Current Affairs - 21 July 2016

General Affairs 

BJP Leader's Remark On Mayawati Shameful: Arvind Kejriwal

• 

  NEW DELHI:  Delhi Chief Minister Arvind Kejriwal today condemned BJP leader Dayashankar Singh's abusive remark against Bahujan Samaj Party chief Mayawati and termed it "shameful".
  
  Mr Kejriwal also said atrocities against Dalits across the nation have increased under the Modi government.
  
  "This (BJP leader's remark) is shameful. BJP's abuses and threats against women continue unabated both online and offline," Mr Kejriwal tweeted.
  
  BJP's Uttar Pradesh unit Vice President Dayashankar Singh had allegedly made a derogatory remark against the BSP chief.
  
  Mayawati has demanded Mr Singh's expulsion from the BJP.
  

  Mr Kejriwal also slammed the Bharatiya Janata Party led-government at the Centre over recent atrocities against Dalits.
  
  "Atrocities against Dalits and minorities have increased sharply during BJP regime," Mr Kejriwal said in another tweet.
  
  The Rajya Sabha today faced numerous disruptions as opposition members demanded a debate on atrocities against Dalits in Gujarat's Una town, where protests have continued with one Dalit man killing himself.
  
  The Dalit was among the five persons from the community who tried to commit suicide in separate incidents in Gujarat to protest atrocities against the Dalits.

Kashmir Newspapers To Resume From Thursday

• 

  SRINAGAR:  Kashmir newspapers are expected to hit the stands on Thursday after the government assured editors and publishers that their work won't be hindered by the heightened security in the Kashmir Valley in the wake of unrest that has left over 40 people dead and hundreds injured.
  
  The government had put curbs on the media on Saturday and lifted the ban on Tuesday, saying the decision taken at some "local" level was a mistake.
  
  But newspapers refused print runs, alleging that the authorities were denying that the government had banned newspaper publications in the valley.
  
  The logjam was resolved in a meeting on Wednesday between Chief Minister Mehbooba Mufti and editors of Srinagar-based newspapers.
  
  Editors and publishers said the Chief Minister "regretted" the ban and assured them of unhindered news gathering, printing and distribution.

This Is Not Rahul Gandhi Sleeping In Parliament, Says Congress Refuting Mayawati

• 

  NEW DELHI:  Rahul Gandhi was not sleeping during this morning's debate in Parliament about the recent attacks on Dalits in Gujarat, his party clarified, not the first time it has been forced to assert his vigilance in the face of evidence to the contrary.
  
  Television cameras showed Mr Gandhi's head lowered and propped up by his arm, his eyes seemingly closed.
  
  Some Congress leaders told reporters that the 46-year-old was checking his inbox. "It's not a crime to check a cellphone," said Abhishek Manu Singhvi.
  

  Congress parliamentarian Renukha Chowdhury blamed the weather. "It is hot outside, so people usually go inside the parliament which has air-conditioning and therefore close their eyes to relax," she said. "Can anyone sleep in this noise?" she challenged. It's apparently not impossible - Mr Gandhi was caught in similar circumstances in 2014 amid a discussion on inflation and escalating food prices.
  
  Congress supporter and columnist Tehseen Poonawalla appeared to suggest Mr Gandhi was having a Zen moment. "FYI dear media and BJP - RG is into meditation & one of the best ways to listen to a speaker is to close your eyes, breathe and hear," he tweeted.
  
  It was definitely a nap, said Mayawati, the Uttar Pradesh powerhouse and Dalit leader, claiming that Mr Gandhi's dozing off is totemic of his party's disinterest in fighting for the protection of lower castes. The Congress failed this week to raise the atrocities in Gujarat despite being the main Opposition party in the state and at the Centre, she said. It was only after she highlighted the issue in parliament that the Congress was roused into action, she professed.
  
