 Welcome to the Hindu news analysis by Shankar Reyes Academy. Displayed are the list of news articles taken for today's analysis and their page numbers in Chennai, Delhi, Bengaluru and Tiruvananthapuram editions of the newspaper. The link for the handwritten notes and the time stamping of the news articles are provided in the description box and the time stamping is also provided in the comment section for the benefit of mobile phone viewers. Now let's move on to the analysis of first news article. This news article is about the sighting of Indian wolf in the Papikonda National Park which is in the state of Andhra Pradesh. Now the relevant syllabus for the analysis of this news article has been highlighted here for your reference. See at the global level the gray wolf species are called as canis lupus. In India if you see we can find two subspecies of gray wolves. One is the Indian gray wolf and then the Tibetan gray wolf. The Tibetan gray wolf is also called as Himalayan gray wolf. Now this is because in India the Tibetan gray wolf is distributed in Himalayan landscape particularly at the elevation between 3000 meter and 4000 meter. This is one of the reasons why they generally say that the Tibetan gray wolf or the Himalayan gray wolf is found in the upper Himalayan region. At the time of 2015 there were around some 350 individuals of Tibetan gray wolf and Indian gray wolf were around some 1500. If you see the distribution of Indian gray wolf they are distributed in around some eight states. They are found in Gujarat, Rajasthan, Haryana, Uttar Pradesh, Mathya Pradesh, Maharashtra, Karnataka and also in Andhra Pradesh. This news article states that the Indian gray wolf has been cited for the first time in the Papikonda National Park in Andhra Pradesh and therefore the request is that to add these species in the list of wildlife diversity in the northern eastern Ghats. Earlier in April 2019 this Papikonda National Park was in the news because leopard cats were cited in this national park. This leopard cat is also an animal that is protected under Schedule 1 of Indian Wildlife Protection Act of 1972. Before 2008 the Papikonda Forest were known as Papikonda Wildlife Sanctuary but in the year 2008 the government of Andhra Pradesh declared the Papikonda Wildlife Sanctuary as a national park. Now the purpose was to better conserve the wildlife and the habitat of wild flora and fauna. See this is because in a national park human activities are not allowed and that is for the better conservation of flora and fauna. No human activities permitted inside the national park except those activities that are permitted by the chief wildlife warden of the particular state government. Based on some provisions given in Chapter 4 of Wildlife Protection Act of 1972 the chief wildlife warden may permit some activities if he and the state government is satisfied that such activities necessary for the improvement and better management of wildlife and we should also know that no grazing of any livestock shall be permitted in a national park. See we find that while there is no human activity permitted in national park some restricted human activities are allowed in a wildlife sanctuary that is why when we say if you want to better conserve a particular region which is presently a wildlife sanctuary it has to be declared as a national park. Coming to wildlife sanctuary there will be provision for collecting minor forest products and there will also be some restricted private ownership rights and these should not interfere with the well-being of the animals there. So these are some of the differences between a national park and a wildlife sanctuary though both of them are called as protected areas but the level of protection varies. Now one of the unique features of this Papakonda National Park is that river Godavari is seen meandering through the densely forested hills with deep gorges and valleys. Now along with this you also know that the state animal of the state of Andhra Pradesh is black buck. Black buck is also the state animal for the state of Haryana and Panchab. Now let's come to the status of this animal with respect to various protection mechanisms available. See it comes under least concern according to international union for conservation of nature but this is based on the understanding that Indian gray wolf comes under the overall classification of gray wolves. That is IUCN has not given the status of subspecies in its website. We can find the status of gray wolf as least concern. IUCN has not categorically given the status of Indian gray wolf but according to Wildlife Protection Act of 1972 it is an endangered animal and see the population trend at the time of 2015 was decreasing in our country. At that time there were around some only 1500 individuals. The Wildlife Protection Act of 1972 has protected Indian gray wolf under Schedule 1. Now what about Tibetan gray wolf? It is also protected under Schedule 1. We also saw that the leopard cats which was also sighted way back in April 2019 also listed under Schedule 1. Now coming to Indian gray wolves. Researchers have found that there is enough genetic differentiation between the gray wolves that are found in India and the gray wolves that are found in other countries. They say that Indian wolf represent evolution in isolation for a very long time compared to the rest of the wolves found elsewhere. They