Author
Gold prices fell for the third- straight day by dropping Rs 255 to Rs 30,425 per 10 grams in the national capital on Thursday (20 March) on sustained selling by stockists in tandem with weakening global trend. Silver followed suit and lost Rs 540 at Rs 45,700 per kg on poor offtake by industrial units and coin makers. Traders said the sentiment remained bearish on stockists selling and weakening global trend as Federal Reserve signalled a rise in interest rates while further reducing monetary stimulus, boosting the dollar and curbing demand for the metal. Gold in Singapore, which normally sets the price trend on the domestic front, fell by 0.3 per cent to $1,325.66 an ounce and silver traded tad lower at $20.59 an ounce from 20.61 yesterday. On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 255 each to Rs 30,425 and Rs 30,225 per 10 grams, respectively. It had lost Rs 150 in last two trade. Sovereigns also declined by Rs 100 at Rs 25,200 per piece of eight grams. Similarly, silver ready dropped by Rs 540 to Rs 45,700 and weekly-based delivery by Rs 340 to Rs 45,500 per kg. The white metal had lost Rs 960 in the previous two days. Silver coins too tumbled by Rs 1,000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.(Agencies)
Read More
The gaze doesn't shift from the window where Vincent van Gogh once lived. It is swathed in white, and when we take a closer look at the window, a happy bunch of bright yellow sunflowers stare down at us from the third floor. “There’s no better way than this to keep van Gogh alive in our hearts,” smiles our guide, an enthusiastic middle-aged woman who is taking us on a walking tour of Montmartre — arguably one of the most beautiful areas of Paris that’s steeped in art, history, literature, given the numerous artists who lived there. Vincent van Gogh, we’re told, lived at 54 Rue Lepic, from 1886-88, a charming cobbled street that we’ve just crossed, sharing an apartment with Theo, his brother. It was while living here that the Dutch artist, inspired by the palette of the French Impressionists, painted the first in the series of Sunflowers, which would later become one of the most iconic series of paintings in the world.We are a group of seven — my husband, me, and another family of five, including three children in their pre-teens — taking a walking tour of this illustrious hill in the north of Paris. Our final destination is Sacre-Coeur, the iconic basilica resting atop the hill, which promises panoramic views of the city. En route the guided walking tour, it’s hard not to capture some of the most iconic sights of Paris — the roadside cafes; local artists busy in the trade; the aroma of sizzling hot street-side crepes; the wafting smells of freshly baked breads at the neighbourhood boulangerie; a young couple kissing on a bench; the sound of water from the distinctive cast-iron Wallace fountains…It’s actually at this point, you realise why destinations need to be covered on foot. Walking tours, especially in a city like Paris allow you to pause, relax, meditate and really soak in not just the bohemian spirit of the artists who lived here but also experience the joy and the wonder of walking on the same narrow streets where the likes of Picasso, Vlamenck, Derain, Soutine, Modigliani, van Gogh and many others lived and worked.In fact, it wouldn’t be incorrect to say that even the walls of Montmartre talk to you in the language of art — something that you’d definitely miss if you’re on a touch-and-go Paris visit. I spot the ‘Grego’ face peering from a wall shortly after I’ve had a brief date with ‘the man who walks through walls’. While the Grego self-portrait face is just one of the 400-500 faces done by a 39-year-old Greek artist, Dutilleul is a unique sculpture in bronze inspired by Marcel Aymé’s story, about a man who could — what else — walk through walls before he got stuck halfway in a wall when the magic eventually wore off. The charming thing about this half-man sculpture is that it emerges out of nowhere; just like the statue of Saint Denis, the first bishop of Paris who is said to have walked for six km with his head in his hands after it was decapitated by local pagan priests. The silence of the Montmartre cemetery with colourful blossoms is a melodic symphony complete with the sounds of birds chirping, a cat purring, the cool breeze and water in the distance.While the must-do trips to the Eiffel Tower, Moulin Rouge and Lido are good to strike off the bucket list, it’s walking tours in areas like Montmartre and Latin Quarters that give you a chance to feel the pulse of Paris. In