GM drives away

1,211

What is it? The number of items of goods and services for which taxation rates have been fixed by the Goods and Services Tax (GST) Council – a forum for finance ministers from the states and the centre.

Why is it important? The agreement on taxation rates is a step forward to implementing the GST, which brings most taxes under a single tax, from July 1. The central government claims the rates would not fuel inflation, as overall incidence of taxation would be lower compared to current rates. Food items like cereals will not attract GST.

Tell me more: There are five rates of taxation (zero, 5%, 12%, 18% and 28%) and more than three-fifths of the goods and services will be taxed at 18% and 28%.

 

 

$1.4 billion

What is it? The amount of money raised by One97 Communications Ltd, the parent company of Paytm, from Japan-based SoftBank Group Corp.

Why is it important? The funding is the largest funding round by a single investor in India. The investment will help Paytm to build its payments bank, which will be launched later this month. Paytm plans to invest Rs 10,000 crore over the next three to five years, and acquire 500 million customers.

Tell me more: The latest investment values One97 at $7 billion, an increase of $1 billion in less than two months. In March this year, three existing investors sold 4.3% equity stake at a valuation of $6 billion.

 

 

17 million

What is it? The number of user records of Zomato, a food technology start-up, stolen by hackers and put up on sale online.

Why is it important? The breach reflects weak protection of consumer data by Zomato, which claims to have 120 million monthly user visits. Email addresses and hashed passwords (not the actual ones entered by users) were stolen by hackers. Zomato has reset passwords for all affected accounts.

Tell me more: Zomato has agreed to start a bug bounty programme, where people receive recognition and money for reporting bugs and security gaps, at Hackerone — a digital platform for bounty programmes.

 

 

20 years

What is it? General Motors will stop selling of cars in India by this year-end, after entering India almost 20 years back.

Why is it important? GM has 5,000 employees in India. In addition, there are 150 dealerships and 200 service centres. Each showroom and service service centre employs around 50 people. The resale value of Chevrolet cars is likely to decline sharply after this announcement.

Tell me more: The American company says it will continue the technical centre in Bengaluru and the Talegaon plant in Maharashtra, which will be used to export cars from India.

 

 

Rs 15.06 crore

What is it? The amount spent by the Akhilesh Yadav government in Uttar Pradesh in organising functions to distribute Rs 20.58 crore worth of unemployment assistance, between 2012 and 2013.

Why is it important? The amount has to be deposited directly into the beneficiaries accounts as per the rules of the scheme. The disproportionate expenses in organising the functions were revealed in an audit report by the Comptroller and Auditor General of India.

Tell me more: Unemployed people in the age group of 30-40 years with family income less than Rs 36,000 were eligible to receive Rs 1,000 per month under this scheme.

Read More

News in Numbers, Jan 31, 2017: Merger on the airwaves

Rs 78,000 crore

What is it? The estimated combined revenue of a proposed merger of Vodafone India and Idea Cellular.

Why is it important? The all-share merger will create India’s largest telecom company, larger than the Rs-50,008-crore-earning Bharti Airtel. Debt on both the companies’ books and likely losses incurred from the tariff-reduction race started by Reliance Jio are being seen as triggers for the move. It looks like a much needed consolidation boost in the 22-circle Indian telecom market, as seen from the stock gains of Indian telecom operators yesterday ranging 8-10% with Idea gaining a record 26%.

Tell me more: The merged entry would still have to address, in many markets, the telecom regulator’s anti-monopoly restrictions of owning no more than 50% of spectrum in a band and 25% of available spectrum in a circle (or geographic market).

 

1 day

What is it? Number of days to go before the RBI-mandated daily ATM withdrawal limit of Rs 10,000 is removed, from February 1.

Why is it important? The first sign of reverting to pre-demonetisation days of cash management was made with RBI’s circular removing the ATM limit. Two weeks ago, RBI signalled its ease in handling cash by expanding the limit to Rs 10,000 from Rs 4,500. The Rs 24,000-weekly limit on savings-bank withdrawal, however, stays put, but restrictions on  current account, cash credit and overdraft accounts will be removed.

Tell me more: RBI mentions the savings-bank limit is under consideration for withdrawal in the “near future”. Banks can use their discretion to set their own operating limits at ATMs as was the practice before old Rs 500 and Rs 1,000 notes were withdrawn.

 

42

What is it? The number of cases the Income Tax (IT) departmentregistered nationwide under the recently-enforced Benami Transactions Act.

