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Resizing Portions of Food Unrealistic: Restaurants

Trump Backtracks on Calling China ‘Currency Manipulator’

Kohli Fit, to Take the Field Against Mumbai Today

BRANDS: CREATING DESIRE5

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SPORTS: THE GREAT GAMES22

Inside story

‘INVESTMENTS CONTRADICT GOVT STANCE’

IT giant’s board in talks with institutional investors and promoters to defuse spat over charges of poor governance; CEO Sikka blames “distractions” for below-par performance in Jan-Mar quarter

Should LIC Infy Names Ravi Venkatesan Invest in ITC? Co-Chair to Placate Promoters HC to Decide

Ola Rides Away With `. 1.6kcr Funds Ola has raised `. 1,675 crore ($250 mn) in fresh funding from SoftBank, show documents filed with the corporate affairs ministry. The investment was closed last year. ET was the first to report on November 25 that Ola was raising $250-300 million from SoftBank at a valuation of about $3 billion.13

Two Tata trustees, 5 others file PIL against govt, state insurers investing in tobacco cos

Bharti Airtel has moved the telecom tribunal against Reliance Jio, asking it to restrain the company from providing free services, including those offered under the recently launched Summer Surprise offer. Lawyers of Jio objected to the latest application, saying it was meant to confuse issues. Companies: Pursuit of Profit8

ARINDAM

Airtel Moves Telecom Tribunal Against Jio’s ‘Free Services’

TECH TITANS: (FROM LEFT) CHAIRMAN R SESHASAYEE, CO-CHAIRMAN RAVI VENKATESAN, CEO VISHAL SIKKA AND COO PRAVIN RAO

Jochelle Mendonca & Megha Mandavia

said had contributed to a belowpar performance in the previous quarter. Board member and former chairman of Microsoft India Ravi Venkatesan will be the cochairman of the Infosys board alongside R Seshasayee, even as talks continue with institutional investors and promoters to defuse the heated spat over allegations of poor governance

at India’s second-largest software services company, levelled by founder NR Narayana Murthy in February. Castigating the board for what he termed as falling standards of governance, Murthy had called for the appointment of new board members and also a cochairman. Acknowledging the impact of these demands on the informa-

tion technology company’s operations in the JanuaryMarch quarter, Infosys chief executive officer Vishal Sikka said, “The atmosphere became tougher … the reality is that especially over the last quarter, generally, there have been distractions and noise. We have to deal with this.”

India to Use All Legal Options for Jadhav

Bengaluru | Mumbai: Infosys, bedeviled by headwinds that are dragging down growth, has moved to placate its promoters by appointing a co-chairman to the board of the Nasdaqlisted company while also pointing to “distractions” which it

The government has asked the Indian mission in Islamabad to exhaust all legal options available under Pakistan military’s legal code to save Kulbhushan Jadhav from the gallows even as the political leadership here weighs tough options, reports Dipanjan Roy Chaudhury.2

Investors See Little to Cheer in `. 13kcr Buyback Plan, Guidance

Pure Politics

SC Seeks Centre, EC Reply on Concerns Over EVMs The SC on Thursday asked the government and EC to respond on concerns expressed by BSP and Congress on alleged tampering of electronic voting machines in the last round of elections and their demand for a paper trail to prevent any foul play, reports Samanwaya Rautray.2

BJP Scores Impressive Victories in Bypolls Bharatiya Janata Party on Thursday won five of the 10 assembly bypolls across eight states while Congress won three and Trinamool Congress and Jharkhand Mukti Morcha retained one each.4

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Net profit drops 2.8% sequentially to `3,603 crore; FY18 growth forecast pegged at 6.5-8.5% Our Bureau

Bengaluru: Infosys said it would pay shareholders up to $2 billion, or `13,000 crore, through dividends and share buybacks in FY18, becoming the latest tech company to increase shareholder payouts, even as growth slowed and guidance disappointed investors as it announced March quarter earnings. Infosys fell 3.86%, pulling down the stock of rivals Tata Consultancy Services and Wipro as investors expect the gloom to spread. Slowing growth amid global uncertainty has meant that infotech companies from Cognizant to Tata Consultancy Servi-

YES

25% NO

Dismal Q4 Results

Revenue dipped 0.9% sequentially to `17,120 cr

Net profit fell 2.8% sequentially to `3,603 cr

KEY HURDLES

Gloomy Forecast for FY18

Infosys predicts operating margin to be in the range 23-25% from 24-26% earlier

Analysts were expecting op margin of 24-25%

Unanticipated Spat with founders execution challenges on governance issues

?

Growth forecast at 6.5-8.5% in constant currency terms vs analysts expectations of 7-9%

Seasonally soft quarter

A CLOSER LOOK AT INFOSYS DEVELOPMENTSPAGE 6 ces have started using share buybacks to reward investors turning impatient at diminishing returns. “The company’s current policy is to pay dividends of up to 50% of post-tax profits of the fi-

nancial year. Effective from financial year 2018, the company expects to pay out up to 70% of the free cash flow,” Infosys said in its filing to stock exchanges. ‘Too Little, Too Late’13

Economic affairs secy says decision on report well before next Budget Deepshikha.Sikarwar @timesgroup.com

Do you think there is enough scope for manipulation in dynamic fuel pricing?

70%

New Policy to See Higher Payout

Grim Picture

The revised capital allocation policy of Infosys will see a higher payout of free cash flow to investors. In addition, it plans to pay over one-third of its cash, equivalents and liquid investments of `. 38,773 cr back to shareholders in FY18 through dividend and share buyback. Despite this, the long term investors may find more reasons to worry than cheer. 9

DeMo, GST to Widen Tax Base & Help Meet Fiscal Targets: Das

Compiled by ETIG Database

*(`/10gm)

‘Structure Raises Questions’13

‘FRBM PANEL HAS MADE FISCAL GOALS MORE FOCUSSED’

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Do you think branding of premier trains to boost ad revenue is a great idea? www.economictimes.com AMRENDRA

New Delhi: Demonetisation and implementation of GST will widen the tax base leading to improvement in the tax-to-GDP ratio, and together with higher growth over next two-three years allow the government to maintain fiscal prudence while setting aside funds for public investments, economic affairs secretary Shaktikanta Das said. Commenting on the Fiscal Responsibility and Budget Management (FRBM) committee report, Das told ET in an interview that the panel has made the goals more focussed and the government will take a call on the report well before the next Budget. The NK Singh-headed commit-

tee has suggested a new fiscal framework anchored on sustainable government debt pegged at 60% of GDP and prescribes appropriate fiscal deficits to achieve the same by FY23. “In the recent years, compliance (to the fiscal deficit targets) is definitely strong. Now post demonetisation and post implementation of GST, tax base will widen and hopefully tax-to-GDP will also improve,” said Das. “And with the economy expected to show higher growth in next 2-3 years, tax-to-GDP will improve, so overall it should be possible for the government to meet the requirements of public investment and maintain fiscal deficit,” Das told ET, explaining how the targets are achievable. Fiscal Deficit at 2.5% by FY2313

Exports Zoom 27.6% in March, Imports Up Too India’s merchandise exports increased at the fastest pace in almost six years in March led by an overall rise in shipments across sectors even as a steeper rise in imports due to firmer commodity prices widened the trade deficit. Buoyed by petroleum, textiles, engineering goods, and gems and jewellery, exports zoomed 27.6% in March to $29.2 billion but a 45.25% increase in imports on the back of higher gold inflows led to a trade gap of $10.4 billion.17

Post Liquor Ban, Hotels Have a MICE Problem Meetings, incentives, conferences and exhibitions, which form a sizeable chunk of hospitality business, check out after SC order Anumeha.Chaturvedi @timesgroup.com

New Delhi: The ban on selling liquor near highways has had an additional fallout: meetings and conferences, which account for a sizeable chunk of the hospitality business, are being cancelled. The Orchid Mumbai Vile Parle, close to the airport, has been served a notice to not sell liquor because of its proximity to the highway. As a result, about six conferences and events planned at The Orchid this month have been cancelled. “Hotels like ours are positioned as business hotels and have facilities in place for conducting such events. This is not just loss of business but loss of face,” said Vishal Kamat, director of the Kamat Group, which owns the hotel.

In the industrial town of Manesar in Gurgaon district, 14 conferences for April alone have been cancelled at the Select Group’s Heritage Village Resort & Spa, which is close to NH8. Arjun Sharma, managing director of the Select Group, said there’s been a 50% drop in upcoming bookings and business enquiries at the resort for the coming months. “Meetings, conferences and events contribute about 70% to our

turnover,” said Sharma. Meetings, incentives, conferences and exhibitions, known as the MICE segment, is a critical revenue generator for hotels and is A meeting showing visible scheduled at signs of distress a major two weeks after Indian hotel the Supreme chain in Court’s March 31 Chennai has ban on liquor sales now moved near highways. to Sri Lanka Business events

and conferences scheduled in hotels and resorts close to highways are getting cancelled and even moving to other countries. A business meeting scheduled at a major Indian hotel chain in Chennai has now moved to Sri Lanka, according to people familiar with the development. “MICE was becoming an attractive revenue generator for hotels in the face of stagnant average room rates. In state capitals like Delhi, Mumbai and Beng-

aluru, MICE could constitute 18-20% of the overall business,” said hospitality expert Abhijit Umathe. “F&B operations from MICE is a big revenue driver.” “We have witnessed cancellations and people are requesting for deferred bookings as well,” said Raj Rana, CEO, South Asia, for Carlson Rezidor, the owner of brands such as Radisson and Radisson Blu in India. Non-alcoholic Drinks13

Rajesh.Mascarenhas @timesgroup.com

Mumbai: Tata Trusts trustees R Venkataramanan and Laxman Sethuraman along with five others have filed a public interest litigation (PIL) in the Bombay High Court against the union government, the Insurance Regulatory and Development Authority of India and five state-run life insurance companies for investing in tobacco companies including ITC and VST Industries. Such investments contradict the anti-tobacco stance of the government of India on a national and international level, the PIL said. The holdings are worth a total `. 1.03 lakh crore based on Thursday’s closing prices. Four public sector insurance companies and the Specified Undertaking of the Unit Trust Of India (SUUTI) hold a 30.25% stake in ITC. While Life Insurance Corp of India has a 16.29% stake, SUUTI’s holding is 9.10%. On February 7, the government sold 2% of its stake in ITC held through SUUTI to LIC for `. 6,700 crore. Other companies named in the PIL include General Insurance Co, New India Assurance Co, Oriental Insurance Co and National Insurance Co. New India Assurance holds a 1.71% stake in VST Industries. LIC, which has sold millions of Indians life cover, should not be party to the business of ITC or any other tobacco firm, said the PIL. The petitioners include Sumitra Hooda Pednekar, widow of former Maharashtra minister Satish Pednekar, who died of throat cancer; Pankaj Chaturvedi, surgeon, Tata Memorial Hospital; Abhay Bang, director of the Society for Education, Action and Research in Community He-

Up in Arms

STAKE OF PUBLIC-SECTOR ENTITIES IN TOBACCO COS Fund

% Value Holding (` Cr)*

Holdings in ITC 9.10 30,924 SUUTI 16.29 55,357 LIC Oriental Insurance 1.40 4,758 New India Assurance 1.70 5,777 General Insurance 1.76 5,981 Holding in VST Industries New India Assurance 1.71 82 TOTAL 1,02,878 * As on April 13, 2017

LIC, which has sold millions of Indians life cover, should not be party to the business of ITC or any other tobacco firm, said the PIL

`

alth; Ashish Deshmukh, member of the Maharashtra Legislative Assembly and chairman of the No Tobacco Association NGO; and PC Gupta, director of the Healis-Sekhsaria Institute of Public Health. Venkataramanan is the managing trustee of Tata Trusts and he oversees various public health initiatives undertaken by them. He was profiled by ET after getting caught up in the feud that erupted after Cyrus Mistry was ousted as chairman of Tata Sons in October last year. Mistry accused him of being instrumental in Tata Capital giving loans to C Sivasankaran and said that he dismissed fraud at AirAsia India. Venkataramanan had refuted the allegations in an interview to ET. He is also an active participant in various anti-tobacco activities and by virtue of his role at Tata Trusts has spearheaded many initiatives against the habit. He is also a trustee of the Tata Medical Centre Trust. ‘Divest Shareholding’13

Smartphone Sales Slump, White Goods Lose Sheen Online

A BIG SETBACK End of steep discounts, note recall took big toll on online sales in 2016

Taking A Hit MOBILE ONLINE SHIPMENT SHARE IN INDIA

15% 31% 32% 2014

2015 2016 Cos say slowdown is due to lack of heavy discounting, fewer newbrand launches and brands focusing on price equality across online-offline

CONSUMER APPLIANCES ONLINE SALES SHARE

5.7% 6.6% 7.7%

2014 2015 2016 Demonetisation Online-exclusive hit COD mode of smartphone brands like payment Xiaomi, Lenovo-Motorola and Asus are Sources: Counterpoint Research, Euromonitor now expanding aggresInternational, Industry sively into offline

Writankar.Mukherjee @timesgroup.com

Kolkata: Online smartphones sales went flat last year after a three-year surge, reviving spirits in the brick-and-mortar trade. On top of that, ecommerce sites failed to make any significant headway in white goods such as refrigerators and airconditioners despite online marketplaces trying hard to make a dent in the segment. Hong Kong-based market tracker Counterpoint Research said the share of online sales of smartphones grew just a percentage point to 32% of the overall market in 2016. In contrast, this had doubled in 2014 and 2013. The reason for this was the end of heavy discounting after the government issued norms for online marketplaces to maintain a level playing field. Also, brands set uniform pricing

norms across online and offline sales, betting on an omni-channel strategy. “There are virtually no price differences for popular smartphones between online and offline. Hence, offline contribution of smartphones is now going to grow again,” said cellphone retail chain The share of Hotspot’s direconline sales of tor Subhasish smartphones Mohanty. grew just a Shubhodip percentage Pal, chief operapoint to 32% ting officer at of the overall market last year online exclusive smartphone brand Yu Mobiles, said online sales weren’t spared the demonetisation effect in November and December as it hit the cash-on-delivery mode of payment. Yu Mobiles is owned by Micromax. ‘High Return Rates’13

Selling on Amazon to be Dearer ANIRBAN BORA

Amazon India will charge higher commission from online sellers for selling on its platform as the ecommerce company looks to cut losses and make profits.PAGE 5

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THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

CALLING ON LAW PANEL CHAIRMAN

HONOURING INDIANS

Muslim Board Opposes UCC at 1st Meeting Chauhan tells board members commission still examining uniform civil code & its feasibility

No Change in Stand

[email protected]

A MOMENT TO REMEMBER: President Pranab Mukherjee arrives at the Padma Awards function at Rashtrapati Bhavan in New Delhi on Thursday. Prime minister Narendra Modi, Union home Minister Rajnath Singh and others are also seen — PTI

EVM ‘Concerns’: SC Asks India’s Islamabad Govt, Poll Panel to Explain Mission told to Use SAVING KULBHUSHAN JADHAV

All Legal Options The Ill-famed Pak Courts Pakistan introduced military courts under an amendment introduced in January 2015

Jadhav charged under Section 15 of Pak Army Act (1952) (PAA) and Sec 3 of Offical Secrets Act (1923); both laws give immense power to military courts and Pak Army

Indian govt wants to focus simultaneously on political-diplomatic and legal options DipanjanRoy.Chaudhury @timesgroup.com

New Delhi: India has asked its diplomatic mission in Islamabad to exhaust all legal options available under the legal code of Pakistani military to save Kulbhushan Jadhav from the gallows, even as the political leadership here is exploring several tough options vis-a-vis Islamabad. The Indian government wants to focus simultaneously on legal and political-diplomatic options to deal with Pakistan in the Jadhav case. The two legal options are: Filing an appeal within the stipulated 60-day period, or seeking a pardon from the President of Pakistan. Both these options would have to be exercised by Jadhav himself. He has to appeal to the Military Appellate Tribunal. Jadhav can also have his sentence reviewed by a civilian court and can

These ill-famed military courts were to be automatically disbanded after two years. However, just days before Jadhav’s conviction, on March 22, Pak senate passed an amendment to grant them extension for another two years have a lawyer of his choice. The Indian government can find a lawyer to defend Jadhav if the Indian High Commission is given consular access. Pakistani civil society groups and NGOs, who have earlier helped Indian prisoners in Pakistani jails, may also help India, even though the case is in a military court. Ever since the creation of military courts in Pakistan in 2015, it has faced opposition from some politicians, NGOs and civil society groups. Jadhav, who should have ideally been given consular access and a right to choose a lawyer to defend himself, was tried under the secrecy of a military court. India can Such courts are nototake help rious for their arbifrom UN & trary trial process. bring matIndia can also take ter before help from the UN and Int’l Court bring this matter beof Justice fore the International Court of Justice as a matter of violation of treaty obligation owed to India, therefore, creating an international obligation for Pakistan, hinted persons familiar with the matter. The obligation in this case flows from the Vienna Convention on Consular Relations, 1963 (the Treaty). India and Pakistan signed and ratified the Treaty on November 28, 1977, and April 14, 1969, respectively.

Will go to Any Extent to Get Justice for Jadhav: Rajnath NEW DELHI: Home minister Rajnath Singh has

reiterated that India will go to any extent to ensure justice for Kulbhushan Jadhav. He said external affairs minister Sushma Swaraj had made the country’s stand clear and that whatever he had said in Parliament in this regard remains unchanged. — PTI

THIRD

ZAHID

EYE

FOR VOTERS’ SAKE Petitioners demand paper trail to instill confidence Samanwaya.Rautray @timesgroup.com

New Delhi: The Supreme Court on Thursday asked the government and the Election Commission to respond on concerns expressed by the Bahujan Samaj Party and Congress on alleged tampering of electronic voting machines in the last round of elections and their demand for a paper trail to prevent any foul play. The BSP said the use of EVMs in elections was “unconstitutional” but did not press its original demand for a stay on the results of recent assembly elections in Uttar Pradesh and Uttarakhand. Cong ress and T rinamool Congress MP Kalyan Banerjee also expressed their reservations about the electronically operated voting machines. The parties alleged that though the court had in 2013 directed that EVMs be mandatorily accompanied by a paper trail for verification, the government had failed to provide the necessary funds to EC to introduce it in all constituencies. A bench comprising justices Jasti

VIEW EVMs are Good, Let’s Stick to it The Opposition’s demand for a paper trail to prevent any misuse of electronic voting machines makes no sense. Instances of booth capturing, rigging and other such electoral offences were rampant when paper ballots were in vogue. Those have vanished with the adoption of EVMs, and that has enhanced people’s faith in India’s democracy. It’s strange that Opposition parties don’t complain about EVMs when they win polls. Raising a hue and cry over EVMs is absurd. Hacking is simply not possible because EVMs are not networked. Lets stick to EVMs.

Chelameswar and Abdul Nazeer, after issuing the notices, listed the case for further hearing on May 8. The BSP petition also demanded a paper trail to instil confidence in the poll process. “EVMs are susceptible to hacking and could be corrupted at any stage of their design, manufacture and use. Further, there is also no transparent way to detect errors in recording votes or deliberate election rigging with the machines,” it said. Despite the court directive, the commission proceeded with EVMs without procuring sufficient number of VVPAT (voter-verifiable paper audit trail) machines, it alleged. “Out of 403 constituencies, VVPAT machines were installed only in 20 constituencies in UP. It appears that VVPAT machines were not provided deliberately in order to play mischief with EVMs,” BSP alleged. Senior advocate P Chidambaram, who appeared for BSP, said in 2013 the court tried to plug the leaks in the system by asking the government to ensure that a voter verified paper audit trail was attached to all EVMs.

New Delhi: The All India Muslim Personal Law Board has opposed the implementation of uniform civil code (UCC). A delegation of over a dozen members of the board met Law Commission chairman justice (retd) BS Chauhan on Thursday. The delegation told the chairman that the board was vehemently opposed to the code. In a meeting which lasted for a little over than 10 minutes, the board members kept reiterating their opposition to the UCC. Chauhan told the board members that the commission was still examining the uniform civil code and its feasibility in the Indian society. “The board members claimed that they have thousands of copies signed by various Muslim outfits and people opposing the code,” persons privy to the development told ET. ET has also reliaThis is bly learnt that the the first board has already meeting of sent several signed the board copies of the proformembers ma prepared by it. with the The one-page proforchairman ma prepared by the board has signatures from different Muslim outfits against the UCC. It is pertinent to mention here that this is the first meeting of the board members with the chairman after the Modi government referred the contentious issue of uniform civil code to the Law Commission. Despite the commission clearly suggesting that it was too premature to oppose the code since its definition and feasibility was being explored by inviting views, the board members refused to accept the argument. The board, right from the beginning, had decided to oppose the move. The board had also declared that it would boycott the stakeholder engagement questionnaire on the code released by the commission last October. In its press conference, the board had taken the argument that “uniform civil code is not good for this nation. There are so many cultures in this nation, they have to be respected”. One of the spokespersons of the AIMPLB had then said: “The intention of the Law Commission seems to be very clear and the kind of questionnaire they have prepared, a fair discussion was not possible. We do not want any change in our personal

The board members claimed that they have thousands of copies signed by various Muslim outfits and people opposing the code PERSONS PRIVY TO THE MEETING ET has also reliably learnt that the board has already sent several signed copies of the proforma prepared by it Despite the commission suggesting that it was too premature to oppose the code since its definition and feasibility was being explored by inviting views, the board members refused to accept the argument Board had also declared that it would boycott the stakeholder engagement questionnaire on the code released by the commission last October

laws. Personal laws of Muslims are nonnegotiable. We do not accept (any changes proposed or to be proposed).” Dispelling such apprehensions, Law Commission chairman last October, in an exclusive interview, had told ET that it was “completely wrong to insinuate that the questionnaire is loaded in favour of the code”. He had added “when we ourselves are unsure of what format and shape the uniform civil code can eventually take or not take, how can anyone be apprehensive about the issue at this stage”.

MAYA EFFECT BSP complained party has been singled out and blamed its political rivals for witch-hunt

EC to Examine A/c of All Parties Post-Note Recall Larger question is how to deal with a problem, and possible violation [email protected]

New Delhi: A complaint against the Mayawati-led BSP to the Election Commission is set to open up the accounts of all political parties which deposited piles of cash in party accounts after the demonetisation was announced on November 8, 2016.

As per EC’s 2014 transparency guidelines for all political parties contesting elections, any amount of money received in cash has to be duly accounted for in its account books and deposited in the party’s bank account within a week of receipt. However, post-note ban, such deposits were made much later and right through November 2016 by some political parties. A writ petition was even filed against the BSP in the Allahabad High Court on this issue. The EC issued a notice in March to BSP following the complaint that the party had deposited over `100 crore cash into its accounts for many days after the de-

QUESTIONS RAISED

Maya-led party had raised the question why such an inquiry into deposits made by other parties was not being initiated

monetisation announcement by the government. BSP, while admitting that such deposits indeed were made, claimed that everything was done legally. The Mayawati-led party, in its response to EC, had also raised the question why such an inquiry into deposits made by other parties was not being initiated. ET has learnt that the EC has now decided to examine the issue threadbare and seek details of deposits made into accounts of political parties after November 8, 2016. The larger question, however, is how to deal with a problem, and possible violation, which EC hadn’t dealt with in the past. Sources told ET

that the EC will examine this issue comprehensively to assess how much jurisdiction it has legally on something of this nature and whether there is a penal provision under various laws to act on this offence. If the EC finds that as per laws, it does have jurisdiction to rule over such a violation, it will be deliberated what course of action should be adopted by the Commission. While BSP complained that the party has been singled out and blamed its political rivals for the witch-hunt, EC appears to have found sufficient merit in the BSP argument that similar deposits may have been made into the accounts of other political parties too.

INDIA FINDS KEY ALLIES IN ARAB WORLD A shot in the arm for India, which is seeking to mount pressure on Pakistan

Egypt, Saudi Ulema Council Speak Out Against Terrorism DipanjanRoy.Chaudhury @timesgroup.com

New Delhi: India has found key allies in the Arab World which have been traditionally close to Pakistan but have lent their support to India’s stand against the neighbour’s selective approach in fighting terror. Egypt has joined ranks with India

and called for a united approach in fighting terror after Sunday’s terror attacks killed 45 people. Simultaneously, the Ulema Council, the highest religious body of Saudi Arabia, the closest ally of Pakistan in the Gulf, issued a statement emphasising that Islam does not permit terror. “Egypt reaffirms the need for collective efforts by the international community to combat terrorism

which is one of the most serious threats to international peace and security,” Egypt’s ambassador to India Hatem Tageldin said in a statement. Egypt, a key power in the Arab world for decades, is now working with India to expanding counterterror and security partnership. Also, senior ulemas from Saudi Arabia strongly condemned terror attacks in the name of the religion.

Take Help To Save Jhadav Key Arab countries speaking out against Pak’s selective approach to terror is a positive development. New Delhi should actively seek support from these countries to put pressure on Islamabad to rescind its decision to execute Kulbhushan Jadhav, who was not accorded due legal recourse.

VIEW

Every Indian is an Ambassador

Progressing Like a ‘Kasav’

Payment Pangs for Vijay Yatra

Promising Hilsa & Rice

Former PM Atal Bihari Vajpayee’s old associate Ashok Tandon regaled people with some anecdotes at a recent meeting at Vivekananda Foundation. He recalled what a US senator had fondly told Vajpayee: “Why do you need an ambassador here, every Indian professional living here is one.” The conference was rightly themed ‘Communicating India to the World’.

Although Sena-BJP ties are on an upswing, it seems the patch-up is not complete. Recently, while congratulating actors of two award-winning Marathi films — ‘Kasav’ and ‘Ventilator’ — Uddhav Thackeray relied on word play to highlight the actual camaraderie between the two parties. When asked, he said the alliance is not on a ‘ventilator’ and is progressing like a ‘kasav’, which in Marathi means a tortoise.

Delhi BJP chief Manoj Tiwari’s ‘Vijay Yatra’, a roadshow for the upcoming MCD elections, seems to have hit a bump. While the party had hired 35 e-rikshaws as ‘raths’ with posters and messages, about a dozen of them were still parked outside 14 Pandit Pant Marg, the party office, due to payment issues. With Tiwari and others out campaigning, the owners were crying foul that there was no one to clear their bills.

Bengalis and their love for food are virtually synonymous and even top political leadership cannot resist it. Recently, during a dinner at the Rashtrapati Bhavan, visiting PM Sheikh Hasina and Bengal CM Mamata Banerjee heaped praises on each other about respective hospitality and food. The visiting PM even assured Mamata of feeding Hilsa and rice when she visits Dhaka next time.

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Karnan Summons CJI, Six SC Judges to Appear Before Him on April 28

The Case: Violation of Scheduled Castes and Tribes (Prevention of Atrocities) Act

TWEET-O-METER The Best Political Tweets Only in ET

PTI

Kolkata: In a renewed confrontation with the Supreme Court, Calcutta High Court judge Justice CS Karnan on Thursday passed a “judicial order” against seven SC judges, including Chief Justice Jagdish Singh Khehar, for “violating” the Scheduled Castes and Tribes (Prevention of Atrocities) Act and directed them to “appear” before him on April 28. It is not clear if the “order” has any legal validity since the apex court had taken away administrative and judicial powers from Karnan. The seven judges had issued a suo motu contempt order against Karnan in February after he had in January named 20 “corrupt judges”, seeking probe against them to curb “high corruption” in the Indian judiciary. Subsequently, Justice Karnan appeared be-

fore the apex court on March 31 following a bailable warrant issued against him by the apex court. The seven justices gave the Calcutta High Court judge four weeks to respond to the contempt notice issued to him. Even as he presented himself before the Supreme Karnan said Court justices, Karnan told the SC them that he would not rejustices had spond to the notice. “committed On Thursday, Karnan said in heinous his purported order: “...I am crime” directing the Hon'ble seven judges to give your replies in person or through your council (Counsel) regarding declaration of guilt and quantum of punishment by 28.04.2017 at 11.30 a.m. at my resi-

Oppn Stands United in Presidential Poll

Some party leaders initiate informal talks to field a joint candidate against NDA nominee to show opposition to policies of the government and BJP

ZAHID

SHARAD YADAV @SharadYadavMP

In d interest of democracy & to keep intact status of upper house, need to decide what is money bill. If need be Constitution be amended.

Abhishek Singhvi @DrAMSinghvi

Sad tht cultural events lead 2destruction of mother nature. Such cultures must be shunned. Does PM regret inaugurating it with petn pending

New Delhi: Some opposition party leaders are exploring the possibility of fielding a “united opposition candidate” in the upcoming presidential election, building on the unity displayed by leaders of more than a dozen parties who met President Pranab Mukherjee over alleged tampering of electronic voting machines on Thursday. Some opposition leaders have already initiated informal discussions on this, sources privy to the development said. “The growing atmosphere of hostile ideological and political confrontation from ruling side have prompted us to have some informal discussions about the option of the opposition unitedly contesting the presidential polls,” said a leader involved in the exercise. “Let us see how it plays out.” Several opposition leaders met

FRIENDS IN NEED

The Elections

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Presidential election slated for July

After UP, Uttarakhand win, BJP and NDA have an upper hand in number games to elect president

THE OPPOSITION Oppn building on unity displayed by party leaders who met Prez over alleged tampering of EVMs

AIM OF OPPOSITION Several Oppn leaders handed over an 11-point petition against attitude of Modi-led govt

Mukherjee on the last day of the budget session of Parliament and handed over an 11-point petition against the attitude of the Narendra Modi-led government on various issues as well as their complaints about alleged tampering of EVMs in the recent state elections. The presidential election is slated for July. The electoral college for choosing the next president consists of Members of Parliament

To firm up collective view on having a presidential contest within Cong leadership and among Oppn parties

and MLAs of states and the union territories. After BJP’s huge electoral victories in Uttar Pradesh and Uttarakhand, and success in forming coalition governments in Goa and Manipur, the party and NDA now have a clear upper hand in the number games to elect a president of its choice. Senior leaders of some opposition parties, however, feel they should “force a contest” in order to

Explore contacts with other Oppn parties that remain non-aligned so far Zero in on a leader with larger acceptability across Oppn parties

register a larger political and ideological statement of Opposition unity against the policies of the NDA government and BJP, even though the government-backed candidate is expected to win the race. While most opposition parties officially maintain that they are waiting to see who is NDA’s presidential candidate before deciding on their own options, it is reliably

AICC Sets Oct 30 Cutoff For Organisational Polls Plans to hold elections to booth, block, district and PCC committees 2 mths ahead of EC deadline

AAP & Mr Kejriwal have not just lost their DEPOSIT They have lost their CREDIBILITY

Ajay Maken @ajaymaken

INC workers have done well to jump from 12% to 38% in just 2 years! AAP loses deposit

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DEMOCRATIC WAYS

The efforts will be for democratic consensus-building by preventing unhealthy competition between the party members MULLAPPALLY RAMACHANDRAN Senior Congress leader

is decided that the Congress party will immediately start the process of organisational elections in a democratic and transparent manner and will complete it and submit the report to the Election Commission before December 31, 2017”, Ramachandran told ET. Asked what would be the general approach of the

Rawat’s Satellite Plan to Check Illegal Mining Sitaram Yechury @SitaramYechury

When your priorities are beef and Romeos, and not jobs for the youth. Or controlling inflation for the average Indian. #JumlaSarkar

Sushil Kumar Modi @SushilModi

Cong want to revert back to ballot paper so that they can once again capture booths.

BJP and Hackers are biggest beneficiaries why should they kill a Golden Goose ?

To set up Geo Informatics Cell to collect information across the state Sanjay.Singh2 @timesgroup.com

New Delhi: The Uttarakhand government has swung into action to adopt the Mining Surveillance System to check illegal mining activities across the state. Under this system, developed recently by the union mines ministry, the state’s mining department would be in position to develop surveillance network using latest satellite technology. The state government is also considering the use of drones in its proposed campaign against illegal mining. As per the new action plan, the state government will soon set up Geo Informatics Cell to collect every information relating to mining activities across the state. “We are in touch with Union mines ministry to set up our control room to put an effective check on illegal mining across the state. We have decided to use satellite

technology to develop surveillance network to keep a close eye on mining activities,” Vinay Shankar Pandey, special secretary in Uttarakhand’s mines department, told ET on phone. The state has also decided to set up special police teams which will be active in state’s two divisions — Kumaon and Garhwal. The team would be under mines department. It would accommodate one DSP-rank officer, one inspector, one sub-inspector, two head constables and 10 constables. The mines department will also ensure proper audit of all stone crushers and stores meant for mineral resources in the state. The department will issue an e-paper on the basis of audit report for the next financial year. BeThe state sides, the governgovt is also ment would instal considering use drones of CCTV at every exit to crack down and entry points of on illegal the mining areas miners within two weeks. There is also proposal for creating a secret fund to prompt locals to give information on illegal mining. The department plans to reward locals who provides such information.

party in conducting organisational polls, he said, “The efforts during the organisational elections will be for democratic consensus-building by preventing unhealthy competition between party members.” Incidentally, Rahul Gandhi’s earlier experiment with ‘ballot election’ in the Youth Congress had led to intensified infighting and allegations of misuse of money power by candidates. Several experienced leaders feel that, given the huge challenges and crisis party faces now, cementing internal unity, not divisive experiments, is the key strategic requirement of the party. As the priority for the party is to complete polls before October 30, the pending proposals to reduce the party membership fee to Rs 3 from Rs 5 and shrink the tenure of office-bearers to three years from five will be now taken up only at the AICC plenary session to be held after the organisational polls. This is because there is no time now to convene an ordinary AICC session to amend the party constitution.

PM Modi to Launch Slew of Projects During Gujarat Visit Our Political Bureau

Gandhinagar: Prime Minister Narendra Modi will be visiting Gujarat, his home state, from April 17 to inaugurate a slew of projects in South Gujarat and Saurashtra region of the statethat goes to polls later this year. The Patidar-dominated Surat and Saurashtra regions could play a crucial role in the poll outcome, and the BJP is giving special emphasis to these regions. The PM, during his visit, will inaugurate a cattle feed plant in Tapi district. He will also dedicate a trust-run hospital project worth `. 400 crore to the people of Surat apart from inaugurating phase I of Saurashtra Narmada Avataran Irrigation Project (SAUNI) in Botad district of Saurashtra region, and lay the foundation stone for phase II of the project. The SAUNI project is aimed at wooing Saurashtra farmers as it proposes to fill 115 dams of the region with the overflowing water from Sardar Sarovar Narmada Dam through a network of pipelines. It may be mentioned here that during his last visit to the state on March 9, Modi had said that the coastal region of Gujarat would receive `. 45,000 crore from the Sagarmala Yojana scheme. He had also announced the conversion of eight state highways of Gujarat into national highways.

learnt that informal discussions on the option of fielding a “a credible joint opposition candidate” have started among some senior Congress leaders and some leaders of ‘like-minded’ opposition parties in the last few days. These leaders feel that if the ruling side fields a candidate “totally identified with BJP”, it can brighten the chances many Opposition parties uniting for a contest.