have found out this by conducting comparative genomic analysis of the gray wolf species worldwide. So the request is that so as to announce Indian gray wolf as a separate species rather than coming under as a subspecies in gray wolf category. So these are some of the information. Now the protection with respect to sites convention. This convention protects the gray wolf population that lives in India, Bhutan, Nepal and Pakistan in Appendix 1 so as to protect them from the illegal international trade. So these are some of the information with respect to the analysis of this news article. Now let's move on to next article. This news article talks about the requirement of India to remind the United States President Donald Trump about the real basis of India's claim to the territory of Jammu and Kashmir. The news also talks about few issues that could be on the agenda for discussion during the bilateral meeting between Indian Prime Minister and the US President. That will happen on the sidelines of the 45th G7 annual summit. Now G7 is a informal group of seven most advanced global economies and these countries are Canada, United States, UK, France, Germany, Italy and Japan. Initially it was group of six in the year 1975 and in 1976 Canada has joined and then it became group of seven. Informally the group is called as a group to provide some platform for the non-communist powers to address some pressing economic concerns. Since 1981 the European Union has also been participating in the G7 framework but it is not counted as a member. That's why in some news reports we can find the statements that European Union is a non-enumerated member of G7. Now how India can participate though it is not a member in this present G7 summit? Now this is because of the invitation extended to India by the France government. So India will participate as a special invitee to the summit. We know that recently after amending article 370 with respect to the temporary provisions of Jamun Kashmir and after bifurcating the erstwhile state of JNK into two union territories, there have been several concerns raised internationally by Pakistan, China and few other countries. And we have been seeing repeated statements from the US president that he is willing to mediate between India and Pakistan. At times he says he is willing to mediate. At times he also says that he is willing to mediate if requested. And in one such statement he stated that the India Pakistan conflict over Kashmir is a religious problem giving it a communal color or a communal angle to the issue. But the author says that the Trump statement that it is a religious problem ignores the nature of the conflict and the ground situation in Jamun Kashmir. The claim of Mr. Trump that it is a communal problem or a religious problem is wrong according to the author because ever since 1947 the Indian views that the partition of British India into India and Pakistan was not on the basis of religion. It was based on ideological one that is idea of Pakistan versus the idea of India. Now with respect to the idea of Pakistan the author says that Pakistan was carved out of India because a section of Muslims believed that they could not live equitably with the majority Hindu community. That is with respect to the idea of Pakistan. But coming to the idea of India the author says that it means the belief of the people that all religions could live together as a secular and a pluralistic society. And it is one of the reason why more Muslims decided to stay in India than with Pakistan. So religious color can be given to Jamun Kashmir territory by Pakistan. But according to India it will be a secular nature with respect to JNK because the state, erstwhile state included people from Hindu religion, people from Islamic religion and also from Buddhism. Therefore the assertion carried out by Mr Trump that it is a religious problem is wrong. And if he is saying that it means he is narrowly playing support to the Pakistani narrative to the conflict. And the author feels that it is necessary for India to correct Mr Trump on this matter. And therefore it has to remind the real basis of India's climb to JNK. The real basis is that the erstwhile princely state of Jamun Kashmir was an Indian territory according to the instrument of accession signed by the then ruler Maharaja Harissingh of Jamun Kashmir, which was signed on October 26 27 of 1947. And immediately after the instrument of accession the Pakistan is alleged to have sent its military men, tribesmen and some of its nationals to invade the territory of Jamun Kashmir and then the problem has started. Even after repeated assertions from United Nations, the Pakistan has not yet withdrawn its nationals, its military men or its tribesmen from the occupied part of Jamun Kashmir. So that is the basis of India's claim with respect to the integral part of Jamun Kashmir which is a territory of India. Therefore the author says that though India has wisely ignored Mr Trump's ineffective and unworkable comments, his assertion that Kashmir is essentially a communal problem is dangerous and has to be countered by India, particularly in the bilateral meeting that will happen on the sidelines of G7 summit. The author says that though there are several issues between India and United States to be discussed during the bilateral summit, based on the statements made by Mr Trump or based on the tensions