roughly two hours, area-specific guided walking tours allow you to be gently transported in time, getting to feel the heartbeat of what is considered the Mecca of cultural movements in art, architecture, literature, fashion, and so much more. The meandering journeys on foot unearth Paris gently with rich moments that you capture for a lifetime. As you walk down the cobbled pathways, streets and bylanes of Paris, it’s a meditative introduction to the city even as it embraces you powerfully and gently, all at once. So, the next time in Paris, wear your comfortable pair of shoes, grab a crepe from the roadside and walk, explore and fall in love. Paris won’t let you down. (This story was published in BW | Businessworld Issue Dated 11-08-2014)
Read More
Five and a half years after erstwhile Satyam Computer Services founder chairman B. Ramalinga Raju’s shenanigans came to light, he, along with four others from the top management, has been barred from the market for 14 years by the Securities and Exchange Board of India (SEBI). The capital markets regulator has also directed the five to return unlawful gains of Rs 1,849 crore within 45 days, with 12 per cent interest from 7 January 2009 to date. Raju, who is on bail after spending 32 months in jail, could again be arrested if he fails to meet the SEBI deadline.Penalised, AgainMukesh Ambani controlled Reliance Industries (RIL) has been slapped with an additional penalty of $579 million by the government for producing less than the targeted quantity of natural gas from the offshore KG-D6 block in Andhra Pradesh. The fresh penalty is in addition to the earlier fine of $1.80 billion slapped on the company for production shortfalls. The penalty has, however, failed to impress critics who allege proximity between PM Narendra Modi and the RIL head.Google’s Search EndsThe man responsible for reviving Boeing’s commercial aircraft business and reshaping a moribund Ford into a competitive automaker is now on board Google. The search giant, working on developing self-driving cars, has inducted Alan Mulally into its board of directors to gain from his auto expertise in this quest. The 68-year-old, who was appointed on 9 July, will receive $1 million in Google stock, an annual equity award of $350,000 with a $75,000 cash retainer and reimbursement of expenses.Stock GiveawayUber-billionaire Warren Buffett has made his biggest donation yet, $2.8 billion in securities to the Bill and Melinda Gates Foundation and four Buffett family foundations. He gave away 21.7 million shares of his company’s class B stock, valued at $128.98 a share, which reduced his holdings to $63.1 billion. Having pledged to give away 99 per cent of his fortune, over the past eight years Buffet has donated $18.7 billion.Skype BreaksSubrata Roy sure can’t break out of Tihar, but he can take a break now. The Securities and Exchange Board of India (SEBI) has allowed him to step out of jail for a few hours every day to negotiate the sale of his foreign properties over video conference to enable him to mop up the remaining sum required for his bail. Roy will only be granted bail on depositing Rs 5,000 crore in cash and an equal amount in bank guarantee.Spot ReclaimedCarlos Slim Helú is once again the world’s richest person, thanks to a sharp increase in the share price of his company América Móvil, a telecom giant, both in the US and the Mexican markets. Slim bumped Microsoft co-founder Bill Gates from the top spot in the Forbes world’s billionaire list, a position Gates held since May 2013 after displacing Slim.Still The BossSameer Gehlaut, co-founder and chairman of Indiabulls Group, which is currently undergoing a major overhaul, will continue to control, manage and supervise most of Indiabulls’s major businesses like housing finance, real estate, securities and wholesale trading. Rajiv Rattan and Saurabh Mittal, the other co-founders of the group, will relinquish all control over the firms in Gehlaut’s favour. Gehlaut also has complete rights to the Indiabulls brand.Son RiseSharvil P. Patel has been appointed chairman of Zydus Wellness, a personal care products firm, after father, Pankaj R. Patel, expressed his unwillingness to be reappoinment director of the company. The move is being viewed as a passing of the baton to the next generation in the Zydus Cadila Group. Sharvil has been a non-executive director at Zydus Wellness since 2009.(This story was published in BW | Businessworld Issue Dated 11-08-2014)
Read More