Suspended Over Beard, Maha Muslim Cop Say No to Rejoining

TN Pulled Up for Indifference to Farmers Hit By Drought

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New Delhi: A Maharashtra policeman, suspended for insisting on keeping a beard against service rules, on Thursday rejected an offer by the Supreme Court to let him join back for now on sympathetic grounds while the court dealt with the issue. “There is no concept of a temporary beard in Islam,” Mohammed Irshad Hanif, lawyer for the Maharashtra Reserve Police Force cop Zahiroddin Shamsoddin Bedade said, rejecting the court offer to have him reinstated for now. “We feel sorry for you. Why don’t you join?” the CJI asHC in 2012 ked his lawyer who had soruled that a ught an early hearing into beard was the case. But the lawyer hesinot a tated, prompting the CJI to fundamental reject his prayer for an early right as hearing. it was not a The cop was initially allofundamental tenet of Islam wed to sport a beard, provided it was trimmed, and kept neat and tidy. The permission was later withdrawn by the commandant as against the rules and disciplinary proceedings initiated against him. The Bombay High Court later on Dec 12, 2012, ruled against him, saying that the force was a secular agency and discipline required him to stick to the secular rules. The High Court had also ruled that keeping a beard was not a fundamental right as it was not a fundamental tenet of Islam. Bedade then approached the top court for relief. The top court had stayed the disciplinary proceedings against him in Jan 2013. The case has since been pending for a hearing. His lawyer had then cited a 1989 circular for the armed forces to argue that the rules spoke of permitting a beard provided the person kept it for rest of his service.

New Delhi: The Supreme Court on Thursday slammed the Tamil Nadu government for its indifference to the plight of droughthit farmers committing suicide, and asked the state not to sit in silence but to come to their aid and rescue before things worsen. The state stands on the position of a “loco parentis” to citizens and when there are so many deaths of farmers, it becomes obligatory to express concern and act to help them, the court observed. The state was under an obligation not to allow “impecunious and poverty-stricken farmers to resign to their fate or leave the downtrodden and the poor to yield to the idea of fatalism”, the apex court said “The concept is alien in the welfare state and the social justice which is required to be translated in a democratic body polity… deaths are due to famine backdrop and other natural causes and also due to immense financial problems,” a bench, headed by Justice Dipak Misra, said. “The state, as the guardian, is required to see how to solve these problems or to meet the problems by taking curative measures treating it as a natural disaster. SiCourt asks lence is not the answer,” the state not to court said, appointing an sit in silence amicus curiae to deal with but to come the issue. to aid of A public interest litigation farmers and rescue them (PIL) was filed in the Tamil before things Nadu High Court by the Tamil Nadu Centre for Public worsen Interest Litigation drawing the court’s attention to the problem of farmers’ suicides in the state amid a drought in the rural belt. An appeal later came to the top court after the High Court refused to intervene.

PM ASSURES OF ‘PROGRESSIVE DECISIONS’

‘India Will Progress When Women are Empowered’ IANS

PTI

Sambit Patra @sambitswaraj

New Delhi: The All India Congress Committee (AICC) has finalised a timetable designed to complete organisational elections by the end of October, a good two months ahead of the deadline set by the Election Commission for the party to complete the process. The aim of the party is to hold the elections at the booth, block, district and state levels on the spirit of “democratic consensus-building” and by “avoiding unhealthy competitions among party workers”. The development is also set to trigger further debate within the Congress on whether Rahul Gandhi should take over as its president soon, without waiting for the organisational elections to get over, or wait until the AICC plenary session that the party has to compulsory hold after the organisational polls. On Wednesday, Mullappally Ramachandran, chairman of the Central Election Authority of the AICC, held a meeting with party leaders Sonia Gandhi, Rahul Gandhi, Ahmad Patel, AK Antony and Janardan Dwivedi and presented the election timetable. Sonia, it is learnt, has cleared it for notification. This followed the Election Commission’s recent decision to accept an AICC request to give it time untilDecember 31 to complete organisational elections. The EC told the party that it won’t extend the deadline further. “Due to some state polls and some unforeseen developments, we had to extend our organisational polls. After consultations with Congress president Soniaji, it

Leaders of oppn parties feel if NDA fields a candidate “totally identified with BJP” it can brighten chances of many parties uniting for a contest

Informed sources said the initial effort is three-fold: to firm up a collective view on having a presidential contest within the Congress leadership and among opposition parties that have been coordinating on common causes; then to explore contacts with other opposition parties that remain nonaligned so far; and finally, zeroing on a leader with larger acceptability across opposition parties. Sources said that some of the interlocutors will soon informally reach out to leaders of various regional parties in the larger opposition block, including West Bengal chief minister Mamata Banerjee and Odisha chief minister Navin Patnaik. Patnaik, who had backed BJPbacked P A Sangma against Pranab Mukherjee in the last Presidential contest, early this week said BJD will first see whom BJP is fielding as presidential nominee before deciding on its stance.

SUPREME ACTION From trying to reinstate policeman back into the force to taking up cause of farmers, SC swings into action

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digvijaya singh @digvijaya_28

dence which has now become my make-shift court at Rosedale, New Town, Kolkata.” Karnan held a press conference to give details of this to the media. In his rare defiance of Supreme Court justices, Karnan said he had pronounced a judgement wherein the seven judges are accused under the Scheduled Caste and Schedule Tribes Atrocities Act, 1989. He said the justices had “committed heinous crime”. The strong language used, and judicial overreach may not sit well with the Supreme Court. The apex court, while issuing Justice Karnan a contempt notice, had said that he would not discharge any judicial and administrative functions during the pendency of the proceedings. — IANS

WOMEN POWER

India‘s women are making their presence felt from panchayat to Parliament and from village well to Silicon Valley. It’s a myth that they remain confined to the four walls of the house

New Delhi: Prime Minister Narendra Modi on Thursday said modern India can progress only if women are empowered, and that whenever given a chance, women have outperformed men. He said his government is taking “progressive decisions” in this direction. “Modern India can only progress if women are empowered. With this thinking, the government is taking several progressive decisions,” Modi said, addressing 50 years celebrations of Indian Merchants Chamber (IMC) Ladies Wing in Mumbai through video conferencing. “Where laws are needed to be amended, they are being amended and where new rules are needed, they are being made,” he added, citing examples of a number of laws the government recently amended, including the Maternity Benefits Act, Factories Act and Disability Act. “Recently, the Maternity Benefits Act was amended to increase maternity leave to 26 weeks from 12 weeks. Even very developed countries don't have such laws.

Similarly Factories Act was amended to enable women to work in night shifts. The Disability Act was changed to give acid attack victims same assistance and reservation benefits as given to the disabled,” Modi said. In another important change in passport rules, Modi said, women now no longer have to produce certificate of their marriage or divorce. “A woman may now choose to give the name of her father or mother in her passport,” the Prime Minister said. He said Indian women are flying fighter planes, going to space (as astronauts) and winning medals in Olympics. He also acknowledged women's contribution in the agriculture sector. “Indias women are making their presence felt from panchayat to Parliament and from the village well to Silicon Valley. It’s a myth that Indian women remain confined to the four walls of the house," Modi said. The Prime Minister said that in the families which avail government welfare schemes, the government has decided to give first preference to the women in the households.

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4  Pure Politics Video of Kashmiri Youths Harassing Jawans: CRPF to Take Strong Action

SRINAGAR: The CRPF said o Thursday that a video clip showing some youths beating its jawans during bypoll to the Srinagar parliamentary constituency on April 9 was “authentic” and that it has started investigation and will “strongly” deal with the issue. Inspector General of CRPF Ravideep Singh Sahi said the incident happened in Kralpora area in the Chadoora assembly segment in central Kashmir’s Budgam district.—PTI

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

TRACKING POLITICIANS & POLITICS THROUGH THE DAY

Himachal CM has been served fresh summons by ED after he failed to appear before it in money laundering case.—PTI

UP CM Adityanath at Gurdwara Sri Guru Teg Bahadur Sahib in Lucknow. In another development, UP govt said it will organise mass weddings for poor Muslim girls.—PTI

Jan Adhikar Party chief and Madhepura MP Pappu Yadav being produced in a civil court in Patna on Thursday. Yadav was arrested after clashes with police late last month.—PTI

Disabled to Get More Space in Pvt Sector

Thaawar Chand Gehlot

New Delhi: Your favourite pizza joint may now have to ensure that it is accessible to everyone. From a small restaurant employing 20 persons to a private firm in an office complex, the private sector will have to ensure starting next week that it is accessible to the differently-abled, frames an equal opportunity policy for them, identifies jobs and provides facilities in the workplace. The Narendra Modi government has finalised the rules to operationalise Right of Persons with Disabilities Act next week. The social justice and empowerment ministry had been given a deadline of April 14 – Ambedkar Jayanti – to operationalise the legislation. “The rules have been finalised. We will issue the notification by

Monday or Tuesday,” social justice a n d e m p owe r m e n t m i n i s t e r Thaawar Chand Gehlot told ET. The department of empowerment of persons with disabilities (DEPwD) had finalised the rules and put them in the public domain in March. However, the biggest hitch in operationalising the Act was the definition of ‘establishment’ in the rules. The formulation put out in the rules said any establishment employing 50 persons or more. However, the law ministry had pointed out that the legislation passed by Parliament had made no such distinction on the numbers and the rules could not go beyond the Act and exclude any establishment under 50 persons. Gehlot confirmed that this has been addressed now. The final formulation makes only one distinction, establishments em-

INCLUSIVE GROWTH

An equal opportunity policy would have to be framed by all establishments – private, governmentowned and ministries ploying less than 20 persons and those employing 20 persons or more, people familiar with the matter said. While an equal opportunity policy will have to be framed by all establishments – private, governmentowned and ministries – the smaller establishments will need to main-

NEW DELHI: Far away from their CRPF colleagues facing stone pelters in Kashmir, two SSB men are recuperating in Chennai from grievous eye injuries they received after protesters attacked them in a similar fashion during recent clashes along the Indo-Nepal border. While jawan S Prabhakar has lost complete vision in his left eye, his senior and 31-year-old company commander T K Hans has been meted with a cruel fate to spend all his life with only 50% vision in his right eye.—PTI

PASSPORT NAME CHANGE

For Big & Small Firms Right of Persons with Disabilities Act to get operational next week

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SSB Men Hit in Nepal Border Stone Pelting on March 9 Lose Vision

Women Need No Marriage Paper

tain fewer records. A senior official said, “The processes are simpler for smaller establishments. They have to maintain fewer records and pledge not to discriminate against the differently-abled.” For a bigger organisation employing more than 20 persons, an equal opportunity policy will spell out the jobs identified for the differentlyabled, the number of persons employed, facilities and assistive devices provided. This will be published on the website and in the annual reports. The rules also mandate a grievance redressal mechanism. In case of discrimination or any other complaint, a differently-abled person can approach the chief commissioner or state commissioner for persons with disabilities. The complaint has to be disposed of within 60 days.

The PM was apparently referring to the official notification issued by the MEA on December 26, 2016 in which it was specified that no proof of marriage or dissolution of marriage is now required if a person wishes to make changes in his/her passport following marriage, remarriage or divorce. This would apply if an applicant was applying for re-issue of passport for incorporation of the name of his/her spouse, if a woman was applying for change of name/surname in existing passport due to marriage, if divorcees were applying for change of name or for deletion of spouse’s name in existing passport or if re-married applicants were applying for change of name/spouse’s name in their passport.

Our Bureau

New Delhi: PM Narendra Modi on Thursday said women don’t need to furnish a marriage or divorce certificate for a change in her surname or name in a passport. “An important change has been made to Passport rules. Now a woman does not need to give her marriage or divorce certificate. It will be her discretion to use her father or mother’s name in the passport,”the PM told a gathering o f t h e I n d i a n M e rch a n t s Chambers’ ladies wing in Mumbai over video conferencing. Women already have the discretion to not change their maiden name in passports but simply add the name of spouse in passports.

GAINERS & LOSERS BJP snatches Delhi’s Rajouri seat from AAP while raising its vote share to over 30% in Bengal’s Kanthi South seat; the party wins five of 10 seats while Cong wins 3, TMC & JMM retain one seat each

Achhe Din for BJP in Delhi, Bengal BIG PICTURE BJP Bags Dholpur Seat DHOLPUR/JAIPUR: BJP has won Dholpur by-election, with its candidate Shobha Rani Kushwah defeating her nearest rival of Congress Banwari Lal Sharma with a record margin of 38,678 votes. With this win, the BJP’s tally increased to 161 in the Assembly of 200. Shobha Rani got 91,548 votes against Sharma’s 52,875. PTI

ANINDYA CHOTTOPADHYAY

BJP’s Manjinder Sirsa

JMM’s Hemant Soren

Congress’ GM Prasad

BJP’s Ranoj Pegu

No Voters in 21 Booths as Srinagar Sees 2% Voting [email protected]

Srinagar: The repoll in 38 polling booths in Srinagar parliamentary constituency on Thursday recorded the lowest ever in the electoral history of the state. A measly two percent of voters cast their votes. Chief Electoral Officer of Jammu and Kashmir, Shantmanu, said only 709 people among more than 35000 registered voters cast their votes. At around 21 polling booths recorded zero percent voting. The government has deployed 64 companies of paramilitary forces in addition to the district police and army to ensure peaceful polling. Budgam district observed complete shutdown on call of Hurriyat leaders

FILE PHOTO

New Delhi: BJP on Thursday won five of the 10 assembly bypolls across eight states while Congress won three and T rinamool Congress (TMC) and Jharkhand Mukti Morcha (JMM) retained one seat each. Given the general expectations of ruling parties bagging bypolls to assembly seats, the results of bypolls across eight states appeared a mixed bag for ruling parties. In fact, the ruling parties in Delhi (Aam Aadmi Party), Himachal Pradesh (Congress) and Jharkhand (BJP) suffered a setback at the hands of their principle rivals in the state. However, the ruling parties – BJP in Rajasthan & Assam, Congress in Karnataka, and TMC in West Bengal – won on expected lines while BJP in Madhya Pradesh won one and lost one assembly segment. Apart from this broad trend, the result appeared a huge setback for AAP in Delhi where it lost its deposit. The setback appeared alarming as it came in the run up to elections to municipal polls later this month. Despite BJP’s drubbing in party ruled Jharkhand and inability to defeat incumbent Congress in Karnataka, the bypoll results appeared a sweet deal for the saffron party in the wake of its comprehensive victory over AAP and Congress in Delhi as well as BJP’s emergence as the runner up in the Kanthi South seat in West Bengal relegating the Left and Congress behind by huge margins. The BJP polled over 30% votes in Kanthi South as against about 10%votes polled by the CPI while Congress polled less than two per cent polls. BJP’s second place performance in West Bengal appeared fresh reminder for saffron party’s rising strength in the state. The BJP leadership cheered the bypoll results today. “Impressive performance by @BJP4India and NDA in the by— polls in different parts of the country. Congratulations to Karyakartas”, Prime Minister Narendra Modi said in a tweet on Thursday.

against the electoral exercise. “It was general apathy of people and also of the political parties which resulted in this record low turnout. Also there was fear in wake of the violence on Sunday,”

Shantmanu told ET,” adding that two companies of paramilitary forces were guarding each polling booth. The government had also blocked the internet, including the BSNL broadband, on the election day. Last Sunday, during the elections in Srinagar parliamentary constituency, eight civilians were killed and nearly 150 were injured, with just 7.14 percent polling recorded at the end of the day. According to police, at least 250 protest incidents including stone pelting where reported in Srinagar, Budgam and Ganderbal areas. In Srinagar parliamentary constituency Dr Farooq Abdullah of National Conference is contesting against Nazir Khan of PDP.

Cong Wins Ater, BJP Bandhavgarh BHOPAL: Congress’ Hemant Katare has won the Ater seat in MP defeating his nearest rival Arvind Singh Bhadoria of BJP by 857 votes. In Bandhavgarh, BJP’s Shivnarayan Singh defeating Savitri Singh of Congress by 25,476 votes.—PTI

BJP’s Pegu Wins Dhemaji in Assam GUWAHATI: BJP has retained the Dhemaji seat with its candidate Ranoj Pegu Babul Sonowal of the Congress by a margin of over 9,000 votes. While Pegu polled 75,217 votes, Sonowal garnered 65,932 votes, the Election Commission website showed.—PTI

KARNATAKA BATTLE

Easy Victory for Sidda in Both Seats Congress increases its vote share in both constituencies over the 2013 state polls [email protected]

Beng alur u: T he Cong ress bucked the nation-wide trend and won both the by-elections in Karnataka, riding on the personal charisma of chief minister Siddaramaiah in his stronghold of Mysuru-Chamarajangar districts. The principal Opposition party BJP had made these elections a personality clash between their state unit president B S Ye d d y u r a p p a a n d Siddaramaiah, and pitted the central schemes introduced by PM Narendra Modi against the state-sponsored schemes, rather than focusing on local issues. “The BJP made this a contest against me. Rather than face anti-incumbency, this is a wave in f avo u r o f C o n g re s s, ” Siddaramaiah said. Yeddyurappa, who camped in t h e t wo c o n s t i t u e n c i e s - Nanjangud and Gundlupet -- for 27 days, exhorted his community, the Lingayats, and the other d o m i n a n t c o m m u n i t y, t h e Dalits, to unite and vote in these

FILE PHOTO

Our Political Bureau

elections to help him become the chief minister in the state assembly elections of 2018. While this Dalit-Lingayat axis did consolidate, it wasn’t enough to give the BJP an edge. Siddaramaiah’s campaign was largely based on his pro-poor schemes and governance, besides seeking sympathy votes for Cong ress candidate Geetha Mahadev Prasad in Gundlupet, who contested as her husband Prasad passed away. He took digs at Yeddyurappa’s regime and made references to the BJP’s “communal agenda”, but these were not the mainstays. The Congress won with huge margins -- 21,334 in Nanjangud and 10,337 in Gundlupet -- increasing their vote share in both constituencies from the 2013 poll by 18 and 6%, respectively.

NILANJAN MUKHOPADHYAY For a party which registered an unprecedented victory barely 26 months earlier, the Aam Aadmi Party’s rout in the bye election in Rajouri Garden assembly seat is not happy augury. Undeniably, this is a self-goal for AAP’s leaders over-estimated the potential in Punjab and fielded former-journalist Jarnail Singh against Parkash Singh Badal after securing his resignation. The defeat will sting doubly for not only has the party been relegated to the

distant third position, but it also comes barely days prior to the Municipal Corporation of Delhi polls. Elections for three municipal bodies in the capital are not ordinary civic polls and secure media attention far in excess of what local elections warrant. The round this time, has greater political consequence for two reasons. The first reason undeniably is AAP’s rapid advent on the political scene of the capital as a colossus in 2015. But given the political startup’s ambition of making inroads in Punjab and Goa being dashed, repeated run-ins of its legislators with law, accusations of several one-time sympathisers that the party was straying from its promised path of alternative politics¸ providing defences that other parties do when circumventing norms and the protracted conflict with the Lieutenant Governor; there have been speculations on whether

AAP’s support in 2015 was merely a flash in the pan. The second factor behind the interest in these elections is the Bharatiya Janata Party’s decision to invest significantly in the campaign. Union textiles minister Smriti Irani, MP and Bollywood celebrity Paresh Rawal and former deputy CM of Punjab Sukhbir Singh Badal were among heavyweights who campaigned for the Akali Dal representative in Rajouri Garden. The national leadership’s keen tracking of the bypoll and the MCD election indicates that the party is using every election as opportunity to stamp electoral dominance. Reports that besides party president Amit Shah, newly christened UP CM Yogi Adityanath may be asked to address a rally demonstrate the significance being attached to the poll. Not just the party, but involvement of the Sangh Parivar’s network in the

ARINDAM

Delhi BJP Tries to Make the Most of Tailwinds from UP

campaign demonstrates that tailwind from the victory UP is being directed to secure majority in the three corporations. In contrast, AAP is on the back-foot for its decision to look beyond the capital before entrenching itself here. Moreover, its moral pos-

turing, used to great benefit during early days, has been increasingly questioned. AAP was repeatedly found little different than others on issues ranging from internal democracy, inadequate background check before nominating candidates,

safeguarding party from allegations of favouritism and over appointing 21 MLAs as parliamentary secretaries whose fate awaits judicial verdict. AAP’s professed objective was to provide alternative politics but this has not been evident in its method. Within months of assuming office, CM Arvind Kejriwal entered into confrontation with the then-LG Najeeb Jung and used it to secure popular endorsement when there was little need for it. Delhi government has constitutional limitations and known before elections yet it ventured into areas beyond the brief. Even regarding the defamation suit filed by Arun Jaitley and the bill raised by Ram Jethmalani, the attempt was to paint a political confrontation as a moral issue to justify use of public money. Early on, the much-publicised departure of people like Yogendra Yadav, Prashant Bhushan and Anand Kumar did not add to the party’s cred-

ibility and thereafter little effort was made ensure that the loose organisation was knit into a taut but democratic structure. The Delhi government has taken several initiatives that were welcomed by AAP’s core constituency among the poor and lower-middle classes but these positives have to be evaluated before reaching a conclusion. A study by Brookings India suggested that the much-discussed and populist subsidies in the power sector are skewed in favour mid-level consumers of power - the middle-classes as against the lowest consumers or the poor. The MCD verdict will demonstrate if the AAP’s supporters retain faith in its idea or whether accusations of critics have a ring of truth. The BJP’s advantage is that post-UP it can ‘nationalise’ almost every election while the AAP’s national ambition is in disarray. Its leaders may now rue weakening local moorings.

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SAY FIXING OR RESIZING PORTIONS OF FOOD IS UNREALISTIC

Restaurants Don’t Want to Ration Dishes they Serve Earlier this week, the govt called for talks with stakeholders on food wastage at hotels Ratna.Bhushan @timesgroup.com

New Delhi: The heads of restaurant chains in India said resizing portions of fixed food products on their menu in light of the government’s suggestions to reduce waste is “unrealistic” because most templates and moulds of the dishes they prepare conform to international guidelines. “Changing portions will mean changing core international recipes and how can we do that? That’s how you remain competitive and changing that will also impact all processes,” said Rohan Jetley, chief executive chef at

American food chain TGI Fridays. “The food we sell here is similar to what we sell in the US.” For at least one Indian restaurant company, controlling portion sizes is not an option. “We cannot regulate food for all our brands. The core proposition of our restaurant chain Rajdhani, for example, is unlimited food in a thali,” said Aji Nair, COO of Mirah Hospitality & Gourmet Solutions. Nair said that for Mirah’s other brands such as Falafel’s and Cafe Mangii, the company plans to introduce separate diet menus. While restaurateurs, mostly USbased chains, support the idea of reducing waste, they are looking at options such as adding sections for diet-conscious consumers in their à la carte menus so that they are not caught unawares should any guidelines be implemented by the government. “We have been sensitising our staff to advice consumers on portion control and will continue to as we are open to all suggestions

ARINDAM

to reduce wastage,” said Jetley. The food and consumer affairs ministry wants hotels and restaurants to specify the quantity of food per plate on their menus to enable consumers to decide how much they want to order. Earlier this week, consumer affairs minister Ram Vilas Paswan called for

a stakeholder discussion on food wastage at restaurants and hotels. US-based Burger King follows international standards in making burgers across all its markets, its India chief executive Raj Varman said. “Resizing further isn’t really

practical, though aspects such as consumer nutrition are big focus areas for us and we will continue to work towards that,” he said. Varman, who has led Burger King in India since it started in end-2014, said sizes in India are tailored for local consumers, unlike in the US, where the burgers are mega-sized. Almost all international chains said regardless of whether portion restrictions are implemented, they are moving towards healthier and regulated eating. KFC said it gives consumers the flexibility to choose portion sizes. “While we proactively improve the nutrition profile of our food content that can be part of a sensibly balanced diet, we are continuously exploring ways to improve the nutritional profile of products,” the chain’s India MD Rahul Shinde said. CybizBrightStar Restaurants, the operator of Carl’s Jr., Cafe Out of the Box and Molecule Air Bar, said the government’s proposal

MOVIE DEBUT SOON? After making an impact on Indian OTT space with Prime Video service, Amazon has hired consultants to create a blueprint for a Hindi film studio

Amazon, Too, Nurtures Big Bollywood Dreams Gaurav.Laghate @timesgroup.com

Mumbai: Amazon is smitten by India’s biggest obsession: Bollywood. Unlike Disney India and Balaji Telefilms that have shelved plans for Hindi film studios, the e-commerce major is considering the option of joining the world’s most prolific film industry, drawn by the success of its video service. The plans aren’t set in stone, but industry sources say Amazon has hired consultants with expertise in content, film distribution, and exhibition to create a blueprint for the proposed film studio. Roy Price, who heads the company’s content business and leads Amazon Studios, is in Mumbai this week, and has had meetings with multiple producers and content makers. “Amazon is bullish about content in India. They are spending huge money for originals as well as films. The next natural progression is getting into film studio business, like the US. However, it is too early, they have just started working on it and it may take them over 6-9 months for actually announcing any plans,” said a source with direct knowledge of the development. Amazon’s love for Bollywood is based on hard data: According to Nitesh Kriplani, country head – India at Amazon Prime Video, out of top 12 content pieces that viewers watch on the service in India, there are at least four Hindi movies, two regional titles, two US movies, two Amazon Originals, and one or two kids shows. Amazon, which sources say, has a $300 million video-content budget, has relied on local movie content to eclipse rival Netflix wit-

The Silver Screen Amazon is considering the option of joining Bollywood

Out of 12 top videos on Amazon Prime, At least 4 are Hindi movies

2 2 2

Has hired consultants to create a blueprint for the proposed film studio

are regional titles are Hollywood movies Amazon Originals make it to the list

There are also 1 or 2 kids shows

Amazon has a

$300million

budget for video-content Has relied on local movie content to eclipse rival Netflix India has a very rich cinematic tradition and history, and so that’s where we really need to be — both licensing from other people and developing originals ROY PRICE

Head of Amazon’s content business & Amazon Studios

hin four months of the India launch of Prime Video service. Therefore, Amazon signed longterm output deals with five major production houses — Yash Raj Films, Excel Entertainment, Dharma Productions, Vishesh Films, and

Amazon has long-term output deals with 5 major production houses Yash Raj Films Excel Entertainment Dharma Productions Vishesh Films TSeries

TSeries. Its arch rival Netflix has signed similar deals with Shah Rukh Khan’s Red Chillies Entertainment and Aamir Khan’s Aamir Khan Productions. For his part, Price did not rule out the possibility of opening film stu-

dios in India. “Right now, we are really focused on getting the original TV shows and licensing a lot of movies. We are always kicking around ideas. We are very responsive to the audience, and the audience loves movies. So TBD — to be decided, discussed, and debated,” Price told ET. He added that Indians, like the Japanese, watch a lot of local content. “India has a very rich cinematic tradition and history, and so that’s where we really need to be — both licensing from other people and developing originals.” Industry experts view the plan as part of Amazon’s strategy toward taking the competition a notch higher. In the US, it has started producing films with a theatrical window, and is looking do replicate the move in the UK, Japan and India — three of its largest markets outside the home base. “If true, it’s great news, a welcome addition to the corporatisation of Bollywood,” said Tanuj Garg, Managing Partner - Ellipsis Entertainment. “Its entry makes logical sense too, as the scope for content integration with other businesses of Amazon, whether from a marketing or exploitation perspective, will be hugely beneficial.” However, the state of the current market might prompt Amazon to move with caution. “With the kind of investments made by Amazon Prime Video in developing originals and licensing films, creating a production entity is the next logical step. However, given the nature of the flux in the film business in India at present, it will be imperative for it to select the right business model and right partners very carefully,” said a senior producer.

It Will Cost You More to Sell on Amazon Now Etailer will charge a higher commission from sellers in India, in bid to cut losses Shambhavi Anand & Richa Maheshwari

New Delhi | Bengaluru: Amazon India will charge higher commissions on a number of categories from sellers who use its platform, as the ecommerce company is looking to improve its bottom line. In the fast moving mobile phone category, the commission has go-

ne up to 5% from 3.5%. Among others, on sleepwear under the apparels category, the company will charge 19.5% of the sale price as its fee, up from 13% earlier, while in pet foods, it has been raised to 12% from 7%. While commissions have gone up across categories, the maximum spike has happened in headsets, headphones, earphones, keyboards, mouses, cables and chargers — here, the change has been 6-9 percentage points. These are the categories where third-party sellers compete with Amazon’s private label, AmazonBasics, sold by Cloudtail. An Amazon India spokesperson said this fee revision was part of a regular process. But the marketplace does not

change fees frequently so as to give sellers a sense of predictability in their earnings, the spokesperson clarified. “While we have increased fees in certain cases, we have also reduced fees in multiple categories such as gold coins, sports, personal care appliances and others. We have also removed the delivery service fee charged on all orders, which will benefit sellers as they tap into consumers from different corners of the country.” A spokesperson for the All India Vendors’ Association, a group of more than 1,500 sellers, however said Amazon has been increasing fees for marketplace sellers again

and again. “This is making selling uncompetitive against their own sister company, Cloudtail, and private labels like AmazonBasics, Symbol and Solimo. We are taking this up with the Competition Commission of India as the commerce ministry is not ready to intervene,” he added. The increased commission will be effective May 18. The marketplace will charge sellers 8.5% of the value of the items on cancellations by them, instead of the 2.5% it levied previously. “This charge will be applicable if the order is cancelled by seller for any reason other than buyer request, or if the seller has not shipped and confirmed the order within 48 hours of the estimated ship date.”

ASCI Issues Guidelines on Celebrity Advertising Says all ads featuring celebrities should ensure that they do not violate any ASCI guidelines [email protected]

New Delhi: Claims such as a fairness cream making your skin lighter in days, or swigging down a chilled soft drink making you popular in your neighbourhood – all by your favourite celebrity – will soon be under the scanner. In a long-awaited move, the Advertising Standards Council of India (ASCI) issued a series of sweeping guidelines on celebrity advertising, aiming to finally clamp down on random or exaggerated claims made by celebrity advertising. The objective of this move, the industry body said, is to protect consumer interest while encouraging celebrities and advertisers to refrain from endorsing misleading advertisements, especially of products or services which can cause serious financial loss or physical harm.

Besides actors and sports people, the guidelines bring in doctors, authors, activists and educationists in their ambit. These come ahead of an expected government move to review the Consumer Protection Act and introduce provisions such as to deal with advertisements featuring celebrities. The guidelines, issued late Thursday, say endorsements or representation of opinions or preference of celebrities must reflect genuine, reasonably current, views of the individuals. Also, making representations must be based on adequate information about or experience with the product or service being advertised. “Celebrities have a strong influence on consumers and are guided by the choices they make or endorse. It’s important that both celebrities and advertisers are aware of the impact and power of advertising and

THINKSTOCK

therefore make responsible claims to promote products or services,” ASCI chairman Srinivasan K Swamy said. “It is in the interest of advertisers or ad agencies as well as celebrities to be aware of these guidelines and be sensitised to this issue to avoid violations.”

The industry body called for celebrities to do due diligence to ensure that all descriptions, claims and comparisons made in ads they appear in are capable of being objectively ascertained and should not mislead or appear deceptive. All ads featuring celebrities should ensure that they do not violate any ASCI code, it said, adding that it is the duty of the advertiser and agency to make sure the celebrity they wish to engage with is made aware of the guidelines. “Celebrities have been deployed by marketers to add credibility to their brand offering. These celebrities, however, have a huge responsibility to ensure that the products they endorse or feature in, are true to the claims made in those advertising messages,” the guidelines said. The guidelines will help in ensuring that claims made in advertising are not misleading, false or go unsubstantiated, ASCI said.

“might not be the ideal way to combat wastage.” “Regulating portion size will result in loss for the industry since serving and portions are finalised after months of research and mocks. Altering the portion sizes will require a lot of changes at every level of operations,” CybizBrightStar director Samira Chopra said. Chopra said the best way to regulate consumption would be by educating guests to order food judiciously. An official at burger and fries chain McDonald’s said recalibrating food was not an option because the company “follows its global templates.” The official requested not to be identified. “At the ground level, this a very difficult task to implement,” said Arjun Toor, director of Mediterranean cuisine restaurant Baris, which opened recently in New Delhi. “If you have a smart team, wastage can be minimised to a negligible amount.”

[email protected]

Mumbai: The first three matches of the ongoing 10th edition of Indian Premier League (IPL) have garnered 40% more viewership than corresponding matches last year, data from TV viewership monitoring agency BARC India shows. The average time spent per user for the first three matches of the current season was a record 1 hour and 12 minutes per match, it said. According to the viewership data, the opening match between Sunrisers Hyderabad and Royal Challengers Bangalore, played on April 5, clocked 28.3 million impressions across Sony Max, Sony Six, Sony Six HD, Sony ESPN and Sony ESPN HD. Second match, between Mumbai Indians and Royal Pune Supergiants registered 30.3 million impressions, while Gujarat Lions versus Kolkata Knight Riders match saw 29.7 million. In IPL9, the opening dual between MI and RPS had clocked 24.4 million impressions, while the next two matches clocked 17.8 million and 20.9 million impressions, respectively.

Pay by Mobile

Most users of mid-range smartphones and above prefer a digital mode of payment, despite the return to near normalcy in cash availability post demonetisation. Findings by Ipsos Research with a sample size of 1,000 users pan-India, reveal that Indians still prefer to continue with debit cards and mobile wallets for making payments.

1 Preferred Modes of Payment after Demonetisation Debit or credit cards continue to be the most preferred mode of payment for 45% of sample base

Mobile wallets as an option are at No. 2 for 31%

However, for transactions more than `10,000, 49% preferred debit or credit cards, 29% preferred net banking

Only 9% preferred cash as a mode of payment

2 What happens when currency notes 3 Perceived Benefits and Concerns of get easily available as earlier?

Cards (Debit/Credit)

94% intend to continue using cashless modes of payment even when currency notes get easily available

Convenience and security cited as the biggest benefits of using cards Key concerns for cards: 58% say that not all vendors accept cards and 57% site the cause of additional surcharge

4 Perceived Benefits and Concerns of Mobile Wallets BENEFIT

CONCERN

79% cite cashbacks/discounts/ offers and ease of carrying

54% mention poor internet connectivity and not all vendors accepting, and 50% cite fear of wallets being misused if phone is stolen

5 Security Perceptions of Various Options & Which One is Found the Most Secure

29% consider fingerprint scan for authentication most secure in keeping transactions through smartphones secure 17% cite changing passwords frequently as the next security option, 12% cite encryption IN TERMS OF SECURITY RATING

71% feel fingerprint scan to be extremely secure 61% feel encryption to be extremely secure 60% feel changing passwords frequently to be most secure Source: Consumer research conducted by Ipsos Research for Samsung India

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6  Disruption: Startups & Tech

a

Tweet OF THE DAY

Infy Saga

Going gets tough for Infosys as it battles serious challenges ranging from founders’ quibbles to visa curbs and automation

Fewer Sikkas for Infosys CEO this In Tough Times, Year Due to Firm’s Slowing Growth You Take Decisions [email protected]

JOE BEDA @JBEDA

You know you’ve been hanging out with VCs too much when you know who funded a company by recognizing the conf room the photo is taken in.

Tech Buzz

iPhone 8 may have 2 Batteries!

