MAM
Marico’s ad spend drops marginally in FY’11
MUMBAI: FMCG major Marico has cut down its advertising spend marginally in the fiscal 2010-11 compared to the year- ago period.
The company, which manufactures hair-oil brand Parachute, spent Rs 3.46 billion towards advertising and sales promotion in the year ended 31 March 2011.
In the previous fiscal, Marico had an ad spend of Rs 3.51 billion.
Marico‘s turnover rose 17 per cent, including a one-time amount of Rs 500 million it received from Cargill India for sale of edible oil brand Sweekar.
The company posted a consolidated revenue of Rs 31.28 billion, up from Rs 26.61 billion a year ago.
Marico cut down its ad spend by 25 per cent in the fiscal fourth-quarter, which had an overall impact in the year. The company spent just Rs 671.93 million on advertising during the three-month period ended 31 March 2011, down from Rs 892.39 million in the same period of the earlier year.
Marico posted a 24.09 per cent jump in its revenue for the fourth quarter. Net sales during the quarter under review was Rs 7.47 billion, up from Rs 6.02 billion a year ago.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â 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.