between India and Pakistan, the discussion with respect to Kashmir will also be one of the issues or even the most one of the important issues that will be discussed in the conversation between the Prime Minister of India and the President of United States. Now some of the issues that could be on the agenda for discussion between US and India could be issues on defense and strategic cooperation. These could focus on new defense deals or reinforcing the existing defense deals between India and United States. And then there are a number of issues with respect to trade between US and India. And we can see recently Mr Trump has said that India can no longer enjoy the status of a developing nation and that it has to be included in the developed country. And there are also several issues with respect to as he claims that India is imposing tariffs on American goods, say for example, bikes of Harley Davidson, etc. And we know that recently, since in the month of May, we have been witnessing several assertions from US with respect to trade that India should not purchase oil from Iran. And India was also removed from the beneficiary status of generalized system of preferences of the US government. The United States is also threatening India that if India purchases, if India makes payment for the Russian S-400 anti-missile system, India could become an adversary of United States, that is India could become an enemy of United States. So there will also be discussion with respect to this purchase as well during the bilateral meeting. And there will also be discussion with respect to purchasing oil from Iran also. And we have been reading recently that a new deal is getting shape between the US government and the Taliban and that US is planning to withdraw completely from Afghanistan. Now this has serious security issues with respect to India because on the north of Jammu and Kashmir, we can see the territory of Afghanistan. So if Afghanistan is taken control by the Taliban, then definitely it may have serious security calculations for Indian territory as well. So there will also be enough discussion with respect to this matter as well in the bilateral meeting between India and United States. So these are some of the information with respect to the analysis of this news article. Now let's move on to next article. Now this news article talks about few measures that are to be taken by the central government. The purpose is to address the slowdown in the Indian economy with respect to growth and also these measures are to be taken to achieve higher economic growth. And most of the measures that are announced are likely to boost the sentiments of private sector investors. So with the announcement of these measures, it is expected that more private investments will now come into India. In the front page article, a list of measures announced by the government has been given in the picture. And for some of the announcements, we can find detailed news given in the business column of all editions of the newspaper. Now let's see one such measure taken by the Finance Ministry regarding the foreign portfolio investments. Recently, during the Independence Day speech, the Prime Minister has stated that those who create wealth for the country are contributing in the nation's wealth creation and they are serving the country. And there should not be doubt with respect to wealth creators. And the need of the hour is to recognize and to encourage the wealth creators of our nation. He also added that if wealth is not created, then wealth cannot be distributed. And if wealth is not distributed, we cannot uplift the poor sector of our society. So there has to be need so importance should be given to wealth creation and there has to be enough facilitation for those who are making efforts to create wealth. In line with the speech made by the Prime Minister, we have also seen in our 20th August news analysis about the comments that are made by the Finance Minister. The Finance Minister has said that the government will give all kinds of support to the wealth creator entrepreneurs. So who are these wealth creators? In our context, they are the entities or the institutions who invest in Indian businesses and who believe and invest in the Indian economy by investing the money. So the first measure that is mentioned in the news article is withdrawing the controversial or disputed surcharge on the foreign portfolio investors, shortly called as FBI's. And this is done to boost the sentiments of private sector. Now let us see about the foreign portfolio investment. See in page number 160 of volume 2 of economic survey 2018-2019, we can see a table on the balance of payments. When we say balance of payments, it means the systematic records of all the economic transactions that India has had with the outside world in a particular financial year. We can also say that it is a systematic summary of the economic transactions of India with the rest of the world for a specified period. The balance of payments is divided into two categories. One is the current account and the other is the capital account. In the capital account, we have the foreign investments of two kinds. One is the foreign direct investment and the other is foreign portfolio investment. The investments that are made through stock exchange that is through secondary market, these are called as portfolio investments. The