Bengaluru: Infosys CEO Vishal Sikka will see his salary for FY17 fall as the company struggled to meet its targets in a tough market. In its meeting, the company board awarded him less than a fifth of the stock options he was eligible for as part of his compensation. Sikka was eligible for an annual grant of performance-based equity and stock options of $5 million, subject to achievement of performance targets. “The Board, based on the recommendations of the Committee, approved on April 13, 2017, ...ESOPs amounting to $0.96 million representing the performance-based equity and stock options for the financial year 2017,” the firm said in its filing to the stock exchanges. The board awarded Sikka $1.9 million in restricted stock units out of an annual grant of $2 million. Infosys chairman R Seshasayee said that Sikka’s salary would be lower compared to FY16. “If the targets were not met, as in the case of Vishal, the compensation will

come down this year as compared to last year. We just acted on the promise we made to shareholders,” Seshasayee told ET. Sikka’s salary has come under fire as the company fights perceptions that its governance is lax. Sikka’s overall compensation is $11 million. This includes a base salary of $1 million, $3 million in variable pay, $2 million in restricted stock units (RSUs) and another $5 million in stock options, which would be awarded to him based on Infosys’ performance. Sikka’s package went up from $7.08

Quick Byte

11 million Sikka’s

$

compensation now Sikka’s salary has come under fire as Infy fights perceptions that its governance is lax

THE BREAKUP

1 million

In an interview with the ET’s Jochelle Mendonca, TV Mahalingam and Nilesh Christopher, newly appointed co-chairman Ravi Venkatesan and Chairman of the Board R Seshasayee speak about the rationale behind creating a co-chairman post, how negotiations with irate founders are going and the role CAM is playing. Excerpts:

What’s the rationale behind Ravi Venkatesan’s appointment as co-chairman? Seshasayee: This is a board where individual members spend an extraordinary amount of time. We have been feeling that we need higher bandwidth to be able to deliver lea-

ANIRBAN BORA

$

Base salary

Variable pay

2 million Restricted stock $5 million - Stock options

$

(to be awarded based on Infosys’ performance)

RAVI VENKATESAN Co-chairman, Infosys

Sesh is far more accomplished than Iam on some of the governance issues and handling relationship with major investors. He will obviously continue to lead that dership. All of us, remember, have a day job. So, this (appointment) really means very high bandwidth. The board took a decision collectively and unanimously that we would have a co-chairman. Ravi was the obvious choice. First, I must clarify saying Ravi’s name did not come from the promoters, it is not a proposal from the promoters. We don’t need somebody else introducing Ravi to the board. He is a part of the board and has been on the board. So, it is a natural choice of the board. But, I am happy that the promoters feel comfortable about the decision taken. After all, if the broad decisions are looked at as positively by all investor group, it is good for us.

How does the sharing of responsibilities work between the two? Venkatesan: We have decided that we would have a

1.2 billion

Monthly active users on Facebook Messenger, according to company

Pokémon Go Players are a Happy Bunch

3 million

$

Needed Higher Bandwidth to Deliver Leadership: Seshasayee Q&A

As good as the iPhone 7 is, one thing it’s not known for is great battery life – but that could all change with the iPhone 8, as the top-end model, rumoured to have a 5.8inch screen, could have “two packs of batteries”. That claim comes from Cowen and Company analyst Timothy Arcuri (an analyst who has mixed record with previous iPhone rumors), in a research note. —Techradar

Pay Scale

million previously, which included up to $5.08 million in annual salary, besides a stock option of $2 million. The firm’s compensation strategy found favour with shareholder advisory firms. “If you see (we) have not given him all the ESOPs he was eligible for. This is a good sign, to focus (on) pay with performance,” Shriram Subramanian, managing director of shareholder advisory firm InGovern, told ET.

R Seshasayee

working partnership for collaboration. There is a very long set of things to focus on, some of which is external and some internal. On some of them, he will take the lead while I play the supporting role, in other things, I will take more of a leadership role, while he and others take the supporting role. One example would be working on strategy. In fact, for 5 years, I have been changing the strategy in risk committee. This would be a natural extension of that. We would be working more closely with Vishal and some of his leaders on the big initiatives. I will lead. Sesh is far more accomplished than I am on some of the governance issues and handling relationship with major investors. He will obviously continue to lead that.

Where is the discussion with Cyril Amarchand Mangaldas (CAM) and founders? Seshasayee: The process is just about taking off, from CAM’s point of view. The engagement with the investors is something that we have already started. We have been talking to key investor groups to get their inputs on various matters relating to the composition of the board and the like. Has the discussion happened at all between the founders and CAM? There was a recent expression of anguish from Murthy on Rao’s salary. If CAM was mediating, that wouldn’t have happened… Seshasayee: We are not using CAM as an intermediary to talk to our investors. We have direct dialogue with investors. After the announcement of

the appointment of CAM, I must have had interactions with individual institutional investors as well as collectively on investor calls quite a few times. In fact, I participated in investor calls only on governance matters to seek their inputs/viewpoints on some of the issues. I believe institutional investors have large expertise. But what we are really using CAM is for larger constructs. How many independent directors should be there? How do we choose independent directors? How to make sure the interests of the various stakeholders are represented in the people that we choose?

Were you surprised by Murthy’s comments on Pravin Rao’s salary? Seshasayee: There was some misunderstanding on how it was presented. I guess Murthy was presenting a very general point. Murthy’s point was the issue related to leadership compensation in general, and he has this belief in compassionate capitalism. I think he was articulating that issue. It was not about Pravin Rao’s compensation but in the context of the larger belief that he has. Pravin Rao’s issue itself has been clarified because it has been somehow misunderstood because we rejigged his compensation package. The compensation itself went up by 1.4% assuming the targets were met. If the targets were not met, as in the case of Vishal, the compensation came down this year as compared to last year. We just acted upon the promise that we made to the shareholders. Has there been any investigation on the whistle-blower letter? Seshasayee: Yes, the process in on. There is an independent firm doing an investigation, again in the normal course we would do for any whistleblower complaint. This is also being done in the same manner. In this case, a global firm has been engaged.

& Live with it: Sikka In a one-on-one chat with ET’s Jochelle Mendonca and TV Mahalingam, Infosys CEO Vishal Sikka and COO Pravin Rao spoke about the growth challenges the company is facing, the $20-billion growth target, and dealing with criticism from cofounders. Excerpts:

Q&A

What’s happening with growth? Even in the case of some of your competitors like Accenture, the commentary is good but guidance doesn’t seem to match. Pravin Rao: Overall, from a macro perspective, there is nothing alarming both in the US and Europe. When you look at the US and you look at financial services, the pressure of regulation has eased. Earlier, they would spend a lot on regulation, now you can ease on that and plough back into discretionary spending. We have had a couple of quarters of rate hikes. While we have not seen that translate into higher spending, we believe that over a period of time that will happen. At a geopolitical level though there are issues around visas, America first and other things. So, there is some degree of uncertainty. The $20-billion target is something you have always called aspirational. That you said looks very difficult. Are there parts of it, like $1.5 billion in revenues from acquisitions, still achievable? Vishal Sikka: There could be some minor variations but the idea is to view the three together — strong growth, improved margins and improved revenues per employee together. All three go hand in hand. In my first board meeting, I put that out there as something to aspire to, something as a rallying cry… Rao: In the past, at Infosys, we have always done that. A $10 billion by 2010 something like that, and then we had the 1/3rd target (a third from products, services, packages). In most cases, we did not give a timeframe but as leaders, we have to aspire for something big. In the last one year or so, how would you rate Infosys’ performance? Sikka: The atmosphere became tougher and we did well in the atmosphere that we saw. There

was a lot made out in that press conference about my use of the word ‘distractions’. The reality is that especially over the last quarter, generally, there have been distractions and noise. We have to deal with this. It is distracting and it causes you to take your focus and attention away. But it’s our job and endeavour to focus on what we do, undistracted.

Given that, how do you not second guess your decisions? Sikka: You cannot. You take your decisions in a complex environment and you live with that. You can learn but you cannot look back and second guess. Murthy raised issues about your

CHANGING TIMES

Earlier, they (US & EU cos) would spend a lot on regulation, now you can ease on that and plough back into discretionary spending PRAVIN RAO COO, Infosys compensation. What’s your response to this? Rao: If you ignore my aspect, the issue he is raising is a relevant issue. He feels strongly about it and I respect it. I’ve been in this system for 30 years. I have the same values. The only thing we did is, we did not do a good job of communicating this. It (the hike) is nowhere near 60-70%. When I look at my overall structure, the assured pay was reduced by 10%, they increased the variable in line with company performance. If I get the same pay, year on year, at the end of four years, it will become 30% or something. For the current year, it’s just 1.4%, average increase we have given to employees is 5-8%. We did not do a good job of communicating this. I am ignoring this because he is raising a larger issue which we have to deal with. At Infosys, we are aware of this. The biggest chunk of variable pay goes to the junior people.

AFP

For comprehensive and insightful stories about all things startups and technology, log on to www.ettech.com

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

As leaders, we have to aspire for something big, says COO Pravin Rao.

STAKE BUY WILL SEND FOOD DELIVERY CO’S VALUATION TO $400 MILLION

South African Co Naspers Gets Google Goes Hyperlocal Here Ready to Order a Pie of Swiggy Tech giant launches Areo which is a food delivery & home services app Supraja Srinivasan & Vikas SN

Pokémon Go players are more likely to be positive, friendly and physically active than nonplayers, says a study by researchers at University of Wisconsin-Madison. They wanted to study the effects of augmented reality games that make use of mobile technology to lay the playing field and rules over the real world. About 400 people were surveyed three weeks after the game was launched. —IANS

Jargon Buster

Hardcode A part of a computer program which cannot be altered in any way except by changing the source code of the program itself.

Payal Ganguly & Madhav Chanchani

Bengaluru: South African Internet and media conglomerate Naspers is in advanced talks to pick up stake in food delivery startup Swiggy, in a deal which will give the Bengaluru-based startup a valuation of close to $400 million, said two people familiar with the development. Naspers, which has backed companies like online retailer Flipkart and owns about a third of travel portal MakeMyTrip, is expected to invest $50-60 million as a part of the funding round. Overall, the financing round could see Swiggy rack up close to $80 million, including commitments from existing investors, said the people quoted above. “They have got a pre-money valuation of about $320 million,” said one of the persons cited above. Swiggy was valued close to $200 million when it raised $15 million from Bessemer Venture Partners in September 2016. The funding will help Swiggy take on rivals like restaurant search and delivery player Zomato, besides potential competition from players like search engine giant Google, which recently launched Areo. Even as it nears a funding round from Naspers, Swiggy continues to attract interest from

strategic players. ET had reported last year that Swiggy has held discussions with US online retail giant Amazon and Chinese food delivery venture Ele.me for funding. The current round has also seen interest from strategic investors from China, said those aware of the talks. “There could be other participants in the round, mostly from China. These are strategic inves-

Delivery Time ACCORDING TO MORGAN STANLEY REPORT: Online penetration within the takeout segment last year:

2% 20-30% China, India

UK and Canada

ONLINE FOOD AGGREGATION BUSINESS Grew almost close to nothing in 2014

4.4 b

$

Expected growth in 2020

tors, such as the online-to-offline business Meituan. However, they are slow to move and might be a part of the extended round,” said one of the sources. “It is the company’s policy to neither acknowledge nor deny its involvement in any merger, acquisition or divestiture activity, nor to comment on market rumours,” a spokesperson for Naspers told ET. Email queries sent to Swiggy did not elicit a response at the time of going to the press. Swiggy is currently averaging about 90,000 orders per day with a peak of 1,20,000-1,30,000 orders per day, putting them at over 2.7 million orders a month. This is higher than Zomato, which said it crossed 2 million orders in March. Swiggy has built a network of about 12,000 active restaurants in eight cities, which include Bengaluru, Delhi, Chennai, Hyderabad, Kolkata, Mumbai and Pune. The company was founded in 2015 by BITSPilani batchmates Sriharsha Majety and Nandan Reddy, along with former senior software engineer from Myntra, Rahul Jaimini. Swiggy has raised about $75 million so far from investors like Accel India, SAIF Partners, Norwest Venture Partners and Bessemer Venture Partners.

Mumbai | Bengaluru: Google has launched a food delivery and home services application for the India market, christened Areo, marking its entry in the hyperlocal, on-demand services space in India. The app, which provides a range of services such as food delivery, home maintenance, fitness and electrical repairs, is operational in Bengaluru and Mumbai. Currently available on Android, Areo is not a direct service provider but an aggregator of services from local on-demand players like UrbanClap, Zimmber, FreshMenu, Box8, Holachef and Faasos, enabling consumers to schedule food deliveries or book appointments from the app. Consumers can either pay online or use the cash-on-delivery mode in the Areo app to pay for these services. Areo’s launch will enable Google to compete with rival Facebook that began experimenting with hyperlocal services in India last year. It could also potentially infuse some fresh air into the country’s online hyperlocal services market that has weathered multiple storms through the last year with many players shutting down operations while some others consolidating their operations. “We are constantly experimenting with ways to better serve our

users in India,” a Google spokesperson told ET in a statement. “In this case, Areo makes everyday chores and ordering food easier by bringing together useful local services like ordering food or hiring a cleaner in one place.” The company, however, declined to comment on how these partners were selected for the initiative. The service has been live for Google employees for three months, with the tech giant footing the entire bill. Zimmber CPO Siddhartha Srivastava told ET that conversations began with

Google 9-10 months ago and the search giant was keen on firms that own the delivery model and have a strong technology base. “We have invested very heavily in honing our technology integration for this platform over the last 5-6 months, which is a cost for us,” Srivastava said. “We expect 1015% of our revenues to come from Google Areo. That will be a cheaper marketing strategy for Zimmber. If they market Areo as they have done for other services or products in the past, the revenue growth (for us) could be higher.”

WINDING ROAD HOME Offering services via Google’s offering will open up a much larger audience for partner cos and could pose serious competition to players like Zomato, Swiggy and Housejoy, who are currently not present on Areo Google does not charge any commission from its partners May look at commissions ranging from 5-15% if it picks up RICHARD DIEBENKORN, Cityscape I

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Companies: Pursuit of Profit  7

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Regional Language OS Looks to Raise Market Share in India Next Indus OS version to have more local features, advanced translation and transliteration [email protected]

New Delhi: Indus OS, which claims to be the world’s first regional language operating system, is planning to step on the gas to grab a larger market share in the country. On the anvil is a next version of the operating system which will have more local features and advanced offerings on the translation and transliteration aspects. The company is also planning to open an office in China by May end, Co-founder & CEO Rakesh Deshmukh told ET in an interview. The aim behind setting up an office in China is to explore tie-ups with leading Chinese phone makers such as Xiaomi. Currently, Indus OS has partnerships with brands such as Micromax, Intex and Karbonn and the company is looking at expanding its foot-

print further by bundling with Chinese players which dominate a significant market in India. “It’s going to be a small operations for mostly sales and business development with around 30-40 people,” said Deshmukh, adding that since most of such brands are headquartered out of China, it makes sense for the company to have operations there. “We currently have partnership with six brands in the country. Our target is to have tieups with the top 10 phone companies and effort is going on, on that front,” said Deshmukh. In October, the company raised a round A funding from VenturEast and JSW Ventures which came on board as new investors, while its investor from the Series A round — Omidyar Network — also took part in the round. The funding round was officially closed in March. The company had

then said that it would invest some part of the proceeds towards setting up an office in China. The OS, which claims the number two spot in terms of marketshare in the Android dominated Indian market ahead of Apple iOS and Microsoft Windows, is working towards the 3.0 version of its operating system. “We are just few months away from launching it,” said Deshmukh. He added that the next version will be more “Indian” in its features, with sharper ability for translation and transliteration available at the swipe of a finger. It will also have unique features for showing pre-paid balance consumed with each call apart from options such as details of data consumed etc. Atul Nigam, CIO at Micromax, which was the first brand to launch Indus OS, said the Indus OS was the first product for the mass market

which enables people to access the content in their native languages. “They are working on the new version with advanced translation and transliteration features and there is a lot of opportunity to do more in this space,” added Nigam. Indus OS has been angel funded by the likes of Kunal Bahl and Rohit Bansal from Snapdeal, Amit Gupta and Naveen Tiwari from Inmobi and Pranay Chulet from Quikr, according to the company. Though in the initial stage, Indus OS is also looking an expansion in international markets — after a launch in Bangladesh — such as Sri Lanka, Indonesia and South Africa which have the same local language issues such as India. “Just like here, English is not the first language in those countries and we think we can take the same solutions there.”

Success Lingo Co claims to be „ World’s first regional language OS „ Second in terms of market share in India New 3.0 version of OS to have More Indian features „ Sharper ability for translation and transliteration „ Ability to show prepaid balance consumed with each call „ Ability to show details of data consumed „

CO HAS EXPANSION PLANS IN zSri Lanka zIndonesia zSouth Africa

https://t.me/srikakulam

bubbly

8  Companies: Pursuit of Profit Short Takes  Aadhaar may be Made

Compulsory Under Cos Act NEW DELHI The government plans

to make Aadhaar compulsory for regulatory filings made by key managerial personnel and directors under the Companies Act so as to weed out bogus entities. There are more than nine lakh active companies in the country and the proposal comes at a time when authorities have stepped up efforts to curb money laundering activities through shell firms. Registered companies have to submit filings as mandated under the Companies Act in electronic format through the MCA21 portal. The Ministry of Corporate Affairs is “actively considering” integration of Aadhaar for availing various MCA21 related services.

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

Bharti Airtel Moves Telecom Tribunal over Jio Schemes SLUGGING IT OUT Objects to alleged delays from Jio’s end to implement Trai’s order to stop Summer Surprise offer which provided free voice and data for three months for `303 Our Bureau

Ball in TDSAT’s Court

tirely new/different point, and is only filed to confuse the issues.” Srinivasan and Trai’s lawyer Kirtiman Singh said the Summer Surprise offer was withdrawn by April 11. TDSAT directed Jio and Telecom Regulatory Authority of India (Trai) to file their respective replies to the tribunal by April 18. The next hearing is scheduled for April 20. The tribunal will club this application along with another petition where Airtel and Idea Cellular have challenged a Trai order that allowed Jio to offer free services beyond 90 days, the stipulated period for promotional offers. Bharti Airtel and Reliance Jio did not comment on the latest developments. Tariff wars between incumbents and the new entrant have become a contentious issue and escalated manifold in the past few months. While Jio has been coming up with new ways to give free data to lure customers, Bharti Airtel, Vodafone India and Idea Cellular have been upping the ante by giving additional data benefits to retain customers. Both sides have also taken legal and regulatory recourses to curtail one another. On Wednesday, Jio had asked Trai to take “strongest action” and levy “highest penalty” on the trio for violating licence rules, telecom tariff orders and mobile number portability (MNP) guidelines.

New Delhi: Bharti Airtel has Bharti Airtel objected to alleged delays from Jio’s end to moved the telecom tribunal agaimplement Trai’s diktat to stop its Summer Surprise offer inst Reliance Jio Infocomm, asking it to restrain the Mukesh It provides Bharti Airtel also objected Ambani-owned company from free voice and against continuation of benefits providing free services, includata for three under that offer to consumers ding those offered under its months at who had subscribed to the offer ‘Summer Surprise’ offer that before it was withdrawn ` 303 was withdrawn on order from the sector regulator. Lawyers of Jio objected to AirThe tribunal will club this UNDER REVIEW tel’s application, saying it was  No Law to Check Food application along with another meant to confuse issues. TDSAT directed petition where Airtel and Idea Airtel, through an application Trai and Jio Wastage in Hotels: Paswan Next have challenged an order of filed on Thursday, objected to alto file their hearing is Trai which allowed Jio to offer NEW DELHI The government will not leged delays from Jio’s end to respective on April 20 free services beyond 90 days bring a law to check food wastage at implement regulator Trai’s orreplies to the – the stipulated period for tribunal hotels and restaurants, rather it will der to stop Summer Surprise ofpromotional offers by April 18 fer, which provided free voice encourage them to take voluntary and data for three months for a steps in this regard, consumer affairs minister charge of `303. Ram Vilas Paswan said on Thursday. Hotels and India’s top telecom service pro- DATA BATTLE JIO SEEKS ACTION restaurants have been asked to take voluntary vider also objected continuation measures such as training its staff to create of the benefits under that offer to consumers who had subscribed awareness amongst customers on portion of to the offer before it was withdishes served, he added. Earlier this week, Paswan said the government would ask restau- drawn. Senior Lawyer Gopal Jain representing Bharti Airtel asrants and hotels to specify the portion size of a ked Telecom Disputes Settlemeal to enable customers order the right ment and Appellate Tribunal amount. (TDSAT) to “restrain Reliance Jio forthwith from providing or  NPPA issues Norms for from continuing to provide free services and/or services under Disposal of Review Cases the Summer Surprise Offer to any of its customers, including NEW DELHI Drug price regulator but not limited to, such custo- fer”, a person present in the tri- presenting Reliance Jio, claimed NPPA on Thursday came out with mers who have already subscri- bunal said. that Airtel’s plea was not “mainfresh guidelines and procedures for bed to the Summer Surprise OfRamji Srinivasan, counsel re- tainable since it is raising an entimely disposal of review cases filed by pharmaceutical companies with regard to price fixation of medicines. The move assumes significance as non-submission of necessary documents by drug makers during the review cases have led to inordinate delays in implementation of drug price revision by the NPPA. “Compliance of review orders of the government with regard to notified ceiling prices of caught holding undisclosed income woscheduled drugs or retail prices of new drugs Samanwaya.Rautray uld have to pay tax and penalty upwards get inordinately delayed because of [email protected] of 200 %. submission of necessary documents by the [email protected] Petitioner’s lawyer told a bench of pharma companies which initiate such review New Delhi: The Supreme Court on Chief Justice JS Khehar and Justices petitions,” the NPPA said in a notification. Thursday dismissed yet another peti- DY Chandrachud and Sanjay Kishan New Delhi: The Supreme Court on tion filed by a UP resident seeking to Kaul, that he only had an account with Thursday weighed in free speech consi USFDA issues Warning to pay undisclosed income along with tax the J&K bank, but the bank still turned derations while asking Internet search and penalty in old notes under the Prad- him away. engines such as Google, Yahoo and MiMylan for Nashik Facility han Mantri Garib Kalyan Yojana . crosoft to take steps to prohibit advertiseHe argued that there was no reason for Under the scheme, any citizen could the bank to refuse to accept the money. ments relating to sex-determination NEW DELHI The United States health deposit his old notes with a bank, provi- But the bench led by the CJI dismissed tests but did not impose a complete ban regulator has issued a warning ded he was willing to lock up 25%of the the plea, saying, “Not once did you go on all such searches. letter to drug firm Mylan for viomoney in bonds for four years and pay and deposit. You only said that you “It might be a constitutional disaster. A lations of good manufacturing citizen has a right to access to internet. his taxes and penalties. want to deposit.” norms, including data integrity lapses and Besides this, the person would have to We are on a concept of pre censorship. “Did you go and deposit? Did you give failure of quality control at its Nashik facility. pay 30 % tax, 33 % surcharge and 10%pe- in writing? If you had given in writing, Court has to be very cautious. Free spenalty. The Uttar Pradesh resident clai- they would have rejected in writing, ech is extremely important. We are deaThe letter by the United States Food and Drug ling with a virtual world,” a bench led by med that though he had tried to deposit then you had a case,” the CJI said. Administration (USFDA) to the Mylan PharmaJustice Dipak Misra, next in line to be The petitioner insisted that there was ceuticals Inc President Rajiv Malik states that it unaccounted amount of `33 lakh, the CJI, observed on Thursday. bank had turned him away. CCTV footage showing that he went to had inspected the Nashik facility of the compaHe was dealing with a PIL filed by actiUnder the scheme any person could the bank with the money and was turny from September 5 to 14, 2016. There were deposit his undisclosed income in old ned away, but the bench refused to give vist Sabu Mathew George seeking a “significant violations of current good manunotes between December 17, 2016 and him any relief. complete ban on all such searches on the facturing practice (CGMP) regulations for March 31, 2017. Those who deposit it laground that such tests were illegal under The CJI also clarified that he would Indian law. The Pre-Natal Pre-natal Diagter, would have to pay tax and surcharge not be allowed to get the benefit of any finished pharmaceuticals”, at the facility, it and penalty up to 85%. nostic Techniques (Prohibition of Sex relief he had not tried to deposit it unadded. Selection) Act, 1994, prohibits sale of sex Those who do not disclose but are der that scheme.

Jio is wooing users with free data while incumbents are giving additional data benefits to retain customers

On Wednesday, Jio had asked Trai to take “strongest action” against the trio for violating licence rules, tariff orders & MNP norms

ATMs Go Dry Again?

Although cash availability with banks has improved, dispensation of currency notes at ATMs has suddenly taken a hit. In a survey by citizen engagement platform LocalCircles, 36% citizens said they could not find cash in ATMs between April 5 and April 8. This number was a sharp increase from the situation in mid-February, when 22% of respondents had said they faced problems in finding a cash-dispensing ATM...

36% faced problems in getting cash at ATMs Very bad (ATMs How has your visited didn’t experience been get cash) using the ATMs to withdraw cash between Apr 5 - Apr 8?

60%

36%

Bad (had to wait for 30 mins - 4 hrs but got cash)

4%

Good (had to wait for 30 mins or less and got cash)

Percentage of respondents unable to find a working ATM

66%

61% 41%

36% 22%

11-13 Nov

8-10 Dec 31Dec-2 Jan 14-16 Feb

5-6 Apr

Hyderabad worst hit (Apr 5-8) Percentage of respondents unable to find working ATM

83% 69%

63% 50% 49%

ad rab de Hy

ne Pu

ad ab rid Fa

ta lka Ko

ru alu ng Be

44% 42%

ai mb Mu

on rga Gu

35%

i na en Ch

27% ida No

20%

ad ab azi Gh

11% lhi De

Survey coverage: 10,000+ respondents across major Indian cities

SC Dismisses Plea on SC Backs Access to Info, Rules Out Income Disclosure Scheme Blanket Ban on Sex Selection Content Agrees with search engines that complete ban will curtail right to access info on net

ET ARCHIVE

determination kits or their promotion by way of advertisements. The PIL filed in 2008 had alleged that there had been a drastic decline in sex ratio in the country despite PNDT Act. His counsel Sanjay Parikh alleged that ads relating to sex determination tests or kits were being freely aired on the Internet by the search engines. He sought a complete ban on all related searches and also generic terms, a move — the search engines had argued through their counsels — would constrict free speech and

hamper information for researchers worldwide. “It is necessary to state that volumes of literature under various heads come within Internet and in this virtual world the idea what is extremely significant is 'only connect'. “Therefore, this court has recorded the concession of search engines so that the sanctity of the Act is maintained and there is no grievance on any score by anyone that his curiosity for his search for anything is not met with and scuttled,” the bench said. “It is made clear that there is no need on the part of anyone to infer that it creates any kind of curtailment in his right to access information, knowledge and wisdom and his freedom of expression.” “What is stayed is only violation of Section 22 of the Act… freedom of expression included right to be informed and right to know and feeling of protection of expansive connectivity,” Justice Misra, who was sitting alongside Justices AM Khanwilkar and M Shantanagoudar, said.

Auditors Have to Adapt to Tech to be Relevant: Robert Moritz Amid the biggest global scrutiny on the Big Four and the threat of technology disrupting the competitive landscape for the professional services firms, global consultancy majors have to adapt and evolve rapidly to stay relevant to changing client needs, says PwC International chairman Robert Moritz. In a conversation with Sachin Dave & Vinod Mahanta, Moritz talks about India growth plans, the changing role of the Big Four, and the ‘New PwC’. Edited excerpts:

Q&A

The Satyam issue seems to have become relevant again at the audit rotation time. How is PwC dealing with it? When organisations look at audit rotation, the most important thing is the audit quality that involves three things: How do I make sure that it is the best-qualified firm? What has been their track record for the past couple of years? How do you evaluate the effectiveness, efficiency of the audit? And how are the auditors bringing in technology to disrupt the old audit models? These things are the main drivers that we hear from management teams that are helping with the criteria. We have a very comfortable track record on these things. I can’t control what the competition says or does, and I can’t control how people think. So, I am very focused on controlling what we can, and deliver against these criteria and be in the best position to win audit share. We want to be a dominant audit player; we want to have the right mix of business as we serve society, industries and all the other stakeholders. How much would you be investing in India over the next few years? For PwC India, performance has been great and the past three years it’s been the highest or the second highest in terms of growth. The investment number is clearly nine figures. We are talking hundreds of millions of dollars of investment that’s going to be needed here. That investment is going to come from three areas and it would be put in to appropriate resources. This will be for increasing the hiring at the graduate level, increasing amount of direct hires or experienced hires.

THE RIGHT MIX

We want to be a dominant audit player; we want to have the right mix of business as we serve society, industries and all the other stakeholders ROBERT MORITZ Chairman, PwC International

And it’s going to come from a new intellectual property that is going to be needed for the new services.

How do you rate government’s efforts in terms of tax reforms? In any country, you think about four elements when you think about taxation. One, do you have the right goals in place? To create a sustainable tax base on the basis of which you can invest in the country to do the things that are needed to make the change. Second, do you have the infrastructure to administer that appropriately? Do you have the legal system to deal with mediation, arbitration or litigation to defend or attack the potential? Last, do you have the right leadership? India as a country and what it has done with GST and its digital platforms and infrastructure provides an opportunity to leapfrog ahead of many other countries. Some of the domestic audit firms have reached out to Modi and sought protection against the Big Four. What is your view on this movement against the Big Four? When you look at the competitive landscape and the Big Four, the Big Four brand brings experience, knowledge and scale. They bring sufficient capital to make investments necessary and relevant. And they bring a global presence. That allows organisations to continue to expand domestically or globally and leverage best practices. What I find interesting is for the smaller local firms that

want to be involved, are they willing to invest to get scale? Are they willing to set aside necessary capital for the growth investment and potential contingencies? And are they willing to deal with the regulatory environment that we all have to adhere to? Some countries in Europe can be a great example of that. In some countries in Europe, you don’t see enough scale or competency to give the clients, the audit committees, the boards and the coincidence to bring them in. So there is a flight to quality, scale and capital that’s needed. I don’t see the relevance of double audit or joint audit. The smaller local firms got to have the right resources. If they don’t, then the clients will have a natural gravitation towards the larger firms.

Do you believe there should be an expanded role of assurance? Companies have to have a much more holistic view of the financial statements, the risks associated with them, and the drivers of value. Financial statements have to be resynthesised to bring out right data at the right time for investors, regulators, business partners, and consumers to have information to make the right choices. Audit report has to change and in some countries, the long form audit reports now require companies to see why auditors saw risk in some areas and went deeper. Third, there has to be integrated reporting where the level of assurance goes to new drivers, such as information, headcount, R&D, etc but also more real time.

ETMarkets Beating Volatility

Market Trends STOCK INDICES Sensex

0.57

29461.45

0.61

762.96

0.34

2051.92

0.49

503.86

0.03

MSCI India MSCI EM MSCI BRIC

7284.44

0.12

SX 40

17803.78

0.70

Nikkei

18426.84

0.68

Hang Seng

24261.66

0.21

Strait Times

3169.24

0.53

MSCI World

More Fear Than Cheer for Infy’s Long-term Investors

Values in US $, Gross

ANALYSIS

At 7 pm IST

OIL ($)

BOND

DUBAI CRUDE 54.17

[email protected]

10-YR YIELD 6.82

0.86

0.04

Absolute Change

Figures in %

GOLD RATE Prices per Troy Ounce ($)

US

India

OPEN

1288.30

1414.71

LAST*

1289.20

1417.60

*At 10.30pm, After adjusting for import duty, Indian spot gold lower by $ 0.52 to US Comex gold price on Thursday. The premium on local gold is due to tight supply following import curbs.

FOREX RATE

(`-$ Exchange Rate)

OPEN

LAST*

64.50

64.41

Market on Twitter@ETMarkets

IFSCs may Permit Trading in Equity Derivatives: Sebi

ET Intelligence Group: The revised capital allocation policy of Infosys will see a higher payout of free cash flow to investors – as much as 70% from the current 50%. Additionally, it plans to pay over one-third of its cash, equivalents and liquid investments of `38,773 crore back to shareholders in FY18 alone through dividend and share buyback. Despite this, long-term investors may find more reasons to worry than cheer, considering the company’s decelerating growth momentum. FY17 will go down as among the toughest years for the country’s second largest software exporter. For starters, it cut the full-year forecast of constant-currency (that is excluding currency impact) revenue growth three times during the year and still missed it

by a whisker. Then, some of its founding members raised questions over the compensation policy for the top management. If that was not enough, the changing stance of the US, its biggest market, on outsourcing raised doubts over the sustainable profitability of the outsourcing model, which had fuelled the growth of Infosys over the past two decades. A major concern now is whether the company will be able to adjust its strategies to stay competitive amid the changing landscape. It has taken steps to adopt automation platforms and claims their growing acceptability among clients. For instance, Mana, its artificial intelligence platform, now has 50 customers. The company’s CEO, Vishal Sikka, said in an analyst conference call after the results that 35% of the company’s workforce engaged on new platforms now contributes 45% of the revenue and these practices are growing faster than the traditional deliverables.

It also means the company’s workforce requirement has lowered. It added 6,320 net employees in FY17, lowest in three years, to take the headcount to 200,364. This has improved employee utilisation over the quarters, helping the company maintain the operating margin at 24.7%, well within its FY17 target range of 24-25%. For FY18, Infosys has revised the margin band to 23-25% to reflect higher requirement of investments to increase the onsite presence in the US. It has guided for the constant-cur rency revenue growth of 6.5-8.5% for FY18 compared with 8.3% in FY17. The company’s stock lost nearly 4% on Thursday following dismal guidance. While the company’s decision to reward shareholders by increasing the payout is apt amid dismal stock performance, the medium-term business outlook appears to be dull. Therefore, the stock is likely to report more pressure in the coming days.

Staff Efficiency Improves Even as Revenue Falls Revenue per employee ($)* $ revenue growth (YoY %)

52000

7.4

16

50000 5.8

12

48000

8

46000

4

44000

FY13 FY14 FY15 FY16 FY17

0

*It is calculated using total employee base at the end of the year, Source: Company, ETIG

GOING DOWNHILL

A major concern now is whether the company will be able to adjust its strategies to stay competitive

POOR SHOW IN Q4

Bearish Build-up Takes Open Interest in Infosys Stock to an All-time High

PTI

New Delhi: Markets regulator Sebi today said stock exchanges operating in international financial services centres (IFSCs) may allow trading in equity derivatives. However, this is subject to prior approval by Securities and Exchange Board of India (Sebi). Besides, Sebi-registered Foreign Portfolio Investors (FPIs) as well as eligible entities operating in IFSCs will be eligible to trade in derivatives on equity shares. The decision has been taken after taking into account recommendations of Sebi’s risk management review committee. “The recognised stock exchanges operating in IFSC may permit dealing in ‘derivatives on equity shares’, subject to prior approval of Sebi,” the regulator said. Sebi said that market-wide position limit (MWPL) for ‘derivatives on equity shares’ will be equal to 10% of the number of shares held by non-promoters in the relevant underlying security.

unlikely to fall below `900. “Recent price pattern of the stock shows it bounces back after nearing`900 levels. It is likely to happen this time, too, but sustained call writing at higher levels is likely to restrict upside,” said Chandan Taparia, derivatives analyst at Motilal Oswal Financial Services. April month options data for Infosys shows highest concentration of open interest at the `900 strike among put options and at `1,000 strike among call options. “I don’t expect it to even cross `1,000 in the short-to-medium term,” added Chaturmohta. In the past six months, the stock has moved in a narrow range, of `900.3 at the lower end and `1,080.7 at the higher end. It has been consistently trading below its 200-day moving average — a key long term technical indicator — which is now placed at `1,037.90.