  Mr Gandhi's apparent zoning out of this morning's debate is particularly baffling since he is scheduled to travel tomorrow to Una, the epicentre of the Dalit protests in Gujarat.
  
  Violence has broken out in the region of Saurashtra since a video went viral showing four young Dalit men being thrashed last week in Una by cow protection vigilantes. The victims said they were taking a cow who had died of natural causes to be skinned; the assaulters accused them of cow slaughter.

Sonia Gandhi Targets Modi Government, Questions Its Performance

• 

  NEW DELHI:  Congress President Sonia Gandhi today hit out at the Narendra Modi government over price rise, unemployment, FDI, recommendations of the Seventh Pay Commission and questioned the GDP figures.
  
  Mrs Gandhi also attacked the government on the issue of corruption in BJP-ruled states.
  
  Addressing the Congress parliamentary party meeting, Mrs Gandhi said: "When it comes to growth and GDP figures they tout, questions on their veracity are raised even by their own party leaders".
  
  "The BJP blocked every important FDI initiative of the UPA government. Yet now it has put in place a free-for-all policy even in a sensitive area like defence," she said.
  

  On the issue of job creation, Mrs Gandhi said the government in the past two years sought to create a 'bubble' of achievement.
  
  "Job creation has not only been its lowest in six years but retrenchment of industrial workers and loss of tens of thousands of jobs in the export manufacturing sector has added to the misery of the youth and the poor. There has been a continuous decline in exports over the last 18 months," Mrs Gandhi said.
  
  "Contrary to the claims that India has turned power-surplus, power shortages continue to be endemic," she added.
  
  According to Mrs Gandhi, prices of essential commodities, especially food items, are at an all-time high.
  
  "The Modi government's hollow claims on inflation have been exposed recently by no less than the Reserve Bank Governor (Raghuram Rajan). The widespread distress in rural areas seems to be of no concern to the Modi government," she alleged.
  
  She further said the Modi government was defying labour unions and reducing the security of their savings.
  
  "The recommendations of the Seventh Pay Commission have done injustice to the government employees and armed forces, resulting in discontent," Mrs Gandhi said.
  
  She said the Panchayat Raj Ministry established by the previous UPA government was being starved of funds and slowly driven into extinction.
  
  The Congress President also took on the government on the Gujarat State Petroleum Corporation (GSPC) scam, and mentioned alleged scandals in other BJP-run states like Maharashtra, Madhya Pradesh and Chhattisgarh.
  
  "The opaqueness of the Modi government in decision-making and brazen promotion of cronyism has cast a dark shadow on its integrity," Mrs Gandhi alleged.

Sarbananda Sonowal Says Will Write To Centre Over Proposed AIIMS

• 

  GUWAHATI:  Assam Chief Minister Sarbananda Sonowal today expressed concern over the recent agitation at Raha in Nagaon district and said the state government will write to the Centre to set up the proposed All India Institute of Medical Sciences there.
  
  People of Raha have been demanding that the AIIMS be established there instead of Changsari in Kamrup district. The agitation became violent recently after the police resorted to firing in which a civilian was killed and many others injured.
  
  "The decision to set up the proposed AIIMS at Changsari was taken by the erstwhile Congress government. The then Chief Minister of the state had approved setting up of the AIIMS at Changsari and the central government decided to set up the AIIMS at Changsari," Mr Sonowal said while interacting with the leaders of several organisations.
  

  "The government will prepare a draft with full participation of the leaders of the AIIMS Demand Committee at Raha, highlighting their concerns and proposals and send the letter to the central government," Mr Sonowal said.
  
  "The decision to write to the Union Health and Family Welfare Ministry was taken considering the deep-rooted interests involved in the issue and it is the prerogative of the Centre to take appropriate decision," he said.
  
  "The state government is sensitive to the concerns of the people of central Assam and will do the needful," Mr Sonowal said adding that the people of Assam have given responsibility to the new dispensation which will be fulfilled with utmost sincerity.
  