investment that is carried out in various financial instruments like shares, debentures of a particular company, these investments are called as portfolio investments. When we say foreign portfolio investment, this means the portfolio investments that are made by the foreign institutions, it could be foreign mutual funds or foreign insurance companies and these investments are made in the shares and debentures that is available in India's stock exchange. These are all capital markets. Therefore, the investments made under foreign portfolio investment will also come under the capital account. Now, the news related to FPI in the front page is that in order to encourage investment in the capital market, the surcharges that were increased by Union budget 2019-2020 will be withdrawn. Now, surcharge means an additional payment which the investors have to pay and this payment will be on their long-term capital gains and short-term capital gains. These gains are received by investing in the secondary market. On these gains, they have to pay an additional payment called as surcharge. Now, the news article related to FPI in the business column tells that due to the introduction of surcharge, the FPI investors have sold their investments that is they have sold their shares. This amount comes to around some 24,500 crore just in the month of July and August together. Now, it is expected that the confidence among the foreign portfolio investors will increase and now they will invest more in the capital market because of the announcement that the surcharge will be removed. The news also tells that the outflows will be reversed. See, when the money is invested in Indian capital market, we call it as inflow. When the money is taken out of Indian capital market, it is called as outflow. So, when we say the outflow will be reversed, it means that all the money that has gone away from Indian capital market will now return because of the announcement that the surcharges will not be charged further with respect to foreign portfolio investors. Now, another measure that is announced by the finance minister is with respect to the violations in corporate social responsibility. The finance minister has told that the CSR violations will not be treated as criminal offenses. If you see companies act of 2013, there you can find a section section 135 and this section deals with corporate social responsibility. But this section was recently amended by the company's amendment act of 2019. So, when we say corporate social responsibilities, this means the social responsibilities which the companies should carry out towards the community and the environment. In other words, the companies has to take up certain projects towards social welfare activities as a part of their corporate social responsibility obligation under the company's act of 2013. This obligation is also called as statutory obligation because it is given in the statute companies act 2013. The companies can fulfill the responsibilities by undertaking activities related to educational or social programs, waste and pollution reduction programs and even any environment sustainability programs or any other programs related to social welfare. So, according to section 135 of companies act of 2013, there has to be a corporate social responsibility committee of the board of a company and this committee shall consist of three or more directors of which at least one director shall be an independent director and who are these companies and these must be any company having a net worth of 500 crore or more any company having a turnover of 1000 crore or more or any company that has a net profit of 5 crore or more and these condition has to be for any financial year these companies has to constitute this corporate social responsibility committee. This CSR committee of the board of every company has to ensure that the company spends at least 2% of the average net profits of the company as part of their CSR activities. Generally, when we say average net profits here, these profits has to be made during the three immediately preceding financial years and if the company fails to spend such amount for social welfare activities, then the board shall specify the reasons why it did not spend the amount in its report. Here, a change was introduced by company's amendment act of 2019. The change was how to manage the unspent money for that the amendment act made a provision so that the company shall open a special account in any scheduled bank and this account will be called as unspent corporate social responsibility account and the amount accrued shall be spent by the company for CSR activities within a period of three financial years from the date of transferring the money. Even after this if the company fails to spend the money then the company must transfer the money to a fund that was set up by the central government or state government as according to schedule 7 of the company's act of 2013. But the actual problem according to the companies came with the penal provisions that were introduced by the company's amendment act of 2019 because it introduced provisions to declare that the violations with respect to CSR amounts to criminal offence. If the company fails to spend the CSR money according to the legal provisions then the company will be punishable with fine between some Rs 50,000 to Rs 25,000 and every culpable officer of such