Brokerages’ Call

Derivatives analysts say the stock could languish in a band of `900 to `1,040

BROKERAGE Citi

Mumbai: Open interest in futures contracts of Infosys surged to an all-time high on Thursday owing to build-up of bearish bets after the company’s growth guidance for the current financial year missed expectations. Derivatives analysts expect the stock to languish in a narrow band of `900 to `1,040, a range in which it has been largely stuck for the past

TARGET PRICE OLD

Neutral

Neutral

NEW

OLD

980

1,050 1,080

Accumulate

Accumulate

1,000

HSBC

Hold

Hold

1,120

1,120

Investec

Buy

Buy

933

1,130

Phillip Capital

Buy

Buy

1,060

1,130

Emkay

Sanam.Mirchandani @timesgroup.com

RATING NEW

six months, amid muted expectations from the company in the near future, potential visa restrictions and appreciating rupee. In Infosys April futures, open interest rose 10% to 3.78 crore units, while in the cash market, the stock fell 3.7% to `932.90. “It has been more of a short build-up and we may see a second round of selling,” said Ashish

Chaturmohta, head of derivatives and technicals at Sanctum Wealth Management. Infosys guided for a revenue growth of 6.5-8.5% in constantcurrency terms against expectation of 7-9%. Compared to the growth of 8.3% in FY17, this implies no sign of a pick-up in growth, said analysts. Some analysts said the stock was

FUND MANAGERS GO SHOPPING FOR MIDCAPS AND SMALLCAPS

Summer Picks: Power, Infra & NBFCs With retail investors preferring financial savings to physical savings, money continued to pour into equity mutual funds in March. As a result, fund managers continued to hunt for mid- and small-cap stocks. Post improvement in earnings of metals and oil and gas sectors, fund managers of large asset management companies have focused on key infrastructure themes, auto and NBFC. Here is a list of top-five companies in which fund managers have taken reasonably good exposure in March. —Rajesh Naidu and Prashant Mahesh

Top 5 AMC Fund Movement in March 2017 AMC ICICI

HDFC

BUY

SELL

Complete Exits

Hindalco

Bharti Airtel

Ashiana Housing

—

ITC

Reliance

Geometric

PNC Infratech Kansai Nerolac Paints

IOC

Infosys

Jet Airways

HDFC Bank

HPCL

Aban Offshore

—

SBI

Tata Steel

Alkem Laboratories

Pokarna

Reliance

Grasim

Ballarpur Industries

—

ONGC

L&T

BSE

Amara Raja Batteries

Reliance Aurobindo Pharma

Birla SL

SBI

Fresh Buy

Axis Bank

Geometric

—

HCL Tech

SBI

Globsyn Technologies

Sheela Foam

Hindalco

Bharti Infratel

Yes Bank

Reliance

Simplex Infrastructures

Omkar Speciality Chem Edelweiss Fin Services SpiceJet

Emami

Axis Bank

Texmaco Rail & Engg

Deepak Nitrite

ITC

Tata Comm

Apollo Hospitals

Mahindra Holidays

Bharti

BHEL

Apollo Tyres

Muthoot Finance

Hindalco

Emami

BSE

—

SOURCE: Accord Fintech, Complied by ETIG Database

`138 Robust order book, relatively lighter balance sheet and superior and timely execution capabilities have ensured sustained interest in the stock of roads and construction company PNC Infratech. In the coming quarters, the company’s execution of roads projects is expected to pick up. The company’s construction business is expected to make larger contribution to its road projects. It has an order book of about `5,500 crore, which gives good revenue visibility.

Power Finance

`1,352 Pokarna is one of the leading manufacturers of granite blocks and slabs. It also manufactures quartz (engineered stone slabs). Close to 85% of its total sales come from exports. It exports to more than 50 countries with the US contributing about 53% of overall sales. The company is expected to benefit from two key factors: one is recovery in the US construction industry, and increasing preference for Quartz in the construction industry across the US and Europe.

Edelweiss Fin

PNC Infratech

Pokarna

MONEY MATTERS

‘For Banks, a Haircut is Better than a Debt Trap’ Q&A with Rajat Verma Head of Commercial Banking - Designate, HSBC

WWW.ETMARKETS.COM NEW DELHI / GURGAON, FRIDAY, 14 APRIL 2017

IT’S NOT ABOUT CASH Although the company plans to pay over one-third of its cash to shareholders in FY18, decelerating growth is a concern

% CHANGE

9150.8

Nifty 50

bubbly

`163 Several triggers have helped the strong momentum in the stock of PFC, the key lender to power companies. The repayments from state electricity boards to the company have almost halved thanks to the issuance of Ujwal Discom Assurance Yojna (Uday) bonds. The street expects better repayments from state power utilities, which accepted bill payment in older notes. This factor is expected to sustain interest in the company’s stock.

`176 Edelweiss Financial has successfully transformed itself into an NBFC, with a healthy growth rate. In the credit space, it lends primarily to Tier-2 and Tier-3 companies, which helps it earn higher yields, with calculated risk. It is fancied by fund managers, due to its stake in the ARC business, where strong underwriting and efficient management can lead to disproportionate returns, which is likely to boost profitability in medium-to-long term.

GROWTH PLANS Company says money

will be used for the unit’s expansion

Federal Bank Plans to Sell 26% in NBFC to Raise `500 crore Saikat Das & Baiju Kalesh

Mumbai: Federal Bank is planning to sell up to 26% stake in its non-bank finance unit, Fedbank Financial Services, to private equity firms to raise `400-500 crore, two people with direct knowledge of the matter said. The Kerala-based private sector bank confirmed plans to raise funds for the unit, but did not reveal the details. “Our board has taken a conscious decision to explore all options to raise growth capital for our NBFC. The process is on, but nothing is finalised yet,” a spokesperson of the bank said. The lender, which has mandated i nv e s t m e n t b a n k e r I C I C I Securities to execute the plan, will use the money to grow and expand the unit’s business, the people with knowledge of the matter said. Federal Bank shares rose more than 7% in the past month compared with a 2.7% gain in the BSE Bankex, the sector index, reflecting investor interest in the stock. “The NBFC universe now looks more attractive than banks for long-term investors,” said Souvik Ganguly, managing partner at Acuity Law. “A cocktail of factors is fanning such bullish sentiment,” he said. Ganguly pointed out that NBFCs have a better reach to expand loans amid the central government’s financial inclusion drive, and they also are able to appraise borrowers better than mainstream lenders that are saddled with stressed assets and going slow on loan growth. Fedbank Financial, or Fedfina, obtained its NBFC licence in 2010, after which it started operations as a distribution arm of the parent. It now primarily sells gold and mortgage (home, auto, loan against property, etc) loans. According to the NBFC’s annual report, it reported a 40% jump year-on-year in loans to `611 crore as of March 31, 2016, and the profit before tax more than doubled to `19 crore from `8.53 crore the previous year. The company has shown little stress from bad loans as its credit quality is comfortable with gross

non-performing assets at a paltry 0.39% of the total loans at the end of 2015-16. Ratings company CARE has graded it AA-minus with a stable outlook. Fedfina, being a wholly-owned subsidiary of Federal Bank, enjoys strong parent support in terms of financial and managerial assistance which can be witnessed through the bank’s capital infusion of `190 crore till date and extension of credit lines of `400 crore, the ratings firm had said in a note last February. The strategic importance of Fedfina to Federal Bank is visible from the high degree of management integration, wherein the managing director and a director of the parent are on the board of the unit, CARE said. The company is also engaged in distribution of loan products for the parent, it added. The company remains robustly confident that these growth trends will continue at a compounded rate, the NBFC said in the annual report in FY16. Fedfina has 100-plus gold loan branches across Tamil Nadu, Karnataka and Andhra Pradesh. It has diversified into other products like structured finance (construction funding) that has seen exponential growth to `127 crore since its fiscal 2016 launch. Fedfina is also a distribution partner for insurers, such as IDBI Federal and Bajaj Allianz.

E-PAYMENTS GROW 57% IN FY17

Digital Money Takes a Big Swipe at Cash Card payments rise 44%, helped by strong government push Pratik [email protected]

Minda Inds `434.2 Minda Industries has expertise in automotive switches, lighting and horns. It has outperformed the industry average in all major divisions it operates in. Analysts were impressed with the performance for the last quarter despite the adverse effect of demonetisation on the industry especially in the two-wheeler segment. The government’s focus on agri and rural spending will give MIL an added advantage in the years to come as it primarily caters to the two-wheeler segment.

ANIRBAN BORA

https://t.me/srikakulam

Mumbai: Digital payments grew 57% year-on-year in the last fiscal with mobile wallets more than doubling and card payments rising 44%, helped by a strong government push particularly after the demonetisation drive in November last year. Aadhaar-enabled payment systems and the gover nment-backed, U n i f i e d P ay m e n t s Interface (UPI), have also helped in giving a big boost to digital transactions in 2016-17 when the total number of such transactions crossed 8.8 billion, according to the National Payments Corporation of India (NPCI) data shared with ET. “We are seeing a huge jump in transactions on RuPay cards done

at point of sales terminals as well as online, along with considerable growth on UPI (Unified Payments Interface) platform, which we hope will show more traction in the following year and help us achieve the target of 25 billion transactions for the year,” said AP Hota, managing director, NPCI. Finance minister Arun Jaitley had set this target to be reached by the end of next fiscal year in his budget speech. Armed with various modes like BharatQR — a QR code network for payment through any card — to give a boost to digital payments at retail outlets, BHIM (Bharat Interface for Money) mobile payment app for UPI transactions, and various Aadhaar-enabled payments systems (AEPS), NPCI is confident of popularising digital payments even for small-value transactions. “We have around 1 lakh BharatQR codes that have been distributed across merchant outlets this year and we plan to do another additional 93,000 the coming year,” Hota said. Continued on XX MONNEY MATTERS

FEAR BAROMETER The Credit Suisse tool, which measures the cost of buying protection against declines in the S&P 500 Index, neared an all-time high this week

Fear Creeps Back Into Markets as Wary Investors Rush to Hedge Bloomberg

The calm in stocks worldwide is giving way to concern, with investors in Europe and the US rushing to hedge against declines and a Credit Suisse Group AG index flashing a warning as the list of economic and political obstacles grows. The Credit Suisse Fear Barometer, which measures the cost of buying protection against declines in the S&P 500 Index, neared an all-time high this week. The higher the reading, the more expensive it is to buy protection relative to upside calls, ac-

cording to Mandy Xu, an equity derivatives strategist at Credit Suisse. “While put demand has certainly increased over the past week, the biggest mover actually comes from the call-side,” Xu said in a report dated Wednesday. “Falling call skew indicates investors see less potential for market upside going forward, perhaps in recognition of the increased macro and political headwinds.” Credit Suisse’s gauge jumped 46% this month through Tuesday, when it reached 45.74. That’s about a third of an index point away from its June 2016 peak ahead of the Brexit vote. The broader CBOE Volatility

Index, known as the VIX, is up almost 30% this month. There’s no shortage of potential concerns. Tensions over North Korea’s nuclear program have intensified days after the US fired missiles at a Syrian airfield. There’s uncertainty over the outcome of the French election, with the first round scheduled for April 23, and in Britain doubts are emerging on whether the economy can withstand the political shocks the Brexit negotiations will bring. Other signs of investor nervousness include: The rally in global equities has

stalled in recent weeks amid growing skepticism about Donald Trump’s ability to carry out promised infrastructure spending and tax reforms after he failed to push through a repeal and replace large parts of the Affordable Care Act. The S&P 500 has lost 2.1% since reaching a record on March 1, slipping below its 50-day moving average for the first time since the November US election. What’s more, the cost of hedging against a 5% decline in the S&P 500 over the next month has increased at the fastest rate since June’s Brexit referendum, relative to options bet-

ting on a gain of that magnitude. The benchmark 10-year US Treasury is starting to behave as it did in the run-up to the Brexit vote, as yields fall while volatility climbs in one-month options, according to the Merrill Lynch Move Index. It’s the same story in other major markets. Japanese yields are back near zero after a brief rally through the first quarter of the year, while the gap between German bunds and peers is close to a multi-year low. Safe-haven trade stand-bys such as gold and the yen are back in vogue. The yellow metal is closing in on $1,300-an-ounce mark for the first

time since before Trump’s victory. A four-day winning streak helped it rise above the 200-day moving average this week. The yen also strengthened below 110 per US dollar for the first time since November. The dollar extended a slump after Trump told the Wall Street Journal it was “getting too strong” and backed down from labeling China a currency manipulator. Anxiety has jumped in Europe, too. Investors have raised bets that stocks will move in lockstep to levels not seen since the Brexit vote, up from a record low in February, according to data going back to 2011.

https://t.me/srikakulam

bubbly

10 Smart Investing

What to Buy, Sell and Hold RBL Bank

Price on BSE (`)

680

560.2

520

360

200

299.3

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

EARNINGS MAY RISE at a CAGR of 20% until FY20; order inflow expected to be robust as co has taken steps to compensate for moderation of PowerGrid orders

Aug 31, 2016

Apr 13, 2017

„ Reliance Securities has a buy on Glenmark Pharma with a target price of `1,098. The brokerage expects steady growth in the India business driven by improvement in sales force productivity and new product launches while it expects the US business to report strong 20% CAGR over FY16-19E. Stock fell 0.23% to `888.25 on Thursday.

Financial Matrix Kalpataru Power Transmission

[email protected]

ET Intelligence Group: Kalpataru Power Transmission may see its earnings rise at a compounded annual growth rate of 20% until FY20, with business from operations such as substations and infrastructure underpinning the power-equipment maker’s traditional revenue base. The Mumbai-based company had earlier said that its order book for FY17 may reach `9,000-10,000 crore. At the end of the December quarter, outstanding order book stood at `8,300 crore, providing revenue visibility for the next six-seven quarters. The order inflow for the company is expected to be robust, as it took several initiatives to compensate for the moderation of orders from PowerGrid, one of its biggest customer. The government’s initiative, UDAY is

FY16

FY17E

FY18E

FY19E

7381

6305

7761

8926

142

-14.6

23.1

15

Revenues (` cr)

4471

5061

5908

6970

YoY growth(%)

-0.5

13.2

16.7

18

EBITDA (` cr)

466

531

630

744

EBITDA margin(%)

10.4

10.5

10.7

10.7

Order inflows (` cr) YoY growth(%)

Source: KIE

likely to benefit Kalpataru, with several state governments seeking to reduce their transmission and distribution (T&D) losses and upgrade infrastructure. Furthermore, the company is scaling up its EPC substation business — a higher-margin revenue stream — and winning tariff-based competitive bidding orders. It has also increased its

PHARMA COS NEED TO FOCUS ON EMs

With rapid price deterioration in the simple generics industry in the US, Indian pharma companies are in a challenging situation. But at the same time, importance of India and emerging markets should increase for the drug makers due to the strong growth outlook, brokerage CLSA has said in a note. According to the brokerage, large-cap drug makers are better positioned to ride the next wave of growth in the US owing to their superior research and development, better execution, and stronger balance sheets. CLSA has cited Sun Pharmaceutical Industries, Lupin, Dr Reddy’s and Torrent Pharmaceuticals as its best ideas. —Our Bureau

„ IndiaNivesh has a buy on KEC International with a target price of `216. The brokerage said said KEC’s order book now stands at `149.1 billion, which is 1.7 times its FY16 sales, thereby providing good revenue visibility for the next 20 months. KEC International rose 3.51% to `216.80 on Thursday.

Sun Pharma

CMP: `1,433.35

The brokerage has upgraded shares of Lupin to ‘buy’ from ‘outperform’ and raised target price by 6.7% to `1,760 citing strong drug approval cycle in the US. “Its differentiated pipeline in respiratory and biosimilars is making gradual progress, which will support the longer-term outlook,” said CLSA. The brokerage forecasts Lupin to post mid-teen earnings growth despite a high concentration on some products.

375.35 31.43 391.9/148.7 26.47

Asian Granito manufactures tiles. Currently, its vitrified sales are lower as compared to its peers like Somany Ceramics and Kajaria. Going forward, we expect AGIL’s profit margin to improve due to increase in focus for higher vitrified product sales, which is a highmargin business. The company is continuously putting efforts to increase the B2C sales in 2-3 years on the back of various initiatives to increase direct interaction with customers. In FY16, AGIL acquired Artistique Ceramic, which has a better margin profile. It has a contract with RAS GAS to supply quality natural gas at a discounted rate of 50% which would reduce the company’s power & fuel cost. We have a buy on the stock with a target price of `405. By Angel Broking

ANIRBAN BORA

Torrent Pharma

Recommendation

Company Name

New

Old

Aurobindo

Sell

Sell

630

660

Biocon

Sell

Sell

680

630 480

New

Old

Cadila

Outperform Outperform

505

Cipla

Outperform Outperform

660

645

3,620

3,620

Buy

Dr Reddy’s

Buy

Glenmark

Sell

Sell

Lupin

Buy

Outperform

850

850

1,760

1,650

Sun Pharma

Buy

Buy

860

790

Torrent

Buy

Buy

1,810

1,640

CMP: `1,456.90

Estimating the company’s earnings to grow at 24% on a compounded basis between FY17 and FY19, CLSA said the company’s strong positoning in branded generic markets such as India and Brazil are likely to help sustaining premium valuations. “We expect India and Brazil to contribute 63% of the incremental growth over this period. This provides strong earnings-growth visibility for the company,” said CLSA in the note. The brokerage has raised target price on Torrent Pharma to `1,810 from `1,640, while retaining a ‘buy’ rating.

Dr Reddy’s

CMP: `2,641.40

Maintaining ‘buy’ and target price of `3,620, CLSA said a meaningful revival in drug approvals in the second half of the current financial year will be a key factor for recovery in US business growth. Moreover, favourable outcomes on litigation related to Nuvaring and Suboxone sublingual film will provide further visibility on US sales growth in the next two yeats, added CLSA. “A fast approval process and successful US FDA resolution for the Srikakulam plant could drive a substantial stock re-rating,” noted CLSA.

Source: CLSA report

How much of a setback has this news been to your company? In the immediate kneejerk reaction, we have had a drop in our F&B sales of up to even 70%. People normally say yes because see the thing is that people saying oh!

Q&A

TOUGH TIMES

In the immediate reaction, we have had a drop in our F&B sales of up to 70%...We have become uncompetitive so you sell food and this thing but it is not about food. It is about an overall experience and people want to have that one glass of whatever they like with their food and then if we have a choice and they can go a few feet away and enjoy or rather few metres away and enjoy in another hotel or another restaurant they are doing that. So that is where the challenge comes, we have become uncompetitive.

Is the new regulation forcing you to reconsider any of your new projects? Definitely, not only us but unfortunately many people who have got stuck midway in their hotels, they are really impacted in a big way. A lot of deals, in terms of restaurants and hotel deals — mergers and acquisitions or new ventures — have been kept on hold and they have been reports in various parts of the press also.

Mumbai: Debt-laden steel companies, including Bhushan Steel, Jindal Steel and Power (JSPL), Monnet Ispat and a dozen other smaller ones, have posted 40-100% gains in the past three months on the back of speculation that their plants would be acquired by larger players. The share price of Jindal Steel, for instance, has doubled from about `65 in January to touch a 52-week high of `135 in April. Bhushan Steel is also up around 70% from `39 in January to a 52-week high of `69 in April, while Monnet Ispat had managed to gain over 60% from about `24 to a high of `39 during the same period. Companies, including Jindal Steel, Hisar Metal, Shivalik Bimetal Control, Godawari Power, Ram Ratna Wires, Tata Metaliks, Shivalik Bimetal among others, have risen more than 50% over the past three months on talks of a re-rating due to the impending mergers. “Market is abuzz that ArcelorMittal, While JSW has Vedanta, JSW Group expressed inand Ajay Piramal are terest in buyamong the top four ing Bhushan business houses that Steel’s plant, are looking to buy reports sugsteel plants of smallgest that Veer players, including danta, too, has Bhushan Steel, JSPL, thrown its hat Monnet Ispat and in the ring Essar Steel,” said SP T u l s i a n , p ro m o t e r, P re m i u m Investments. “The government is keenly watching the developments as some of the steel companies are the largest non-performing assets for banks. It is in the government’s interest that deals happen. Hence, they have become a good bet for market traders.” The Naveen Jindal-led JSPL has a debt of around `46,000 crore, Bhushan Steel’s is about `45,000 crore, Monnet Ispat’s debt is about `9,000 crore. Essar Steel, which was de-listed recently, has a debt of about `44,000 crore. Together, these companies account for the largest NPAs in India. “Potential takeover talks of plants is the only catalyst,” said Sudip Bandyopadhyay, chairman, Inditrade Capital. “The rally in global prices in the past few months has brightened the prospects of steel plants.” While JSW has expressed interest in buying the plant of Bhushan Steel, reports suggest that Vedanta too, has thrown its hat in the ring.

CMP: `692.30

Lupin

Asian Granito

What is the impact of the liquor ban on the industry? Some of our hotels have been affected by the ban on highways. It’s a matter of time, like on Thursday there was a news article which showed that the state government in Mumbai is de-notifying certain sections of the Mumbai Highways. The better sense of understanding has prevailed on many people, whereby within the city there is no highway, it is a local road which has become widely used for traffic. So that is something which is going on right now.

[email protected]

The brokerage firm has maintained ‘buy’ rating on Sun Pharma with a target price of `860 per share as the drug maker is making steady progress in its differentiated pipeline, particularly in the derma and opthal space. CLSA expects it to add more products to its pipeline in the current financial year. “While there is pressure in the Taro business and the number of US launches has been impacted by the Halol warning letter, we believe that valuations, which are 1sd (standard deviation) below the five-year average, are attractive,” noted CLSA.

Smallcap Mantra

In an interview to ET NOW, Vishal Kamat, CEO, Kamat Hotels, said that the deals by restaurants and hotels in terms of mergers and acquisitions or new ventures have been put on hold. Edited excerpts:

been finalised by the Railways in 2016. Kalpataru has so far got outstanding orders of `500 crore from the Railways, and is gearing up to participate in the establishment of the dedicated freight corridors (DFC). Legacy orders in the infrastructure space were over in 2015, and profits would rise from the current fiscal as project execution picks up. The order book in the infra segment has increased from `700 crore in FY11 to `1,300 crore in FY16. The T&D segment reported about a 154% increase in order flows and 60% increase in order backlog in FY16. In the infra segment, the FY16 inflows and backlog were up 100% and 60%, respectively. The management expects top-line growth of 15-20% in FY18. Kalpataru is working on reducing financing costs through timely closure of projects, and better collection of retention money. It also expects to soon monetise some real estate assets. Both are expected to lower its interest costs and debt liability.

Debt-Heavy Steel Firms Gain on Plant Deal Talks

Sun, Torrent, DRL & Lupin CLSA’s Top Pharma Picks

„ Prabhudas Lilladher has a buy on Dr Lal PathLabs with a target price of `1,202. The brokerage said DLPL is a perfect fit for long-term investments as it market leader, has an asset-light model and high capital return ratios. It expects EBITDA and PAT to grow at CAGR 17% and 20%, respectively, in FY16-19E. Stock rose 0.27% to `969.65 on Thursday.

CMP (`) 1-M Return (%) 52-week H/L FY17E PE (X)

exposure to overseas T&D market. International orders now constitute about 55% of the total T&D order inventory, and African countries account for 65% of the overseas orders. Besides its traditional mainstay of building transmission lines, the company is expanding its presence in the railroad segment, where orders amounting to about `28,600 crore have

VISHAL KAMAT

CEO, Kamat Hotels

‘Liquor Ban has Affected Proposed M&As in Hotels’

Diversified Revenue Base to Power Kalpataru’s Growth ANALYSIS

„ Kotak Institutional Equities has a sell on RBL Bank with a target price of `350. The brokerage said RBL has shed its image of an old generation bank by reinventing itself under the current management and accelerated growth by making the requisite changes to its business model. It said, however, that valuations are expensive at current levels leaving limited room for any mistake. RBL Bank fell 3.52% to `560.20 on Thursday.

Q&A

Does this step really achieve the purpose? It may or not achieve the purpose — that is a later part. Today, you are punishing someone else for somebody else’s crime. That is the main fundamental point which the entire industry is asking — why are you punishing the innocent for the guilty, go crack down on people who are doing wrong. Like, in Mumbai and Pune the police became proactive, it has reduced drastically fatal injuries and drunk driving. Other states are not enforcing their duties and unfortunately the blame has come on someone who is doing a legitimate business.

MAHANTESH SABARAD

SBICap Securities

‘Challenges for TCS Greater than that for Infosys’ In an interview with ET NOW, Mahantesh Sabarad of SBICap Securities, said that the challenges for TCS are far greater than those for Infosys, and expects a subdued performance by TCS. Edited excerpts: It all boils down to the commentary looking ahead for Infosys. Your thoughts? The way we see it is the guidance, of 6.5-8.5% for the year ahead, that they have given is not materially different from what they have achieved for the last year. Therefore, from an investor’s point of view, there seems to be no material trajectory upswing that one should look forward to. We are not so negative or pessimistic about the guidance given. Of course, on the face of it the number seems low but we think as we go ahead into the year, the upper end of the guidance will very likely be met with possible upgrade. What is the expectation from TCS? One major difference between

EUROPEAN EFFECT

TCS may have a subdued performance. Analysts would factor in the lower numbers from European operations TCS and Infosys is that there is a lot of uncertainty about the European operations of TCS. There has been volatility in currencies as well there in the quarter gone by. With Brexit now — the process of Brexit having begun and the QE programme of the ECB is likely to be unwound later in the year — the challenges for TCS are far more greater than that for Infosys. From that perspective, TCS may have a subdued performance, and though they do not give guidance, but the way the analysts would look at it is that they would factor in the lower numbers from the European operations.

Market Intelligence Powered By: ETIG Database www.etintelligence.com MARKET SNAPSHOT

TURNOVER

SENSEX NIFTY Open 29637.12 9202.50 High 29660.48 9202.65 Low 29442.26 9144.95 Close 29461.45 9150.80 Change(Abs) -182.03 -52.65 52-Wk High (Apr 5)30007.48 (Apr 5)9273.90 52-Wk Low (May 6)25057.93 (May 6)7678.35 3-Yr High (Mar 4,15)30024.74 (Apr 5,17)9273.90 3-Yr Low (Apr 16,14)22247.39 (May 8,14)6638.55

Date

BSE Turn Shares Trades

13/4

3259 2796 14.88 22326 11443 82.78 4130 3359 16.04 25903 14764 92.41

11/4

3609 3063 16.16 26594 15042 95.71

10/4

4014 3068 15.84 23570 11700 86.83

7/4

4350 3446 17.41 28156 14457 96.14

47.50 16.80 1468.30 89.35 213.80 741.50 54.75 275.00 132.00 49.10 522.20 48.75 1420.00 1239.90 730.00 81.10 91.20 2542.00 879.00 435.70 4659.70 1292.00 151.45 892.00 69.35 53.00 69.35 741.95 36.10 209.00 2666.95 813.45

* Cerebra Inte Creative Per Cummins (I) Delta Magnet Den Networks Edel NiftyBk EIH Eveready Ind Fed.-Mogul G Guj.Amb.Exp. Ganesha Ecos Gayatri Proj Goldstn.Tech Guj.St.Petro GTN Inds. Gujarat Gas Havells (I) HealthCare G HDFCNiftyETF Hind.Oil Exp HOV Services Indiabulls R Indiabulls V Indiabulls W IFB Inds. Ind.Swift Indian Terrn IndusInd Bnk Indian Oil C ISMT ITI JBF Inds. Khaitan

48.00 87.00 1003.00 45.00 103.40 2622.00 126.55 293.00 634.95 132.50 264.40 159.00 12.70 173.50 26.40 822.90 493.60 278.40 935.02 89.40 209.40 108.25 85.95 41.75 697.00 10.85 189.00 1444.35 428.75 16.40 82.10 299.00 16.40

NSE Turn Shares Trades

12/4

52 WEEK AT NSE HIGH 20 Microns Sund.100 3-G ABB India ABM Intnl. ADF Foods Agarwal Indl Agri-Tech Asian Hot.(E Akash Infra Alembic Alkyl Amines Alpa Lab. Ambika Cotto APL Apollo Apolo Sin.H. Arshiya Atlanta Atul Avanti Feeds Bajaj Corp Bajaj Finser Bajaj Fin. Bk of India Bombay Burma Bhushan Stee Birla Cable A.Birla Mone BPCL Barak Valley Byke Hosp. Can Fin Home Cap.First

Turnover in ` Crore Shares & Trades in Lakhs

KIOCL Ltd. Kothari Petr Lakshmivilas LIC Hsg.Fin. Madras Fert. Manaksia Ind Man Infracon Mastek Madhya Bhara Madhav Coppe MRPL Nagreeka Cap Natco Pharma NBI Indl Fin NOCIL Onward Techn Oriental Hot Orient Press Piramal Entp Prime Focus PTC Fin.Serv PNB Hous.Fin PNC Infratec Pokarna Prakash Inds Premier Expl Pressman Adv Pun&Sind Bk Rane Holding Royal Orchid Sambhaav Med Sanginita Ch Seamec

ADVANCE & DECLINE (Number of traded scrips) ‘A’ ‘B’ Others Advances 113 530 787 Declines 184 594 708 Unchanged 3 31 114 Total 300 1155 1609

HIGHS & LOWS

BSE

Total 1430 1486 148 3064

NSE Total 733 840 55 1628

FII ACTIVITY (` Cr.)

BSE

(Number of scrips) ‘A’ ‘B’ Others 52WK High 17 82 8 52WK Low — 2 6 All High 11 39 1 All Low — — 1

Total 231 63 84 20

NSE Total 121 10 62 6

Sheela Foam Shah Alloys Shakti Pumps Shilpi Cable Sund.SMC6RPG SPIC Stl.Strips W Sterl.Tools Sterlite Tec Supreme Petr Talbros Auto TN Petro Trans & Rect TT Uttam Sugar Varun Bever. Vimta Labs Visaka Ind. Voltamp Tran Weizmann For Welspun Ent. Yes Bank LOW Bohra Inds. Capital Trus JMT Auto Nagar.Agrich Radaan Media Religare Ent Rollatainer Signet Inds. Urja Global Zodiac JRD

1188.00 22.70 260.90 252.00 15.00 28.45 920.00 268.45 149.75 387.70 176.00 56.50 475.90 73.45 117.70 484.00 134.80 333.85 1305.60 531.25 99.75 1637.95 52.25 398.00 9.75 27.10 1.25 202.40 12.10 14.95 1.20 31.75

12/4 4120 11/4 4649 10/4 3774 7/4 5200 6/4 5331 Tot Apr 34632 Total 2017 391414

4616 5374 4409 5341 4891 35124 347686

-496 2511 -725 995 -636 1473 -142 1246 440 2186 -492 19634 43729 104580

Days 20 Days Close Mvg Avg

Ind.Swift 10.26 5.98 A.Birla Mone 63.00 37.79 Indiabulls V 85.75 56.59 Batliboi 39.60 26.17 Weizmann For 524.20 349.63 Weizmann 57.55 39.35 Prerna Infra 53.50 37.30 Jindal World 424.20 295.94 Steelco Guj. 11.74 8.21 Jaipan Inds. 24.35 17.21 Polson Ltd. 14389.80 10238.83 Taneja Aero. 66.30 47.26 Muthoot Cap 402.95 287.91 TN Petro 53.35 38.21 Veljan Denis 1333.30 955.41 Agri-Tech 54.90 39.77 Archies 36.00 26.21 Phytochem I. 77.70 56.62 Manaksia Ind 39.00 28.53

Days 2 Weeks Volume Avg. Vol.

FDC 20 Microns HealthCare G Sita Enter. Sh.Karthik P Atishay Grind Norton GSS Infotech Amrutanjan Alkyl Amines Media Matrix Eveready Ind

872296 1621293 267145 76916 257976 25036 149850 1217889 51180 67910 963016 450844

10648 27883 5541 2019 8308 1213 7654 69538 2978 3972 60426 29459

Negative Breakouts

Best Returns on BSE

% 50 Days Chg Mvg Avg

Company (BSE)

20 Days % 50 Days Mvg Avg Chg Mvg Avg

Company

71.57 5.77 66.71 32.96 51.53 41.67 51.32 24.64 49.93 279.90 46.25 33.85 43.43 28.37 43.34 265.98 43.00 8.32 41.49 14.68 40.54 8664.22 40.29 47.30 39.96 276.56 39.62 33.29 39.55 874.49 38.04 35.03 37.35 24.88 37.23 54.02 36.70 29.12

PTL Enterp. Gallant Ispt Classic Gl.F Achal Invest Abhinav Leas Indian Metal Asso.Alcohol NE Carrying BLS Intnl. Pritika Auto Adani Power Alexander St SFL Intl. Lakshmi Ener SV Shipping Rajkumar Frg Pincon Life Prism Medico MSR (I)

93.36 392.84 2.13 4.18 17.99 736.04 151.97 67.77 1648.71 56.58 40.10 53.22 41.64 63.21 42.71 66.49 95.34 40.05 35.33

Fortnight A.Birla Mone Ind.Swift Radhika Jewl Jindal World Batliboi 1 Month Indiabulls V Weizmann For A.Birla Mone Tarai Foods Prerna Infra 3 Months Indiabulls V Padmalaya Te Goldstone In Prerna Infra Pioneer Inve

Positive Breakouts Company (BSE)

Company

Days Close 48.20 233.25 1.42 2.89 12.50 581.90 120.65 54.05 1317.25 45.90 32.85 44.30 34.90 53.05 35.85 56.75 81.40 34.50 30.50

48.37 122.26 40.62 448.46 33.33 2.79 30.86 5.79 30.52 18.95 20.94 694.40 20.61 150.82 20.24 71.96 20.10 1731.05 18.88 61.79 18.08 38.29 16.76 69.64 16.19 40.33 16.07 68.10 16.06 44.44 14.65 68.82 14.62 145.25 13.86 42.24 13.67 39.83

F&O Corner-NSE

MF ACTIVITY (` Cr.) DEBT Buy Sell

Net

EQUITY Buy Sell Net

Date

2046 2483 2196 2025 2384 11134 129485

1611 435 1978 505 2106 90 2501 -477 2188 196 10384 750 119278 10207

DEBT Buy Sell

1088 1200 787 500 786 6783 62266

1422 -205 687 746 1400 12851 42314

10/4 7/4 6/4 5/4 3/4 Tot Apr Total 2017

% Chg

Days Close

Company

Days 2 Weeks Volume Avg. Vol.

