Taking it away…….( News in Numbers – June 27, 2017)

News In Numbers: June 26

60%

What is it? The estimated percentage of traders who don’t have access to computers, according to the Confederation of All Indian Traders (CAIT) – a trade body.    

Why is it important? Traders with turnover above Rs 20 lakh per year are required to file returns online – thrice a month – under the Goods and Services Tax (GST) regime that will be rolled out from July 1st. CAIT estimates 35 million out of the 60 million small firms will be eligible to file returns under GST.          

Tell me more: Traders whose turnover is between Rs 20 lakh and Rs 75 lakh can opt for composition scheme and can file returns once a quarter.

43%

What is it? The growth in disbursements of housing loans below Rs 10 lakh during last financial year ended March 2017. In comparison, loans above Rs 25 lakh shrunk by 1%.  

Why is it important? Growth in disbursements of loans below Rs 10 lakh is an indicator of people taking advantage of government’s credit linked subsidy scheme for families earning less than Rs 12 lakh per annum. Central government is pushing affordable housing to meet the unmet housing needs in both rural and urban areas.

Tell me more: Under Pradhan Mantri Awas Yojana, people earning upto Rs 12 lakh per annum will get interest subsidy of 4% on their home loans. Mortgage loans below Rs 10 lakh account for only one-fourth of the total loan portfolio in 2015.     

22 million  

What is it? The number of Americans who will lose health insurance if the Better Care Reconciliation Act of 2017, which is pushed forward by the Republican party. Better Care will replace Affordable Care Act, which reduced number of uninsured from 50 million to less than 27 million in 2016.   

Why is it important? 49 million Americans (or 15% of US population) will not have health insurance by 2026. US is the only developed economy that does not have a universal health coverage.          

Tell me more: Health expenditure per capita in US is $ 7,900 as compared to $ 3,233 in other developed economies, and $ 132 in India. Numbers are in purchasing power parity basis.   

Rs85.03 crore

What is it? The amount of money returned to Sahara India’s bondholders by market regulator, the Securities Exchange Board of India till March 2017.    

Why is it important? Five years have passed after the SEBI passed an order asking Sahara to refund money to the bondholders. Subsequently, the Supreme Court had asked Sahara to deposit the same with the market regulator. So far, Sahara has deposited Rs 11,798 crore and SEBI has been able to refund only Rs 85 crore.       

Tell me more: Sahara had raised the money without the approval of SEBI, which asked the company to refund the entire amount. Sahara had claimed it has refunded 95% of the bondholders.  

34%

What is it? Market share of scooters in the domestic two-wheeler market during 2016-17.    

Why is it important? Indicates increasing preference towards scooters, which is outpacing motorcycle sales in India – the world’s largest two-wheeler market. Scooter sales expanded by a fourth in the first two months of current fiscal as compared to 4% growth for motorcycle sales.

 Tell me more: 17.5 million two-wheelers were sold in 2016-17, as compared to 13.4 million in 2011-12.

 

ENDS

 

Read More

Americans’ insurance loss

60%

What is it? The estimated percentage of traders who don’t have access to computers, according to the Confederation of All Indian Traders (CAIT) – a trade body.

Why is it important? Traders with turnover above Rs 20 lakh per year are required to file returns online – thrice a month – under the Goods and Services Tax (GST) regime that will be rolled out from July 1. CAIT estimates 35 million out of the 60 million small firms will be eligible to file returns under GST.

Tell me more: Traders whose turnover is between Rs 20 lakh and Rs 75 lakh can opt for composition scheme and can file returns once a quarter.

 

 

43%

What is it? The growth in disbursements of housing loans below Rs 10 lakh during last financial year ended March 2017. In comparison, loans above Rs 25 lakh shrunk by 1%.

Why is it important? Growth in disbursements of loans below Rs 10 lakh is an indicator of people taking advantage of government’s credit linked subsidy scheme for families earning less than Rs 12 lakh per annum. Central government is pushing affordable housing to meet the unmet housing needs in both rural and urban areas.