company with respect to CSR shall be punishable with imprisonment that can extend to 3 years or fine can be given from Rs 50,000 to Rs 5,000,000 or even both fine and imprisonment. So, after the introduction of this penal provision there was huge demand from the corporate sector that this criminalization has to be removed and therefore according to the demands made now the finance minister has announced that the central government would not treat the violations with respect to corporate social responsibility as criminal offenses rather they would be treated as civil liabilities. Here when we say civil liabilities there could be just financial penalties they will not be the offenses will not be treated as criminal offenses and therefore there will be just only the financial penalties the finance minister has also announced that the ministry of corporate affairs will also review the relevant sections of the companies act. So, these are some of the information with respect to the analysis of these news articles now let's move on to next article. In continuation with the previous measures that are announced by the government now we will see another measure was that was decided by the central government which is to infuse 70,000 crore rupees of capital into the public sector banks. Once the banks have money they can increase their lending in other words this is what we mean by calling facilitating credit dispersal and it is mentioned that the infusion of capital to the public sector banks will increase the private sector investment how this will happen see once the banks lend money to private sector this money will be invested by them in the businesses and this in turn will increase the economic activities that again will rotate the money in the economy. The finance minister has stated that this credit will benefit the corporates, retail borrowers, MSME sector and also small traders. So, the economic activities will increase and this will lead to growth in the economy. In the news article it is mentioned that the 70,000 crore upfront capital infusion will lead to about 5 lakh crore of fresh liquidity. Here the purpose will be to keep only some part or very fractional part of the 70,000 crore with the banks the remaining part has to be given for lending. Experts are saying that this kind of lending is called as fractional reserve bank or fractional banking system. The bank will hold only a portion of money as reserves and the remaining money will be given as loans. This money that is given as loans will be invested in various economic activities and that will generate its own wealth. Even in that wealth the bank will keep some part of reserve and the remaining part of the money will be given again to the economy for investment for economic growth thus the cycle will continue thus the 70,000 crore is expected to release a liquidity of about 5 lakh crore. Experts are suggesting that if everything is going perfectly well it may lead to a liquidity of around some 4 lakh 32,000 crore only. Even if that happens there is strong opinion among the experts that in the present situation of slowdown it is hard to happen in that way. There is a news article related to the measures announced by the finance minister to help revive the automobile sector. In this picture you can see that there is a huge reduction in the sale of passenger vehicles and the sale of commercial vehicles and even in two wheelers. During our analysis on 14th August we saw that the automobile sales have dropped down and there is a reduction in production activities and we are also receiving reports of job losses in the automobile industry. Now let's see some of the measures that are announced to revive the automobile sector. On 29th October 2014 the ministry of finance has circulated an office memorandum where it has stated that the ban on purchase of vehicles including the cars for the officers or the official staffs this ban will continue except against condemnation that is only if the vehicle becomes unusable in that situation only the government departments can purchase a car otherwise there will be a ban but this does not apply to the operational requirement of defence forces, central paramilitary forces and security related organizations. The finance minister has now announced that this ban has been cancelled so now that government departments will purchase these vehicles from the industries and therefore some kind of stimulation will go on with respect to automobile sector. The finance minister has also announced that the proposal to enhance or increase the registration fees for new vehicles will not be carried out till June 2020. If the registration fees is increased there might be some negative sentiments among the consumers that may work in a negative way for the automobile industry that's why the minister has mentioned that it will be kept on hold till June 2020 so we can expect no increase of registration fees for new vehicles till June 2020. There was also one another demand from the automobile sector that is to reduce GST rates so as to increase the sales. The more the GST the less the sales therefore in order to increase the sales they are requesting to reduce the GST rates. So the finance minister has stated that unilaterally central government cannot take this decision regarding the reduction of goods and services tax on automobiles that will be decided appropriately