Shares of jewellery maker Titan Co Ltd gained 4.4 per cent after Reuters reported that government had allowed five domestic private sector banks to import gold, in what industry officials say could be a significant step towards easing of tough curbs on the metal imposed last year.The move could boost gold supplies and bring down premiums for the metal in the world's second-biggest consumer after China.(Reuters)
Read More
Gold prices plunged by Rs 275 to Rs 28,200 per ten gram in the national capital today on stockists selling, tracking a weak global trend.Besides, subdued demand from jewellers in the domestic market and shifting of funds towards the surging stock markets also weighed on gold prices, traders said.Silver also declined by Rs 200 to Rs 45,200 per kg on weak demand from industrial units and coin makers.Sentiment turned weak after gold declined in overseas as the dollar strengthened and equities advanced, reducing appeal of precious metals as an alternative investment, they said.Gold in Singapore, which normally sets price trend on the domestic front, fell 0.5 per cent to $1,305.40 an ounce and silver by 0.2 per cent to $20.88 an ounce.In Delhi, gold of 99.9 and 99.5 per cent purity lost Rs 275 each at Rs 28,200 and Rs 28,000 per ten gram respectively, while sovereign eased by Rs 100 at Rs 24,800 per piece of eight gram.In a similar fashion, silver ready traded lower by Rs 200 to Rs 45,200 per kg and weekly-based delivery by Rs 175 to Rs 44,910 per kg. Silver coins also dropped by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.(PTI)
Read More
Iran exported oil at levels higher than allowed under Western sanctions for a fourth straight month in February, ship loading data seen by Reuters showed, raising the risk of a crackdown if Washington feels economic pressure is being relaxed too quickly. The higher sales to Iran's main clients, mostly in Asia and including Turkey, have come after a temporary agreement eased some sanctions aimed at undermining Tehran's nuclear programme. Under the deal, Iran's exports are supposed to be held at an average 1 million barrels per day (bpd) for the six months to July 20. But shipments to Asia have topped that level at least since November, according to customs and ship tracking data. As talks on a final nuclear deal resumed in Vienna on Tuesday (18 March), US President Barack Obama was again facing pressure from US lawmakers to be tougher on Iran. US senators have written to Obama to say Tehran should not be allowed to circumvent sanctions as world powers work towards a lasting agreement with the Middle East country. "Iran cannot be allowed to be open for business," 83 senators wrote in a letter. "We view this period as one fraught with the danger of companies and countries looking to improve their commercial position in Tehran." February crude loadings by Iran's top four buyers - China, India, Japan and South Korea - rose to 1.16 million bpd versus 994,669 bpd in January, according to the loading plan. Adding in oil lifted by Turkey - which came in at 105,824 bpd in January and 117,857 bpd in February - Tehran's exports have busted the sanctions limits at least since November. The loading volumes exclude condensate, a light oil, that Iran exports to China and others. Since sanctions were imposed in 2012 and more than halved Iran's oil exports, China, India, South Korea, Japan and Turkey have bought nearly all Iranian crude exports. The Obama administration believes Iran's exports will fall in coming months and exports through late July will average 1 million bpd. To ensure that happens, Washington could put more pressure on Iranian crude buyers to slash purchases. Indian government sources have said refiners there must cut their Iranian oil imports by nearly two-thirds from the first quarter after the United States urged New Delhi to hold the shipments at end-2013 levels. The temporary deal between Iran and world powers, struck in November and implemented on January 20, also freed up $4.2 billion in back oil payments to Tehran in return for curbs on its nuclear program. Breaching CeilingThe intake of Iranian oil by Asian buyers alone has topped 960,000 bpd since November, government and industry data has shown, and adding in an average 100,000 bpd of crude for Turkey, exports have breached 1 million bpd at least since then. With loadings for the first two months of the year - for February and March arrivals - also holding above 1 million bpd, according to the loading document, exports look set to breach the cap for the first quarter of the year, allowing up to three weeks for shipments to China, Japan and South Korea. China lifted 502,500 bpd in February, again taking its purchases back to pre-sanctions levels. The