  Condemning the violence in Raha, Mr Sonowal said the state government will show no leniency to anybody found guilty in the incident. The government will take action on the basis of the findings of a one-man inquiry commission headed by Additional Chief Secretary Rajib Bora.
  
  He said the government had already paid an ex-gratia amount of Rs. 5 lakh and handed over the appointment letter for a government job to the wife of the deceased.
  
  Mr Sonowal also called upon the people of the state to extend support to the government for running the state smoothly.

Business Affairs 

7 Lakh Tax Notices Being Sent: Who Is Likely To Receive Them

• 

  In its attempt to uncover black money and tax defaulters, the government is sending out 7 lakh notices on big transactions which appear dodgy because PAN numbers were not disclosed.  A 10-digit unique PAN number assigned to individuals helps income tax officials track their financial transactions.
  
  The Department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions.  For the convenience of the parties to whom these letters are addressed, a new functionality on e-filing portal has been developed wherein they can own up transactions and provide structured response electronically. The parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them, can link their transaction.
  
  The deals under scrutiny have been culled from 2009 to this year. Those who're being asked to furnish more information are people who deposited Rs 10 lakh or more in cash in savings accounts; those who bought or sold property worth Rs 30 lakh or more.
  
  For those who receive the demand for an explanation, a government statement elaborated, "The parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them, can link their transaction with their PAN easily. They will also be able to give a response to this letter electronically by choosing the option of either owning up the transaction or denying the transaction as their own."
  
  The government is separately considering whether to ban any cash transaction above Rs 3 lakh, as recommended recently by an expert committee appointed by the Supreme Court.
  
  The decision to issue tax notices was announced a day after the Cabinet cleared the Benami Transactions Bill, which provides for confiscation of assets held in the name of another person or under a fictitious name to avoid taxation.

L&T Infotech Makes Weak Market Debut On Cloudy IT Sector Outlook

• 

  Larsen & Toubro Infotech Ltd, India's sixth-biggest software services exporter, fell as much as 6 per cent on its market debut on Thursday, as uncertainties over technology spending by European clients cloud the outlook for the sector.
  
  The lacklustre debut after an $184 million initial public offering - India's second-biggest this year - contrasts with sharp rallies this month by other market entrants: staffing firm Quess Corp's shares surged as much as 60 per cent, while Mahanagar Gas Ltd's stock climbed as much as 30 per cent on their first day.
  
  Strong markets in India are sparking a boom in IPOs, and bankers predict this year could be the best year in six with a total of about $7 billion raised. But analysts said L&T Infotech's debut was marred after disappointing earnings this month from bigger rivals such as Infosys Ltd and Wipro Ltd.
  
  Britain's decision to leave the European Union is also clouding the outlook for business in Europe, the second-biggest market for India's more-than-$150 billion IT outsourcing sector.
  
  "The IT pack has come out with disappointing numbers and it (L&T Infotech) has got listed in an environment when there is lot of scepticism about the IT sector outlook," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.
  
  Still, Shah said he was optimistic of "good returns" from L&T Infotech, a unit of engineering firm Larsen & Toubro Ltd, in the longer term.
  
  Shares in L&T Infotech were trading at Rs 705.05 on the National Stock Exchange at 0712 GMT, compared with its IPO price of Rs 710, after earlier falling to as low as Rs 666.
  
  L&T Infotech's IPO was priced at 13.1 times price-to-earnings for the fiscal year ended in March 2016, in line with other mid-sized firms in the sector, according to financial firm Centrum Wealth.
  
  Infosys, India's second-biggest IT outsourcer, last week cut its revenue guidance for the fiscal year and said it was tracking the fallout from Britain's vote to leave the EU on banking and financial services clients. The latter accounted for 26.3 per cent of L&T Infotech's revenue in the last fiscal year.
  
  Since the Brexit vote on June 23, the Nifty IT index has slumped 6.3 per cent - as of Wednesday's close - compared with a 3.6 per cent rally in the broader NSE index during the same period.