Tell me more: Under Pradhan Mantri Awas Yojana, people earning upto Rs 12 lakh per annum will get interest subsidy of 4% on their home loans. Mortgage loans below Rs 10 lakh account for only one-fourth of the total loan portfolio in 2015.

 

 

22 million 

What is it? The number of Americans who will lose health insurance if the Better Care Reconciliation Act of 2017, which is pushed forward by the Republican party. Better Care will replace Affordable Care Act, which reduced number of uninsured from 50 million to less than 27 million in 2016.

Why is it important? 49 million Americans (or 15% of US population) will not have health insurance by 2026. US is the only developed economy that does not have a universal health coverage.

Tell me more: Health expenditure per capita in US is $ 7,900 as compared to $ 3,233 in other developed economies, and $ 132 in India. Numbers are in purchasing power parity basis.

 

 

Rs 85.03 crore

What is it? The amount of money returned to Sahara India’s bondholders by market regulator, the Securities Exchange Board of India till March 2017.

Why is it important? Five years have passed after the SEBI passed an order asking Sahara to refund money to the bondholders. Subsequently, the Supreme Court had asked Sahara to deposit the same with the market regulator. So far, Sahara has deposited Rs 11,798 crore and SEBI has been able to refund only Rs 85 crore.

Tell me more: Sahara had raised the money without the approval of SEBI, which asked the company to refund the entire amount. Sahara had claimed it has refunded 95% of the bondholders.

 

 

34%

What is it? Market share of scooters in the domestic two-wheeler market during 2016-17.

Why is it important? Indicates increasing preference towards scooters, which is outpacing motorcycle sales in India – the world’s largest two-wheeler market. Scooter sales expanded by a fourth in the first two months of current fiscal as compared to 4% growth for motorcycle sales.

Tell me more: 17.5 million two-wheelers were sold in 2016-17, as compared to 13.4 million in 2011-12.

Read More

GST payers activated

500

What is it? The number of Employees’ Provident Fund trusts that are likely to be taken over by the Employees’ Provident Fund Organisation (EPFO), if a proposed change by the Labour Ministry is implemented. Private provident fund trusts with less than 20 members and managing corpus of upto Rs 1 crore is being proposed to be taken over by EPFO.

Why is it important? This will more than triple the cost for employees coming under these private PF trusts. At present, private trusts charge 0.18% of basic wages as administrative charges, as compared to EPFO’s charge of 0.65%. However, with digitalisation of EPFO records, employees will benefit from faster withdrawal and transfer of accounts between employers.

Tell me more: There are 1,500 private trusts managing 8.3 million subscribers. Out of them, only trusts that have more than 500 employees and manages a corpus of Rs 100 crore will be allowed to run privately.

 

 

153

What is it? The number of people dead after an oil tanker burst into flames in Ahmedpur East, a city in Pakistan. Explosion happenned after villagers gathered to collect fuel from the overturned truck.

Why is it important? The death toll is likely to increase as 40 out of nearly 100 people injured are in critical condition. Initial reports suggest oil tanker’s tyre burst that led to the accident.

Tell me more: Two years back, more than 50 people died in Pakistan when an oil tanker and a bus collided, and burst into flames. Oil tanker was reportedly speeding and travelling in the wrong side of the road.

 

 

80%

What is it? The percentage of indirect taxpayers who have activated their account with the Goods and Services Tax Network (GSTN), the IT backbone for the proposed GST from July 1 this year.

Why is it important? Registration of all transacting parties is vital to capture the flow of taxes from suppliers to producers, and then to end consumers. Unlike existing system, where a consolidated return of all transactions are filed, the 8 million indirect taxpayers have to disclose invoice-level details to tax authorities under GST.

Tell me more: GSTN is expected to track more than 320 crore invoices each month, and this would vital information on how business is transacted. Potentially it could widen tax base, if GST data is married with Income Tax data.

 

 

50%

What is it? The percentage of provision banks have to set aside for all accounts referred to the insolvency process under the Insolvency and Bankruptcy Code.

