NEWS FEED 6/9

Delhi high court stops Britannia from selling its digestive biscuits

Delhi high court grants Britannia four weeks to phase out existing stocks of
NutriChoice Zero and maintain accounts
ITC and Britannia were involved in a copyright infringement case where ITC had
claimed that Britannias Nutri Choice Zero digestive biscuit brand had copied the
packaging of ITCs Sunfeast Farmlite Digestive All Good biscuit.

Samsung trips on quality control in rush to pip Apple

In its rush to beat rival products to market, notably Apples new iPhone, Samsung Electronics Co. Ltd
has accelerated new phone launch cycles, but its haste is raising concerns that it fell short on quality
testing.
Since last year, the South Korean firm, the worlds largest maker of smartphones, has brought forward
the launch of its Galaxy S and Galaxy Note series models by roughly a month.
For the June quarter, the strategy helped Samsung to its best profit in more than two years, but it is
also putting strain on its supply chain and its manufacturing reputation.
On Friday, two weeks after launch, Samsung recalled Galaxy Note 7 smartphones in 10 markets
including South Korea and the US after finding its batteries were prone to ignite, and halted sales of the
988,900 won ($891) device in those markets indefinitely.

News 7/9

Online classifieds platform Quikr India Pvt. Ltd has acquired Stepni, a Bengalurubased start-up that connects vehicle owners with service providers
Quikr has been driving a verticalization exercise, under which the company is focusing on five
key business segmentsautomobiles, real estate, jobs, services and customer-to-customer sales
Quikr acquired real estate portal Commonfloor (maxHeap Technologies Pvt. Ltd) for $120 million
in January. This apart, it has acquired Indian Realty Exchange (123 Startup Ventures Pvt. Ltd), a
real estate agent aggregator, and RealtyCompass, a real estate analytics start-up, besides
making a strategic investment in A.N. Virtual World Tech Ltd, a company which provides 360degree street views.
In May, Quikr acquired Gurgaon-based home beauty services provider Salosa for an undisclosed
amount and Zapluk in August to bolster its home services business. The company also bought
online recruitment platform Hiree in July.

Van Heusen is set to enter the mens inner wear and athletic leisure market in India.
Van Heusens inner wear will be available at the brands Bengaluru and Chennai stores and large
format stores like Lifestyle and Shoppers Stop by the end of this week, and in Hyderabad by the
end of the month.
an Heusen stores and online retailers will offer customers four inner wear collections to choose
fromclassic, platinum, signature and active. Price points vary with the classic collection ranging
from aroundRs.135-450, the platinum collection betweenRs.250-350 for briefs and up toRs.600
for boxers and the signature and active collections betweenRs.350-450 andRs.229-400,
respectively.
Van Heusens athletic leisure collection will target customers who are looking for athletic
outerwear, like track pants, lounge pants, shorts, vests and T-shirts that can be worn in a gym or
a jogging track.
The mens inner wear and athletic leisure market in India is worthRs.7,000 crore, with sales
growing at 13-14% a year, according to Van Heusens internal estimates.

In the queue for a Reliance Jio SIM card

Mukesh Ambanis aggressive push of Reliance Jio has indeed taken the
market by storm, and RIL now finds itself saddled with the problem of
plenty
Problems faced;
No one to answer customer care calls
Line is always busy
People plan to discontinue using reliance sim after initial free 3 months
trial period
In one week, Jio customers faced 50 million call failures in connecting to
customers on competing networks, he said. That was when the Jio
network was still in its test phase.

From being 0 debt company in 2012, reliance has now debt in excess of
rs95000crore due to diversification in non-core business..

8/9

The Mumbai-based firm is set to announce an agreement with ANI

Technologies Ltd, which operates Ola.
The partnership with Indias largest cab-hailing firm comes amid a growing
demand for cab-hailing services in a country that lacks an efficient, integrated
public transport system.
Moreover, an increasing congestion on roads in urban India is only dissuading
commuters to own or drive a car.
In a way, it also is a pointer towards the changing mindset in the board rooms of
auto companies. What was once perceived as a threat is now being looked at as
an opportunity
Will Apples wireless bet be a commercial success?
While getting rid of the wires makes perfect sense for Apple, wireless technology
is still not entirely affordable for a lot of users in India

9/9

FACEBOOK
As its user base shifts, Facebook becomes an emerging
markets play
Mutual funds focused on emerging economies are
increasing investments in Facebook as its user growth in
developing countries soars

USER-BASE GROWING
Six years ago, 60% of the social platforms 482
million monthly active users lived in the US,
Canada and Europe and the rest were from
elsewhere. Now, two-thirds of its 1.7 billion
users are from outside of the heart of the
developing world.