The Part-Time Job That Can Pay More Than $250,000 A Year

• 

  The people who sit on the boards of America's largest corporations got a modest raise last year. Corporate directors at Fortune 500 companies saw a three percent increase in their total direct compensation for 2015, rising to a median $263,500, according to a new report from the advisory firm Willis Towers Watson.
  
  But over the past decade, the increase looks more substantial, rising a cumulative 65 percent since 2006, when median pay was just $160,000 -- an annual rate of about five percent a year. That steady march upward, compensation experts say, reflects the expanding pressures on corporate directors, who must advise increasingly complex global corporations and take on much more risk in an environment with more rigorous governance standards.
  
  "There are much higher demands on directors in terms of governance, in terms of their time and in terms of their risk," says Rob Mustich, a managing director at Willis Towers Watson. "It's more difficult to attract directors than it was 10 years ago. It requires a much higher level of engagement, and not just checking off the box for the amount of meetings they attend."
  
  Despite those demands, it is still a decent chunk of change for a job that remains part-time for many. According to a 2015 survey by the National Association of Corporate Directors of its members, directors spent 248 hours, on average, doing board-related work, such as attending board and committee meetings, informally advising management or reviewing reports in the past year. At that rate, the average director would seem to be earning a little more than $1,000 an hour, using the new report's median compensation figure.
  
  But NACD president Peter Gleason says the comparison isn't that simple. For one, their survey skews toward small or midsize companies, where the number of hours directors spend on the work may be less than for large multinational corporations. "Fortune 500 directors laugh at it," he said, often citing the workload can lead to 600 or 700 hours a year. "Some people say it's a full-time job."
  
  Meanwhile, "you're not just paying for that hour. You're paying for the experience they bring to the table. You're paying for them to be on call" all year. Bring a top consulting firm in to offer similar advice to the management team, Gleason says, "and they'd be here six weeks and you'd spend that much."
  
  The structure of directors' pay reflects that trend toward more ongoing, informal advice. Companies are increasingly shifting cash paid for meeting attendance fees into larger annual cash retainers instead.
  
  "This started quite a while back," Gleason says, with boards saying "what we're going to ask you to do is be on call all the time." The demands of the job between meetings helped lead to the annual cash retainer jumping above $100,000 for the first time last year, according to the report.
  
  A significant portion of directors' pay is also typically made in stock, in an effort to keep board members' interests in line with shareholders. Willis Towers Watson's report shows that the average mix of pay last year was 57 percent in stock and 43 percent in cash, relatively similar to the year prior.
  
  Some companies pay directors even more heavily in equity-based compensation. An analysis by the Wall Street Journal in February, for example, found that each director's 2014 compensation at Regeneron Pharmaceuticals was valued at $1.7 million or more; the company's 2016 proxy statement, released in April, shows director compensation valued at $2 million or more in 2015.
  
  In an emailed statement, a Regeneron spokeswoman pointed to the sharp rise in the company's share price - it was the best-performing stock in the S&P 500 for the five years ending Dec. 31, 2015 - and the company's primarily options-based approach, which makes up some 90 percent of director pay.
  
  "We believe this aligns board compensation to the creation of future shareholder value, as any value from the stock option awards is realized only if the stock appreciates," she said in the statement, which also noted directors' cash pay "is about average for our industry and below median for our peer group."
  
  Meanwhile, the most a Berkshire Hathaway director made last year was $7,000. In his 2014 letter to shareholders, the Journal reported, CEO Warren Buffett wrote that "none took the job for the money." Instead, they purchase Berkshire shares and receive "the satisfaction that comes from being good stewards of an important enterprise."
  
  Even if director compensation is rising, boards do appear to be more concerned about the issue. The new report shows that 42 percent of companies now have caps on the stock grants individual directors can receive, and half of those have been adopted or amended just since last year. Mustich says that's partly driven by recent litigation that could make it easier for investors to take legal action on directors' compensation.
  
