The new proposed E-waste norms may weigh heavily upon manufacturers such as Samsung, LG, Apple and Nokia, as they will have to collect a predetermined percentage of the goods they sell every year, stretching back over the past 10 years.
This can affect their profits due to a proposed rule on electronic waste disposal and its treatment under current accounting standards. Under Indian Account Standards (Ind-AS), the companies will be required to provision for this cost in the current fiscal, leading to a possible erosion in earnings. They have asked the Ministry of Environment, Forests and Climate Change to amend the rule and strip out its retrospective nature.
According to Manish Sharma, president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), “ACE (appliance and consumer electronic) and phone makers could have significant financial implications on their books as they will have to provision for e-waste they collect on their last eight to 10 years’ sales.”
According to Manish Sharma, president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), “ACE (appliance and consumer electronic) and phone makers could have significant financial implications on their books as they will have to provision for e-waste they collect on their last eight to 10 years’ sales.”
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