8092.20 5714.58 4721.62 3709.61 3005.15 1963.82 1857.80 1651.40 1618.41 1609.58 1493.72 1430.43

201.55 47.90 261.90 26.70 7.66 76.50 391.50 24.40 638.00 506.80 7.68 291.75

Gemini Comm. Hubtown United Polyf GSS Infotech Onward Techn 20 Microns ISMT Ganesha Ecos Omax Autos. Barak Valley Jagsonpal Ph Sphere Globa

1846538 3741989 105000 2974501 1054750 2197427 1869657 216022 261893 729418 481047 2260434

Spurt in Volumes at BSE

ALL TIME AT NSE

16.70 31.80 177.00 635.25 28.70 39.45 55.70 233.70 65.00 227.60 122.80 15.55 913.90 4916.85 102.70 96.35 45.90 76.55 2262.80 119.00 48.50 1258.00 144.00 1388.00 91.30 423.00 71.70 59.60 1010.00 102.60 8.20 31.20 116.50

Date

EQUITY Buy Sell Net

Net

6973 2440 4533 9198 4150 5048 8841 5250 3591 13216 6470 6746 14281 3567 10714 52509 21877 30633 444511 304543 139948

Spurt in Volumes at NSE 29504 105612 3800 114856 46008 117810 120547 14616 17828 52993 35881 170936

% Chg

Days Close

6158.51 1.75 3443.15 115.35 2663.16 26.10 2489.77 24.40 2192.54 96.35 1765.23 47.50 1450.98 15.55 1378.03 259.35 1369.03 87.95 1276.45 36.10 1240.69 43.55 1222.39 64.95

Worst Returns on BSE

Days Close

Prices

% Average Chg Volume

63.00 10.26 21.13 424.20 39.60

30.75 5.68 12.05 251.05 23.80

104.9 80.6 75.3 69.0 66.4

264237 25762 220655 32533 139338

85.75 524.20 63.00 6.05 53.50

36.30 227.05 28.35 3.03 26.80

136.2 130.9 122.2 99.7 99.6

2062536 7356 129912 5750 132775

85.75 3.75 83.70 53.50 75.80

21.95 1.10 28.25 18.20 26.70

290.7 240.9 196.3 194.0 183.9

1024058 30213 87804 48988 19969

Company Fortnight Gallant Ispt Abhinav Leas Achal Invest Abhishek Inf Classic Gl.F 1 Month PTL Enterp. PFL Infotech BC Power Con Gallant Ispt Raghuvansh A 3 Months Abhishek Inf Shekhawati P Ramchan.Leas Pincon Life Achal Invest

Days Close

Prices

% Average Chg Volume

233.25 12.50 2.89 10.85 1.42

410.50 19.00 4.30 16.10 2.10

-43.2 -34.2 -32.8 -32.6 -32.4

28604 76414 25230 6655 46985

48.20 5.07 23.35 233.25 49.00

140.50 14.25 64.00 485.30 101.00

-65.7 -64.4 -63.5 -51.9 -51.5

22006 31727 93067 16425 50139

10.85 0.39 1.12 81.40 2.89

54.00 1.60 4.55 301.45 9.60

-79.9 -75.6 -75.4 -73.0 -69.9

62651 339571 68825 117728 73565

Negative Trend

Positive Trend Spot Price

Future Price

% Diff

OI Chg(%)

1023.40 64.70 29.30 389.60 22.50 105.85 91.30 193.60 545.85 277.60

1030.55 65.15 29.50 392.25 22.65 106.55 91.90 194.85 549.10 279.25

0.70 0.70 0.68 0.68 0.67 0.66 0.66 0.65 0.60 0.59

-2.44 3.12 0.30 1.34 -2.31 54.53 7.25 1.81 1.77 2.25

Company Infibeam Inc JSW Energy IFCI Muthoot Fin. S.I.Bank Indiabulls R NCC Indo Count I Escorts Tata Mot-DVR

BANKNIFTY21800.00-Apr BANKNIFTY21700.00-Apr Indiabulls R 110.00-Apr Indiabulls R 105.00-Apr BANKNIFTY21900.00-Apr Suzlon Enrgy 20.00-Apr BANKNIFTY22000.00-Apr Indiabulls R 100.00-Apr Pun.Nat.Bank 160.00-Apr Indiabulls R 115.00-Apr

Oracle Finl. Ujjivan Fin. TVS Motor Co Ceat Bk of India Pun.Nat.Bank Container Co Just Dial

Future Price

% OI Diff Chg(%)

3580.75 393.70 467.10 1430.45 147.70 154.90 1173.45 520.50

-4.29 -2.17 -1.46 -1.43 -1.10 -0.90 -0.47 -0.34

-0.45 -3.76 -0.43 2.45 1.92 -0.46 -2.24 -1.58

Active Puts

Active Calls Company Contract

Spot Price 3741.20 402.45 474.00 1451.15 149.35 156.30 1179.00 522.25

Company

Traded Open Chg in Qty Interest OI (%) 33431600 28177760 28080000 27170000 22772240 21030000 18127400 16830000 15134000 13760000

1853840 143.26 1211360 137.41 4410000 1322.58 4160000 890.48 1711040 102.25 26040000 12.29 1285760 2.57 8400000 425.00 3934000 4.46 3730000 710.87

Future OI Gainers

BANKNIFTY 21600.00-Apr BANKNIFTY 21700.00-Apr BANKNIFTY 21500.00-Apr BANKNIFTY 21400.00-Apr Indiabulls R 95.00-Apr NIFTY 9200.00-Apr NIFTY 9100.00-Apr NIFTY 9000.00-Apr Indiabulls R 90.00-Apr Infosys 900.00-Apr

30509720 24507600 22646640 13872160 12070000 11924850 9493875 9190350 8380000 6353500

1717360 64040 1476120 1011440 2090000 4282200 5163750 5738100 2340000 1572000

225.75 -78.09 106.83 24.10 464.86 0.69 -0.87 1.31 457.14 44.29

Future OI Losers Open Chg in Future Chg in Interest OI (%) Price Price (%)

Company

Open Chg in Future Chg in Interest OI (%) Price Price (%)

Company

Indiabulls R Dalmia Bhar. Cap.First Equitas Hold Tata Steel Wipro Piramal Entp Infosys Adani Ports InterGlobe A

39020000 325500 1032000 9494400 30058000 9620400 315000 37851000 17060000 981600

Britannia 361000 Adani Power 116400000 Bk of Baroda 44817500 Cairn 26138000 Jet Airways 5391000 Coal India 19878100 Apollo Hosp. 1824000 Engineers (I 26607000 Pidilite Ind 1857000 Bajaj Auto 1471500

54.53 16.67 15.08 11.21 10.98 10.87 10.29 9.97 8.70 8.49

Traded Open Chg in Qty Interest OI (%)

Company Contract

106.55 2124.05 789.70 167.05 465.75 494.60 2247.70 936.30 322.05 1097.65

7.74 -2.10 -1.08 1.18 -2.91 -1.14 7.92 -3.45 -2.19 -0.53

6.38 6.31 5.98 5.78 5.67 5.62 5.28 5.07 4.33 4.11

3405.00 32.95 175.85 295.80 503.15 291.10 1176.80 158.05 713.40 2849.50

-1.55 -2.80 1.94 -4.57 -0.60 0.33 0.25 1.93 0.26 0.10

Top Sectoral OI Gainers

Market-Wide Position Limit Company

MWPL OI (Lakh) (Lakh)

MWP (%)

Chg in OI (%)

Sector

Indiabulls R Infibeam Inc Ujjivan Fin. JSW Energy Rel Capital Bharat Finan Karnatak Bnk Jaiprak.Asso Indo Count I TV18 Broad.

501.03 807.60 20.83 22.76 86.47 88.63 820.23 766.32 238.09 209.15 271.24 236.48 565.21 491.40 2951.02 2539.12 162.11 136.54 1357.68 1142.74

161.19 109.27 102.49 93.43 87.84 87.19 86.94 86.04 84.23 84.17

121.26 -1.85 0.92 3.23 3.39 -1.89 -1.08 0.48 1.62 0.43

Real Estate Refractories Infotech Capital Goods Shipping Construction Mining Diamonds Metals Pesticides

Open Chg in Interest OI (%)

Trd Chg in Qty TQ (%)

100652000 17.55 200128000 57.89 330600 16.12 324000 16.88 94248750 6.32 45343500 110.49 397932900 5.70 183542200 -45.96 28235500 5.06 16690000 -43.48 45813500 4.71 31271000 4.07 98246900 4.54 62724300 -14.59 1276500 4.03 664500 -48.96 54382200 3.34 52396400 30.94 7200000 3.08 2800800 -15.10

Disclaimer: The content hereof does not constitute any form of advice or recommendation by the newspaper. “BCCL” or its affiliates will not be liable for any direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers are recommended to make appropriate enquiries and seek appropriate advice before making any decisions.

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Money Matters  11

WWW.ECONOMICTIMES.COM

Q&A

AMERICAN DREAM

Something Shameful Going on in Mortgage: Dimon

RAJAT VERMA

COMPANY PHOTO

I am 37-year-old married man and have two children. I would like to go for a private medical insurance for coverage of `5-10 lakh with good claim settlement ratio, low cost and wide array of covered hospitals. I have medical insurance under my employer’s policy. What should be my strategy?

It is good that you have initiated to opt for a retail health insurance policy as one should not solely depend on health insurance from the employer. Employer-sponsored coverage can change every year according to claims experience and budgets of your employer. Cover under group mediclaim ceases once you resign or retire. At higher age, medical underwriting is generally required. So it is advisable to have a separate health cover for the entire family at young age. For your age and the sum insured you wish to select, you can even opt for a policy online as many insurers offer them till the age of 45-50 years.

‘For Banks, a Haircut is Better than a Debt Trap’ Corporate India has seen significant amount of stress on books in the last decade. Is the worry abating? I believe that most of the bad news is already out there. But the problems remain, and some sectors have more problems than others. So if you see sector-wise, infrastructure went through a lot of problems, it’s still going through stress and needs support. Once you are debt-laden and in a high interest rate regime, you are in a debt trap. There is no way out of it. You have to either take a haircut or take equity and reduce the amount of debt. Many others connected to infrastructure like EPC players —their businesses have taken a hit because they stopped getting paid and their ratings deteriorated. But I am more optimistic things will look better soon. A lot has been talked about banks taking haircuts in genuine cases. What is your view? In cases where it is determinable that the promoter is making all the efforts, it’s in the bank’s interest to try to protect that company because it’s

are creditworthy. Some of these midmarket companies astound me when I meet them. Textile is a great example — it was a sector which was down and out, but I have seen companies that have gone through restructuring, have come out of it and are now investing. But these sectors have got to have legs, and, to put it simply, some sectors have less potential than others and it’s important to understand that it is time to take a haircut and move out of those sectors.

their own exposure. Solutions have to be found. If banks understand that the intent is right, there should be a willingness to take a greater stake in a company like equity etc. In some cases I see no other solution because where the debt is like a mountain, there will be issues if we keep postponing the debt. The debt burden is too high and banks will have to convert some debt into equity or they have to give more time.

So are you advising that banks should bite the bullet rather than postpone the problem? Yes, because if you postpone the problem it adds up because it is a debt trap. Every year the problem gets worse and your asset deteriorates.

What’s your take on overall private investment? Foreign direct investment (FDI) has been very strong, demonstrating the confidence that overseas businesses have in the India growth story. This was a record year for FDI inflows, reflective of India’s position as one of the brightest spots in the world economy. As regards midsized Indian companies, I see several high quality entrepreneurs who are creating a niche for themselves globally. They are very focused on growing within their ecosystem. Often they have strong technical capabilities and relationships in their respective supply chains. They are fairly resilient despite macro-economic headwinds and are often quite international in their outlook. So if you are a textile company that has been exporting to the US and you have been able to create a market and you have a strong and liquid balance sheet, there is absolutely no reason for you to hold back on in-

Private investment is not picking up due to high unused capacity. Do you see any upturn in the capex cycle? I am seeing some green shoots in the companies I am working with. I find some of these companies are in a very good situation to invest, they

RESOLVING NPA MESS

Once you are debt-laden and in a high interest rate regime, you are in a debt trap... You either take a haircut or take equity

Fine-Tuning Rules Should Top Ajay Tyagi’s Agenda at Sebi MC GOVARDHANA RANGAN Unlike many of his early predecessors at the Securities & Exchange Board of India (Sebi), Ajay Tyagi does not inherit a lawless market. In fact, there are more laws than required in some areas, and some of them may need fine-tuning rather than a complete overhaul. The former bureaucrat’s attention may be needed at various segments of the market — from the initial public offering, to mutual funds, to mergers and acquisitions, and the secondary market — during his three year term. In its quarter of a century in existence, Sebi has adopted international practices in many aspects even if some were not necessarily the best. Some other rules were born out of knee-jerk reaction to developments in the domestic markets which no regulator is immune to. „ IPOs: The regulator in its first board meeting on April 26 may make mandatory monitoring of use of funds raised through IPO even for companies that raise less than `500 crore, after it found ‘diversion of funds’ by some, Reena Zachariah reported in The Economic Times on Thursday. It is important the regulator

leaves little room for fraud, and ensure violators are punished. The question here is why Sebi in the first place exempted some companies? Whether it is a company that raised ` 500 crore, or `5,000 crore, if the idea was to prevent fraud the rule should have been uniform and not based on how much did it raise. There is a difference between ‘diversion’ and ‘reallocation’ of capital. In its justifiable eagerness to prevent siphoning off of funds,

day. This was put in place to prevent rigging of share price during the tech bubble. Just like the speed-breakers on the roads killing some motorists, this instrument itself can be a tool to rig prices. There are restrictions on how much quantity of a thinly traded security could be bought or sold. These were put in place when the surveillance and inspection were rudimentary. The idea should be to catch and punish the wrong doers in the market, rather

essary to calm during times like Lehman.

ANIRBAN BORA

The Skeptic

it should not deny the flexibility for managements to tailor investment strategy to changing industrial climate. Instead of holding a gun to companies’ heads to deliver on what they promised, it should hold the board of directors responsible for diversion. „ Secondary Market: In a modern economy where market means ability to buy and sell as much as one wants, there are restrictions in Indian stock markets. One such is the circuit breakers, i.e. providing a band beyond which a stock cannot move in a

CALLING FOR ACTION

Tyagi’s attention may be needed at various segments of the market — IPO, MFs, M&A and the secondary market than stifling the market itself. Of course, market wide circuit breakers, i.e., for indexes are nec-

„ Mutual Funds: They are on a roll with record fund flows. They have to disclose in which companies the funds are invested, but prohibited from telling the reason behind the investment. Fund managers were banned from talking about individual stocks after Sebi charged a star fund manager of rigging stock prices by talking about the ones he owned. It was strange for the regulator to believe that one fund manager’s talk moved the entire market. And strange was its belief that portfolio has to be disclosed, but not the reasons behind it. It may be time to scrap it. The mutual fund industry is rightly blamed for being inactive when some managements straight away rob minority shareholders, or do something that is adverse. The regulator should probably order mutual funds to disclose their stance on strategic developments like mergers and acquisitions in firms they own stakes. „ Mergers & Acquisitions: The rules are skewed in favour of the promoter when it comes to takeovers, be it selling his entire holding, or securing a sweet-heart non-compete deal. Instead of permitting a total buyout of promoter and a 26% offer to minority holders, the acquirer should make a tender offer for his intended purchase. The tendered shares should be accepted in proportion. Any change to existing way of life would invite resistance from vested interests, but how Tyagi overcomes could be another chapter in Sebi’s history.

LENDING TO SMEs

The lending that we do is more judgmental, based on cash flow... the larger SME companies are an interesting space for us vestments. Such companies are indeed investing to grow their business. Within India, capacity utilisation across industries needs to increase before we see significant private sector capital investment moving up. The government has been pushing banks to invest in SMEs. But most banks seem not too excited about the prospect. What’s your view? My view is that NBFCs fill a lot of gaps in this space. But their lending is not what we would do; some NBFCs focus on mortgage or collateral-backed lending, so their play is more on volumes and on LTV (loan-to-value). The lending that we do is more judgmental, based on cash flow. The fixed asset cover, typically, is insufficient. It needs to depend more on a deeper understanding of the client and is based on cash flows. So this space, i.e. the larger SME companies, is an interesting space for us. They are increasingly getting very international, too.

Payments on Cards, E-Wallets See a Spike XX From ET Markets Page 1

While UPI and AEPS are the latest modes of transaction being pushed by the government, mobile wallets and plastic cards also helped digital payments show strong growth. Mobile wallets increased to 1.1 billion transactions from 603 million transactions last year while card payments have reached 2.8 billion transactions against 1.9 billion transactions last year. Hota said that RuPay, the domestic card payments network, has reached 361 million of domestic cards in circulation and around 15 million of international cards. The company has around 33% market share in ATM transactions and 17% at PoS terminals. “As of this year we have notched 195 million transactions of RuPay cards at PoS terminals and around 87.5 million transactions for online transactions,” said Hota. “Now around seven to eight banks are issuing all their incremental cards on the RuPay network.” The new modes of digital payments, which have the special attention of the central government, are being strategically pushed by banks and payment companies to bring the rural poor within the digital fold. “UPI, including transactions on BHIM, has reached 16.7 million transactions in 2016-17 and that for AEPS reached 335 million transactions in total,” said Hota. While these modes have just started, Hota hopes that initiatives like micro ATM-based digital transactions at fair price shops and coordinated push at business correspondent level activities through digital modes will increase AEPS adoption in rural areas.

I am a 39-year-old man with a high risk of contracting HIV. I’m interested in purchasing a cashless health insurance that covers hospitalisation for ailments like heart disease, broken bones, etc that are not related to HIV. Do all insurance policies have HIV exclusion? Does this mean HIV Positive persons cannot avail of insurance or does it mean that the insurance company does not pay for HIV treatment?

Yes, currently it is difficult to get an fresh health insurance

policy with already known HIV Positive status . HIV/AIDS-related treatment is permanently excluded in health insurance products. However, in case of already insured persons who contract HIV post inception of the policy can continue renewing their policies. Such policies will cover expenses that are not related to HIV/AIDS. I have an existing health insurance plan. I would like to increase the sum assured in my existing mediclaim policy. Should I also go for a cancer care or critical illness plan?

It is important to have health insurance with adequate sum insured to take care of year on year medical inflation. A health insurance policy with a minimum sum insured of `5 lakh on floater basis may be reasonable in most parts of the country other than major cities. However, in metros the sum insured should be around `8-10 lakh. Further it is advisable to have a supplementary critical illness policy as they are on benefit basis. The medical expenses policy takes care of the treatment expenses, and the impact on earning capacity / business continuity and family commitments can be taken care with separate benefit policy. Please send your queries on Stocks to [email protected]; Mutual Funds to [email protected] Tax to [email protected] Insurance to [email protected] Realty to [email protected]

Every week, an expert selected by ET answers queries from our readers on insurance matters

ET in the Classroom

Free Float Market Capitalisation Determines Index Weightage Market capitalisation is an important parameter which many investors consider while putting money in a company. Some investors watch free float market capitalisation as it gives better insight into the quality of the holding. ET tells you what it means and why it is important: 1. What is market capitalisation of a company? Market capitalisation is the outstanding number of shares of a company multiplied by its current market price. For example, if a company has 1 lakh outstanding shares and the stock price is `20, then the market capitalization of the company is `20 lakh.

2. What is free float market capitalisation? In free float market capitalisation, the value of the company is calculated by excluding shares held by the promoters. These excluded shares are the free float shares.For example if a company has issued 10 lakh shares of face value `10, but of these, four lakh shares is owned by promoter, then the free float market capitalisation is `60 lakh.

TEXT: Sanam Mirchandani

ANIRBAN BORA

B

anks should cut losses and take haircuts to avoid worsening the bad loans problem, said Rajat Verma, head of commercial banking (designate) at HSBC India. In an interview to Saloni Shukla, he said that the next big private investment will come from spends of small domestic firms rather than large projects. Edited excerpts:

SHREERAJ DESHPANDE

Head – Health Insurance, Future Generali

It’s Tough to Get Health Cover for HIV+ Persons

“Solutions have to be found. If banks understand that the intent is right, there should be a willingness to take a greater stake in a company like equity, etc. In some cases I see no other solution because where the debt is like a mountain, there will be issues if we keep postponing the debt.”

Business Insider

Multitudes of would-be first-time homebuyers have been stymied in their pursuit of an iconic piece of the American Dream in recent years. JPMorgan top boss Jamie Dimon finds the whole thing unsettling. JPMorgan had plenty to crow about during its Q1 media call Thursday , in which the company beat ear nings and reported some record numbers. But during the call, Dimon took the opportunity to air some concerns. In an impassioned speech, he said there is dysfunction in the mortgage market that he thinks has cut lending by up to $500 billion a year, boxing out many of the Americans who would benefit the most. His comments were based on a March 31 report from JPMorgan’s fixed income strate g y team, which said that “under an early 2000s lending regime, another $500 bn of new purchase loans could have been extended in 2016.” “If that number is right, shame on us” for not doing something about it, Dimon said. A primary culprit, in his eyes, has been overzealous government regulation in reaction to the financial crisis. Dimon’s message Thursday echoes his letter to investors released in early April. In the lett e r, D i m o n d e s c r i b e d homeownership as the “embodiment of the American Dream,” and lamented a slow housing r e c o v e r y, w h i c h h e blames in part on mortgage credit restrictions. He acknowledged that in the wake of the financial crisis “we needed to create a safer and better functioning mortgage industry”, but he said the response was excessive and created new problems. Dimon described the complex web of government oversight that dampened banks’ willingness to lend. And in a not-so-subtle jab at pro-regulation pushers, Dimon notes that the people they’re trying to protect have lost the most from the industry’s heightened governmental scrutiny. He wrote: “It’s noteworthy that those who lost access to mortgage credit are the very ones who so many people profess to want to help — e.g., lower income buyers, first-time homebuyers, the self-employed and individuals with prior defaults who deserve another chance.”

Insurance Queries

Head of Commercial Banking (Designate), HSBC India

3. How does free float market capitalisation differ from total market capitalisation? Free float market capitalisation is lower than total market capitalisation as shares held by promoters or those that are locked in are excluded. For instance, Coal India has total market capitalisation of `1.8 lakh crore but the free float market capitalisation is about `35,600 crore because of the government’s high holding.

4. How does it affect trading of shares? Stocks that have small free float are likely to see higher price volatility as it takes fewer trades to move the share price. On the other hand, in the case of a larger free float, volatility is lower. In stocks with a large free float, the number of people buying and selling the shares is higher and so, a small amount of trading does not affect the price significantly.

5. How does free float methodology help in index calculation? Both NSE and the BSE use the free float market capitalisation method to calculate their benchmark indices Nifty and Sensex respectively, and assigning weight to stocks in the index. So a company with a higher free float has a higher weightage on the indices. A free float index reflects market trends better as it takes into consideration only those shares which are available for trading. It also makes the index more broad-based as it helps to reduce the concentration of top few companies.

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12  Finance & Commodities

EXTRA PROTECTION State-run banks want NPCI to add double layer of security for customer authentication

Tweet of the Day

PSBs Cast Doubt on Safety of UPI

Jim Rickards @JamesGRickards Kelly Evans: “Jim, when was the last time you were bullish on the US economy?” Me: “2005” #Depression explained

Saloni.Shukla @timesgroup.com

Dry Fruits-Apricot - DELHI (In ` per 40 Kg) 65000 55000 45000 35000 25000

April 14, 2016

April 12, 2017

Index COMMODITIES

Bullion

PREV DAYS

LAST WEEK

4897.9

4808.0

ster can easily siphon money,” the official said. Bank of Maharashtra has recently lost `. 25 crore in one of the biggest UPI frauds when some people moved money illegally, taking advantage of a bug. The bank has filed a police complaint against 50 people for unlawfully initiating transactions through UPI. “We have now enabled the facility that if they so like, banks

can go for a higher degree of authentication by asking the customer to put their ATM pin as well,” said AP Hota, managing director of the National Payments Corporation of India (NPCI), the nodal agency for all retail payment systems in the country. In view of the growing risk of cyberattacks, NPCI has tightened security norms before granting UPI membership. There are 44 banks

Insolvency Professionals on the Hunt for Indemnity Cover

0.00

CHANGE

DAYS INDEX

PREV DAYS

LAST WEEK

2251.3

2251.3

2151.3 -21.0

CHANGE

DAYS INDEX

PREV DAYS

LAST WEEK

2454.1

2475.1

2475.1

Edible Oil

GURURAJ

nior SBI official said on condition of anonymity. “When the customer registers with UPI, he gives his mobile number. If that number exists in the bank database, automatically that account gets linked, except for debit card details. There is no further identification required to ascertain where this account is logged in from. So, if one manages to clone the SIM card, a fraud-

GAINING TRACTION The demand for such covers is on the rise after the approval of Bankruptcy Code

0.00

CHANGE

4897.9

Chemicals

BANKS’ CONCERNS OVER UPI z UPI is unsafe z Apart from mobile number, no other identification required z If a fraudster manages to clone the SIM card, he can easily siphon money z Bank of Maharashtra lost `25 crore in one of the biggest UPI frauds

live on UPI, and NPCI plans to undertake rigorous checks before allowing the next set of banks on the platform. Hota said that while NPCI closely monitors complaints from banks and will work towards making the app more secure, there are no apparent security issues with the UPI application. “We have already told banks they will have to implement new security features at their individual level, some 7-8 banks have already done it,” said Hota. “The new, soon-to-be-released UPI version will have tighter security features.” According to government data, the value of UPI transactions grew about 45 times since November 8, when the PM announced the demonetisation drive. UPI transactions rose to `. 87.81crore a day on April 4 compared with `. 1.93 crore a day on November 8.

(2003=1000)

DAYS INDEX

Cement

NCPI’S SAFETY TIPS z Banks can ask the customer to put their ATM pin for authentication z Tighter security norms for UPI membership z Soon-to-be-released UPI version to have more security features

UPI Worries

Mumbai: State-run banks including State Bank of India, the largest in the country, have redflagged security concerns over Unified Payments Interface (UPI), a retail payment facility, and have asked the nodal agency to include a double layer of security for customer authentication. SBI has capped UPI transactions at `. 20,000 a day compared with `. 1 lakh by other banks and may not raise the limit if it remains unconvinced about security, people familiar with the matter said. UPI is a mobile platform that enables seamless money transfers between bank accounts and merchant payments. “UPI is unsafe and those vulnerabilities have to be fixed,” a se-

Quarts & Ounces

15000

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

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LAST WEEK

1470.0

1472.4

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120.8 TONNES

GOLD SHIPMENTS TO INDIA IN MARCH 2017

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Did You Know?

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You can’t buy stock in a church. Churches are non-profit organisations and don’t issue stock, but that doesn’t mean that religion plays no role in investing. In fact, just about every major religious denomination has an opinion about how to deploy cash in support of favoured causes and against those that contradict their views and values. Investors wishing to put their money to work in a manner consistent with Catholic values often seek to avoid investing in firms that pay domestic partner benefits to unmarried or same-sex couples, support abortion, contraceptives, embryonic stem cell research and weapons of mass destruction. They often favour firms that support human rights and fair employment practices via the support of labour unions. — Investopedia

They will have to finalise resolution plan while carrying out on-ground supervision of resolution process Today, indemnity product covers only Senior execs This policy provides cover in case of errors or omissions committed by company executives for providing poor or negligent service

Mumbai: Insolvency professionals are looking for insurance cover as they attempt to enrol for liquidation and bankruptcy courts, said three people in the know of the development. The demand for such covers is on the rise after the approval of Bankruptcy Code. Globally under this cover, the product insures insolvency practitioners against claims for professional negligence. The level of cover is based on their annual fee income. “Insurance companies will devise a policy to cover insolvency professional, like in the western countries,” said an insolvency professional with an asset reconstruction company. “There have been talks to design a product, when the law came into being.” Under the Bankruptcy Code, insolvency professionals will be the licensed quasi-administrators. They will have to finalise resolution plan

LIC Housing Fin Appoints Vinay Shah MD & CEO [email protected]

M u m b a i : Life insurance Corporation of India has appointed Vinay Shah as the new managing director and chief executive director of its mortgage loan arm and listed entity LIC Housing Finance, after the government elevated Sunita Sharma as managing director of LIC earlier this week. Shah was executive director (ED). Shah has been with LIC since 1983. Prior to this assignment, he was executive directormarketing. He took over the business as ED in April 2015. He has looked after areas of new product launches in the last two years. He was zonal manager western zone. The housing finance company had grown profit by 19.2% during the third quarter. It has strong asset quality. However, in the past few quarters, developer loan segment has been growing faster than the retail loan growth. The share price was up 0.38% to `632 on the Bombay Stock Exchange.

Funds Look at Bad Performer Ringgit again Experts say Malaysian currency may be among the region’s better performers in coming months Bloomberg

Asia’s worst-performing currency is starting to come back into favour. Malaysian assets are coming back onto the radar for global funds after they fled last November when policy makers clamped down on trading in offshore ringgit forwards to halt a currency slide. Neuberger Berman Group

says the ringgit may be among the region’s better performers in coming months, while an improving economy has convinced Nikko Asset Management Co to change its view of Malaysian bonds to neutral after earlier cutting holdings. “The ringgit has a few things going for it now,” Prashant Singh, Neuberger’s senior portfolio manager for emerging market debt, said. “If you look at the overall balance of payments, with the increase in commodity prices, the

current account has improved. Foreign direct investment in Malaysia has improved so that has helped.” While still expecting the ringgit to weaken along with most Asian currencies against the dollar, analysts have boosted forecasts for three straight months. They now see it falling to 4.46 per dollar by midyear, a smaller decline than the earlier prediction of 4.55, according to a Bloomberg survey. The exchange rate was at 4.4202 at 3:45 pm in Kuala Lumpur on Thursday. The ringgit has been the worst per-

former of 11 Asian currencies in the past six months, losing 4.6%, as the election of US President Donald Trump in November and rising US interest rates saw investors take money out of the most liquid emerging markets. Malaysia’s central bank responded to the ringgit’s slump in November by clamping down on the trading of offshore non-deliverable forwards. That had the effect of stemming declines, but also damped interest from overseas investors as they found it harder to hedge their positions in the country’s assets. Global funds cut holdings of ringgit bonds to a five-year low in March. Starting in December, policy makers have introduced a number of measures to revive interest in the country’s financial markets.

Gold Refining Picks up as Smuggling Falls after Note Ban Refining activity has shot up 25% after March versus the same time last year; spike in demand too lifts refining Sutanuka.Ghosal @timesgroup.com

Kolkata: Gold refining activity has picked up in India after a gap of five months since the demonetisation in November. MMTC PAMP, the only London Bullion Market Association-accredited Indian refiner, said it was in response to a decline in smuggled gold, while others said the spike in demand from the upcoming wedding season and Akshaya Tritiya are the cause. Refining activity has shot up 25% after March versus the same time last year, said James Jose, secretary, Association of Gold Refineries and Mints (AGRM).

“Two major moves by the government — demonetisation and putting a `. 2 lakh cap on cash transactions — have brought down the entry of gold through illegal routes. This has resulted in refining activities picking up in the country,” said Rajesh Khosla, managing director at MMTC PAMP. “We have a capacity to refine 200 tonnes of gold. Last year, the refining activities had gone down as smuggled gold activities had picked up. We had to stop refining at one point of time. But now, our refinery is operating at 75% of our capacity,” Khosla said. MMTC PAMP, a joint venture between government-owned MMTC and Switzerland-based PAMP, set

On a Golden Note 25%

z Demonetisation

Gold imports by the bullion dealers

150 tonnes

Imported dore gold

z `2 lakh cap on cash transaction

up a refinery in a 10-acre plot in Roj Ka Meo industrial area near Delhi. The company has also set up 10 scrap collection centres across major cities. “May be for a while,

India’s consumption of gold annually

500 -600 tonnes

Rise in gold refining activity after March REASONS zFall in smuggling zStrong demand Moves brought down Smuggling

800-850 tonnes

150 tonnes Scrap gold

smuggling was low. Reports have recently emerged that gold smuggling came under scanner in Kerala. The rise in refining since last week of March is on account of an

increase in gold demand from wholesalers and retailers. They are stocking gold for the wedding season and Akshaya Tritiya. So they are coming to us for refined gold. If this sustains for long, then we can say that smuggling is on the decline,” said AGRM’s Jose. India consumes 800-850 tonnes of gold annually. Of this, around 500 -600 tonnes are imported by the bullion dealers and the rest is met through recycled and doré gold. Jose said that imported doré (impure gold) is around 150 tonnes and scrap gold is around 150 tonnes. Out of the scrap gold, some volume is converted into new jewellery and some is converted back into bars.

Dollar Touches Global SWF 2-week Low on Assets Stall at Trump’s Speech $6.59 trillion

Copper Climbs as China Trade Brightens

Banks Provide `. 1.80 lakh cr under Mudra

Weak China Steel Outlook Hurts Iron ore

LONDON The dollar skidded to a twoweek low against a basket of other currencies on Thursday after US President Trump said that the currency was too strong and that he would prefer interest rates to stay low. Currency was trading down 0.6% and on track for its biggest fall in over three weeks.

LONDON Copper rebounded from its lowest in three months, helped by a weaker dollar and upbeat trade data from China that spurred hopes for higher demand. Benchmark copper on the LME rose 1.2% to $5,693.50 tonne by 0920 GMT, after falling to its lowest since January 10.

NEW DELHI Banks exceeded the target under PMMY by sanctioning loans of more than `. 1.80 lakh crore to the unorganised sector last fiscal, notwithstanding the impact of demonetisation on banking. The government had set a loan target of `. 1.80 lakh cr under the Pradhan Mantri Mudra Yojana in 2016-17.

SYDNEY Chinese iron ore futures nosedived to a three-month low on Thursday, reacting to dramatic falls in the physical spot market as the demand outlook continues to deteriorate. Overnight iron ore for delivery to China’s Qingdao port collapsed by 8.5% to its lowest since last November.

LONDON Sovereign wealth fund (SWF) assets all but stalled at $6.59 trillion in the year to March 2017 due to a combination of weak markets, low oil prices and shifts in government policy, a Preqin report showed. Total AUM have levelled off in last two years, with growth of 3% in 2015 and 1% in 2016.

Indian companies have raised more than `29,000 crore by issuing non-convertible debentures (NCDs) to retail investors in the first 11 months of 2016-17.

EU’s Wheat Reserves Shrinking to 13-yr Low

NCDs Mobilised by Domestic Firms

Bloomberg

London: Europe is likely to end the wheat season with the smallest stockpiles in 13 years. Inventories of wheat held in the European Union will probably plunge 37% to 10.1 million metric tonnes at the end of June, according to Tallage SAS, publisher of the Strategie Grains report. The combination of a poor harvest, strong consumption and higher-than-expected exports is draining stockpiles, which will probably stay low next season, the researcher said. “We see a cocktail of factors that will be bullish for wheat this season and in 2017-18,” Andree Defois, president of Moret sur Loing, Francebased Tallage, said. “The fact that the EU situation will be in tight balance and stocks around the world are expected to decrease, especially by main exporting countries, could impact prices.”

`33,812 crore

`29,000 crore

2015-16

2016-17 (Apr-Feb)

`14,000 crore

NCDs raised by Dewan Housing Finance through this route during the same period

`7,000 crore

NCDs raised by Indiabulls Housing Fin through this route

Source: Agencies

You Can Invest Based on Catholic Faith

Under Bankruptcy Code, insolvency professionals will be licensed quasiadministrators

[email protected]

while carrying out on ground supervision of resolution process. In case liquidation or bankruptcy is triggered in their role as insolvency professionals will have to carry out the liquidation or bankruptcy of the debtor. Today, products cover senior executives mostly directors and compliance officers under a professional indemnity cover. This policy provides cover in case of errors or omissions committed by the company executives for providing poor or negligent service or advice. In the recent time, there have been rise of bankruptcy cases. A series of recent cases in the Indian banking system such as three bankers sent to jail, another company executive was detained for not following the due process in taking loans. These instances have highlighted the risks that bankers face today. Since, these insolvency professional will be taking up a role of running a defunct company facing several allegations from creditors. The cover will provide a comfort against any allegation of wrongdoing if questions are raised about their decision in time to come.