Why is it important? Banks, mostly state-run, are expected to provide Rs 50,000 crore more because of this latest communication from the central bank. 12 accounts, which owe Rs 250,000 crore to banks (or 25% of total bad loans), are referred to the National Company Law Tribunal (NCLT) under the bankruptcy code.

Tell me more: When a company is referred under the bankruptcy code, NCLT appoints an interim administrator who will try to sell the assets of the company to a new owner within 18 months.

 

 

$ 5.8 billion

What is it? Amount spent by the Italian government to bail out two failed banks – Banca Popolare di Vicenza and Venta Banca – in the Venice region.

Why is it important? The bailout contravenes the European Commission’s rules that forbid using state money to deal with failing banks. The employees and branches of these two banks will be transferred to Intesa Sanpaolo banking group from today at a nominal value of one euro. In addition, government will also offer guarantee up to 12 billion euros to cover losses from bad loans.

Tell me more: Italian banks carry 350bn euros of bad loans – a third of Eurozone’s total debt.

Read More

Lend us your ears

Rs 29,524 crore

What is it? The revised revenue target of the Department of Telecommunications (DoT) for fiscal 2018.

Why is it important? This is a 40% reduction from the projection made by the Finance Ministry, of Rs 47,305 crore. The dipping revenues of Indian operators has led to a drop in licence fees (8%) and spectrum usage charges (3-6% of gross revenue) paid to Dot.

Tell me more: DoT says the fourth quarter licence fees is Rs 2,686 crore, down from Rs 3,450 crore in the third quarter. The gross revenue, according to Business Standard, was Rs 2.10 lakh-crore in FY17, from Rs 2.36 lakh-crore in FY16. In May, an inter-ministerial panel was constituted to bring relief to the financially strained telecom sector through policy reforms.

83.6 million

What is it? The number of Tata Motors’ shares Tata Sons will buy from Tata Steel.

Why is it important? It’s an indicator that Tata Sons is reducing cross-holdings among its group companies. Tata Sons’ stake would increase from the current 28.71%, and Tata Steel’s go down to nil from 2.9% in Tata Motors. Tata Motors still owns 0.46% in Tata Steel. Tata Steel had earlier brought down its stake in Titan.

Tell me more: Tata Sons was reportedly planning to spend about Rs 7000 crore to buy shares from group companies and reduce cross holding.

62

What is it? The number of people killed in a raging forest fire in central Portugal since Saturday.

Why is it important? Portugal is prone to forest fires during the summer months, but this disaster has been termed the country’s biggest tragedy in memory by its Prime Minister Antonio Costa. People were killed in their cars, trapped by the flames as they tried to evacuate.

Tell me more: A lightning strike during a dry thunderstorm (in which the rain evaporates before hitting the ground due to heat) and caused a forest fire.

62%

What is it? The percentage of marginal farmers (those with less than 1 hectare of land) that have borrowed from non-institutional lenders.

Why is it important? Non-institutional lenders include moneylenders, family and friends, according to PRS Legislative Research based on 2013 data. This suggests that farm loan waivers – being considered by some state governments – will have minimal impact on marginal farmers. In contrast, in case of large (10+ hectares) and medium (4-10 hectares) farmers, loans from non institutional sources stand at 21% and 29% respectively.

Tell me more: Among states, Andhra Pradesh, Telangana and Tamil Nadu have most number of households in debt – at 93%, 89% and 83% respectively. All India average is about 52%. Reserve Bank of India, among others, have pointed outthe negative impact of farm loan waivers in the recent past.

2 months

What is it? Grace time for filing Goods and Services Tax (GST) returns post its planned launch on July 1st.

Why is it important? This will help Indian companies, especially small businesses, transition to the new system, which requires them to file three returns a month. Some have raised concerns that the country might not be ready yet for GST, given the complexity of the new tax laws, and the current IT infrastructure in the country. They have proposed that it should be either postponed or rolled out in a phases, starting with a few industries. But GST Council, which governs GST under the chairmanship of India’s finance minister, has said there will be no delay.

Tell me more: GST Council also approved an anti-profiteering authority to penalise businesses that don’t pass on the benefits of GST to customers. The authority will be in force for two years.

Read More