by the GST council and the next GST council meeting is tentatively scheduled for September 2020 next month. So we can expect some information or news or announcements with respect to automobile sector in the GST council meeting next month. Then the finance minister has also announced that the public sector banks have decided to increase their loan products that are linked to repo rate. This means increase in benefits associated with the reduction in repo rate. This will be passed on to the end consumers. When we say repo rate it is the rate at which banks borrow money from the RISO Bank of India. When this repo rate is reduced then the banks are also expected to reduce their lending rate so that the benefits of reduction in repo rate will be transferred to the end consumers. We have been receiving a major complaint from end consumers that whatever repo rate cuts that are announced by RBI that are not being transmitted by the banks. So if the loans are linked with repo rates automatically then whatever rate cut benefits announced by RBI it will be passed on directly to the borrowers. We have discussed in detail the repo rates and the transmission of repo rates to end consumer on our analysis on 10th August for which the link has been given in the description. Now let's see an announcement with respect to housing finance companies. The government has announced that 20,000 crore rupees of liquidity will be given to housing finance companies. With respect to housing finance companies we have to know that they are regulated by RBI and this is announced by the finance minister during the budget speech of 2019-2020. So this move will allow the RBI to give direct liquidity support to the housing finance companies that are reported as stressed companies right now. So when housing finance companies receive the liquidity they will disperse more loans to the prospective homeowners who will buy homes through loans. Prospective homeowners are those individuals who are likely to become homeowners in the future by purchasing homes through finances. This announcement will help economic activities associated with the housing sector in a relatively better way. These are some of the information with respect to the analysis of these articles. Now let's move on to next article. This news article talks about few developments that are reported to have happened in the 22nd annual meeting of Asia-Pacific Group of Financial Action Task Force. This annual meeting was held in Canberra in Australia during 18-23rd of August 2019. The press release from the Asia-Pacific Group on money laundering states that during the meeting the members of this group has adopted six significant mutual evaluation reports. The meeting has also discussed on terrorism financing and proceeds of crime which also includes organized crime. They have adopted two reports and these reports are expected to be published in November 2019. The news article mentions that one of the regional affiliates of FATF that is Asia-Pacific Group has decided to recommend Pakistan to be placed in the blacklist of FATF. In FATF there are two lists under which certain countries are listed. These lists are called as high risk and other monitored jurisdictions. One of these lists is called as gray list informally and other list is called as blacklist. Now when we say gray list if a country is listed in the gray list it means these are the countries that are at present having weak measures to combat money laundering and terrorist financing. See once these countries are identified as having weak mechanisms they will be given a certain time frame to carry out certain actions to address money laundering and terrorist financing. When some country is listed in the gray list for review by FATF it is like an alert to the international and national financial institutions so that they have to reduce or limit the financial relations with the gray listed country. This is because financial relationship with such a country is risky in terms of money laundering and terrorist financing and other related issues. So we know that at present Pakistan is also present in this gray list. The official name of the gray list is improving global anti-money laundering and countering of terrorist financing complaints ongoing process. Now if the countries that are listed in gray list for review if they are not making any progress even though enough time is given then that country will be listed in another document and this document is officially called as FATF's public statement. This public statement lists the countries with serious long-standing strategic deficiencies that have failed to make progress. This public statement that lists countries with serious long-standing strategic deficiencies is called as blacklist and this process of listing the countries in this particular list is called as blacklisting. When a country is black listed this means that the country has failed to make steps against money laundering and terrorist financing. The FATF at this time will ask other countries to have effective countermeasures and also targeted financial sanctions against the particular country. So if Pakistan is blacklisted in October then many countries will start having financial sanctions on Pakistan and FATF will also ask other countries to close down the branches or subsidiaries or banks of the financial institutions of the blacklisted country that