nation's refiners received 564,536 bpd in January. In comparison, China imported 428,840 bpd of Iranian oil for all of 2013, according to customs data. China's February import numbers are not due out until later this week. China's total oil imports from Iran may rise in 2014 as state-run trader Zhuhai Zhenrong Corp is negotiating a new condensate contract, Reuters has reported. India lifted 304,286 bpd of crude in February, according to the loading data. Iran's second-biggest client imported 412,000 bpd in January and averaged 195,600 bpd in arrivals in 2013. South Korea loaded 214,286 bpd in February, mostly for March arrival dates. February arrivals from Iran, meanwhile, doubled from a year earlier as refiners hiked purchases ahead of maintenance shutdowns starting from March. Japan loaded 140,000 bpd in February, according to the loading programme. It purchased 210,517 bpd from Iran in January, after reducing imports by 6 per cent in 2013, marking its lowest daily crude imports from Iran in more than 30 years. Japan's February import numbers are due later this month. Condensate ExportsIran's exports to Asia, including condensate, were 1.25 million bpd in February, up 62,000 bpd from the previous month, the loading document showed. That was on par with a 13-month high in oil and condensate arrivals in Asia in January. Including Turkey, Iran's crude and condensates exports rose to 1.37 million bpd in February, up 74,000 bpd from January. (Reuters)
Read More
In his budget speech, the Finance Minister had proposed to revive Special Economic Zones and to make them effective instruments of industrial production, economic growth, export promotion and employment generation. This statement was widely welcomed and seen as a positive statement of intent to revive developer and investor interest in Special Economic Zones. However, since details of the measures being introduced have not been announced yet, it is not clear what lies in store for Special Economic Zones in the future. One of the major changes the industry was expecting in SEZ policy was the removal or reduction of MAT (minimum alternative tax). The rollback or reduction of MAT, however, looks unlikely. This was indicated by the Finance Minister while answering a query on MAT for SEZs.In that response statement, it was mentioned that companies were making huge profits and distributing dividend to their shareholders but were not paying any income tax due to the large number of exemptions and deductions available under the Income-Tax Act. Accordingly, MAT was levied on all companies to address inequality in taxation of corporate taxpayers. The press release by Ministry of Finance on 18 July 2014, mentioned that the removal of MAT from SEZ developers and units had no justification vis-à-vis other sectors of economy which were liable to pay MAT. Further, MAT paid by the company can be carried forward for set-off against regular tax payable during the subsequent year(s), up-to ten assessment years when the regular tax payable under the normal provisions of the Income-tax Act is more than the computation provided under MAT. This implies that MAT is most likely to be retained for special economic zones. MAT has been levied on developers and units operating in SEZs with effect from 1 April, 2012. Special economic zone developers and units have to pay 18.5 per cent MAT on their book profits.Tax sops, however, are not the only factor for revival of special economic zones. The government could also support in terms of infrastructure and consistency in application of the SEZ policy. In last two years both investors and developers interest dwindled due to uncertainties over many issues related to taxes and land acquisition policy. They have therefore opted to de-notify their SEZs. Once the land is de notified, the developer can either sell it or use it for any other purpose/development. SEZs can provide tremendous opportunity for growth but require a hassle free stable operating environment, apposite infrastructure and well defined policies for both developers and the companies to harness the full economic potential of this investment asset class.The author is Associate Director, Research, Colliers International
Read More
