DAVOS/SWITZERLAND, 28JAN10 - Sir Martin Sorrell, Group Chief Executive, WPP Plc, United Kingdom captured during the session 'Will India Meet Global Expectations?' at the Congress Centre at the Annual Meeting 2010 of the World Economic Forum in Davos, Switzerland, January 28, 2010.

Copyright by World Economic Forum
swiss-image.ch/Photo by Sebastian Derungs

Exit Martin Sorrell

 

2

What is it? The number of BJP ministers whose resignations were accepted by Jammu and Kashmir chief minister Mehbooba Mufti on Sunday.

Why is it important? Chander Parkash Ganga and Choudhary Lal Singh have come under fire for their participation in a rally supporting those arrested in connection with the rape and murder of an eight-year-old girl in Kathua. Besides this case, the ruling BJP has come under criticism for the Unnao case, where a minor girl tried to commit suicide in front of Uttar Pradesh chief minister Yogi Adityanath’s residence after inaction over a complaint where she has alleged that she was raped by BJP MLA Kuldeep Singh Senghar.

Tell me more: The counsel of the family of the Kathua victim plans to move the Supreme Court today, asking the case to be transferred outside the state.

 

35%

What is it? The drop in share price of WPP Plc, the world’s largest advertising and communication services company, in the past 14 months. Since 1995, though, the WPP share has increased 16-fold.

Why is it important? On Saturday, WPP chief executive Martin Sorrell resigned 33 years after founding it. His resignation comes in the wake of an investigation into personal misconduct involving company funds. Sorrell’s departure and the loss in market value could lead to WPP being split to unlock value.

Tell me more: Sorrell, 73, is one of the UK’s highest-earning business leaders, drawing above 200 million pounds in the past five years. As part of his separation package, he is in line to receive 20 million pounds a year for the next five years.

 

Rs 8,000 crore

What is it? The amount by which the non-performing assets of Indian banks is set to increase in the fourth quarter of 2017-18 due to just one account, Gitanjali Gems, as there was no servicing of debt in the last quarter.

Why is it important? In the wake of the Gitanjali Gems case, other banking frauds have come to light, exacerbating the problem of bad loans in the Indian banking system. In the last four financial years alone, public sector banks have written off Rs 2,41,000 crore worth of loans, of which they have recovered just one-tenth.

Tell me more: In 2010-11, a consortium of 21 banks, led by Allahabad Bank, had extended a working capital loan to Gitanjali Gems; in 2014, ICICI Bank became the lead banker, with an exposure of Rs 900 crore.

 

66

What is it? The number of medals (26 gold, 20 silver and 20 bronze) won by India in the 2018 Commonwealth Games, which culminated yesterday.

Why is it important? India finished third this year, after Australia and England, whose gold medal count stood at 80 and 45, respectively. In overall medals, India finished fourth, after Australia (198), England (136) and Canada (82). This is India’s third-best performance at the

Commonwealth Games, after 101 medals in 2010 and 69 medals in 2002. It bettered its count of 64 medals it won in Glasgow four years ago.

Tell me more: There were 218 participants from India this year, of which 103 were women and 115 men.

 

7

What is it? The number of bids received by the Airports Authority of India (AAI) to manage the Ahmedabad and Jaipur airports. Ahmedabad received three bids and Jaipur four.

Why is it important? AAI had invited bids for these two airports last year, but did not receive much interest due to terms and conditions that private players reportedly found onerous. Some terms have since been relaxed. These two airports are being seen as immediate test cases for state-owned AAI to improve traffic and increase private participation at more airports.

Tell me more: The AAI manages 139 airports, and 90% of them are loss-making, though AAI is a profitable entity.

 

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Flipkart’s Suitors

Rs 1,250 crore

What is it? The amount Hero Enterprise Investment Office and the Burman Family (promoters of Dabur) have offered to jointly invest in Fortis Healthcare.

Why is it important? This comes after the company reportedly received a potential bid of $1.3 billion from IHH Healthcare Bhd., opening a possible takeover battle for India’s second largest hospital chain. Asia’s largest hospital operator offered to pay Rs 160 per share. A day ago, Fortis Healthcare received a revised offer from Manipal Health Enterprises, of Rs 155 per share.