  But it's also because directors realize that as executive pay comes under increasing scrutiny, their pay could be, too.
  
  "They need to set the standard or set the example that their pay should be set competitively," Mustich says. "If not, it sends a message to executives."

Sensex Falls 205 Points, Banking Stocks Weigh

• 

  The Sensex fell over 200 points while Nifty settled below its crucial psychological level of 8,550 on selloff in banking shares.
  
  Investors are also waiting to see whether the government can pass a revamped goods and services tax bill in the ongoing parliament session.
  
  But overall, analysts said markets would likely retain their positive tone, with the NSE index up 3.4 per cent this month as of Wednesday's close, its fifth consecutive monthly gain.
  
  "Last couple of days we've been going below 8,500 and managing to close above 8,500. So that's a positive takeaway for markets," said Gaurang Shah, vice president at Geojit BNP Paribas Financial Services, referring to the Nifty.
  
  The Sensex closed 205 points lower at 27,710 and Nifty declined 56 points to settle at 8,510.
  
  HDFC Bank, India's second-biggest private sector lender by assets, reported a 20 per cent rise in quarterly profit, in line with analysts' estimates. Its shares closed 0.3 per cent lower at Rs 1,228.
  
  Larsen & Toubro Infotech closed at Rs 697.60, down from its IPO price of Rs 710, as its debut was marred by concerns about the outlook for the software services exports sector after some disappointing earnings this month.
  
  Among gainers, Ambuja Cements rose as much as 2.18 per cent to its highest in more than a year after the company received government nod to buy 24 per cent of its holding company Holcim (India) Pvt Ltd, paving way for restructuring of Ambuja parent LafargeHolcim's India assets.
  
  LafargeHolcim's majority-owned ACC Ltd rose as much as 5.3 per cent and was the top per centage gainer on the Nifty.

Seven Indian Firms On Fortune 500; Rajesh Exports Replaces ONGC

• 

  Seven Indian companies have made it to the latest Fortune 500 list of the world's biggest corporations in terms of revenue with the retail giant Walmart topping the global rankings.
  
  Indian Oil Corp is ranked highest at 161st among Indian firms, while another state-run firm ONGC has moved out of the rankings for 2016. Private gems and jewellery major Rajesh Exports has made its debut at 423rd position.
  
  Among the seven Indian companies, four are from the public sector while Reliance Industries is the top-ranked among private sector firms, followed by Tata Motors and Rajesh Exports.
  
  Among state-run majors, Indian Oil is followed by banking behemoth SBI, Bharat Petroleum and Hindustan Petroleum.
  
  Indian Oil is ranked 161st with revenue of $54.7 billion (down from 119th last year), while RIL is now at 215th (down from 158th). Bharat Petroleum slipped from 280th to 358th this year and Hindustan Petroleum is at 367th, down from 327th.
  
  However, Tata Motors and SBI have improved their position.
  
  While Tata Motors has taken the 226th position, up from 254th last year, SBI is ranked 232nd, up from 260th last year.
  
  The overall list was topped by Walmart with revenue of $482,130 million, followed by State Grid (revenue of $329,601 million) and China National Petroleum ($299,271 million) at the second and third place respectively.
  
  Others in the global top 10 companies include Sinopec Group (4th, $294,344 million), Royal Dutch Shell (5th, $272,156 million), Exxon Mobil (6th, $246,204 million), Volkswagen (7th, $236,600 million), Toyota Motor (8th, $236,592 million), Apple (9th, $233,715 million) and BP (10th, $225,982 million).
  
  The world's 500 largest companies generated $27.6 trillion in revenues and $1.5 trillion in profits in 2015, Fortune said.
  
  Together, this year's Fortune Global 500 companies employ 67 million people worldwide and are represented by 33 countries, Fortune added.