Jindal Steel and Power Ltd will stop buying coking coal from Australia in three months from now as its own mines there start shipping, a top company official said, a move that could further soften prices of the commodity. Recent coking, or metallurgical, coal price settlements by major miners showed a fall in the price of all coal types for the first quarter of 2014, underscoring a weak demand outlook from steelmakers in Asia. "We get 50,000 tonnes per month from our mine in Mozambique and another 50,000 tonnes we buy from Australia," said V.R. Sharma, deputy managing director of Jindal Steel. "But after three months we will not be buying because we have our own mines there," he told Reuters late on Tuesday (18 march). Jindal Steel, headed by billionaire lawmaker Naveen Jindal, got access to 650 million tonnes of coking coal resources in October after buying a majority stake in Gujarat NRE Coking Coal, the Australian unit of Gujarat NRE Coke Ltd. Gujarat NRE Coking's two mines, located in New South Wales, are currently producing 1.5 million tonnes per year and are expected to have an output of 5 million tonnes by 2016. Australia is the world's largest coking coal exporter, with shipments expected to rise 6 per cent to 163.9 million tonnes this fiscal year ending March 31. Sharma said Jindal Steel's coking coal consumption will more than double to 2.6 million tonnes by 2016 as it expands capacity. About 80 per cent of the coal will come from its mines abroad and the rest it will buy from the open market. But unlike other Indian companies such as Steel Authority of India Ltd and Neyveli Lignite Corp, Sharma said Jindal Steel was no longer looking to buy coal mines overseas as it has enough coking coal resources now. India's coking coal imports are set to rise 6 per cent to 35 million tonnes this fiscal year ending March 31. Domestic output has been stagnant at 18 million tonnes per year as most reserves are in thickly populated areas. (Reuters)
Read More
A defiant Russian President Vladimir Putin added Crimea to the map of Russia on Tuesday (18 March) describing the move as correcting past injustice and responding to what he called Western encroachment upon Russia's vital interests, even as the Group of Eight (G8) suspended Russia’s membership of the group.To the Russian national anthem in Moscow, Putin and Crimean leaders signed a treaty on making Crimea part of Russia. During his address, Putin was interrupted by applause at least 30 times. France's foreign minister said that leaders of the Group of Eight world powers have suspended Russia's participation in the club amid tensions over Ukraine and Russia's incursion into Crimea.The other seven members of the group had already suspended preparations for a G8 summit that Russia is scheduled to host in June in Sochi.France's Laurent Fabius went further today, saying on Europe-1 radio that "concerning the G8 ... we decided to suspend Russia's participation, and it is envisaged that all the other countries, the seven leading countries, will unite without Russia."Fabius did not give further details.The US and European Union announced more sanctions against Russia over its actions in the Crimean Peninsula. Putin Dismisses Western CriticismIRussian President Vladimir Putinn an emotional 40-minute speech televised live from the Kremlin, Putin said "in people's hearts and minds, Crimea has always been an integral part of Russia."He dismissed Western criticism of Sunday's Crimean referendum in which residents of the strategic Black Sea peninsula overwhelmingly backed breaking off from Ukraine and joining Russia as a manifestation of the West's double standards.But the Russian leader insisted his nation has no intention to invade other regions of Ukraine, saying "we don't want a division of Ukraine, we don't need that."Putin referred to Ukraine as a state born out of an illegal secession from the Soviet Union. He also argued that today's Ukraine includes "regions of Russia's historic south" and was created on a whim by the Bolsheviks.The statement sounded as a clear warning to both the new Ukrainian government in Kiev and to the West to respect Russia's interests.In response, Ukraine's new government called Putin a threat to the whole world and US Vice President Joe Biden warned that the US and Europe will impose further sanctions against Moscow."The world has seen through Russia's actions and has rejected the flawed logic," Biden said, meeting today with anxious European leaders in Poland."Today's statement by Putin showed in high relief what a real threat Russia is for the civilized world and international security," Ukrainian Foreign Ministry spokesman Evhen Perebinis said on Twitter. "(The annexation) has nothing to do with law or with democracy or sensible thinking."Thousands of Russian troops have been massed along Ukraine's eastern border for the last few weeks Russia says that was for military training while the US and Europe view the troops as an intimidation tactic.Putin argued that the months of protests in the Ukrainian capital of Kiev which prompted President Viktor Yanukovych to flee to Russia had been instigated by the West in order to weaken Russia.He cast the new Ukrainian government as illegitimate, driven by radical "nationalists, neo-Nazis, Russophobes and anti-Semites."With strong emotion, Putin accused the West of cheating Russia and ignoring its interests in the years that followed the 1991 Soviet collapse. People attend a rally to support the annexation of Ukraine's Crimea to Russia in central St. Petersburg, March 18, 2014(Agencies)