Why is it important? Warnings in public advertisements by the IT department against depositing unaccounted old currency in someone else’s bank account anonymously are materialising now. The BenamiAct’s section 24 has been invoked for 87 notices, for attaching bank accounts with crores of rupees of such dubious deposits and an immovable property.

Tell me more: These cases, if proven true, would attract a heavy penalty and a rigorous jail-term of a maximum of seven years.

 

4

What is it? The number of new administrators appointed by the Supreme Court to the Board of Control for Cricket in India (BCCI).

Why is it important? The neutral committee headed by former Comptroller and Auditor General of India (CAG), and the current Chairman of Banks Board Bureau, Vinod Rai, will pave the path to reform the embattled BCCI, richest sporting body in India and the most profitable cricket board in the world. The team, with a mix of financial acumen, social perspective and cricketing enthusiasm, is tasked with bringing in accounting rigour and good governance to a body mired in controversies, the latest being its earlier president and secretary sacked on January 3. It would also finalise the Indian Premier League’s 10th edition besides reporting on the Lodha panel recommendations to the court.

Tell me more: The other members are Vikram Limaye, managing director and CEO of IDBI Bank; former Indian women’s cricket captain Diana Edulji; and historian and writer Ramchandra Guha. Limaye will represent BCCI in an ICC meeting in February. The committee has no term limit.

 

650

What is it? The number of branches of the India Post Payments Bank(IPPB) to be set up by September, 2017.

Why is it important? The IPPB will locate these branches in postal district headquarters which would enable all the post office branches under those head offices to be served by the payments bank. With India Post’s envious branch network of no less than 155,000 post offices, expanding its reach should be one of IPPB’s easiest tasks.  It would let enabled post offices accept limited deposits at a maximum interest of 5.5% and offer payment services but not offer loans, unlike commercial banks.

Tell me more: The IPPB joins Airtel Payments Bank, offering 7.25% on savings, in a new financial services category, with more players to come.

Read More

How to capture every other fashion sale online 💃👫🏃

If you are Flipkart, you will do that by buying Jabong for $70 million – and have 50% market share.  Flipkart-Jabong deal is one of the five numbers we selected for you today. Please do read and let us know what you think.

Did you know that in its early years Flipkart grew primarily by word of mouth? The customers who liked its service recommended it to their friends.  If you like our newsletters, you can do that too. Please forward this link to those might be interested: http://howindialives.com/news/newsletter/

News In Numbers: July 27

0.5 times

What is it? The revenue multiple at which Flipkart bought online retailer Jabong. At $70 million, the buy price is about 50% of Jabong’s revenues.

Why is it important? Fashion and apparel segment is most profitable among all online segments. In addition, Jabong has reported gross profit margins. The deal is also an indicator of the valuation of firms in fashion e-tailing sector. In 2014, Flipkart bought Myntra forabout $300 million.

Tell me more: Once the deal is through, Flipkart will secure more than 50% market share in online fashion and apparel market in India. Amazon is also actively pursuing this space.

 1.2 million

What is it? The number of people affected by floods in Assam due to overflowing of the state’s main river Brahmaputra.

Why is it important? The situation has become worse in the last two days with half of Assam’s districts impacted. Nearly 1.27 lakh people moved into 322 relief camps in 19 districts so far, and 10 people have lost their lives.

Tell me more: 60 per cent of Kaziranga National Park, which houses one-horned rhinoceroses, is submerged because of floods. This has pushed the rhinoceroses into high grounds where they are vulnerable to poaching.

 

Rs 1.02 trillion

What is it? The amount of additional money government will spend this fiscal to implement the Seventh Pay Commission recommendations for central government employees.

Why is it important? This additional money in the hands of around 3.1 million employees will spur demand for consumer facing industries like cars, two-wheelers, durables etc., The top 25 cities will account for 38% of salary gains from implementing the pay commission recommendations.

Tell me more: Though the pay commission recommendations are restricted only to central government employees, the state governments would also be forced to increase salaries over the next two years.

 Rs 600 crore

What is it? The amount the government paid to external lenders between 2009-10 and 2014-15 for unused credit line as commitment charges.

Why is it important? This could have been avoided with better debt planning, according to Comptroller and Auditor General (CAG). India’s external debt – at $474 billion by end of 2015 – around this period was second highest among the Asia Pacific countries.

