Regardless of that, he submitted that the audited segmental data cannot be considered by this Bench on account of following discrepancies.
The arithmetic mean of such comparables worked out at It has also failed to segregate the income and cost relating to various activities being undertaken by the assessee which have been aggregated, over all margin. Grossing up of the data or apportioning the expenditure in the segmental analysis will throw up absurd results and will be inaccurate and unreliable.
The operating profit margins in case of 8 companies after excluding the company I. Neeman Medical International In that event, the other units would not derive any benefit in respect thereof.
Thus, whatever is the shortfall that is attributed to the transactions with the associate enterprises. Now, let us examine the assessee's A. We enclose herewith in Annexure 3 a revised statement of comparable companies with their operating margins.
Hindustan Unilever Limited 35 Keeping in mind the directions in earlier years, AO is directed to reworkout the common expenses accordingly. The economic slowdown, which coincided with a period of high inflation, led to a drop in consumer demand, crimping revenue and pushing companies to reduce costs.
Therefore, in our opinion, expenses of the head office which had a direct bearing on the activities of the units from which deduction under section 80HH and I were claimed alone could be considered for allocation.
He also referred to Annexure-N to letter dated 28th Septembergiving segmental details and method of determining the cost and pointed out, that most of the expenses have been identified on factory actuals based on factory products and head office based sales value and bill of material.
It will not be fair to apply two different principles one for working out the profit and another for allocation of expenses. Therefore, ALP has to be seen only with regard to international transaction with A. Since the margin from the independent transactions and international transactions cannot be computed separately, unless the margin is applied on the entity level, the arm's length price of the international transaction cannot be computed.
E or whether going by A. Es, only one has to see whether such a transaction is at arm's length. The assessee itself has bench marked its international transactions at the entity level which shows that original approach of the assessee was to bench mark international transactions at the entity level by aggregating all the international transactions.
With reference to the research expenses and the interest expenses which were allocated for the first time, allocation of the research expenses is covered by the decision of the jurisdictional High Court in the case of Zandu Pharmaceuticals Works Limited in Income Tax Appeal No.
Insofar as the calculation furnished by the learned Departmental Representative is concerned, we do not find any merit in the said calculation in view of our analysis given above. After having rejected the segmental accounts, he proceeded to analyse the segmental details filed by the assessee in view of the directions of the High Court.
The sum and substance of the assessee's objection before the TPO were - i multiple year data should be accepted to work out the PLI, which has been dealt in Para To be sure, there is a limit for implementing cost-cutting strategies for companies, experts say. The TPO has virtually repeated the same adjustment made by the earlier TPO in his order dated 7th Marchby taking the average operating profit of the comparables at INTRODUCTION Hindustan Unilever Limited (abbreviated to HUL), HUL and ITC ltd.
Competitor Analysis. forward integration and also high level of competition among the supplier itself. (Refer to 5 forces analysis, exhibit 3) Ratio Analysis on Itc & Hul.
What does the above 2 examples of TCS and HUL suggest? Just by holding on to “good stocks” for long term (10 years), their dividend yield itself will become high enough to beat the returns of any debt instrument.
Is it that easy? Buy dividend paying stocks, hold for long term, and that’s it?
ITC: Get latest ITC Share Price, Live NSE, BSE stock and share price. ITC, HUL among top losers of the pack | News.
11 SepAM IST. Share market update: FMCG stocks fall up to 3%, make Better performer than its peers on this ratio Average performer than its peers on this ratio Underperformer than its peers on this ratio.
ITC. Financial Ratios Analysis of Hindustan Unilever Ltd. - The Key ratio of Hindustan Unilever Ltd. Company, including debt equity ratio, turnover ratio etc. HUL has fast caught up and outperformed closest peer, ITC, Sensex and BSE FMCG index by a wide margin on the back of double digit volume growth, less margin pressure in the March quarter and expectations of good performance going ahead.
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