Read More
The city government on Tuesday (18 March) told the Delhi High Court that erstwhile Arvind Kejriwal-led cabinet's decision to give 50 per cent waiver on power arrears of people who did not pay their bills from October 2012 to December 2013 cannot be implemented due to non-allocation of funds for the same in the budget for 2013-14. In an affidavit submitted before a bench of acting Chief Justice B D Ahmed and Justice S Mridul, Delhi government said no provision was made in the budget to release funds, to the tune of Rs 6,821 crore, for providing the one-time relief to the electricity consumers who did not pay their bills. "Department of Power, GNCTD, vide letter dated February 14, 2014, submitted a revised final Excess and Saving statement for financial year 2013-14 towards making provisions for one-time relief to electricity consumers to the tune of Rs 6,821 crore and for creation of a new budget head... "The competent authority of the government has not made any provision in the budget for release of funds for the purpose and in absence of availability of funds, therefore, in the present circumstances it is not possible to implement the decision of the cabinet for providing relief to electricity consumers who stopped paying their bills anytime between October 2012 and May 2013 till December 2013," the government told the court. Advocate Vivek Sharma, on whose plea the court had stayed the operation of the cabinet decision to provide the 50 per cent waiver, contended since the government has only cited lack of funds as a reason for not implementing it, there is a possibility that it could come into force later when money is allocated for it. "They are not saying they will withdraw it (waiver)," he said. The court, after going through the affidavit and hearing Sharma's argument, fixed the matter for final disposal on May 22. Meanwhile, the stay on the operation of the cabinet's decision will continue, the court said. On February 21, the high court had stayed the operation of the February 12 Delhi cabinet decision to provide 50 per cent waiver on power arrears of people who did not pay their electricity bills from October 2012 to May 2013. The cabinet had approved as a "new service" the proposal "to provide 50 per cent relief on pending arrears to the tune of Rs 6,821 crore" and to direct finance department to allocate funds for the same as well as to inform the Delhi Electricity Regulatory Commission (DERC) of the decision. The court, while staying the implementation of the cabinet decision, had directed the government to file an affidavit stating its "current stand" on the issue. On February 19, the court had directed Delhi government to seek instructions and file an affidavit indicating the actual position regarding the proposal of the then Aam Aadmi Party (AAP) government. The court had passed the order as there was "no clarity" on whether the Delhi cabinet had taken a decision to implement the subsidy as claimed by Sharma. Pursuant to the high court's February 19 order, the Delhi government had submitted in its affidavit that comments were sought from the Legal, Finance and Planning departments on the proposed waiver as well as withdrawal of theft cases against the defaulters. The Legal department had said such a waiver can only be given prospectively and not retrospectively as per the statute, Electricity Act, 2003, the affidavit had said. It had also stated that the Planning department had said that the proposed exemption was "not appropriate" as it will be "tantamount to rewarding the defaulters at the cost of honest and regular paying consumers". The Finance department too had objected to the proposed waiver saying "it will give an advantage to the defaulters and disadvantage to the honest payers and thus it will create a bad precedent", the affidavit had said. Sharma has, in his plea, challenged the subsidy given by former AAP government to people who did not pay their power bills from October 2012 to December 2013. (Agencies)
Read More