Tell me more: While external debt has grown, India (at 23%) also has among the lowest external debt to GDP ratios among the emerging economies

 2

What is it? The potential jail term for those who employ children, according to changes in child labor law  labour.

Why is it important? This is more stringent than the existing penalty for the violations, and might help bring down child labour – and along with Right to Education initiatives increase enrollment in schools. At the same time, the new changes allow children to work for their families and have brought down the number of banned occupations for adolescents. United Nations has warned it could adversely impact backward castes and tribals.

Tell me more: The Child Labour (Prohibition and Regulation) Amendment Bill, passed in Lok Sabha on Tuesday increased jail term for offenders to 6 months to two years  and or a fine of Rs 20,000 to Rs 50,000. Imprisonment can go upto three years for a second time offence.

Read More

News in Numbers, July 8, 2016: Demand notices to 6 telecom firms, sale of bad loans in 2015-16…

Rs 12,488.93 crore

What is it? The amount in demand notices likely to be issued by the Department of Telecommunications to six telecom operators for having under-reported their adjusted gross revenues of Rs 46,045.75 crore between 2006-07 and 2009-10. This was pointed out by the Comptroller and Auditor General of India (CAG) in March.

Why is it important? The telecom industry is already reeling under debts of Rs 4 lakh crore (as of March 31) and the notices come ahead of the expensive spectrum auction scheduled for mid-July. The demand from DoT is unlikely to be resolved soon. The telecom companies had contested this earlier saying the definition of adjusted gross revenue for calculating license fee is under litigation in various courts, which calls for clearer rules and policies.

Tell me more: The CAG had pointed out various instances of under-reporting of revenue, which the telcos had contested and said those issues have either been settled or stayed by various courts.

 

2%

What is it? The percentage of Indian banks’ bad loans that were sold to asset reconstruction companies (ARCs) in 2015-16, according to a report. An ARC buys bad loans from banks, explores ways of making the asset attractive and then sells it.

Why is it important? Highlights the need for more tools for bad loans recovery. The percentage of non performing assets (NPAs) sold to ARCs decreased from 5% in 2014-15 to 2% in 2015-16 even as the NPAs pile up. Banks put up bad loans worth Rs 1.3 lakh crore for sale in 2015-16, of which only Rs 20,000 crore got sold.

Tell me more: Gross NPA increased from 4.6% of total advances in 2014-15 to 7.6% in 2015-16 (highest in 12 years) and could rise to 8.5% by March 2017.

 

2,900

What is it? The number of words reportedly copied by the Indian environment ministry from the 3,850-word Supplemental Environmental Projects Policy draft adopted by the US government.

Why is it important? Besides plagiarism, the proposal that those who go ahead with projects without prior clearance under the Environment Impact Assessment Notification must remediate the damage and provide compensation, has raised concerns. At present, starting an environmental project without the government consent is a crime and can lead to imprisonment under Indian laws. Experts say this is a misuse of executive powers to dilute laws made by the legislature.

Tell me more: In the US, environmental violations are civil offences. The joint secretary who issued the draft notification on May 10 (open for comments for two months) has denied copying the content from the US policy and has said that the idea has been borrowed.

 

53.39%

What is it? Uttarakhand’s score in the provisional ease of doing business rankings among states. The score and rankings could change based on more data that the states might submit till end of this month.

Why is it important? The state, which was ranked 23 last year, has jumped to the first position as of this morning. Gujarat, which was on top of the rankings last year, has fallen to the 11th position. Shows intense competition among states with some of the most industrialised ones such as Maharashtra and Karnataka dropping out of the top 10. Such competition might help India improve its ranking in the ease of doing business globally, which is at 130, according to the 2016 report.

Tell me more: The final rankings would be released by the Department of Industrial Policy and Promotion in August after verification of the submissions made by the states.

 

509

What is it? The number of people who have been shot and killed by the police in the US in 2016 so far, according to data compiled by the Washington Post.

Why is it important? Such police action – directed disproportionately at the blacks –  has come to global attention after two black men were killed by the police in Louisiana and Minnesota on Tuesday and Wednesday respectively. US President Barack Obama called for changes to the criminal justice system and said such incidents reflect racial biases in the criminal justice system and that African-Americans and Latinos are more likely to be questioned by the police than the whites.

Tell me more: The Post has collated the numbers based on news reports, public records, social media and other sources. At this rate, 2016 might equal or surpass the number of people killed by the policemen in 2015- 990.

Read More