Tell me more: The firms backed by the Munjal and Burman families have offered to invest in Fortis through the preferential allotment route: Rs 500 crore binding upfront and the balance after due diligence within three weeks.

3

What is it? The number of months within which (by end of June) Walmart is reportedly likely to reach a deal to buy a majority stake in Flipkart.

Why is it important? If the deal goes through, it would be the US retail giant’s biggest acquisition of an online business, opening a new front in its fight with Amazon, vying for a bigger share in India’s e-commerce market. Amazon, the world’s largest e-commerce firm, is also reportedly considering to acquire Flipkart in a deal that would value the latter at $18-20 billion, though any potential deal between the two is likely to face intense scrutiny from India’s competition watchdog.

Tell me more: Walmart is said to have completed its due diligence on Flipkart and has proposed to buy 51% stake or more for $10-12 billion.

5

What is it? The number of large corporate accounts that were referred by the central bank for immediate bankruptcy proceedings under the Insolvency and Bankruptcy Code 10 months ago and which are now in the final stages of resolution (out of 12).

Why is it important? Together, these borrowers account for a quarter of the banking system’s gross bad loans and timely resolution of these accounts would ease the pressure on lenders, allowing them to reduce their provisioning. Of the five accounts, two are facing litigations, while the committee of creditors in the other three cases have approved the winning bids.

Tell me more: Under the Insolvency and Bankruptcy Code, a corporate insolvency resolution process must be completed within 270 days of the admission of a case. The deadline for eight of the 12 cases would expire by the end of this month.

30

What is it? The number of months that Matthias Mueller remained at the helm of automaker Volkswagen.

Why is it important? On Thursday, Volkswagen replaced Mueller with brand chief Herbert Diess. Mueller was appointed CEO in September 2015, when the company admitted to tampering with its engines for better emission readings, a scandal that resulted in the company coughing up $30 billion in fines. The new appointment, in a sense, turns that page, and shifts the company’s focus from protecting reputation to reorganising business.

Tell me more: Under Mueller’s watch, weighed down by the corporate scandal, the company’s share price has never really broken out.

1

What is it? The world ranking in men’s singles of Indian badminton player Kidambi Srikanth.

Why is it important? The 25-year-old Srikanth is the first Indian male to sit atop the badminton world rankings. His ascent comes on the back of a strong rise in the last 12 months, rising from 31 in March 2017. Srikanth, who made his international debut in 2008, has career earnings of $396,978.

Tell me more: Only one other Indian player has reached the top spot in singles badminton: Saina Nehwal in 2015. Her career earnings stand at $746,548.

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Commitment To Privacy

20,000

What is it? The number of Facebook employees who would be reviewing content posted in the social media website by end of this year, as compared to 10,000 employed last year to review content and security.

Why is it important? This move is after it was found Russia-based Internet Research Agency (IRA) influenced the 2016 US elections. Previously, Facebook has hands off approach to filter content that is false or malicious, but now it plans to actively patrol the content so as not to influence elections through fake news.

Tell me more: Mark Zuckerberg, founder of Facebook, told the US Senate’s Commerce and Judiciary committees that IRA ran 470 Facebook accounts to run ads and false information to scuttle Hillary Clinton’s chance to win 2016 elections. The content was seen by 157 million Americans.

 

Rs 606.74 crore

What is it? The amount BJP spent on election propaganda in 2016-17. In comparison, the Congress spent Rs 149.65 crore for the same in this period.

Why is it important? In this period, BJP won five state elections out of 10 – Assam, Goa, Uttarakhand, Uttar Pradesh and Manipur – with an average election propaganda spend of Rs 60.67 crore. On the other hand, Congress’ average spend on election propaganda was nearly Rs 15 crore and it won two state elections – Puducherry and Punjab in 2016-17.

Tell me more: BJP and Congress spent Rs 69.78 crore and Rs 115.65 crore on administrative expenses in 2016-17 respectively.

 

42,000 rials

What is it? The exchange rate of Iran’s rial against the US dollar announced by the Iranian government.

Why is it important? At present, there are two exchange rates- one set by the government (37,000 rials to a dollar) and another used by traders (60,000 rials to a dollar). With Tuesday’s announcement, Iranian government has made it illegal to trade at any rate other than official rate.