are present in their territory. For example say if Pakistan is blacklisted then a country A will shut down all the financial institutions of Pakistan that operates in its territory. So all these means the particular blacklisted country will be isolated from the international financial system and this is supposed to have huge negative impact on the blacklisted country and its people. And it is stated that in the recent annual meeting the Asia-Pacific group on money laundering has decided to place Pakistan in the enhanced expedited follow-up list and that it will recommend to place Pakistan in the blacklist in the plenary meeting that is to happen in October 2019. Some of the reasons mentioned were that it is non-compliant and it does not enforce the safeguards against terror financing and money laundering. Now as a result of addition of Pakistan in the enhanced expedited follow-up list a team of experts will assess and prepare a report for Pakistan so as to strengthen its measures to tackle money laundering and terror financing the country will then report to FATF on a periodic basis on the progress that it has made. Now with respect to the addition in this enhanced expedited follow-up list Pakistan will report this Asia-Pacific group on quarterly basis about the progress it has made. At present if you see in the FATF blacklist we can find two countries one is Iran and the other is North Korea and we can find Pakistan Sri Lanka, Yemen, Syria and few other countries in the graylist. The plenary meeting of FATF is very important because that is the decision-making body of FATF. Generally it meets three times in a year and this is not a calendar year or a financial year like we follow in our country but FATF's plenary year begins in July and ends in June. First plenary meeting in FATF's plenary year is held in October then it is held in February then in June so this year's plenary meeting is scheduled to be held in 13th to 18th October of 2019. One of the very important decision that will be decided in this plenary meeting is whether Pakistan is to be blacklisted or not. Now there are three possibilities there is a possibility of removal of Pakistan from the graylist there is a possibility of continuing Pakistan in the same graylist or there will be downgrading Pakistan into blacklist but the news article mentions that most possible of all these options is that Pakistan will continue to be in the graylist. This is because if a country gets the support of at least three countries so that it should not be listed in the blacklist then the country cannot be downgraded from graylist to graylist blacklist and for Pakistan's case Pakistan has the support of China Turkey and Malaysia these countries are expected that they will veto the decision to downgrade Pakistan to the blacklist that is why the most possible option is that Pakistan will not be blacklisted rather it will be continuing to be in the graylist and the recent decision taken by the Asia Pacific group on money laundering will play an ensuring role that Pakistan will not be relieved from graylist Pakistan claims that annual meeting conducted by the Asia Pacific group has looked into only the actions of Pakistan that were made till October 2018 and it is expected that in the upcoming sessions it will be reviewing the recent developments carried out by Pakistan now if Pakistan is downgraded it will worsen its chances of getting loans from international credit agencies particularly IMF and World Bank and if listed in blacklist then foreign investors and foreign companies they will not prefer to do business in Pakistan it is expected that if blacklisted it will further weaken the ongoing economic crisis in Pakistan regarding FATF it was set up in the year 1989 as a inter-governmental body initially to deal with money laundering later its mandate has been expanded to also take care of terrorist financing before the june plenary meeting it had 38 members but now it has 39 members with the addition of Saudi Arabia in the june plenary meeting held this year so at present there are 37 countries and two regional organizations the regional organizations are European Commission and Gulf Cooperation Council India is also a member country in FATF but you note that Pakistan is not a member country in this financial action task force so these are with respect to FATF now let's move on to the practice questions discussion this question they have given two statements and are asking which of the above statements are correct now the first statement both Tibetan Grey Wolf and Indian Grey Wolf are found in Peninsular India now this statement can be easily eliminated logically see the statement is saying it is Tibetan Grey Wolf obviously it cannot be found in Peninsular India now during the analysis we saw that while Indian Grey Wolf can be found in some eight states such as Gujarat, Rajasthan, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka the Tibetan Grey Wolf can be found in Himalayan landscape particularly in the elevation between 3000 meter to 4000 meter and that is one of the reason why the Tibetan Grey Wolf is called as Himalayan Grey Wolf so the first statement is incorrect the second statement the Indian Grey Wolf is protected under schedule 2 of Wild Life Protection Act of 1972 so this statement is incorrect this is because it is protected under schedule 1 of WPA 1972 now two other animals we