Companies Mop up `29,000 crore via NCDs in FY17

REASONS FOR FUND RAISING Expansion plans Retiring debt Other corporate purposes

MCX FUTURE PRICES PRODUCT EXPIRY DATE

OPEN

HIGH

LOW

ALUMINI-1KGS (Lot-1 MT) 28-Apr-17 122.75 123.30 122.35 31-May-17 123.30 123.85 122.90 ALUMINIUM-1KGS (Lot-5 MT) 28-Apr-17 122.80 123.30 122.35 31-May-17 123.30 123.80 122.85 CARDAMOM-1KGS (Lot-100 KGS) 13-Apr-17 1431.90 1431.90 1370.00 15-May-17 1265.10 1267.90 1246.10 15-Jun-17 1049.80 1049.80 1022.60 COPPER-1KGS (Lot-1 MT) 28-Apr-17 365.40 368.20 365.10 30-Jun-17 370.00 372.50 369.50 31-Aug-17 375.80 375.80 375.20 COPPERM-1KGS (Lot-250 KGS) 28-Apr-17 365.45 368.05 365.10 30-Jun-17 369.00 372.30 369.00 31-Aug-17 373.65 375.65 373.65 COTTON-1BALES (Lot-25 BALES) 28-Apr-17 20670.00 20730.00 20570.00 31-May-17 20880.00 20940.00 20780.00 30-Jun-17 21040.00 21060.00 20910.00 CPO-10KGS (Lot-10 MT) 28-Apr-17 520.30 521.50 514.70 31-May-17 494.80 495.50 488.80 30-Jun-17 480.00 480.40 473.50 CRUDEOIL-1BBL (Lot-100 BBL) 19-Apr-17 3436.00 3436.00 3410.00 19-May-17 3455.00 3465.00 3448.00 19-Jun-17 3492.00 3498.00 3482.00 CRUDEOILM-1BBL (Lot-10 BBL) 19-Apr-17 3436.00 3436.00 3410.00 19-May-17 3472.00 3472.00 3448.00 19-Jun-17 3500.00 3520.00 3484.00 GOLD-10GRMS (Lot-1 KGS) 05-Jun-17 29300.00 29409.00 29281.00 04-Aug-17 29460.00 29530.00 29434.00 GOLDGUINEA-8GRMS (Lot-8 GRMS) 28-Apr-17 23625.00 23709.00 23610.00 31-May-17 23650.00 23679.00 23625.00 GOLDM-10GRMS (Lot-100 GRMS) 05-May-17 29270.00 29350.00 29238.00 05-Jun-17 29349.00 29417.00 29292.00 05-Jul-17 29400.00 29453.00 29374.00 GOLDPETAL-1GRMS (Lot-1 GRMS) 28-Apr-17 2945.00 2952.00 2945.00 31-May-17 2947.00 2952.00 2946.00 30-Jun-17 2947.00 2950.00 2945.00 LEAD-1KGS (Lot-5 MT) 28-Apr-17 145.70 146.20 144.30 31-May-17 146.05 146.45 144.65 LEADMINI-1KGS (Lot-1 MT) 28-Apr-17 145.55 146.25 144.30 31-May-17 146.10 146.45 144.75 MENTHAOIL-1KGS (Lot-360 KGS) 28-Apr-17 986.20 993.50 983.10 31-May-17 993.50 1000.00 990.00 30-Jun-17 985.90 986.90 980.50 NATURALGAS-1mmBtu (Lot-1250 mmBtu) 25-Apr-17 205.60 205.60 203.00 25-May-17 210.00 210.20 208.80 27-Jun-17 215.00 215.50 214.10 NICKEL-1KGS (Lot-250 KGS) 28-Apr-17 634.40 634.40 625.30 31-May-17 637.70 639.80 631.60 30-Jun-17 642.20 642.20 637.90 NICKELM-1KGS (Lot-100 KGS) 28-Apr-17 632.00 633.60 625.50 31-May-17 637.90 639.70 631.90 30-Jun-17 645.50 645.50 639.00 RBDPMOLEIN-10KGS (Lot-10 MT) 31-May-17 535.10 535.50 528.40 SILVER-1KGS (Lot-30 KGS) 05-May-17 42301.00 42694.00 42301.00 05-Jul-17 42942.00 43159.00 42895.00 SILVERM-1KGS (Lot-5 KGS) 28-Apr-17 42330.00 42729.00 42330.00 30-Jun-17 42995.00 43170.00 42902.00 31-Aug-17 43473.00 43596.00 43430.00 ZINC-1KGS (Lot-5 MT) 28-Apr-17 168.40 169.25 165.65 31-May-17 169.50 169.75 166.25 ZINCMINI-1KGS (Lot-1 MT) 28-Apr-17 168.50 169.25 165.60 31-May-17 169.30 169.80 166.20 30-Jun-17 169.80 169.95 166.70

MCX prices as on 13 April 2017, 5PM IST

CLOSE

VALUE (LAKH)

VOLUME (LOTS)

OPEN INT. (LOTS)

122.50 123.05

7305.85 507.96

5950 412

4304 905

122.50 123.05

16869.72 1873.49

2748 304

2190 1407

1389.80 1261.90 1032.30

417.17 250.31 10.32

300 199 10

207 908 133

366.00 370.15 375.45

64893.64 1256.64 11.26

17703 339 3

20980 1761 27

366.05 370.15 374.95

12701.36 673.85 4.69

13863 727 5

14743 1655 32

20680.00 20910.00 21030.00

7829.89 7633.92 786.78

1516 1463 150

6183 5396 1082

516.60 491.30 475.20

8124.45 3809.44 745.47

1566 773 156

5643 4327 744

3426.00 3462.00 3492.00

103617.80 3962.64 122.13

30312 1147 35

17801 2288 220

3426.00 3463.00 3493.00

15523.15 1037.60 43.28

45412 3003 124

38326 5605 520

29383.00 29505.00

134988.47 648.86

4601 22

8202 433

23691.00 23672.00

50.65 13.72

214 58

764 136

29324.00 29393.00 29431.00

12152.58 1993.28 58.84

4149 679 20

5193 1314 60

2951.00 2951.00 2946.00

93.91 44.69 1.06

3184 1515 36

5931 4072 140

144.85 145.15

45632.05 1033.35

6282 142

2608 179

144.85 145.10

15512.72 400.45

10674 275

4155 430

991.50 998.10 985.60

3398.33 447.89 109.83

955 125 31

2306 537 253

204.30 210.00 214.90

28669.77 1269.63 155.74

11256 485 58

6549 1096 209

626.10 632.20 638.10

20943.56 1409.71 84.76

13310 888 53

39212 2841 318

626.20 632.60 639.60

6965.04 491.84 12.17

11066 774 19

27451 3100 85

528.90

430.39

81

217

42598.00 43101.00

71458.27 2733.67

5599 212

12631 1021

42611.00 43073.00 43493.00

15607.42 1124.76 13.05

7335 523 6

8870 1264 51

166.40 166.95

107283.65 4484.69

12816 534

7568 649

166.40 166.90 168.15

34648.57 1862.28 21.91

20682 1109 13

11804 1220 37

Compiled by ETIG Database

https://t.me/srikakulam

bubbly

Companies: Pursuit of Profit  13

Ola Raises `. 1,675 Crore in Fresh Funding from SoftBank

Investment made via SoftBank’s subsidiary SIMI Pacific in Ola’s parent co ANI Technologies

Bengaluru: India’s largest ride hailing application Ola has raised `. 1,675 crore or about $250 million in fresh funding from Japanese telecom and internet major SoftBank Corp, documents filed with the Ministry of Corporate Affairs (MCA) show. The investment, which was closed last year, has been through SoftBank’s subsidiary SIMI Pacific Pte Ltd in Ola’s parent company ANI Technologies. The financing is Ola’s so called ‘down round’ where a company raises money from investors at a valuation lower than its previous round of fund-raising. While the round was closed last year, it was never officially announced. ET was the first to report in its edition dated November 25 that Ola is raising $250-300 million from SoftBank in round which would value the company at about $3 billion. Since Ola’s valuation has started to move

ET ARCHIVES

Our Bureau

Ola Co-founder Bhavish Aggarwal

up as it has started gaining back market share against San Francisco-based rival Uber, which is battling a series of management and regulatory hurdles in its home market. ET reported earlier this month that Ola is raising another $100 million from Ratan Tata's RNT Capital and Falcon Edge in a deal which could move up its valuation to $3.5 billion.

Industry estimates place the market share for Ola, led by founder Bhavish Aggarwal, at around 65% with Uber holding the second slot in the taxi aggregation business. In 2016, Ola and Uber together clocked a near four-fold increase in the number of rides compared to the previous year, according to a report by research and advisory firm RedSeer Management Consulting. According to analysts and employees at Ola, the company clocked about 6 million weekly rides on an average between September and December 2016, across all its offerings — cabs, auto rickshaws and shuttle buses. The major source of revenues for both Ola and Uber — around 70-75% — comes from their economy services that include Ola Micro, Mini and UberGo, analysts said. Ola’s plan to work closely with the government and introduce electric vehicles in the top cities in the country in the next three months is expected to boost prospects for the company.

‘Divest Shareholding’ From Page 1

The PIL was filed by advocates Zulfiquar Memon, son of criminal lawyer Majeed Memon, and Avishkar Manu Singhvi, son of senior Congress leader Abhishek Manu Singhvi, on behalf of the seven individuals. Bang and Chaturvedi confirmed they were part of the PIL but declined to comment on specifics. Venkataramanan, Sethuraman, Pednekar, Deshmukh and Gupta did not respond to queries. The PIL called on the high court to direct the public sector insurance companies to divest their shareholding from the companies that are directly and indirectly engaged in the tobacco businesses. “While on one hand, the government is committed to tackling the problem of tobacco and the ill-effects caused by it, the insurance companies, in complete disregard

to the government’s policy, continue to invest in ITC,” the PIL said. This is against the spirit and intent of the World Health Organization’s Framework Convention on Tobacco Control, it said. ITC is India’s largest company by market value in the fast-moving consumer goods (FMCG) sector and has been one of the top wealth-creating companies. However, the FMCG segment of ITC has not yielded much revenue for the company and it continues to thrive on tobacco. Nearly 48% of its revenue and 85% of its profit comes from the cigarette business. ITC couldn’t be immediately reached for comment. PIL SEEKS GUIDELINES

The PIL also asked the court to order the public sector institutions to cease making further investments in any commercial enterprise that is linked with funding, pro-

moting, selling, directly or indirectly controlling or operating a tobacco business. It also asked that the government and the Insurance Regulatory and Development Authority of India be directed to frame guidelines or a code of conduct to ensure that the shares are divested and such investments don’t take place in the future. Despite several representations made by the petitioners and others, the insurance companies have not taken any steps that indicate their readiness to divest their holdings in the tobacco companies, the PIL said. According to the PIL, India has 275 million tobacco users. Tobacco kills every third user prematurely through cancer, heart attack, lung diseases and stroke. Tobacco is responsible for nearly 50% cancers in India and 90% of mouth cancer patients die within 12 months of diagnosis, it said.

Panel Sees Fiscal Deficit at 2.5% of GDP by FY23 From Page 1

The committee sees fiscal deficit declining to 2.5% of GDP by FY23. The government had announced the review of fiscal framework in the last Budget amid clamour for a more flexible framework to give the Centre room to stimulate economy in times of stress. The committee has provided an escape clause of up to 0.5 percentage point relaxation in fiscal deficit targets under certain specified circumstances, including in situations of sharp fall in growth. “It (the report) has been made public and time has been given to the stakeholders till May 5 to give their comments. Thereafter, it will be examined and a decision will be taken. They have talked about a new legislation. The government will take a decision this way or that way well before the Budget,” Das said. While refusing to be drawn into a comparison between the existing fiscal framework and the one recommended by the

committee, he said the panel has made the goals more focussed. “(Under) Earlier formulation there were fiscal and revenue deficit target(s). Now it is anchored on debt-to-GDP target of 60% by 2023. And on that they have built the fiscal deficit road map. To that extent, it is far more focussed because the ultimate goal is debt-to-GDP.” He said it is dealing with a larger problem of the economy by premising debt-to-GDP ratio as the principal anchor and from that as a derivative you have fiscal deficit. The committee has proposed a fiscal deficit of 3% of GDP for the current fiscal against the 3.2% budgeted by the government. NO IMPACT ON ROAD MAP

Das said this would not impact the road map laid out by the committee. “It was analysed and we felt that even with 3.2% fiscal deficit the government would be able reach the debt-to-GDP target for ge-

neral government by 2023. So, a minor adjustment was done within the overall road map given by the committee.” He did not think the Fiscal Council, a body proposed by the committee to oversee the fiscal road map, would undermine the government’s fiscal powers. “The Fiscal Council will be a recommendatory body, according to the report. In the past, the 13th Finance Commission had also recommended a Fiscal Council. Now this committee has also made this recommendation. So, the government will examine all these aspects and take a decision.” On chief economic adviser Arvind Subramanian’s dissent note to the committee, he said each member is entitled to give his views. “CEA has given a point of view which the committee has not accepted and to ensure fairness of the report it has reproduced his point of view. It is not the government’s point of view. The government will now examine the report and take a decision,” he said.

‘High Return Rates’ From Page 1

“During the demonetisation phase consumers were cautious to spend due to non-availability of cash. However, an increased impetus on cashless economy aligned towards digital India will boost online sales,” Manish Sharma, CEO, Panasonic India. The market share of online sales in household appliances grew to just 7.7% last year from 6.6% in 2015, according to data from researcher Euromonitor International. This is despite several online exclusive appliance brands charging 20-30% less than comparable products available in stores. Videocon chief operating officer CM Singh said small appliances and microwave ovens have been able to crack the online market but consumers still prefer touch and feel when they want to buy a refrigerator, washing machine or air-conditioner. “There have been high return rates for these products online due to mishand-

ling since transporting them is a challenge,” he said. CHINESE PHONES ALSO MOVING OFFLINE

Counterpoint Research analysts said Chinese smartphone brands like Motorola, Xiaomi, Lenovo, LeEco entered India through online sales, which was followed by discount-driven branding activities across Flipkart, Snapdeal and Amazon, which had helped the ecommerce channel to grow significantly. But they are moving into offline retail as well, reflecting market trends. “The online exclusive brands have started to invest in offline retail operations reducing the online traction. Also, the number of new smartphone brands entering the Indian market has reduced over the years and we are expecting this trend to continue,” said Counterpoint senior analyst Pavel Naiya. Amazon India, however, said its business did not lose any momentum with smartphone sales rising by 150% last year and lar-

Non-alcoholic Drinks From Page 1

A spokesperson at The Leela Ambience in Gurgaon said there have been a few cancellations and the property is focusing on positioning its new non-alcoholic drinks menu to guests. “Clients are sceptical about bookings for events for the coming months. They want to wait and see,” said Ankur Bhatia, executive director of the Bird Group, which owns the Roseate in New Delhi. Five-star hotel Feathers - A Radha Hotel on Mount Poonamalee Road in Chennai has banqueting space to serve 1,000 guests and has been getting cancellations this month for events. “Future booking are also not coming through. We have a Rs 110-crore loan which we have to pay to banks. We are wondering what to do,” said R Srinivasan, managing director.

EPFO to Provide 8.65% Interest on EPF for FY17: Dattatreya New Delhi: About 4 crore subscribers of EPFO will get 8.65% interest on provident fund deposits for 2016-17, as decided by the organisation's trustees in December, Labour Minister Bandaru Dattatreya said on Thursday. The comments follow reports suggesting that the Finance Ministry is nudging the Labour Ministry to lower the EPF interest rate by up to 50 basis points. “It is not like that. The CBT (EPFO trustees) had decided to give 8.65%. Our ministry keeps on discussing with Finance Ministry. We would have surplus of `. 158 crore on providing 8.65%,” Dattatreya said. — PTI

ge appliances by 200%. “Last year we built upon our earlier partnerships with brands and added more brands onto Amazon. For large appliances, we have set up dedicated fulfilment centres,” said Manish Tiwary, vice president, category management. Euromonitor said many online retailers are incurring losses after offering heavy discounts on consumer electronics and it will be difficult to maintain them. “It remains to be seen if consumers will continue to shop online once online retailers reduce the level of discounts,” it said. Meanwhile, brick-and-mortar stores are offering attractive discounts in some instances, as a laptop buyer discovered. “I bought a Dell Inspiron (5568) from Reliance Digital on Thursday for Rs 63,999 while on Amazon the price was Rs 76,683. I got a Dell bag and an all-inone Canon printer for free with the laptop which was not there on Amazon,” said JK Rajan, an independent consultant at German firm TUV.

Observers Structure Raises Term It Too Questions: Experts Little, Too Late From Page 1

PHOTO: REUTERS

WWW.ECONOMICTIMES.COM

Infosys CEO Vishal Sikka during the announcement of the company's quarterly results in Bengaluru From Page 1

This failed to please investors, given the Rs16,000-crore buyback plan of TCS and Cognizant’s statement that it will return over $3 billion to shareholders. “It’s too little, too late. It’s lower than expected. They could have afforded to be more generous with $6 billion of cash lying with them,” said Amit Tandon, managing director of shareholder advisory firm IiAS. Infosys fell as much as 4.31% before recouping some losses and closing at Rs 931.40. The stock has lost a 10th of its value in the past six months. The disappointment over the payout was deepened by underwhelming fourth-quarter results and the outlook for FY18. Infosys said it expects to grow 6.5-8.5% in constant currency terms in FY18, disappointing analysts who were forecasting growth of 7-9%. For the quarter ended March, Infosys reported revenue of $2,569 million, flat in constant currency terms sequentially. Analysts had expected growth of 0.8-1.2% sequentially in constant currency. Net profit declined 0.8% sequentially to $543 million. In rupee terms, fourth-quarter revenue declined 0.9% sequentially to Rs 17,120 crore. Net profit fell 2.8% sequentially to Rs 3,603 crore. WEAK QUARTER

“Overall a weak quarter from Infosys with miss on revenues. We think that growth momentum is not very encouraging as (year-on-year constant currency) growth has been slowing down through the year,” said Religare Capital Markets analyst Rumit Dugar. “This has clearly pushed up the asking quarterly rates and this is reflecting clearly in their rather modest FY18 guidance. Overall higher return of cash back to shareholders with clarity on capital allocation policy will provide downside support.” The company also lowered its margin range more than anticipated. Infosys said it expected its FY18 margin to be in the range of 23-25% from 24-26% earlier. Analysts had expected the company to narrow the range to 24-25%. “Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance,” CEO Vishal Sikka said in a release. “Looking ahead, it is imperative that we increase our resilience to the dynamics of our environment and we remain resolute in executing our strategy, our path to transform Infosys, and to drive longterm value for all stakeholders.” The main “distraction” is the spat between the founders and the management over compensation for senior executives. The business issues facing Infosys ail the sector as a whole, said Gartner research director DD Mishra. “Automation, geopolitical issues, the movement to software-as-a-service and cloud are not trends that are restricted to Infosys,” Mishra said. “The IT sector has slowed down and that will continue. I would be very surprised if they and other IT companies began to grow like they did in the past.”

India’s $150-billion outsourcing industry has been battling a series of challenges ranging from visa regulations to pressure on margins from increasing automation of IT services. Industry lobby Nasscom has not yet given a growth target for fiscal 2018, citing macroeconomic uncertainty. Infosys, which disappointed investors due its tepid outlook for the year, has faced extra pressure also due to the ongoing spat over its governance. The attempt to alleviate the friction between management and promoters is also aimed at clearing management focus to deal with operational hurdles that lie ahead. “I am happy that the promoters feel comfortable about the decision taken,” R Seshasayee, chairman of Infosys told ET although he was at pains to clarify that “Ravi’s name did not come from the promoters”. “We don’t need somebody else introducing Ravi to the board. He is a part of the board and, so, it is a natural choice,” said the 69-year-old who was appointed to his post in 2015. The decision to bring in Venkatesan is designed to increase the board’s ‘bandwidth’ and “ensure the transformation journey we have charted out is completed as smoothly as possible”, Seshasayee said. Murthy declined comment on the appointment. Venkatesan, who has served on the Infosys board for over five years now and was part of the search process that identified and appointed Sikka as chief executive officer of the company in 2014, said the division of roles between Seshasayee and himself will be fluid. He (Venkatesan) would likely take the lead in matters of strategy while Seshasayee would be responsible for governance and talking to investors. “We have decided that we would have a working partnership for collaboration. There is a very long set of things to focus on, some of which is external and some internal. On some of them he will take the lead while I play the supporting role, in other things I will take more of a leadership role while he and other take the supporting role,” he said. Experts are of the view that this unusual structure raises more questions than provide answers. “The role of the co-chair-

man needs to be defined in this situation. We know the chairman calls the meetings and is responsible for governance, but what would the cochairman do?” said Shriram Subramanian, managing director of shareholder advisory firm InGovern. DOUBTS REMAIN

Other company watchers doubt whether these moves will lead to a cooling of tempers and also address the charges of flawed governance. “We had asked for the chairman to step down so the investigations into the governance actions could be taken by someone independent,” said V Balakrishnan, former Infosys executive and vocal critic of the management. “I do not see how this co-chairman improves the governance,” he said. Murthy, in an exclusive interview to ET, had questioned the decision by the company to pay a hefty severance package to former chief financial officer Rajiv Bansal, holding Seshasayee and remuneration committee head Jeffrey Lehman responsible. While Infosys has appointed Cyril Amarchand Mangaldas to create a framework for its interactions with key stakeholders and governance, the board has already been meeting investors. “The engagement with the investors is something that we have already started. We have been talking to key investor groups to get their inputs on various matters relating to the composition of the board and the like,” Seshasayee said. He added that the company’s institutional investors had not raised concerns about governance but were keen that the issues be sorted out as quickly as possible. In addition to battling its irate founder, Infosys is also investigating a whistleblower letter sent in February. The letter alleged irregularities in the acquisition of Israeli technology startup Panaya and conflicts of interest. The board has brought in an independent outside firm to help with the investigation. “There is an independent firm doing an investigation, again in the normal course we would do for any whistleblower complaint. This is also being done in the same manner. In this case a global firm has been engaged,” Seshasayee said.

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POLITICS OVER POWER: DATA FUDGING

Akhilesh Government Understated Power Demand: UP tells Centre Sarita.Singh @timesgroup.com

New Delhi: The BJP government in Uttar Pradesh has told the Centre that the preceding Akhilesh Yadavled Samajwadi Party government understated electricity demand in the run-up to the recent assembly election to gloss over the power crisis in the state, a senior central government official said. “The state was showing restricted electricity demand, which is in violation of the regulations of the Central Electricity Authority (CEA) on information sharing. The state’s authorities have now admitted in writing that its previous government had asked it to do so,” the official told ET on condition of anonymity. Data available with CEA shows that the energy deficit in UP in January 2016 stood high at 11.5% — the energy requirement was showed at 8,340 million units against supply of 7,384 million units. In January this year, the state showed 0.8% deficit, with demand of 8,747 million units and availability of 8,673 million units. The official said that in the past few months, UP had started calculating electricity demand to meet power supply for 18 hours against the norm of 24 hours. “When the state officials were quizzed by the new government, they admitted

that the Samajwadi Party-led state government had ordered officials to adopt a low base for demand,” the official said. The SP could not be immediately reached for comment. Earlier, the BJP-led central government had questioned accuracy of data provided on power supply situation by Uttar Pradesh to CEA. “We were aware of the long power cuts in the state, despite it claiming to be a low power deficit state. We had time and again questioned the sudden drop in power UP will on deficit, given the same Friday join level of electricity rethe Centre’s quirement and supply Power For All position,” another offiprogramme cial close to the deveto ensure lopment said. 24x7 The state has also alelectricity legedly signed bilateaccess by ral power purchase 2019 deals at high cost while cheaper power was available. UP will on Friday join the Centre’s Power For All programme to ensure 24x7 electricity access by 2019. The programme includes a roadmap to reduce technical and commercial losses of electricity through collection efficiency and effective metering, development of transmission and sub-transmission networks, increasing renewable energy generation and adopting energy efficiency measures.

Uttar Pradesh Power Crisis At almost same demand/supply Y-o-Y, deficit doesn’t add up Months Jan 2016 Jan 2017 Feb 2016 Feb 2017 Mar 2016 Mar 2017

Power Demand (in million units) 8,340 8,747 7756 7,850 8,396 8,765

Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 (Peak season) Oct 2016 (Peak season) Nov 2016 Dec 2016

Move reflects rising demand for gas as an alternative energy source in the country as global prices of the fuel head south

Mumbai: Conglomerates in India now have a `. 17,000-crore investment theme built around an industrial fuel: liquefied natural gas (LNG). The Essar, Adani and JSW Groups, among others, are setting up LNG terminals along India’s eastern and western water margins as natural extensions to the port infrastructure, reflecting the increasing demand for the gas as an alternative energy source in the country as global prices of the fuel head south. Essar Ports, part of the Essar Group, has won the recent bid for a `. 450 crore, 1million-tonne LNG import terminal at the Haldia port in West Bengal, according to two people aware of the developments. The Kolkata Port Trust had called bids for the terminal, for which staterun Petronet LNG and V Energy were also in the race. "As a group, we keep looking at growth opportunities in its businesses. But it is not our policy to comment on any specific proposal," a spokesperson for the Essar Group told ET. Essar, Adani, and JSW Groups' planned investments on their respective LNG terminal projects total `. 17,000 crore: At its Dhamra port in

GETTING FUTURE READY

The Essar, Adani and JSW Groups, among others, are setting up LNG terminals along India’s eastern and western water margins as natural extensions to the port infrastructure Odisha, Adani Ports and SEZ is building an LNG terminal of 5 million ton capacity, entailing an investment of `. 5,200 crore, and an LPG terminal of 2.5 million ton capacity, which would see an additional investment of `. 2,300 crore. The JSW group has also tied up with the Hiranandandani Group, spending up to `. 4,000 crore to set up an LNG terminal at JSW's Jaigarh port in Maharashtra. Essar might sign the 30-year licence agreement in the next couple of months. It has already sought environmental clearance for the project that may come up in the next two years. The majority of the equipment would be on lease, keeping the investments relatively low, one of the two sources quoted above said. Later, Essar might set

up a 5-million-ton LNG terminal at its facility at Hazira in Gujarat. "Going forward, LNG will be the focus for Essar," the person said. A consortium led by Russia's oil giant Rosneft has bought the group's oil business for $12.9 billion putting the ports out of almost all liquid cargo. The resultant shift is toward hydrocarbons. "On a group level, Essar could be a large user of LNG, through its steel plants," said the source. A fall in LNG prices amid rising demand stoked new investments in the fuel’s storage and transportation infrastructure. "There is high demand for LNG, and shift towards alternative sources of energy," said Kalpana Jain, partner at Deloitte India. "Of course, the prices are a reason too. Landed rates in Japan, for instance, have fallen to $5 per unit from $16 in the last two years." The Adani Group’s two terminals in Odisha would help close the gap in the state's energy requirements, and support various local ancillary industries. At Mundra in Gujarat, the Adani Group is currently working on an LNG terminal that will have an initial annual capacity of 5 million tons a year. It is also working on a 1.6 million ton LPG import terminal. The project cost of the LNG import terminal is estimated to be about `. 4,500 crore.

PM Modi to Launch Merchant

Interface of BHIM App Today Move will allow digital payments using biometric data such as thumb imprint on a merchant’s biometric-enabled device Our Bureau

New Delhi: Prime Minister Narendra Modi is set to launch BHIM-Aadhaar, the merchant interface of the Bharat Interface for Money (BHIM) mobile application, on Friday on the occasion of Ambedkar Jayanti to pave the way for making digital payments by citizens using the Aadhaar platform. This will enable Indian citizens to make digital payments using their biometric data such as their thumb imprint on a merchant’s biometric enabled device. “Any citizen without access to smartphones, internet, debit or credit cards will be able to transact digitally through the BHIM-Aadhaar platform, thus realising Dr Ambedkar’s vision of social and financial empowerment for all,” the government said in a statement. “Already, 27 major banks are on board with 3 lakh merchants so that they can start accepting payments using BHIM-Aadhaar.” The PM is also scheduled to launch two new incentive schemes for the BHIM — cashback and referral bonus — with an outlay of `. 495 crore for a period of six months. “This is to ensure that the culture of digital payments permeates down to the grassroots. Under the referral bonus scheme both the existing user who refers BHIM and

Digital Push „ 27 major banks are on board with 3 lakh merchants so that they can start accepting payments using BHIMAadhaar

„ PM to also launch two new incentive schemes for the BHIM — cashback and referral bonus — with an outlay of `495 crore for a period of six months Under the referral Under the bonus scheme both cashback the existing user who scheme the refers BHIM and the merchants will new user who adopts get a cashback BHIM would get a on every cash bonus credited transaction directly to their using BHIM account

the new user who adopts BHIM would get a cash bonus credited directly to their account. Under the cashback scheme the merchants will get a cashback on every transaction using BHIM,” the government said. Besides, the PM will announce about 75 townships spread all over India as ‘less-cash townships’ where the deployment of payment acceptance infrastructure is complete and all the families in the township are covered under training programmes. “The townships selected for the launch have been subjected to independent third party assessment by PricewaterhouseCoopers (PwC) and only those townships which have reported more than 80% of the total number of transactions in the township being done through digital modes of payments during the review period are included

Deficit percentage 11.5 0.8 12.4 0.8 10.5 0.2

Deficit dropped substantially starting April 2016

Essar, Adani, JSW to Build LNG Terminals at Ports Anirban.Chowdhury @timesgroup.com

Demand met (in million units) 7,384 8,673 6,795 7,788 7,514 8,751

in this list. These townships are likely to generate over 1.5 lakh digital transactions every day, thereby leading to about 5.5 crore digital transactions in a year,” the government said. The statement said that India has seen an unprecedented increase in the number of transactions made using several user-friendly digital payment methods. It said until November last year, 280,000 digital transactions took place, amounting to `. 101 crore in value terms. “In just four months, by March this year, volume of payments using various digital payment modes saw an increase of about 23 times amounting with 63,80,000 digital transactions for a value of `. 2,425 crore. Aadhaar enabled payments have increased from 2.5 crore in November 2016 to over 5 crore in March 2017,” the government said.

6.9

9,198 9,312 9,723 9,268 9,351 9,736

8,566 9,176 9,593 9,241 9,224 9,439

9,069

8,959

1.2

7,963

7,863

8,466

8,359

1.3 1.3

1.5 1.3 0.3 1.4 3.1

AP Power Regulator, Main Genco Spar Over Wind Energy Tariff [email protected]

New Delhi: Andhra Pradesh, the most aggressive state in building renewable energy capacity last year, may soon lose its momentum because of a standoff between the state’s power regulator and its main generation company over the future cost of wind power. As it does every year, on March 30, the Andhra Pradesh Electricity Regulatory Commission (APERC) passed an order setting down the preferential tariff the state would pay for wind power in 2017-18. But the state’s main generation company, Andhra Pradesh Power Generation Corporation (APGENCO) would rather hold auctions for all wind projects it buys power from, as it finds the set tariff to be too high. APERC has ordered tariff of `4.76 per kwH for developers using the accelerated depreciation (AD) benefit and `4.35 per kwH for those not availing of it. AD, a concession given to renewable energy projects, allows developers to claim 80% depreciation in the first year after project commissioning. But APGENCO is unwilling to pay these prices, noting that the price discovered at wind auction conducted by Solar Energy Corporation of India in February was much lower, at `3.46 per kwH.

RPower Posts Over 3-fold Jump in Q4 Profit New Delhi: Reliance Power on Thursday posted over three-fold jump in consolidated net profit to `. 215.90 crore for the quarter ended on March 31, 2017 compared to that of `. 61.55 crore in the year-ago period. Its consolidated income rose to `. 2,696.5 crore in the last quarter of 2016-17 from `. 2,548.94 crore in the same period of previous fiscal, the company said in a BSE filing. The company has adopted Indian Accounting Standards (Ind AS) from April 1, 2016, with a transition date of April 1, 2015, the filing said. Its power generation was 42,000 million units in 2016-17 with almost flat growth compared to previous financial year. The consolidated net profit in 2016-17 was `. 1,104.16 crore, up 23% from `. 895.45 crore in the previous fiscal. Total income was `. 10,891.68 crore in 2016-17 against `. 10,621.52 crore in the previous fiscal. The company said that its 3,960 MW Sasan UMPP in Madhya Pradesh generated 29,476 million units operating at availability of 86%. The captive coal mines of Sasan UMPP produced 17 million ton of coal, the highest among private sector players in the country. The total volume including overburden removal handled by coal mine of

Sasan UMPP is the highest in the country, it claimed. It said that the 1,200 MW Rosa Power Plant in Uttar Pradesh generated 7,914 million units operating at availability of 100%. Similarly the 600 MW Butibori Power Plant in Maharashtra generated 3,762 million units operating at availability of 88%. — PTI

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BFSI Sector Edges Out IT to Become Top Paymaster Who’s Paying What

Sreeradha D Basu

TOP PAYMASTERS Peak rates of increment BFSI IT Agriculture FMCG Healthcare & pharma

Average rates of increment

17.87 15.16 13.66 13.64

11.2 11.06 9.43 9.38

13.46

9.2

All figures in percentage

LOWEST PAYMASTERS Average rates of increment

7.69

8.67 6.33 Construction

8.25

Automobile

9.11

9.21

Power and energy

10.2

Industrial manufacturer

Peak rates of increment

Construction

Mumbai: The banking, financial services and insurance (BFSI) sector will pay out fairly large increments this time around in sharp contrast to the last couple of years when hikes were affected, the TeamLease Jobs and Salaries Primer: 2017 has revealed. After IT sector’s more-than-four-years monopoly, BFSI is at the top rung for the first time with salary increments averaging 11.2 %, says the primer which has two new sectors — ecommerce and education services — and more than a 100 new job profiles in this edition. While sectors such as construction and real estate, automobile, industrial manufacturing and allied industries, which were hit by demonetisation, have cut back on increments, others such as FMCG and retail have rallied. “The overall job creation outlook is slated to continue unabated, effects of demonetisation notwithstanding due to both private and foreign investments,” said Rituparna Chakraborty, executive vice president, TeamLease Services. Blue-collar jobs have been in demand for a few years now thanks to low supply and high demand, but more sophisticated job profiles have now emerged — and employers are willing to pay commensurate salaries. Skills in demand include physical strength & fitness, basic reading, written and oral communication, interpersonal skills, reflective thinking. Salaries average from `. 11,500 for a module assembly technician, `. 12,000 for a cable operator, `. 14,000 for a medical lab technician to `. 19,000 for a service supervisor. Consequently, variance between temporary and permanent salaries

Automobile

sed $250,000 (.` 1.61crore). SIDBI invested an undisclosed amount in a mix of equity and debt. EduCommerce secured its first round of funding in December 2015. Citing the startup’s founders, ET in early 2016 reported that it had raised a seed fund of $100,000 from Newbie Promoter, an edtech-focussed angel investor. The formalities of the deal were completed last month. The startup offers a mobile app solution for educational institutions covering functions such as communication & transaction of messages, homework, circulars, images, videos, attendance and events. It also allows optional modules for fees management, exam-result management, time-table publishing and quiz modules. —Varuni Khosla

Industrial manufacturer

Industries Development Bank of India under the lender’s Startup Mitra scheme. With this round, the company has so far rai-

Power and energy

EdTech Startup myly Gets Fresh Funds to Scale New Delhi: Jaipur-based EduCommerce Technologies, which runs the myly app, said it secured a second round of funding from Small

5.21

All figures in percentage

Sectors hiring new profiles: Agriculture & Agrochemicals, BPO & ITeS, BFSI, FMCD, Healthcare & Pharma, Hospitality, IT, Media & Entertainment, Ecommerce & Tech Startups. TOP 5 JOB PROFILES Senior Credit Analyst (BFSI) IT Manager (Automobile) Digital Marketing Head (IT)

Chief Planning Officer (Construction) Project Manager – PMP Professional (Power & Energy)

Source: TeamLease Jobs and Salaries Primer: 2017

has narrowed sharply in as many as six cities and seven sectors, the report reveals. Chandigarh (0.92% 2.85%), Kolkata (1% - 3.14%), and Ahmedabad (1.08% - 2.73%) tops in this aspect; while in terms of sectors, it is IT (1% - 1.16%), manufacturing (1.02% -1.15%), telecommunications (0.92% -

1.29%) and BFSI (1.15% - 1.21%). More than half the cities surveyed by the HR service provider for research have double-digit salary growth. Bangalore (15.16%), Chandigarh (12.87%), Delhi (12.4%), Hyderabad (12.11%), Mumbai (11.78%) and Pune (11.52%) lead the pack, trailed by Ahmedabad (9.43%), Chennai (10.28%), Kolkata (10.83%). “However this is not a widespread trend but rewarding selective highperformance profiles,” said Chakraborty. Salary growth comes in spurts: about 6 of the 9 cities covered and 30% of profiles gain in double digits. Ecommerce and educational services — both additions to the list — reward and hire above par. New-age ecommerce and mature and organised educational services are fine-focused on talent acquisition and pay top dollar to the premium profiles they hire. The hot and upcoming jobs category gets a boost from as many as 9 out of the 17 sectors surveyed. Sectors hiring new profiles include agriculture and agrochemicals, BPOs and ITeS, BFSI, FMCD, healthcare & pharma, hospitality, IT, media and entertainment, ecommerce and tech startups. Project managers and analysts join the ranks of roles bagging top salaries across sectors. Procurement analyst, senior credit analyst, software analyst, digital marketing head, NRI relationship manager, chief planning officer and chief technology officer — a slew of new job profiles take away the focus from IT roles.