General Awareness

Three new Indian Historical Sites enters the World Heritage Site Listings

• For the first time World Heritage Committee (WHC)announced the adding of  three new Indian heritage sites of Historical importance to the World Heritage List by the WHC – A separate wing governed by UNESCO on in a single session July 17. During the 40th session of the WHC, this committee has come up with new added listings as follows:-
  

  

  • Khangchendzonga National Park (KNP), Sikkim
  • Nalanda Mahavihara (Nalanda University) Bihar
  • The Capitol Complex, Chandigarh.
    What is a Heritage Site?
    A heritage site is an official part of a nation where pieces of political, military, cultural, or social history have been protected on to their cultural heritage value. Historic sites are generally protected by law suits and many have been recognized with the official national historic site status.
    Historical importance of Khangchendzonga National Park (KNP), Sikkim :-
    

    
    This is situated at the heart of the great Himalayan range in Sikkim, India. This Khangchendzonga National Park includes an extensive biodiversity of
    • plains,
    • valleys,
    • lakes
    • glaciers and
    • spectacular, snow-capped mountains covered with ancient forests,
    • This also constitutes the world’s third highest peak, Mount Khangchendzonga.
    Fabulous stories are associated with this mountain along with a huge number of natural elements like caves, rivers; lakes are the subject of worship by the native and ancient people of Sikkim. The basis for Sikkimese identity instituted the sacred meanings of these stories and practices which have been integrated with Buddhist beliefs. This park also serves as a abode for huge number of endemic, rare and threatened plant and animal species. It is noted that this park first Indian Mixed Heritage Site to be mentioned in this prestigious list
    Historical Importance of Nalandha Mahavihara, Bihar:-
    Nalanda and the ruins of the ancient Nalanda Mahavihara comprises of this famous historical site. The name Nalanda evokes up a cenario of ancient Mahavihara. This institution later became a great centre of Buddhist education for nearly 700 years between the 5th to 12th centuries AD.
    Historical importance of The Capitol Complex, Chandigarh:-
    

    
    This building is one of the Seventeen buildings designed by Swiss-French architecture pioneer Le Corbusier. All his 17 buildings have been added to the World Heritage List by UNESCO. These 17 buildings are designed and constructed by him in various countries are,
    • The Maison Guiette, in Antwerp, Belgium,
    • The National Museum for Western Art in Tokyo,
    • The House of Dr Curutchet in La Plata (Argentina)
    • The Unité d’habitation in Marseille (France)
    • The Complexe du Capitole in Chandigarh (India) and structures in
    • Switzerland and
    • Germany.
    This capitol complex in Chandigarh was constructed by this renowned Swiss designer Le Corbusier in 1950, in order to epitomize the newly born independent and modern India.
    Turkish musician Kudsi Ergüner named UNESCO Artist for Peace
    

    i.The United Nations cultural agency UNESCO has named musician Kudsi Erguner, as an Artist for Peace in recognition of his efforts to promote the universal values of music, his contribution to the protection of musical heritage.
    ii.The appointment comes in a ceremony was held at the Congress Center in the Turkish capital, Istanbul, of the 40th session of the World Heritage Committee.
    iii.Ergner was born in Turkey in 1952 who is a musician, player of the ney (reed flute), composer, musicologist, teacher, author and translator.
    UNESCO lists Swiss-French architect Le Corbusier’s works among World Heritage Sites
    

    
    i.UNESCO listed Franco-Swiss architect Le Corbusier’s work among its World Heritage Sites. His works include the Indian city of Chandigarh which he planned in the 1950s.
    ii.The decision was announced as the World Heritage Committee meeting in Istanbul.
    iii.The chosen creations of Le Corbusier show his contributions to the Modern Movement that emerged after World War I with an emphasis on functionality, bold lines and materials such as concrete, iron and glass.
    UNESCO
    • Formation: 16 November 1945
    • Headquarters: Paris, France
    • Membership: 195 member states.