discussed during analysis one is Tibetan Grey Wolf and another is Leopard Cat these two animals are also listed in schedule 1 of WPA now the difference between schedule 1 and schedule 2, 3 and 4 is that with respect to section 11 of WPA 1972 for schedule 1 animals they can be hunted only if they become dangerous to human life or only if they become disabled or deceased beyond recovery and this permission has to be given by Chief Wildlife Order but the animals specified in schedule 2, schedule 3, schedule 4 can be hunted on two grounds for which Chief Wildlife Order can give permission one if they become dangerous to human life two if they become dangerous to property this property also includes standing crops on any land now given a case a schedule 1 specified animal if it creates damages to property it cannot be killed whereas those animals that are protected under schedule 2, 3 or 4 if they cause damage to property they can be hunted under the permissions of Chief Wildlife Order so both the statements are incorrect therefore the correct answer for this question is neither one nor two now this question is with respect to G7 grouping first statement the grouping includes seven leading industrial countries now this statement is correct if the statement is given as seven leading developing countries then the statement would have been wrong now the seven leading industrial countries that are part of this G7 grouping are US, UK, Japan, Italy, Germany, France and Canada so this statement is correct now the second statement in 1998 Russia was formally admitted to the group making it the G8 now this statement is also correct but after the Russian annexation of Crimea the G7 nations decided in 2014 to meet here after without Russia anyhow the second statement is also correct now the third statement India is not a member of this grouping see India is not a member of this grouping we India will be admitted once it becomes a leading industrial country but at present India is not a member country and India anyhow is participating the annual summit that is being held in France this year at the invitation of the French government so all the three given statements are correct therefore the correct answer for this question is option D one two and three now this question is with respect to balance of payments they're asking which of the following comes under capital account of India's balance of payments we know that balance of payments is divided into two accounts one current account two capital account imports and exports come under current account therefore one and two will not be part of this capital account and we know that both foreign portfolio investment foreign direct investment are capital investments and they come under capital account under the foreign investments other than this we can find external assistance external commercial borrowings short term credits and NRI deposits these are also part of capital account of balance of payments so the correct answer for this question is option B now for this question they have given two statements and are asking which of the above statements are correct these statements are with reference to companies act 2013 the first statement this act contains provisions regarding the corporate social responsibility of the companies registered under the act now this statement is correct because section 135 of companies act deals with corporate social responsibility of the companies we have seen which are the companies that have to carry out this responsibility and we also saw some of the examples of social welfare activities for which the companies are mandated to spend as part of their CSR activities any of the first statement is correct now the second statement the latest amendment to this act has declared the violations of CSR as a criminal offense now this statement is also correct we saw that the company's amendment act of 2019 has amended section 135 of companies act of 2013 wherein the amended provisions penalize the violations with respect to CSR with fine and or with imprisonment making it a criminal offense so both the statements are correct therefore the correct answer is option C both 1 and 2 now this question is having three statements and are asking to chose the correct statements first statement FATF is an intergovernmental organization formed under the initiative of united nations now this statement is wrong because it is formed under the initiative of G7 countries in the year 1989 now the second statement its objective is to combat money laundering and terrorism financing now the statement is correct third statement India and Pakistan are members of FATF now we saw that India is a member of FATF but Pakistan is not and Pakistan is presently in the gray list of FATF so the third statement is wrong and this FATF at present has 39 members 37 countries two regional organizations one is European Commission another one is Gulf Cooperation Council and the recently admitted member during the June plenary meeting is Saudi Arabia so in this question statements 1 and 3 are wrong therefore only statement 2 is correct therefore the correct answer for this question is option B with this we come to the end of today's the hindu news analysis if you like the video click the like button comment share and subscribe to Shankaray's academy youtube channel for more updates and content on civil service exam preparation