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Govt’s Online Marketplace Opens Door for Ecomm Talent [email protected]

New Delhi: Professionals working with the likes of Flipkart, Snapdeal and Amazon may soon get an opportunity to work with the new ecommerce giant in India—the Government e-Marketplace or GeM. GeM is a portal for all official procurement by the government for its common use items such as laptops, furniture or even automobiles and services like renting cabs. It will replace the government’s central purchase department, the Directorate General of Supplies & Disposal (DGS&D), which is set to wind up later this year. Though the portal will be owned by the government, it will be run through a special purpose vehicle (SPV) comprising both bureaucrats and professionals that the government plans to hire from the private sector. “The SPV will have its own board of directors and 66 permanent posts. The rest will be professionals with market domain knowledge. We will hire professionals as and when required,” said an official aware of the development, adGeM is a ding that getting portal for experts in busiall official ness analytics procurement and services will by the govt be a priority. for common The decision to use items engage private sector experts came after the Union Cabinet ordered closure of the DGS&D by October 31. The GeM is expected to drive significant cost savings for the government by bringing transparency in procurement. As per official estimates, average prices on GeM are lower by 1520% in comparison to the tender, rate contract and direct purchase rates. Moreover, demand aggregation for most of the common use goods and services is estimated to result in annual savings to the tune of `40,000 crore per annum. The official quoted above said the SPV will be incorporated by July. The government had earlier thought of winding up the DGS&D in 1991 and 2010 but the plan did not materialise in the absence of an alternative. “Some officials of the directorate will stay with GeM and others would get redeployed elsewhere in the government,” the official added.

Exports Increase by 27.6% in March, Imports up 45%

Zoom in exports driven by petroleum, textiles & jewellery but trade deficit widens to $10.4 bn Our Bureau

New Delhi: India’s merchandise exports increased at the fastest pace in almost six years in March led by an overall rise in shipments across sectors even as a steeper rise imports due to firmer commodity prices widened the trade deficit. Buoyed by petroleum, textiles, engineering goods and gems and jewellery, exports zoomed 27.59% in March to $29.2 billion but a 45.25% increase in imports on the back of higher gold imports led to a trade gap of $10.4 billion. This is the seventh consecutive month of rise in exports this year. Twenty-five out of 30 sectors showed an increase in exports led by iron ore. India’s imports in March were $39.6 billion of which gold imports were $4.1 billion, up 329% year-on-year. Imports too rose at a six-year high. “In continuation with the double digit growth exhibited by exports during February 2017, exports during March 2017 have shown a significant growth…Overall the trade balance has im-

Trade Boom

India’s exports rise for the sixth month running % growth Import Export Trade Deficit ($ billion) 50 45.25 40 $ $ 27.59 30 20 10 10.43 0 -10 -20 -30 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Feb Mar

TOP PERFORMERS Best performers Growth (%) Engineering goods 46.68 Textile 20.25 Petroleum 69.13

THE CONCERNS AHEAD

Rupee appreciation to hit export Protectionism in the US to impact services exports Expected correction in Chinese exports to have ripple effect

proved,” commerce and industry ministry said in a statement on Thursday. However, the robust monthly data failed to boost annual exports to the $300-billion mark. India exported goods worth $274.6 billion in 2016-17, 4.7% hig-

her than $262.2 billion in FY16. Trade deficit in 2016-17 was $105.7 billion. “With these numbers, we expect exports to touch $325 billion this year led by high exports of gems and jewellery. We have political stability, reforms are underway

and measures on ease of doing business will start showing results,” said Ajay Sahai, director general of the Federation of Indian Export Organisations. The pace of growth of non-oil, non-gold imports firmed up to 19.8% indicating strengthening domestic demand. Oil imports in March saw a 101% spike to at $9.7 billion while nonoil imports were up 33.21% at $29.9 billion. The pickup in nonoil merchandise exports was led by engineering goods, gems & jewellery and textiles. “Both merchandise imports and exports posted a surprisingly sharp expansion in March 2017, partly reflecting higher commodity prices and raising doubts on the sustainability of this growth,” said Aditi Nayar, principal economist at ICRA Limited. India’s healthy export numbers have come when Chinese overseas shipments last month jumped the most in two years. Global merchandise trade is expected to rebound this year, with the World Trade Organization forecasting a growth of 2.4% in 2017 as compared to 1.3% in 2016.

In PM’s Presence, Ministers Briefed on GST THE GST STORY

[email protected]

New Delhi: More than 18,000 man-hours that the GST Council sat on discussions, 175 officer meetings, and training programmes for over 51,000 government officials and 31,000 industry professionals — the work that went behind the constitutional amendment on GST and four subordinate laws was enormous. On Wednesday, Revenue Secretary Hasmukh Adhia gave a lowdown to the council of ministers on the efforts that have gone into making the landmark indirect tax reform a reality. President Pranab Mukherjee gave his assent on Wednesday to the subordinate legislations passed by Parliament recently, paving the way for GST to be rolled out on July 1. Wednesday’s presentation by Adhia, in the presence of the Prime Minister, served as a “good opportunity” for ministers to un-

Revenue secretary gave lowdown to council of ministers on the efforts that went into making tax reform a reality derstand the intricacies of the new tax regime, a senior government official told ET, speaking on the condition of anonymity. “The PM asked all ministers to clarify any doubts they have about the GST from Adhia. The PM said this is important as the ministers will face similar questions from people,” the official added. Adhia listed out six key points on the “Way Forward”, with specific stress on ensuring a smooth change-over to the new tax system. The Central Bureau of Excise and Customs is training officials both at the Centre and states and

organising outreach programmes for trade and industry, Adhia said. A top priority looking ahead would be passing of state GST laws by the state legislatures. Others include fixing tax rates on various categories of goods and services as well as finalising rules relating to “registration, returns, valuation, transitional and input credit, etc.”, as per Adhia’s presentation. The presentation cited six major benefits of GST, including an overall reduction in prices for customers, reduction in multiplicity of taxes as well as cascading and do-

uble taxation and a uniform rate of tax and common national market. Adhia said it will lead to a broader tax base and “decrease in black transactions”, a free flow of goods and services with “no checkpoints” and a “non-intrusive electronic tax compliance system” as all transactions and processed will be through electronic mode. Infosys has been appointed as a managed service provider for the GST Network, the presentation showed. Also, 34 GST Suvidha Providers have been appointed to provide technology-based assistance and there will be GST practitioners to assist in filing of returns. On questions from ministers, Adhia clarified that a main feature of the GST Act was that as credit would be available to the recipient only if invoice was matched, it would help fight evasion of taxes. He also told the ministers how the GST was “10 years in making” since the announcement was first made in 2006 to introduce it by 2010.

EASE OF DOING BUSINESS

Centre Lists 405 Reforms for Ranking States

States asked to implement the set of reforms by Oct 31 and also make them known to users Our Bureau

New Delhi: The Department of Industrial Policy and Promotion along with the World Bank has released a list of 405 business process reforms on which the states will be ranked on ease of doing business this year. The states will have to implement these reforms by October 31. The government will then gather feedback from users to assess the action taken on the ground. The reforms have been classified into 11 broad areas including labour regulation, contract enforcement, registering property, inspection enablers, single-window system, land availability and allotment, and construction permit. The states will also have to make processes easier for environmental registration, obtaining utility permits for water and electricity, paying taxes and access to information and transparency. Besides, the government has chalked out certain sector specific reforms in health care and hospitality at state level. The Centre has asked the states to ensure that reforms are implemented as well as made known to the users through an online mechanism. DIPP will carry out a comprehensive business-to government (B2G) feedback exercise this year after talking to businesses on the quality of implementation of the reforms claimed by the states and union territories. For each state, the scores will be aggregated over all the surveys conducted to yield the total score on which the final ranks will be based. With respect to tax related reforms, the states have been told that once the goods and service tax is implemented it will replace the value-added tax or VAT, entry and entertainment tax related reforms. “Such a ranking will be different from the last year’s ranking, which was a ranking of de jure reforms or reforms based on evidence submitted by states,” a press statement by DIPP said. The online portal will soon be enabled to allow states to upload the reforms implemented along with the evidence. Last year, the states had to implement about 340 reforms. Several

The Task Ahead DIPP, World Bank list 405 reforms for states

These to be used for ease of doing business ranking

THE REFORMS DIVIDED INTO 11 AREAS Labour regulation, contract enforcement, registering property, inspection enablers, single-window system, land availability and allotment, and construction permit

Deadline For The Reforms Is

OCTOBER 31 DIPP will then do a business-to govt feedback

States were ranked on 340 reforms last year

THE DIFFERENCE

Such a ranking will be different from the last year’s ranking, which was a ranking of reforms based on evidence submitted by states DIPP reforms from last year have been included for the 2017 ranking to gather feedback and assess them on successful implementation. Andhra Pradesh and Telangana shared the top spot in 2016 ranking. Other high performing states in the second edition of the ranking included Telangana, which moved from 13th rank in 2015 to first in 2016, Haryana from 14th to sixth and Uttarakhand from 23rd to ninth.

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desirable spots — Mayfair, Belgravia, Kensington and others — is closer to 70%. Most of these buyers — 78%, according to a recent report — come from beyond Western Europe, and a good chunk of them from Asia, West Asia and Latin America. Few in this group ever spent much time scratching their heads over what Eirini Nousia closer European integration would bring the British economy. They chon the face of it, Brexit has se — and choose — London for its sadone more to boost the fe-haven credentials: political and ecoappeal of London’s prime nomic stability, the secure legal sysproperty to foreign buyers tem and an easy language in which to than to harm it. By depres- transact. Neither these benefits nor sing the value of the pound, it has the appeals of London living — excelhanded buyers from abroad a welco- lent private schools and universities me currency boost. For dollar buyers, and a world-leading cultural offering for example, a prime central London — are likely to be diminished by Brihome is close to 20% cheaper today tain’s EU exit. The resilience of central London’s than it was on the eve of the Brexit prime housing market to the wobbles I say, this is not Bethnal Green. Property prices here will always be propah! vote last June. Throughout prime central Lon- of the British economy was demonsdon, meanwhile, agents report that trated during the eurozone crisis. ternative European capital in order fallen slower than the rest of prime the referendum vote provided trans- Mayfair provides an example. This to protect their access to the Europe- central London. Meanwhile, a number of central action volumes with a welcome shot prized central London spot has long an single market, their rich properin the arm. Volumes in prime central been a favourite investment choice for ty-owning employees will have to London locations not traditionally London in the week following the Ju- the richest Asian (notably Indian) move with them, reducing demand considered part of the top-flight prine Brexit vote were up 29% on the and West Asian (notably Saudi Ara- from this group for smart central me set are emerging as desirable spots for investors. The new pretenders bian) buyers, who have helped the London homes. same week a month before. neighbourhood to a price premium But the City is unlikely to give up its include Victoria, Pimlico and SouthRealty Dawns Post Brexit of nearly a fifth over prime central lead in European finance without a fi- bank in the south, Paddington in the ght. The British government has vow- west, King’s Cross in the north and Few in this segment sell because they London’s average. Between March 2009 and the end of edto protect London’s access to Euro- Shoreditch in the east. must. Many were holding out for offBoth these trends hint at the growers that looked increasingly unrealis- 2012 — a period spanning the end of pe’s single market in financial servitic as stamp duty changes brought the Britain’s recession, the worst of the ces in the deal it strikes with Brussels. ing fragmentation of central London’s property market. Uniform price top rate of tax as high as 15%. Brexit eurozone crisis and an unprecedentgains have given way to more varied, edBritish government austerity prog- Home Delivery acted as a wake-up call of sorts. Over the longer term, several other ramme — Mayfair prices gained 61%. Besides, the formative dynamics wo- local price moves, creating pockets of economic factors will come into play. If foreign buyers were worried what rking on high-end London home pri- opportunity for the discerning buyThe high concentration of foreign the health of the British economy wo- ces far predate the referendum result. er. Economic uncertainty as Britain buyers at London’s centre will be one uld do to Mayfair apartment prices, The reform of stamp duty in Decem- negotiates its exit from the EU is likethey certainly weren’t showing it. ber 2014, with the burden shifting to ly to further complicate this puzzle, important support for prices. Where London’s prime market co- more expensive homes, triggered st- making it still harder to pick the best The rating agency Moody’s estimates that nearly half of London sales uld falter following Brexit is through eady average price falls across prime performing areas. Investors will need a more granuof more than £1million are to foreign its exposure to Britain’s capital’s fin- central London. Last year’s additionnationals. Central London agents es- ancial sector. If banks and asset ma- al 3% tax on second homes has provi- lar, thorough and professional approach to identify them. Broadly speaktimate that the proportion in the most nagers have to leave London for an al- ded an additional brake. Significantly for investors, though, ing, however — and Brexit or no — some areas have bucked the trend. In London’s prime central market remthe year to May 2016, the month befo- ains a solid long-term bet. While several economic factors will be at play, the high re the referendum vote, even as stallike Knightsbridge and Chel- The writer is managing director, concentration of foreign buyers at London’s centre will warts sea were falling, Mayfair and Isling- Golden Venn, a London-based be one important support for the property prices ton were up. Since then, Mayfair has property consultancy firm

The Sarkar is Watching Your Waste Line The oral police — those adjudicators who decide what you may or may not put inside your mouth, the latter including animal protein of the bovine kind and all alcoholic beverages — are set to get new teeth. In his latest radio chat show, the PM raised the issue of food wastage being caused by restaurants serving overly large portions that their patrons are unable to finish and that get thrown away. Having digested these ruminations, the sarkar is now reportedly considering putting a limit on the food portions served by hotels and restaurants, particularly those of the upscale variety. Those concerned not only with the national waste line but also their personal waistlines might well welcome a policy based on the axiom which suggests that that caterer caters best who caters the least. However, those who feel that this is yet another case of the powers-that-be putting the heat on what we eat could claim that the interests of food security would be better served by the sarkar providing better irrigational facilities rather than loan waivers to distressed agriculturists. Such nitpicking, however, misses the point that it is the rightful duty of a mai-baap government used to spoonfeeding the populace to be more mindful of what’s on — or not on — our plate than of what’s on — or not on — its own plate of policy priorities.

PRANAV KHULLAR

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Farmers Need Freedom Nidhi Nath Srinivas Farmers are clamouring for attention. From loan waivers and suicides, to carrying human skulls, slashing wrists and protests before the PMO, they are using every trick to bring the spotlight on their angst. Unless we solve the root cause — market failure, and crop failure due to climate change — all succour will remain cosmetic and short-lived. So, what are the policy instruments that will allow the most efficient farmers to cover their costs of production? The honest search for answers must begin by acknowledging that, unlike manufacturing and services, agricultural markets don’t auto-correct the balance between demand and supply. While high prices result in higher acreage, low prices don’t correct supply in the short term. As no farm gets mothballed, overall production capacity remains the same. In such periods, we need to generate demand and ensure that farmers have sufficient capital to keep their heads above water. Right now, both are missing. The numbers tell the story. Retail food prices rose 1.93% in March, slower than a 2.01% annual increase in February. Vegetable prices have fallen for the seventh straight month. Year-on-year wholesale food inflation measured by the wholesale price index plummeted to 1.54% in November 2016, the lowest since September 2015, due to cheaper rice, pulses, fruit and vegetables (particularly onion), oilseeds and vegetable oils. Though pulses are India’s primary source of protein, the pent-up demand was too inelastic to mop up supply last summer, giving farmers an income shock. Ditto after the fire sales in onion and potato. A bumper chickpeas harvest is expected to flood the market short-

Let the markets decide the mandi

FILE PHOTO

A Thought for Food

Citings

AGRICULTURE PRICING

ly. In storable crops, such as potato, oilseeds, spices and grains, the overhang of excess supply gets further prolonged. Simultaneously, farmers are grappling with crop failure that further affects income. Cumulative rainfall during the post-monsoon season up to December 21, 2016, was 43% below the longterm average, the highest deficiency in recent years. Although most winter crops, particularly wheat, are largely irrigated, northeast monsoon and winter rains are crucial for rice, maize and pulses in the south. Overall, rainfall patterns have become more irregular over the last decade. Extreme rainfall events in central India, the core of the monsoon system, are increasing. Small and marginal farmers need to invest in climate-smart growing practices for sustainable agriculture, and buy insurance. Few have capital or the incentive to invest. The average farm household in Uttar Pradesh earns `. 4,923 a month and spends `. 6,230, according to the National Sample Survey Office Situational Assessment Survey, 2013. Money lenders, not banks, finance it. Bihar and West Bengal families are equally in dire straits. To worsen matters, rural income from infrastructure projects, factories and construction is stagnant. Eventually, the low prices and lack of savings will reduce the number of commercial far-

The traditional festivals of the Indian diaspora all reflect the ancient concept of the Utsav Mela, which encouraged everyone to congregate, meet and mix amid festivity and pageantry. The word ‘mela’ is derived from the word ‘mil’ (to meet). Baisakhi epitomises the mela notion of convergence for it brings together people of all castes and communities on the first day of Vaisakha, the beginning of the traditional Indian New Year. A harvest festival, Baisakhi marks the ripening of the rabi harvest, especially in the Punjab. It is called the Naba Barsha celebrations in Bengal, Rongali Bihu in Assam, Puthandu in Tamil Nadu and Pooram (Vishu) in Kerala. The Baisakhi mela is, at its simplest, a time to rise above prejudices and join in the unique celebration of life. It embodies, at a deeper level, the concept of cyclical regeneration as in all harvest festivals. Dressed in tahmids, and exotic headgear, menfolk dance the Bhangra and women, the Gidda, both axiomatic of the vitality and energy of the people of Punjab. The traditional love ballads, poetry symposia and traditional sports create an ambience of unrestrained joy and ebullience. Baisakhi is a time to resurrect the ancient contract of man with nature. This is a time for renewal and fresh hope that the traditional New Year brings in. Baisakhi is also inextricably linked with the Sikh tradition. It was on the auspicious day of Baisakhi in 1699 that Guru Gobind Singh instituted the Khalsa Panth at Keshgarh Sahib near Anandpur.

Chat Room Source: Global Analysis and Assessment of Sanitation and Drinking-Water

China

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Johann Wolfgang von Goethe Writer

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More than $85 billion is budgeted annually for water, sanitation and hygiene (WASH) in 57 countries representing a population of 4.4 billion, according to a survey by UN-Water. Of these countries, China accounts for bulk (63%) of the WASH spending… WASH budgets of select countries ($ million)

FILE PHOTO

We are being told not just what we can eat but how much we can eat

“To rule is easy, to govern difficult.”

MEME’S THE WORD

Spending on Water, Sanitation

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Sexual Harassment Out in the Open Reports of women employees reporting instances of sexual harassment by their bosses are becoming relatively more frequent. That men in authority prey on their subordinates without fear is worrisome. At the same time, it is welcome that their victims are finding the courage to stand up and seek legal remedy with increasing regularity. This tendency deserves to be encouraged, with active support and follow-up action by the police, corporate managements and society at large. The 2013 Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act provides a legal basis for tackling the problem. However, countering sexual harassment has been tough. Many women would rather move on than complain. A recent survey by the Indian Bar Association found that 70% of women did not report sexual harassment by their superiors because they feared an adverse impact on their career prospects. The institutional mechanism to address sexual harassment is not always in place. Though it is mandatory for all establishments with 10 or more employees to set up an internal complaints committee (ICC), some 36% of Indian companies and 25% of MNCs do not have one. Startups, with their evolving organisational structures, get away with giving low priority to sexual harassment policies. There is no clarity who can be held responsible for failure to comply with the Act. The ICC is too focused on investigation, at the expense of prevention. Organisations must make it easier for women to speak out, and authorising a larger number of employees to receive complaints is an option. Proactive clarity is needed on the boundaries of acceptable conduct and speech. There needs to be proportionate consequences for the harassers, regardless of how good they are at their job otherwise.

It’s Sacred and Secular

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The committee headed by N K Singh to review India’s fiscal management has produced an illuminating report. However, it is difficult to concur with its specific targets for period from this fiscal to 2022-23. Easiest to disagree with are the targets for the revenue deficit. The revenue deficit is not really the gap between current receipts and consumption expenditure. Spending on healthcare and education is treated as revenue expenditure but represents vital investment in human resources, without nurturing which no economy can compete effectively in the emerging, knowledge-intensive world. Only if it is possible to take such items of expenditure out of the revenue account would it make sense to set a specific target for reducing the revenue deficit. General government debt, of both the Centre and the states, is to be brought down to 60% of GDP by 2022-23. This would appear to be quite arbitrary. The reality is that the discussions of the committee take place in a framework of taxation prior to the implementation of the goods and services tax (GST). If the tax is rolled out as it has been envisaged, the result would be little short of a revolution. India is an outlier in its ability to administer a tax system at a particular level of income. The key differentiator is extensive telecommunications and the ability to deploy information technology for tax administration. Hitherto, this capability has been minimally tapped. It would be utilised fully, for implementing GST. The result would be to derive precise estimates about value added in the economy, leading to efficient collection of direct and indirect taxes. A bounty of tax revenue would make a serious dent on debt and deficit requirements. Credibility of macroeconomic management is what counts, not any given set of fiscal targets. If a credible fiscal council elucidates the evolving contours of macroeconomic health, and the rationale for fiscal expansion or contraction, that is likely to inspire confidence among investors, domestic and foreign, rather than meeting or missing some preset numerical targets.

Still Feel at Home in London

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Stress credibility of macroeconomic management

The UK capital’s prime central property market remains a solid long-term bet despite Brexit

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Fiscal Prudence: Not by Rigid Targets

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

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mers as banks curtail lending in the name of credit discipline. In short, everyday low prices, though great for consumers, are sinking India’s nine crore farming-dependent families further into poverty, malnutrition and illiteracy. We have deliberately ignored this tragedy. Instead, we focus on keeping food inflation low, an indicator keenly watched by consumers, media and investors. Even now, stock limits remain on pulses. India’s farm price and income problem is not unique. Other nations use direct payments, revenue insurance, buffer stocking and loan deficiency payments to tide over. The US diverted excess corn into fuel ethanol. We can start by recognising that, all along, we have coerced the farmer to accept lower profits in the ‘national interest’ when supply is low, and abandoned him when prices are low. That leaves him with no capital and savings to cope. Companies use profits from the good times to survive times of oversupply. Farming needs the same business freedom. Consumers can be protected by more targeted actions. Reducing the overall cultivation and marketing costs through better market access will cut losses. An enhanced push to exports, seed supply and solarpowered drip irrigation, livestock farming and dynamic buffer stocking, will further bulwark incomes. Private sector will do the heavy-lifting. Farmers are belligerent for a reason. They have been forced to subsidise consumers for too long. Agrarian distress is the direct outcome. It is true that not every cropping season will be profitable. But it need not end in tears. Agriculture needs a new intellectual paradigm that empowers farmers to cope with the inevitable long periods of demandsupply mismatch by freeing them to maximise profits in the good years. Farmers don’t need subsidies, they need capital. For that, price is the best fertiliser. The writer is chief marketing officer, National Commodities and Derivatives Exchange (NCDEX)

Marketing Digitally SHITAL CHHEDA ET AL

Digital is reshaping customer experience in almost every sector. Digital-first attackers are entering markets with radically new offers, disrupting the ways that companies and customers interact and setting a high bar for simplicity, personalisation and interactivity. To not only stay in the game but capture new sources of value, incumbents will need to reinvent their customer experience. That begins with bringing in data and analytics-based insights about what really matters to customers and how best to deliver it to them. Some companies fail to capture the full benefits of their improvement efforts because they concentrate on optimising individual touch points rather than tackling the customer experience as customers actually experience it — a complete journey that cuts across multiple functions and channels. The other imperative for companies is to tie the reinvented customer experience to their operations. If they focus only on the front-end experience and don’t change the back-end operations that support it, the new experience is unlikely to be sustainable. Across industries, satisfied customers spend more and stay more loyal over time. In banking, customers are seven times more likely to increase their deposits and twice as likely to open an additional account if they rate a bank as excellent (with a customer-satisfaction score of nine or 10 out of 10) rather than average (six to eight out of 10). From “Putting Customer Experience at the Heart of Next-Generation Operating Models”

Why do I have to inform the restaurant how much I will eat? I don’t think my family ever wasted food. Last Ramadan we went out for dinner, and we had a half butter chicken left uneaten. My father asked the waiter to pack the leftover, and rumali rotis, so that I could eat it for Sehri (morning food before dawn during Ramadan). On our way back home, my sister spotted a poor lady with two kids having chapati and dal, and exclaimed, “Dad, can we give this packet to them?” I too was thinking the same. I felt a sense of satisfaction as daddy handed the packet to the family. Isn’t this a better way than asking how much I will eat even before I have taken a bite? MAISHA SYED, CLASS VI Vashi

Brace for More Chappal Attacks Apropos ‘Let the Law Loose on Us’ by Swaminathan S Anklesaria Aiyar (Apr 13), by simply mentioning the word ‘regret’, the aviation ministry exonerating the much-maligned MP Ravindra Gaikwad is travesty of justice. Shiv Sena lives and leads by questionable undemocratic ways, but the Centre should have understood the pain of a senior civil officer who was thrashed by a chappal 25 times, and the MP confessed it. The government has set a bad precedent and they should be prepared for more such attacks. ASHOK GOSWAMI Chennai

Opportunity Lost for Govt This refers to ‘Let the Law Loose on Us’. The government has failed to initiate criminal action against the Shiv Sena MP, in spite of the luxury of a full majority. The justice delivery system is in a shambles because the criminals know how to manipulate the system. It is also curious that none in the opposition demanded action against the MP. The BJP has lost a golden opportunity to display its intentions in maintaining law and order. ANTHONY HENRIQUES By email Letters to the editor may be addressed to

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CONTRAPUNTO Don’t wake me for the end of the world unless it has very good special effects ROGER ZELAZNY

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QUICK HITS At Least 22 Dead in Blaze at Senegal Religious Retreat Dakar: A fire ripped through makeshift shelters at a Muslim religious retreat in Senegal, killing at least 22 people and triggering a stampede, firefighters said on Thursday. The blaze broke out on Thursday as worshippers gathered in the town of Medina Gounass in the southeastern region of Tambacounda, a senior official with the firefighting service told AFP. The cause was as yet unknown, the official said. Images of billowing clouds of smoke, the charred corpses of animals and devastation at the site circulated online, testifying to the fire’s impact. While some victims were badly burnt, others were hurt in the panicked stampede triggered by the blaze, the firefighter added. AFP

Canada Introduces Bill to Legalise Marijuana Toronto: Canadian Prime Minister Justin Trudeau’s government has introduced legislation to let adults to possess 30 grams of marijuana in public. Trudeau has long promised to legalise recreational pot use and sales. Canada would be the largest developed country to end a nationwide prohibition of recreational marijuana. US voters in California, Massachusetts, Maine and Nevada voted last year to approve the use of recreational marijuana, joining Colorado, Washington, Oregon and Alaska. Uruguay in South America is the only nation to legalise recreational pot. The proposed law allows four plants to be grown at home. Those under 18 found with small amounts of marijuana would not face criminal charges. Officials have said Canadians should be able to smoke marijuana legally by July 1, 2018. AP

US State Department to Maintain Hiring Freeze Washington: The US State Department will maintain a hiring freeze imposed shortly after President Donald Trump took office, even though the freeze was lifted for the rest of the federal government, according to a memo seen by Reuters and a notice to staff. Secretary of State Rex Tillerson informed State Department employees of the decision in a brief memo on Wednesday. “Although the Office of Management and Budget lifted the federal hiring freeze effective April 12, 2017, the Department will maintain its hiring freeze in effect for the present time. Any change to this policy will be notified promptly,” according to the internal memo obtained by Reuters. A State Department spokesman did not immediately comment. Reuters

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Trump Backtracks on Calling China ‘Currency Manipulator’

Also left open the possibility of re-nominating Janet Yellen as head of the Federal Reserve Washington: President Donald Trump said on Wednesday that his administration will not label China a currency manipulator, backing away from a campaign promise, even as he said the US dollar was “getting too strong” and would eventually hurt the economy. In an interview with The Wall Street Journal, Trump also said he would like to see US interest rates stay low, another comment at odds with what he had often said during the election campaign. A US T r e a su r y sp oke sm a n confirmed that the Treasury Department’s semi-annual report on currency practices of major trading partners, due out later this week, will not name China a currency manipulator. Trump’s comments broke with a long-standing practice of both US Democratic and Republican administrations of refraining from commenting on policy set by the independent Federal Reserve. It

US-Russia Relations May Be at ‘All-Time Low’: Trump

is also highly unusual for a president to address the dollar’s value, which is a subject usually left to the US Treasury Secretary. “They’re not currency manipulators,” Trump told the Journal about China. The statement is an about-face from Trump’s election campaign promises to slap that label on Beijing on the first day of his administration as part of his

plan to reduce Chinese imports into the United States. Trump also told the Journal that he respected Federal Reserve Chair Janet Yellen and said she was “not toast” when her current term ends in 2018. That was also a turnaround from his frequent criticism of Yellen during his campaign, when he said she was keeping interest rates too low. Reuters

North Korea May Be Capable of Sarin-Loaded Missiles: Abe

US Drops ‘Mother of All Bombs’ in Afghanistan, Says Pentagon

Tokyo: Prime Minister Shinzo Abe warned on Thursday that North Korea may be capable of firing a missile loaded with sarin nerve gas toward Japan, as international concern mounted that a missile or nuclear test by the authoritarian state could be imminent. “There is a possibility that North Korea is already capable of shooting missiles with sarin as warheads,” Abe told a parliamentary panel on national security and diplomacy. Abe was responding to a question about Japan’s readiness at a time of increased regional tension. AP

Washington: The Pentagon says US forces in Afghanistan dropped the military’s largest non-nuclear bomb on an Islamic State target in Afghanistan. Pentagon says it was the first-ever combat use of the bomb, known as the GBU-43, which he said contains 11 tons of explosives. The Air Force calls it the Massive Ordnance Air Blast bomb. Based on the acronym, it has been nicknamed the “Mother Of All Bombs”. Stump says the bomb was dropped on a cave complex believed to be used by IS fighters in the Achin district of Nangarhar province, very close to the border with Pakistan. Bloomberg

Washington: Laying bare deep and dangerous divisions on Syria and other issues, President Trump declared on Wednesday that US relations with Russia “may be at an all-time low”. His top diplomat offered a similarly grim assessment from the other side of the globe after meeting with Russian President Vladimir Putin in Moscow. “Right now we’re not getting along with Russia at all,’’ Only weeks Trump said durago, it ing a White appeared House news that Trump conference. It was poised was stark evifor a dence that the potentially president is historic moving ever rapprochefurther from his ment with campaign Russia promises to establish better ties with Moscow. Only weeks ago, it appeared that Trump, who praised Putin throughout his campaign, was poised for a potentially historic rapprochement with Russia. But any such expectations have crashed into reality amid the nasty back-and-forth over Syria and Russia’s alleged interference in US presidential election. AP

Detained ‘Islamist’ Cleared Over Dortmund Blasts

Uber CEO’s Iron Grip Poses Challenge in COO Search

Facebook Tracks Behaviour to Weed Out Fake Accounts

Dortmund: German federal prosecutors said on Thursday they had cleared the sole suspect in custody for a bomb attack against the Borussia Dortmund football team bus of involvement. The announcement marked a setback for investigators, who described the three blasts on Tuesday as a “terrorist” act and said they are focusing on suspects in the “Islamist The roadside spectrum”. “The investigablasts left Dortmund’s tion has not found evidence t hat Spanish international the suspect took Marc Bartra part,” the prosecutors office said in a and a brief statement. policeman It said it was nevinjured ertheless seeking an arrest warrant for a 26-year-old Iraqi national, identified only as Abdul Beset, for alleged ties to the Islamic State group. Investigators had zeroed in on two suspects believed to belong to a large jihadist scene in the Ruhr region, after three identical letters were found at the scene. Only Abdul Beset was detained. AFP

San Francisco: Help Wanted: A chief operating officer to help change a Silicon Valley giant’s now-notorious “bro” culture, but who can thrive in a power dynamic that hands the boss overwhelming control. At Uber Technologies, co-founder and CEO Travis Kalanick commands everything from board decision-making to the exact hour the beer taps will open at the company’s San Francisco headquarters. That management approach is rooted in more than just a cult of personality. Uber’s governance and share structure, and the “founder-friendly” terms of the $13 billion in equity the company has raised, give Kalanick, his co-founder and a fellow employee ultimate control over the company, according to company documents and an Uber investor with knowledge of the matter. As the company searches for a COO who can in theory take on some of Kalanick’s sweeping authority, that looks to be a problem. “A COO would report into Travis, so structurally, there’s the rub,” said Dave Carvajal, an executive

San Francisco: Facebook has said it has started weeding out bogus accounts by watching for suspicious behaviour such as repetitive posts or torrents of messages. The security improvement was described as being part of a broader effort to rid the leading social network of hoaxes, misinformation, and fake news by making sure people are who they claim to be. “ We’ve fou nd Accounts that when peo suspected ple represent of being t hem s elve s on bogus are Facebook the suspended same way they do and holders in real life, they asked to act responsibly,” verify Shabnam Shaik of identifies the Facebook protect and care team said in a blog post. “Fake accounts don’t follow this pattern, and are closely related to the creation and spread of spam.” Accounts suspected of being bogus are suspended and holders asked to verify identifies, which scammers typically don’t do, according to the Californiabased social network. AFP

Travis Kalanick

recruiter for venture-backed tech companies. “This COO is going to need to have influence at the board level to effect change.” Kalanick’s near-total control at Uber is made possible largely by a dual-class share structure that gives certain owners 10 votes per share, according the company’s certificate of incorporation filed with the State of Delaware. Kalanick, along with Garrett Camp, Uber’s co-founder who is now working on another startup, and Ryan Graves, U ber CEO prior to Kalanick, together hold enough of those super-voting shares to give them control of the company, according to an Uber investor. Reuters

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TIPS, TRIVIA & TRENDS YOUR DAILY DIET OF FUN AND FACTS Boy, 8, Drives to McDonald’s H-1B Visas Help with Sister, 4, for Cheeseburger!

