEO & MD, S D Shibulal addresses during the announcement of the Q4 results of the company at its headquarter in Bengaluru on Friday. PTI Premium

Infosys CEO & MD, S D Shibulal addresses during the announcement of the Q4 results of the company at its headquarter in Bengaluru on Friday. PTI

On Friday, IT giant Infosys announced its earnings for the fourth quarter and its guidance for the current fiscal. But it disappointed investors on both counts. Revenues for the fiscal 2011-12 climbed just 15.8%. Infosys had issued a guidance of 16.3% for the year, and is known for being very conservative with its projections. This is the first the company has actually fallen behind its annual guidance. Not surprisingly, its guidance for the fiscal year 2012-13 is a mere 8 -10%

Infosys CEO & MD, S D Shibulal addresses during the announcement of the Q4 results of the company at its headquarter in Bengaluru on Friday. PTI

Moving to aviation, there’s actually some good news for Air India. On Thursday, the Cabinet Committee on Economic Affairs approved a massive Rs30,000crore bailout plan for the airline. It also approved a financial restructuring plan. Starting with the bailout, Air will get an assured equity support of Rs23,481crore until the fiscal year 2021. There will also be an upfront equity infusion of Rs6,750crore.

On top of this dole, Air India will also be able to restructure its huge pile of short-term loans. The cabinet approved the restructuring of more than 21,348 crore worth of working capital loans into long-term debt. What’s more, Air India will get a one-year moratorium on interest payments. It will also be able to pay up nearly Rs6,000crore in dues in addition to other dues to employees.

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Your executive summary of the top business stories from the week that was, from Infosys’ earnings to the latest economic numbers.

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In related developments, the government has eased the rules for foreign investments in India’s commodities exchanges. FIIs will no longer need government approval before buying up to 23% in a commodity exchange. The move will bring the norms for commodities exchanges in line with stock exchanges. At present, total foreign investment in an exchange can reach 49%. But it needs a green light from authorities. Also, FIIs can hold a maximum of 23%, while FDI can take up no more than 26%.

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Published: 13 Apr 2012, 10:24 PM IST
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