News

New a/c rules to hit FMCG firms' revenues Ind-AS, the new accounting standards that came into effect from April 1, might squeeze the revenues of fast moving consumer goods (FMCG) companies by up to eight per cent in 2016-17. The key cause is deduction of sales promotion expenditure from the revenue figure, hitherto part of the profit & loss (P&L) statement under the earlier   IGAAP   accounting norms. In the just-concluded June quarter, for instance, the top line of the country's largest consumer goods company,   Hindustan Unilever   (HUL), was affected by 2.6 per cent or Rs 214 crore under Ind-AS. Godrej Consumer Products’ revenue was squeezed 10.4 per cent. Sunil Duggal, chief executive, Dabur India, said six to seven per cent of its FY17 revenue would be hit. “Some part of promotional expenditure, mainly below-line expenses, will be deducted from revenue, expected to be around Rs 600 crore,” he said. Vivek Karve, chief financial officer, Mari...

After a long gap, global investors are buying large retail properties for big bucks.  While investors are buying them to build their portfolios, global retailers are acquiring properties to enter markets such as Mumbai. A month after Singapore government-owned $100-billion sovereign fund GIC bought 50 per cent stake in   Viviana Mall   in Thane, on the outskirts of Mumbai, for over Rs 1,000 crore, US-based private equity (PE) firm Blackstonebought a one-million-square-feet mall being developed byL&T Realty in the Seawoods area of Navi Mumbai, said a source. The deal is expected to be closed between Rs 1,200 crore and Rs 1,500 crore. Blackstone and L&T Realty executives could not be contacted for comments. Late last year, Blackstone acquired two retail assets of Gurgaon-based developer Alpha G in Amritsar and Ahmedabad for around Rs 800 crore. "Many global investors are looking to buy good mall properties. It will help them build portfolios in the c...

After getting relief from capital gains and minimum alternate taxes last year, developers now seek exemption from the dividend distribution tax (DDT) for real estate investment trusts (REITS) in the upcoming Budget to make them attractive for investors. Despite tax concessions last year, REITs have not taken off. Their argument is that after paying almost 20% DDT, rate of return on these units would not be lucrative compared to other investments. At the current times, post-DDT,  Read Full Article Over Here :  Business Standard News Read our full coverage on  Union Budget 2016