Tell me more: Iran earns $50 billion from oil exports. Iran attempted with a single exchange rate in January 2012 and the experiment lasted only for a few months. Fearing collapse of nuclear deal, rial has lost 20% against the US dollar in last two weeks.

 

$21.17 million

What is it? The penalty imposed by the Competition Commission of India (CCI) on Google for “search bias” and abuse of its dominant position in February.

Why is it important? The online search giant has filed an appeal against the ruling and has sought a stay on it. The core unit of Alphabet is is already involved in such anti-trust cases around the world: the European Commission imposed a record $2.7 billion fine on Google last year, besides facing anti-trust probes in Brazil and the possibility of investigations in South Korea.

Tell me more: Indian matchmaking firm Matrimony.com, which had filed the case against Google, has reportedly filed an appeal against the ruling as it feels the fine is too small and that CCI’s ruling that Google’s specialised search design or its advertising service, AdWords, were not breaking competition rules.

 

13.1

What is it? The number of shares a shareholder would receive in the to-be merged entity, Manipal Hospitals, for every 100 shares held in Fortis Healthcare. compared to the previous ratio of 10.83 shares for every 100 shares held.

Why is it important? Manipal Health Enterprises has revised its offer to buy Fortis Healthcare’s hospital business after institutional and minority shareholders expressed dissatisfaction with the previous offer. They had alleged that the hospital business of Fortis Healthcare had been valued at around Rs 95 per share as against the consensus analysts’ estimate of Rs 125-130 per share. The new terms would value Fortis at Rs 155 per share.

Tell me more: Besides the better swap ratio, the capital infusion of Rs 3,900 crore in the merged entity has been scrapped and instead, Manipal Health will undertake a rights issue of up to Rs 4,000 crore.

 

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CWG: India’s First Badminton Gold

 

6

What is it? The number of weeks within which the Central government was to set up the Cauvery water management board and monitoring authority, following the Supreme Court’s February 16 judgment.

Why is it important? The top court on Monday pulled up the Centre for not drawing up the scheme to implement its February judgment on the distribution of Cauvery river water among Tamil Nadu, Karnataka, Kerala and Puducherry. This was in response to a contempt petition filed by the Tamil Nadu government, which has accused the Centre of doing little to follow the court’s orders. The Centre is expected to file the Cauvery management scheme by May 3.

Tell me more: Both Tamil Nadu and Karnataka has witnessed protests in recent days and the Centre has been accused of acting in favour of the latter, where state elections will be held next month.

 

14.2%

What is it? ICICI Bank’s core capitalisation in December 2017, among the highest in the banking sector, according to Fitch Ratings

Why is it important? Fitch says though the bank’s core capitalisation and profitability are strong enough for a favourable rating, the recent allegations against the bank involving its chief Chanda Kochhar, her husband’s firms and the Videocon Group could pose reputational risks. It is the first rating agency to express doubts about the accusations of nepotism against ICICI Bank, India’s second largest private lender.

Tell me more: The board of the bank is reportedly divided over whether Kochhar should be asked to step down even as federal authorities are probing the case. The government changed its nominee on the bank’s board on Monday, which it termed as ‘routine’.

 

$2.5 billion

What is it? The total investment India could get if Xiaomi convinces its 50 global suppliers to set shop in India.

Why is it important? This could provide a major fillip to Prime Minister Narendra Modi’s ‘Make in India’ programme. Finnish company HMD Global, which manufactures the Nokia brand of phones, is also making efforts to manufacture its components in India. The Indian government recently imposed a 10% duty on the import of components such as populated printed circuit boards.

Tell me more: Xiaomi recently dethroned Samsung to become the top smarthphone brand in the country. If Xiaomi’s suppliers set up base in the country, they could together create 50,000 jobs.

 

1

What is it? The number of times that India have won the mixed team gold in badminton at the Commonwealth Games, following a 3-1 victory over three-times and defending champions Malaysia yesterday.

Why is it important? The mixed team event in badminton was introduced in the Commonwealth Games in 1998, but India never managed to go all the way. Emphatic singles wins by Kidambi Srikanth and Saina Nehwal scripted yesterday’s win.

Tell me more: At the end of Day 5, India stood third in the medals tally, with a total of 19 medals, including 10 golds. Australia led with 39 golds, followed by England with 22 golds.

 

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