OPPORTUNITIES IN EMEs
Researcher eMarketer estimates India will
surpass the US next year as the country with
the most Facebook users. It also ranks India,
Indonesia, Mexico and the Philippines as the top
four countries to see the fastest Facebook user
growth until 2020.

Thornburg now holds the second largest

position in Facebook among 20 emergingmarket funds with exposure to it.

Coal rises from the grave to become

one of hottest commodities
A surge in Chinese coal imports to compensate
for lower domestic production has seen
European prices jump to near an 18-month high
Its

a commodity thats been on a slippery slide

for the past four years and its making a
remarkable recovery
What could light up the market further is the
occurrence of a La Nina weather pattern
later this year. Last time it happened in 2010 and
2011, heavy rains flooded mines in Australia and
Indonesia, the worlds two largest exporters.
While some meteorologists have toned down their
predictions for the weather phenomenon forming,
another strong forecast would cause prices to
rise further
Chinas imports jumped to the highest since
December 2014 in August as domestic
production fell amid a drive to curb
overcapacity, close unprofitable mines and
cut pollution.
And over in India, Coal India Ltd, the worlds
biggest miner of the fuel, last week reported the
lowest production in three years as heavy rains
and protests cut its output. The miners are
demanding more jobs and higher wages.

10/9

Shareholders raised concerns that small

retail
investors
could
not afford to buy
Maruti
Suzuki
to present
the
companys
shares
stock
split proposal
to board
Shares of Maruti Suzuki rose 2.71%
toRs.5,482.40 per share on 9/9/16.
At 47%, the car makers market share is
at its highest since 2000. Last year, it
surpassed its parent in terms of market
capitalization and sales, and exported a
made-in-India car to Japan, a first.
Companys stock to gain further in the
mid-term amid improving economic
conditions in the country and especially
after Suzuki Motor Gujarat (SMG)
decided to advance the commencement
of its Gujarat facility by three months to
January-end. The move will help Maruti
clear an order backlog of some of the
popular models such as Baleno and
Brezza, which have waiting lists as long
as 7-8 months.
Banerjee and Shah said Maruti
registered 6% CAGR between 2011-12
and 2015-16 and is set to record more
than 15% growth in 2017-18 largely due
to fresh capacity addition from the
Gujarat facility, at-par rainfall and the
Seventh Pay Commission revision that
are expected to drive growth in the mini
segment, and the goods and services
tax that will enhance consumer
sentiment by driving potential decline
in prices by 5-6%.

EIL

offers equity to staff as

part of disinvestment

As

part of the disinvestment process,

state-owned Engineers India Ltd (EIL)
will sell part of the government stake to
its eligible employees at a discounted
price of Rs 187.29 per unit, a move that
will fetch about Rs 31.5 crore to the
exchequer.

As

per the Cabinet approval, the

company has offered 16.8 lakh share of
Rs 5 each for subscription,

Sun-worshippers as kids,
mere sun-greeters as adults
Mature sunflowers actually
dont track the sun. They
simply face east, and thus
welcome the sun each
morning, but they dont
turn during the day.
Young sunflowers, on the
other hand, arefor flowers
wildly active. They turn
towards the west during the
day, tracking the suns
motion across the sky. At
night, they slowly turn to
the east again, finishing
their motion just in time for
sunrise, just in time to greet
the sun again.

Indian railways

Runs around 12,000 trains with 22 million passengers and operates 8,000 trains to ferry around 3 million
tonnes of freight per day
Incurs Rs.33,000 crore on passenger segments
It spends 73 paise and gets only 34 paise in
each year in a bid to meet its social service
return
obligations

The Railways is trying to test markets by introducing surge pricing that has been followed by railway
networks globally,
Whereby fares will increase with every 10 per
It will translate into a 30-40 per cent fare hike in
such premium trains and may fetch Indian Railways
cent of the tickets sold in Rajdhani, Duronto and
Rs.1,000 crore every year
Shatabdi trains

Decision of surge pricing could have been triggered by its financial performance in the first half of this
financial year: gross earnings declined 5% to Rs.64,387 crore in April-August compared with the same period
of the previous year.
The total number of passengers in this period
remained almost stagnant at 343 crore a 0.34 per
cent rise from year ago period

The primary reason behind a fall in gross earnings is

attributed to its freight that accounts for almost 65 per
cent of Railways revenues. The freight earnings dropped
9.68 per cent from Rs.45,370 crore in April-August 2015 to
Rs.40,980 crore over the same period this year.

