MAM
Indian M&E sector increasingly victimised: Ernst & Young
MUMBAI: In the last two years, the Indian Media and Entertainment industry has seen a stark increase in fraud related cases that have contributed to a major loss in profits as well as increased costs according to EY’s Media and Entertainment (M&E) Fraud Survey 2014.
Commenting that the Indian M&E sector has been increasingly victimised, EY partner, fraud investigation and dispute services Mukul Shrivastava said, “Being on an upward trajectory, the Indian M&E sector is increasingly victimised by the growing challenges around governance breakdowns and unethical practices. This has led to extensive losses (monetary and reputational), sub-par performance and arrested development.”
Of the total respondents, approximately 98 per cent said that unethical practices had led to a major loss in profits and at the same time had increased costs. One out of six respondents also said that they had seen an increase in fraud within their organisations.
Another serious issue that the survey reported was false invoicing and overbilling. Shrivastava went on to add that “In light of the changing industry dynamics, organisations will have to improve vigilance, boost internal controls and raise compliance benchmarks for sustainable growth.”
An astonishing 57 per cent of the respondents are yet to set up a whistle blowing mechanism within their organisations and 41 per cent do not have much knowledge about anti corruption laws and regulation laws.
EY India M&E sector leader Farokh Balsara said, “As companies in the M&E sector increase in size and move from unorganised to organised operations, the need for proactive fraud prevention has increased. The adoption of an ethical business conduct and sound governance policies will play a crucial role in determining its true success.”
The report also outlined ways for organizations in preparing a strong fraud management programme through regular training, awareness programmes, interactive sessions with case studies and scenarios.
The survey features insights of companies with domestic operations as well as multinational corporations. It also reveals content distribution and TV/film content production, finance and advertisement sales functions as particularly vulnerable areas.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
