Adani Enterp. 2646.55↑320.45(13.78%)
Adani Ports 745.80↑16.10(2.21%)
Apollo Hospitals 4598.00↓-7.30(-0.16%)
Asian Paints 3122.35↑37.45(1.21%)
Axis Bank 919.20↑1.65(0.18%)
B P C L 366.50↑4.90(1.36%)
Bajaj Auto 4519.55↓-3.70(-0.08%)
Bajaj Finance 6840.40↑47.35(0.70%)
Bajaj Finserv 1439.65↑26.65(1.89%)
Bharti Airtel 801.05↓-0.80(-0.10%)
Britannia Inds. 4539.60↑40.65(0.90%)
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Coal India 239.85↑1.15(0.48%)
Divi's Lab. 3406.50↑141.50(4.33%)
Dr Reddy's Labs 4453.25↓-4.40(-0.10%)
Eicher Motors 3598.35↑52.90(1.49%)
Grasim Inds 1700.05↓-18.30(-1.06%)
H D F C 2706.70↑1.95(0.07%)
HCL Technologies 1119.50↓-0.35(-0.03%)
HDFC Bank 1638.65↓-2.40(-0.15%)
HDFC Life Insur. 563.25↓-3.75(-0.66%)
Hero Motocorp 2703.45↑11.30(0.42%)
Hind. Unilever 2635.05↓-3.05(-0.12%)
Hindalco Inds. 411.35↑3.65(0.90%)
ICICI Bank 955.50↑5.15(0.54%)
IndusInd Bank 1260.05↑13.90(1.12%)
Infosys 1308.80↑16.00(1.24%)
ITC 430.35↑5.60(1.32%)
JSW Steel 706.55↑1.95(0.28%)
Kotak Mah. Bank 1922.40↓-17.80(-0.92%)
Larsen & Toubro 2197.40↓-19.20(-0.87%)
M & M 1266.80↑1.25(0.10%)
Maruti Suzuki 9215.00↑58.35(0.64%)
Nestle India 21600.40↑105.60(0.49%)
NTPC 174.95↑0.85(0.49%)
O N G C 164.95↓-0.65(-0.39%)
Power Grid Corpn 234.85↑0.50(0.21%)
Reliance Industr 2464.55↑9.55(0.39%)
SBI Life Insuran 1164.85↑14.05(1.22%)
St Bk of India 580.50↑3.35(0.58%)
Sun Pharma.Inds. 937.20↓-0.25(-0.03%)
Tata Consumer 770.00↑3.90(0.51%)
Tata Motors 527.00↑4.50(0.86%)
Tata Steel 105.80↑0.80(0.76%)
TCS 3301.50↑2.80(0.08%)
Tech Mahindra 1099.95↓-4.50(-0.41%)
Titan Company 2704.30↓-8.25(-0.30%)
UltraTech Cem. 7660.00↓-55.65(-0.72%)
UPL 680.00↑9.60(1.43%)
Wipro 399.00↑3.25(0.82%)

Accounting practices at start-ups in India come under the scanner

Where valuation has overpowered value and revenue recognition is a grey area, new accounting metrics is seeing new-age ventures jump through hoops

Ruchika Chitravanshi New Delhi

Premium

New accounting metrics are also getting introduced by some of these companies

4 min read Last Updated : Jan 26 2023 | 10:31 PM IST

Valuation obsession, investor pressure, and unethical practices by founders may be blamed for some of the recent misadventures of certain start-ups. They have, however, also taken the lid off the complex accounting practices and challenges these new-age ventures are just getting to grips with.

With so much money sloshing around the system, funding rounds got bigger and bigger. Critics say that left start-ups with money to burn and no need to show how they would ever turn in a profit.

“In the new-age economy, new business models are coming up. There is a lot of complexity around many areas, requiring significant judgement calls. People often go wrong with the right interpretation of accounting,” said a senior partner at one of the Big Four advisory firms.