10/9
Enga
ged
Lond
onbase
d
Desig
n
Studi
o

New
tagline:
#unbox
zindagi
They (Snapdeal) have realised that in order to
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revamp themselves. The last six months have been
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they will have to keep spending on discounts, they
also have to spend on something that gives them a
long-term benefit,

Rebrandin
g

New
logo

Spen
d
abou
t Rs
200
cror
e
towa
rds
mark
etin
g

Ne
w
tag
lin
e

musi
c
dire
ctor
trio
Sha
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Ad-MAN
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Versatile

500 stores of Dominos outlets to turn all-vegetarian during

nine-day Navratri festive period
The first time a western-style quick service restaurant (QSR)
is converting to a Navratri menu on such a large scale.

Though a global brand conscious of consumer

needs
With 1,062 restaurants in 248 cities, Domino's
Mkt leader leads the organised pizza market with a more
than 70% share.

Changes

The pizza chain will not use garlic and onion and will do away with
grains that aren't consumed during the period
With many people abstaining from meat, wheat, garlic, onions and
processed foods, the Navratri menu will include pizza bases made of
singhara atta (water chestnut flour), saabudana crispies and
dumplings and cheese and sauces with only rock salt.

12/9

Cairn India shareholders clear merger with Vedanta

The merger will give Vedanta access to Cairn Indias $3.5 billion cash
pile and potentially help it repay debt and reduce interest costs

It will create a large, diversified natural resources company with

reduced earnings volatility and enable better capital allocation

n 22 July, Vedanta offered Cairn India shareholders one equity share

and four redeemable preference shares in the metals and mining
company, sweetening the terms after minority shareholders such as
LIC opposed the earlier offer of one equity share and one redeemable
preference share, made on 14 June 2015

20/9
Facebook hires Anand Chandrasekaran in Messenger app
push:
Former Yahoo executive Anand Chandrasekaran will assume a
global leadership role working on strategies and partnerships for
Facebook Messenger

Profiting from new accounting standards

An analysis by KPMG shows June-quarter net profit at the Nifty 100 firms that had declared their IndAS results
by 31 August was up Rs2,667 crore or 4.55% higher than what they would have reported under Indian GAAP

profits higher and finance costs

lower
Companies were required to
transition from the current
accounting regime called GAAP (or
Generally Accepted Accounting
Principles). Authorities now require
them to follow what are called the
Indian Accounting Standards Rules,
2015, or IndAS Rules.
All listed and unlisted companies
with a net worth of Rs500 crore or
higher were to move to the new
accounting rules by 1 April 2016.
This will apply to all listed
companies and unlisted ones with
a net worth of Rs250 crore from 1
April 2017. It will apply to financial
institutions like banks and nonbanking financial companies from 1
April 2018.
A total of 41 companies recorded
gains in net profit on account of
the new norms. Only 18 showed a
decline. More than a third reported
a net profit change because of
forex fluctuations.

Goodwill is how a company accounts for the

excess money that it pays for acquiring an
asset over and above its fair value. The earlier
accounting standards required this to be
amortized. This is no longer the case under
IndAS, where goodwill is only tested for
impairment (an exercise to basically see if it is
still worth the money paid for it), and not
amortized. Some companies have also reversed
their earlier amortization of goodwill, according
to the KPMG analysis, which has also added to
the profit numbers.
Ebitda has been calculated after other income.
It was 8.22% before other income. This meant
that the companies reported higher profits
from their core operations too, under the new
norms
Under the new standards, sale is recognized at
fair value of the consideration, i.e. net of trade
discounts, rebates, etc. As per the earlier
Indian GAAP, these were grouped as expenses
under sales promotion. Effectively, the revenue
under the restated numbers would reflect a
drop. However, there would not be any major
impact on the bottom line
Joint venture finance costs also found a place
on the profit and loss statement under the
older regulations. But the new accounting
standards dont result in a proportionate
consolidation of finance costs. So money which
would earlier have been deducted as finance