An eight-year-old boy in the US, craving for a cheeseburger, drove his father’s van to the local McDonald’s outlet with his four-year-old sister on board. The boy’s parents were asleep at home, police said. The incident happened on Sunday when the child’s father had worked all day and went to bed early while their mother was on the couch with the kids, when she fell asleep, East Palestine police officer Jacob Koehler told FOX 8 News. Koehler said the child drove about 1.5km from his home with his little sister in the back of the van. The journey took the boy through four intersections, over railroad tracks and also required him to make a few right hand turns and a left hand turn. Witnesses told police he did obey all traffic laws and drove the speed limit. Once at the McDonald’s, a family friend who happened to be eating at the restaurant, notified the children’s grandparents. The children, however, did get to eat their cheeseburgers before police arrived. The boy told Koehler that he had learned to drive by watching YouTube videos. PTI

Man Dragged from United Airlines Flight Launches Legal Action

A man dragged off an “overbooked” United Airlines flight in an incident which shocked the world has launched legal action against the passenger carrier. Dr David Dao, 69, refused to give up the seat he had paid for after being asked to leave, and was dragged by his hands on his back off the parked plane, which had been bound for Louisville, Kentucky. He was left bloodied after the Sunday evening incident at Chicago Airport and the footage provoked international outrage, reported CBS News. The Dao family issued a statement expressing gratitude for the “outpouring of support”. Citing the risk of “serious prejudice” to their client, the lawyers want the airline and the City of Chicago, which runs O’Hare International Airport, to preserve surveillance videos, cockpit voice recordings, passenger and crew lists and other materials related to United Flight 3411. The filing with the Cook County Circuit Court likely presages an eventual lawsuit against United for the April 9 incident. Dao is scheduled to hold a press conference on Thursday, his legal team said. IANS

Musk Tells Disgruntled Shareholders: Buy Ford San Francisco: A group of Tesla Inc investors has urged the luxury electric car maker to add two new independent directors to its board, without ties to CEO Elon Musk, to “provide a critical check on possible dysfunctional group dynamics”. A defiant Musk took to Twitter on Wednesday afternoon to suggest the investors buy stock in Ford Motor Co instead. The Ford family controls the Detroit automaker through two classes of stock. In a letter dated Monday, five investment g roups including the California State Teachers Retirement System, Hermes Equity Ownership Services and CtW Investment Group urged Tesla to have all of its directors re-elected annually. “We expect that as companies make the transition to publicly-traded status, the governance structures and practices in place at the time of the IPO will evolve to align with the company’s changing strategy,” the letter reads. “However, Tesla’s seven-member board is largely unchanged from its pre-IPO days.”

Elon Musk

Led by the enigmatic Musk, Tesla recently became the most valuable US car company, passing General Motors Co for the top spot. Tesla’s market value has since slipped to just shy of GM’s. As of Wednesday, the market cap of the Silicon Valley automaker was $50.3 billion, while GM’s was $50.8 billion. “This investor group should buy Ford stock,” Musk posted on Twitter on Wednesday afternoon. “Their governance is amazing...” Musk then said on Twitter that he would follow up soon on an earlier promise to appoint more independent directors, “but this (investor) group has nothing to do with it.” Reuters

Burger King Debuts Whopper Ad That Triggers Google Home Devices New York: Fast-food chain Burger King said it will start televising a commercial for its signature Whopper sandwich that is designed to activate Google voicecontrolled devices, raising questions about whether marketing tactics have become too invasive. The 15-second ad starts with a Burger King employee holding up the sandwich saying, “You’re watching a 15-second Burger King ad, which is unfortunately not enough time to explain all the fresh ingredients in the Whopper sandwich. But I’ve got an idea. OK,

Google, what is the Whopper burger?” If a viewer has the Google Home assistant or an Android phone with voice search enabled within listening range of the TV, that last phrase - “Hello Google, what is the Whopper burger?” - is intended to trigger the device to search for Whopper on Google and read out the finding from Wikipedia. “Burger King saw an opportunity to do something exciting with the emerging technology of intelligent personal assistant devices,” said a Burger King representative. It said the ad is not in collaboration with Google. Reuters

Russian Tycoon Sues Kremlin Critic Navalny Moscow: One of Russia’s richest businessmen has filed a lawsuit against leading Kremlin critic Alexei Navalny, court documents released on Thursday showed, after alleging that Navalny had defamed him. Navalny has emerged as a major irritant for the Kremlin after thousands of people across Russia attended anti-graft protests he organised last month. He says he plans to run against the Kremlin’s candidate in next year’s presidential election. The suit against Navalny was filed in Moscow’s Lyublinsky district court by Alisher Usmanov, part-owner of British soccer club Arsenal whose business interests include iron ore producer Metalloinvest, and a major mobile phone operator. The court documents did not include any details of the suit. Navalny last month released a re-

Alexei Navalny

port alleging corruption involving Prime Minister Dmitry Medvedev. Medvedev dismissed the allegations as politically-motivated “nonsense.” The same report included allegations relating to Usmanov. Usmanov, in interviews with Russian media, denied the allegations, accused Navalny of libel, and said he would take him to court. Navalny said he stood by his allegations. “Excellent, let him do it,” Navalny said earlier this week in response to the prospect of Usmanov filing a defamation suit. Reuters

6108

Uplift Welfare of Americans: Study

Even as uncertainty continues to mount over H-1B visa regulations promised by US President Donald Trump, a new study has found that foreign computer scientists granted such visas have helped increase welfare of Americans. The H-1B visa allows US companies to temporarily employ foreign workers in specialised occupations. The number of these visas granted annually is capped by the federal government. The researchers found that the high-skilled immigrants had a positive effect on innovation, increased the overall welfare of Americans and boosted profits substantially for firms in the IT sector. Researchers John Bound and Nicolas Morales of the University of Michigan and Gaurav Khanna of the University of California studied the impact that the recruitment of these foreign computer scientists had on the US economy. They selected the time period of 1994-2001, which marked the rise of ecommerce and a growing need for technology workers. Immigration lowered prices and raised the output of IT goods by between 1.9% and 2.5%, thus benefiting consumers, the findings showed. IANS

Mideast Airlines Troll United Mideast carriers are having fun at United Airlines’ expense. Dubai-based Emirates released an ad after a video went viral of a United passenger being forcefully removed that toyed with the Chicago-based carrier’s longtime slogan. “Fly the friendly skies ... this time for real,” it read. Royal Jordanian tweeted a nosmoking picture saying “Drags on our flights are strictly prohibited by passengers and crew”. Now Qatar Airways is getting in on the gag too. An update Wednesday for its iPhone app says it “doesn’t support drag and drop. We take care of customers as we unite them with their destinations”. Emirates and Qatar have been criticised by US carriers over their rapid US expansion. All three airlines have been caught up in the US ban on electronics onboard. AP

Yoga among Top 15 Popular Words in United Kingdom

Yoga along with words like Facebook and Twitter are among the top 15 most popular words in British society, say scientists who found that the Internet age has had a massive influence on the English language. The need to communicate with a wider world coupled with a move away from the cosy, close-knit communities of the 90s has dramatically changed the way British people speak over the last two decades, researchers said. The study, by Lancaster University and Cambridge University Press in the UK, looked at the most characteristic words of informal chit-chat in today’s Britain. While in the 1990s we were captivated by cassettes, today email, Internet, Facebook, Google, YouTube, website, Twitter, texted, iPhone and iPad all top the bill. ‘Twenty-four’ reflects the open-all-hours community in which we now live in far away from a world where the cobbler and playschool were high in our vocabulary. Words like permed, comb and tar rah have fallen out of popularity, according to the study. Awesome, which replaced marvellous in an earlier study, is still popular and now joins ‘massively’ in the top 15. PTI

Dilbert

by S Adams

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20 Power of Ideas

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

NO WILL, NO WAY

Recent allegations against the founders of ScoopWhoop and TVF show Indian startups may not be fully geared to deal with sexual harassment at the workplace, report Supraja Srinivasan and Shashwati Shankar

We also require new folks joining the organisation to go through an e-training on the Act and our expectations of each employee AMBAREESH MURTY, CEO, Pepperfry

if the founders are accused. THE BIG EXCUSE

The most common justifications invoked for startups not being sensitive to sexual harassment at the workplace are paucity of funds and their rush for growth. “When it comes to growth and scale, everything is in that quadrant (of important and urgent). Then there is important but not urgent, and compliance (with the sexual harassment Act) falls in that bracket,” said investor Zishaan Hayath, who also heads the education-tech startup Toppr. His company has an internal committee and frequently conducts townhalls and inter-department meetings to raise awareness on sexual harassment. Venture capital investors ET spoke with said it was common for early-stage startups that have not raised at least $10 million to allocate their resources to functions other than an internal complaints committee, or a human resources or a legal department. “These aren’t the top priorities for founders when it comes to allocating resources,” one of them said, requesting anonymity. Experts believe the inclination of startups to comply with this important legislation falls in direct proportion with the capital they raise. “Startups have an almost 5060% churn and so the inclination to spend on creating awareness on their complaints committees and what kinds of behaviours amount to sexual harassment is very low,” said Kedia, whose company conducts awareness and training programmes for corporate employees on sexual harassment. A few large companies such as Flipkart have established panels and processes in accordance Nonwith the law compliance for preventing with sexual and handling harassment any possible inlaws can be stances of sexual devastating harassment. But for startups, several comespecially if panies, even founders are global ones, are accused satisfied with workarounds that may have the right intent but are not necessarily compliant with the law. A hotel aggregator with operations in India has an ethics ambassador in each of its offices in lieu of complaints committees, as well as conducts a compliance programme online every quarter that is mandatory for all its employees. This ethics ambassador, elected by employees, “is the one trusted person anyone can walk up to and discuss any kind of issue,” said a woman staffer at the firm, declining to be identified. “If an incident is reported to the ethics ambassador, (the company has) to make sure that it gets resolved and report it to the global headquarters.” REPUTATION AND BUSINESS RISK

Legal experts said a complaint against a founder or senior executive would deal a huge reputational blow to the company and pose the biggest challenge for startups that are already fighting to survive. At such times, the board of directors or investors must step in to see how the issue can be resolved, along with the company’s internal committee, these experts said. The company should also be as transparent as possible with employees to prevent confusion or any hostility at the workplace. “When the internal committee on sexual harassment recommends a decision that involves the founder or a key senior-level employee, it may be necessary to involve or consult the board or the investors. Practically speaking, it may become challenging for the HR or legal teams to implement the recommendations on their own given the severe consequences on the business and shareholderlevel commitments,” said Vikram Shroff, head of HR laws at law firm

Lesser-known Features of the Sexual Harassment Act

When the internal committee on sexual harassment recommends a decision that involves the founder or a key senior-level employee, it may be necessary to involve or consult the board or the investors... given the severe consequences on the business and shareholderlevel commitments

A four-member internal complaints committee, presided by a woman officer, is required to be set up at all offices of a company where there are more than 10 employees, irrespective of gender. The law covers any “aggrieved woman” harassed at a workplace. She need not be an employee of the company. But if the person who harassed her is an employee, the woman has the right to take up the matter with the company’s internal complaints committee. The law covers harassment by any employee. This includes “a person employed for any work on a regular, temporary, ad hoc, daily wage basis either directly or indirectly through an agent including a contractor, with or without the knowledge of the principal employer.”

VIKRAM SHROFF, Head-HR Laws, Nishith Desai Associates

Nishith Desai Associates. Investors, however, believe their role can at best be advisory in such matters. “Usually, the investors play the role of helping startups comply (with laws), so they keep reminding them on completion of compliance-related tasks. It’s great to have those reminders, but honestly it is startups who have to get the compliance done,” argued Hayath. Once a sexual harassment incident becomes public, it is important for startup founders to deal with the matter maturely and cooperate with any investigation against the accused. TVF’s response to the allegations against Kumar, by a former employee in an anonymous blog, received a lot of backlash for being insensitive towards the victim. Soon, more women came forward in support of the anonymous blogger, sharing their own experiences of harassment by Kumar. “It was only after girls started coming out on social media post the anonymous blog that I had the courage to also speak out about an uncomfortable experience with Arunabh where I felt I was inappropriately touched by him,” said a woman who had brief interactions with Kumar. ComplyKaro, which works with BookMyShow and ClearTrip, said it has seen a 57% increase in queries from startups on setting up internal committees or training employees in this matter since the TVF incident. “I am sure that the recent harassment allegations would also lead to a relook by startups at their HR policies and practices. Given that one of the complaints was made on social media, employers may prefer to adopt stringent social media usage policy by employees,” said Shroff. POTENTIAL FIX: GENDER DIVERSITY

Sensitisation to gender, experts said, is essential to promoting a healthy work culture. And ensuring that a workplace is genderdiverse may be a good step to begin with, believe employees at some internet companies. “41% of the workforce at Zomato are women and we have seven women in top management roles. I have not heard of or witnessed any unpleasant or sexually offensive cases,” said a female employee at the restaurant listings and food-delivery company. She had joined Zomato after her former boss at a cement-to-retail conglomerate made sexual advances at her. A lack of resolution of the incident had compelled her to quit. But even at Zomato, which has raised about $220 million from investors, employees ET spoke with said they were not aware of any workshops conducted to sensitise employees on sexual harassment for at least a year. Zomato declined to respond to queries sent by ET. At ScoopWhoop, though, gender diversity may not have proved an effective deterrent. The media website has a dedicated news section called ‘Women’ carrying headlines such as ‘Iceland is making it illegal to pay

Complaints of sexual harassment against the founder or head of a company can be made to the district officer at the area’s local complaints committee—typically the collector or deputy collector of a region. This, even if the company has an internal complaints committee. A company’s internal committee as well as the local complaints committee can take action against the “aggrieved woman” if her allegations are found to be false.

Employer’s Obligations The Sexual Harassment Act requires every organisation to formulate policy, create awareness on the internal complaints committee, and have consistent dialogue with employees on what constitutes harassment

Formulate anti-sexual harassment policy Sensitise all employees to the provisions of the Sexual Harassment Act Nominate internal complaints committee at each location with an external member Hold skill-building programmes for members of the committee

ILLUSTRATION: ANIRBAN BORA

I

n the debut episode of Girliyapa, a satirical web series by The Viral Fever, two women in a restaurant are outraged that they aren’t ogled at, stalked or catcalled. The YouTube video has more than 3 million views and many of the 3,000-plus comments are appreciative of the intended humour. The few viewers who dared to criticise were told to pipe down and see the hilarity. Such responses weren’t unfamiliar to women working at the Mumbai office of TVF, according to one former employee of the digital production startup. If they disapproved of an atmosphere strewn with sexist jokes and comments, they were made to feel like prudes. “The (TVF office) being sexist pertained to a few individuals like Arunabh (Kumar, the founder). As a result of that, women were also expected to ‘be cool’ with what was being said and done. It was easy for men to pass off lewd statements as a joke,” she said. Over the past weeks, India’s startup ecosystem has been riled up in controversy post allegations of sexual harassment against Kumar and, most recently, ScoopWhoop cofounder Suparn Pandey, closely following reports of a toxic work culture laced with sexism at Uber, the world’s largest cab aggregator. Workplace sexual harassment is no stranger to the Indian corporate system, but at startups, the problem is threefold—non-compliance and a lack of awareness and sensitization, coupled with feeble gender diversity ratios in tech-led firms. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 requires every company with more than 10 employees of either gender at any of its offices to set up a four-member internal complaints committee. It should have a woman as the presiding officer and one external member from a nonprofit, a legal firm or an organisation that works in the area of sexual harassment. The law mandates companies to organise workshops and awareness programmes at regular intervals for sensitising employees with the provisions of the sexual harassment Act. Orientation programmes for the members of the internal committees are essential. At startups, and even at larger companies, the legislation is followed more in the breach. “The biggest challenge from the perspective of the law is affirmative action from companies on this matter. If they were to sensitise employees, help with skill-building for the committee, make employees aware of such a committee and the action that can be taken, then incidents can come down,” said Vishal Kedia, director at ComplyKaro, a regulatory compliance consultancy. A survey of more than 600 companies, including startups, conducted by ComplyKaro and the Institute of Company Secretaries of India threw up dismal awareness stats and showed a casual disregard of the sexual harassment Act. About 40% of the respondents had not conducted sensitisation programmes for all their employees and about one-third had instituted only one internal complaints committee for all their offices, instead of at each. Such lax compliance could be devastating to businesses, particularly

Internal committee has to file annual reports to the employer and the district officer of the area’s local complaints committee Include any complaints of sexual harassment received and their disposal in the company’s annual report

The Ignorance Cover

Of the 614 companies surveyed do not have external members in

36% their Internal Complaints Committees (ICC)

Not just startups, even larger companies have little awareness of the requirements of the Sexual Harassment Act, show recently published findings of a survey conducted by the Institute of Company Secretaries of India and regulatory compliance consultancy ComplyKaro men more than women. World, are you listening?’ and ‘The story of the rape that resulted in the formation of India’s sexual harassment law’—a reference to the Vishaka Guidelines that were superseded by the Sexual Harassment Act of 2013. In a statement issued after a former employee filed a complaint with the police against cofounder Pandey, ScoopWhoop said that women comprise about 40% of its workforce and the company has equal representation at the senior leadership level. It also said that the former employee’s complaint had been forwarded to its internal complaints committee and that the company “strongly condemns any kind of harassment at the workplace.” TVF, too, had said in response to the allegations against founder Kumar that it had an internal

33% Had only one ICC across all locations instead of one at each 40% Had not conducted sensitisation programmes in 2016 for all employees 50% Had not conducted skill-building programmes in 2016 for ICC members Were not aware that their ICCs had to submit annual reports to the employers

32% and the local complaints committees’ district officers

19% Had not made disclosures regarding sexual harassment in their annual reports 18% Were unaware that a complainant need not be an employee to register a complaint with the company

committee to handle sexual harassment cases. However, employees of ScoopWhoop and TVF whom ET spoke with said they were unaware of the existence of an internal complaints committee. ScoopWhoop has so far raised more than $5 million from investors. TVF raised $10 million from Tiger Global Management in February last year. SAVING GRACE

A few startups do exist that take the issue of sexual harassment very seriously, capital or no capital. “There is a very strong culture (at BankBazaar) in terms of awareness of sexual harassment redressal mechanisms and there are extensive sessions on educating employees about the various members in the (internal complaints) committee and how a complaint

can be raised if any,” said a female employee at financial marketplace. Awareness and training sessions are conducted every six months for all employees, she said. BankBazaar’s internal committee received a complaint last year but it found that the case related to a breach of professional etiquette and not sexual harassment. The erring employee was issued a formal warning on the instructions of the committee. “We collected feedback from the complainant that the case was handled to their satisfaction and ensured that there were no other facets of the matter that were affecting them,” said Sriram Vaidhyanathan, chief HR officer, BankBazaar. Online furniture startup Pepperfry conducts regular meetings and workshops in addition to circulating training material among employees to familiarise

them with the sexual harassment Act and the redressal process for any complaint. “We also require new folks joining the organisation to go through an e-training on the Act and our expectations of each employee,” said founder Ambareesh Murty. At UpGrad, a woman came forward with a complaint after the educationtech startup, following news of the TVF case, sent an internal email on the company’s non-tolerance to sexual harassment. UpGrad’s internal “committee spoke with both the complainant and the respondent. Further verification with two other employees who faced similar incidents proved that the accused was indeed guilty and he was asked to leave immediately,” said a female employee at the company.. [email protected]

Tech(tonic): Creating e-drug Adherence & Brain Monitors Hot Startup

Embryyo Technologies This IITians-led startup is developing an electronic drug adherence monitor and other medical devices [email protected]

Bengaluru: Nishant Kumar got an opportunity to go for a summer research internship at the University of Munich Hospital in

Germany at the end of his third year at IIT-Bombay, where he was a mechanical engineering student. During the internship, he worked with clinicians and physicists at the Institute of Clinical Neurosciences, and developed an algorithm for eye-gaze tracking. It was during this time that he observed the stark difference in resources between European and Indian hospitals. This turned out to be his calling in life. “I had the opportunity to closely observe the healthcare facilities in the hospital, which was equipped with all the modern medical devices and equipment and state-of-the-art technologies. I also noticed that these hospitals catered to a very low number of patients. This was a situation completely in contrast with the condition in India, where hospitals are often resource-constrained and cater to a large flow of patients,” said Kumar. “This was a turning

point in my life, and I decided to utilise my engineering skills into building biomedical devices and applications.” This ‘turning point’ resulted in Embryyo Technologies, which Kumar cofounded with his IITBombay classmate Prateek Jain in 2014. The duo started Embryyo after a few years of work experience. Embryyo Technologies is in advanced stages on development of BoxRx, an electronic drug adherence monitoring system. The electronic pill box, which is combined with web and mobile

ROAD AHEAD

The firm has over 10 inventions in the pipeline in areas such as haematology and maternal health

The Embryyo Technologies team

apps and a proprietary sensor strip, helps in the detection of the activity when a pill is removed from a blister packet of medicine. This activity is recorded and transmitted as an SMS to the cli-

nician or the health-worker. “We got the first success in the form of Grand Challenges in TB Control which was a grant award of $30,000 for a period of six months and we were required to develop a

drug adherence monitoring system for TB patients in India. IKP Knowledge Park was the organisation administering the project and the project was supported by the Bill and Melinda Gates Foundation and USAID,” said Kumar. The Pune-based startup is also developing other products like UnFurl, a self-expandable nonvascular stent for oesophageal applications and NeoBrain, a cotside infant brain growth monitoring system. All of these products are in various stages of development. “We have more than 10 inventions in the pipeline in diverse areas such as haematology, maternal and child health and interventional devices,” said Kumar. The startup, which received multiple grants from the Bill and Melinda Gates Foundation and the government’s Biotechnology Industry Research Assistance Council (BIRAC) and others, is looking to license their technology

to medical device makers. “Once we have a fully functional prototype with demonstration of the proof of concept, engineering test results, a patent portfolio, early evidence of clinical efficacy and customer validation we will license the technology to interested medical devices manufacturing companies for further uptake, distribution and sale. We expect some of our early licensing deals to happen in Q3 and Q4 this year,” said Kumar. Embryyo Technologies is also looking to raise around $2 million in the next three to five months. “We funded them (Embryyo Tech nolog ies) t h roug h t he Grand Challenges in TB Control Program. They are a young dynamic team with good work experience in MNCs. The founders are technically strong. We are happy to see the BoxRx product come out later this year,” said Vikraman Venu Saranyan, vice-president at IKP Knowledge Park.

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>> pg 21

CONSUMER CONNECT INITIATIVE

THE ECONOMIC TIMES, NEW DELHI / GURGAON, FRIDAY, APRIL 14, 2017

DIGITAL DRIVE India has become the second highest country in terms of mobile internet users and its internet economy is expected to achieve US$ 250 billion by 2020 [email protected] ith about 391 mn users, India has already become the second highest country in terms of mobile internet users. This is expected to grow rapidly to approximately 650 mn mobile internet users by 2020. At the same time, data consumption could potentially increase 10-14 times by 2020. The Boston Consulting Group (BCG), along with The Indus Entrepreneurs (TIE), released a report titled 'The $250 Billion Digital Volcano: Dormant No More' that describes this phenomenal digital adoption in the country. India's internet economy is expected to double to become US$250 bn by 2020. E-commerce and financial services are projected to lead this growth. For instance, share of digital payment transactions could more than double to go up to 30-40 per cent by 2020. "The focus on digital payments will revolutionise payment habits in India with digital payments becoming the new normal in 2017. As we become more digital, India will see new taxpayers and better transparency in incomes," states Bipin Preet Singh, Founder & CEO, MobiKwik. As the new digital paradigm emerges, adapting to change will become critical. For instance, the impact on jobs is expected to be transformational. New ways of working are expected to emerge with an increasingly flexible workforce optimising efficiency. "It is essential to understand the three forces that are now synergising to unlock internet consumption in India," says Nimisha Jain, a BCG partner and report co-author.

IMAGES BAZAAR

W

"Firstly, 4G-enabled devices are expected to grow six times to 550 mn devices by 2020, constituting 70 per cent devices in use. Secondly, reliable high speed data is becoming both ubiquitous as well as mass affordable (data rates have reduced to less than one-third in just 4-5 months). Lastly, digital content is proliferating as well as improving in quality, thus driving consumption," she informs. Even for the SMEs, digitisation is a boon. "Emerging businesses across the country share a common need to control costs, boost performance to drive profitable growth. Some of the other technology adoption requirements of SMEs are accessibility to appropriate software information, readymade templatised solutions, and maintenance and management of the software," shares Priyadarshi Mohapatra, Vice President, Emerging Business, SAP India. Not just digitisation, artificial intelligence (AI), too, is going to play an important role, especially in the financial sector. "Indian banks are embracing digital solutions for interacting with customers; the next step is implementing the enabling power of AI, such as identifying consumer preferences and then reacting with insight and emotional intelligence," says Piyush Singh, managing director and head of Accenture Financial Services group in India. "In addition to gaining insights, banks could transform customer experience and improve operational efficiency. However, the challenge will be how quickly banks can implement these new technologies as banks continue to face legacy issues with their existing IT set up. This would require a C-suite-led impetus to embrace new technologies," he states. Increased technology adoption plays a key role in helping all businesses, be it the large enterprises, the SMEs or the startups, to deal with the challenges of economy, security and performance that loom over these businesses and open doors to the opportunities waiting to be explored.

BIZ BUZZ In order to thrive, successful businesses will have to…

Adopt a global mindset, whether preparing to grow into new markets or defend its home turf from international competitors; this requires changes in technology, culture, and strategy. Focus on transformation, with a holistic view of change across the enterprise and strategy, including technology. Deal with the human factors of skills, hiring, and culture; technology offers some important ways to manage and optimise global people issues. Plan for innovation and differentiation, keys to reaching the empowered customers and rising markets that define the new global economy.

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22 Sports: The Great Games

233

Runs scored by Nitish Rana in six innings. Only one player has scored more runs in first six innings for Mumbai — Lendl Simmons (315).

uote Shote

I was mentally disturbed. I came here and spoke to Sachin Tendulkar and Mahela Jayawardene. I spoke to a lot of seniors in the team. There was no fault in my technique but the issue was more of the mindset. I realized I was overthinking. NITISH RANA on his transformation

ET SPORTS TWENTY20 VISION

DORTMUND BUS ATTACK: “Treated as if a beer can had hit our bus”

POINTS TABLE ORANGE CAP TEAM Kolkata Hyderabad Punjab Mumbai Delhi Bangalore Pune Gujarat

M 3 3 3 3 2 3 3 2

NRR PTS +1.475 4 +1.156 4 +0.516 4 +0.199 4 +2.050 2 -1.206 2 -1.718 2 -2.731 0

Tuchel Lambasts UEFA

Gautam Gambhir RUNS

167

PURPLE CAP Bhuvneshwar

Dortmund boss angry as team loses to Monaco after being ‘forced to play’ under 24hrs after attack

WICKETS

7

The Star Returns

Rob Harris Borussia Dortmund coach Thomas Tuchel has said the club had not wanted to play its Champions League game against Monaco a day after a bomb attack on its bus. They lost 3-2 in the quarterfinal first leg, without defender Marc Bartra, who required surgery for injuries to his wrist and arm. Dortmund’s players said they had not wanted to play the match so soon, although UEFA responded to the club’s anger by insisting it had agreed to the rapid rescheduling. The UEFA spokesperson said the governing body was in touch with both teams and had not received any information that either of the teams were not ready to play. There was tight security at Wednesday evening’s match, with armed police officers in body armour patrolling the streets around Dortmund’s stadium, while supporters were banned from taking backpacks to the match and some were frisked After the match, Tuchel said his players had wanted more time to recover from the previous day’s attack. He felt UEFA had not taken the attack seriously enough and claimed “we weren’t asked at all at any time” about whether to proceed with the game. “Basically, we had the feeling that we were being treated as if a beer can had hit our bus, and half an hour later the decision was there that (it would be) tomorrow at

Virat Kohli, Bangalore captain, is fit and available for today’s match against Mumbai

e’s back. And Indian cricket’s latest claimant to the Angry Young Man title is smiling. Virat Kohli’s shoulder was put through the paces at the M Chinnaswamy Stadium in Bangalore, and it is the Mumbai Indians who will get the first taste of the brute musculature that sent the ball sailing into the stands during a lengthy net session. It was on March 16 that Kohli fell and hurt his shoulder — the date was at the tip of his tongue — and nearly a month off the field has primed him for action. When he takes the crease, either as opener or in his more preferred onedrop position, there will be a sense of the gates of Pamplona being thrown open, setting of the running of the bulls. After all, Kohli has for company Chris Gayle, AB de Villiers and Shane Watson, all of VIRAT KOHLI whom can turn a game on its head singlehandedly. me again, because I’m used to it by now. The sense of anticipation was palpa- But I’ll definitely handle it better than I ble as Kohli spoke of how his time away have in some instances in the past. I will was perhaps a blessing in disguise as it not necessarily take everything onto helped re-ignite the spark than can die myself, take too much load onto myself down when someone plays all forms of and let things get out of hand. Definitely the game non-stop for years on end. a massive learning. These last few weeks There was certainly something differ- have been irritating as far as not getting ent about Kohli in that he was markedly on the field is concerned, but I’ve had a calmer than during the recent India- lot of time to introspect and look within Australia series, in which he was made and understand what needs to be done the focus of attention with everyone going forward. The experience will make from cricket followers to the opposi- me stronger and I will know how to hantion to journalists and even the Cricket dle it better for sure.” If Kohli was calmer, there was comAustralia chief executive having a go at him. In the IPL, though, some foes be- plete relaxation for AB de Villiers, who spent Thursday afternoon come friends and there is a relaxed air to the off-field WATCH OUT! TODAY throwing a tennis-ball to experience that interna- 4pm Bangalore vs Mumbai Abraham, his toddler son. From taking golf-swings to tional cricket does not alHEAD-TO-HEAD perching behind the nets to ways afford. Matches: 19 The mandatory rest cer- zzzzzzzzzzzzzzzzzzz watch Kohli bat, de Villiers tainly gave Kohli a chance Bangalore: 8 Mumbai: 11 did everything except pick up a bat in anger. He’s keepto take a long, hard look at 8pm Gujarat vs Pune ing the powder dry for the some of the non-action from HEAD-TO-HEAD run-fest that Chinnaswamy the India-Australia series. Matches: 2 “The last series I think, Gujarat: 2 Pune: 0 is expected to serve up. There was certainly no in the course of such an important series and such a big event, hostility between the South African, and you tend to go into a zone. Sometimes Kohli, who is an unabashed admirer of when you look in hindsight you think, de Villiers. It wasn’t that long ago that maybe I could have done things differ- Kohli was raging about how he had lost ently or handled myself differently,” said friends in cricket. While Kohli had spoken warmly of his buddies in the Aussie Kohli. It’s worth remembering that Kohli, at camp ahead of the series that India won, one point stopped just short of accusing and even more firmly about how this had Steven Smith of cheating and later stood changed in the course of all the heated by each of his remarks despite being giv- verbals. “It has changed for sure. As I said, in the heat of the battle you want en the chance to soften his stand. “I’ve learnt a lot from that phase, as a to be competitive but I’ve been proven captain, as an individual, as a person. wrong,” said Kohli. “The thing I said I can’t control where the focus is. I’ve before the first Test, that has certainly always had my focus on the team. If the changed and you won’t hear me say that cameras and television packages focus ever again.” Upon introspection, Kohli may want to fall on me, that’s not in my control. I wouldn’t say I’d be disappointed if the focus is on back on the old adage: never say never.

6.45pm,” Tuchel said. “That gives you a feeling of powerlessness.” Despite the congested calendar in the final months of the season, Dortmund believed the game could have been shifted to a later date. The second leg is being played next Wednesday in Monaco. “We weren’t attacked on the field by an opponent; we were attacked from inside the bus as men,” Tuchel said in a post-match broadcast interview. “Of course this has an effect and it was a terrible experience for all of us. We wanted to have a bit more time to deal with it. We didn’t get the time. “We had the feeling today everybody that we are not in the best shape, not focused enough for football. Who will blame us for that? Nobody.” Midfielder Nuri Sahin shared similar sentiments after the match, in a video that went viral. “I don’t know if people can understand this, but until I was on the pitch, in the second half, I didn’t think about football to be honest,” he said. “I know football is very important, we love football, we suffer with football... and I know we earn a lot of money, we have a privileged life. But we are human beings, and there is so much more than football in this world and last night we felt it.” The Independent

CHAMPIONS LEAGUE QFS 1ST LEG: Bayern Munich 1-2 Real Madrid

RONALDO RISES TO THE OCCASION

Bayern dominated the first-half with Vidal goal, but Ronaldo led the Real fightback with second-half brace

BCCI declared Virat Kohli fit on Thursday

PLAY OF THE DAY

Umesh Grabs Four on Return Umesh Yadav was impactful during India’s long Test season and when he returned to cricket after recovering from a minor niggle, he ensured that there was no respite for opposition batsmen. Yadav took four wickets on his comeback to help Kolkata Knight Riders restrict Kings XI Punjab

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to 170/9 on Thursday. He struck thrice in his fourth over to end any chance of a rearguard action from Punjab. Then, captain Gautam Gambhir hit his second unbeaten fifty to take KKR home with 8 wickets and 21 balls to spare. This was KKR’s second win in three matches.

SCORECARD

PUNJAB: 170/9 (Vohra 28, Miller Umesh Yadav took his 28, Umesh 4/33, Woakes 2/30) third four-wicket haul KOLKATA: 171/2 (Gambhir 72*, Narine 37, Aaron 1/23) in T20s on return.

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Now with me coming back and all specialist batsmen playing, the thinking might change back again. Bangalore has generally been a ground where you can chase down high totals and tomorrow being a day game obviously that really matters a lot because under the lights the wicket is better during the day time

BCCI

Anand Vasu

GETTY IMAGES

GO FIGURE!

THE ECONOMIC TIMES | NEW DELHI / GURGAON | FRIDAY | 14 APRIL 2017

Even now, in the slow descent of his career, Cristiano Ronaldo has the power to bend games his way, to surprise and punish any opponent or observer who dared wonder if the old magic was starting to wear off. In the first half of this Champions League quarter-final, Ronaldo was anonymous and his Real Madrid team were nowhere. They couldn’t live with Bayern Munich, who went 1-0 up and should’ve had a second only for Arturo Vidal to put his penalty high into the stands. That was at the very end of the first half when it still felt like a big home win was on the cards. But the second half was different. Ronaldo scored two clever poacher’s finishes, turning a 1-0 deficit into a 2-1 lead. He got Javi Martinez to foul him, then foul him again, a yellow card swiftly turning into red. Bayern collapsed, in a way that a team with this much experience should never do. Real seized control of the tie and now it is very hard to see them not being in the semi-finals. Should it be a surprise? They are reigning European champions after

all, having won the big one in 2014 as well. Yes, at half-time here it certainly felt like they would be heading out. But the reality of this Real Madrid team is that they’ve always been about seizing the moment more than dominating games. That’s how they beat Atletico Madrid in those two famous finals, and that’s what they did to Bayern Wednesday night. It was a perfect example of a team realising that a match was still within their grasp. ATLETICO BEAT LEICESTER

It could have been worse for Leicester. And it could have been better for Atletico Madrid. In the end, both teams came away from their Champions League quarterfinal match relatively satisfied and looking ahead to next week’s second leg in England. At letico played wel l Wednesday and should have done better than the narrow 1-0 victory, but the players and coach Diego Simeone were celebrating the advantage they will be carrying into the return match on Tuesday. The Independent/AP