Aditya Birla Retail Ltd (ABRL) which operates more supermarkets and hypermarkets in India has reported a net loss of Rs. 649.42 crores during the third quarter (which ended in November 30th) of this financial year. Aditya Birla Retail Ltd., however, also reported an increase of 21% in revenue this year. Its revenue now stands at Rs. 3,509 crores as opposed to revenue of Rs. 2,893 crores last financial year. The Company’s net loss last financial year stood at Rs. 571 crores and has now widened to Rs. 649 crores. The Company’s debt has also increased to Rs. 5,936 crores this year due to Aditya Birla Retail Ltd. acquiring Trinethra, Fabmall and Jubliant’s Total Super Store for Rs. 417 crores this year. Read more on Losses
The demonetization move has caused and is expected to cause more losses to the retail companies or the retail sector in India. Due to the limit imposed on withdrawal amounts on every citizen, every day, people are unable to withdraw enough money to spend on shopping malls and super markets, thereby causing losses to the retail companies and retail sector in India. People are only able to withdraw enough money to spend on their bare necessities and are unable to spend on anything extra like malls or supermarkets. However, people can still use their debit cards or mobile wallets to make purchases. This will help eliminate the problems of theft and duplication which arise when doing transactions with hard cash. As an example, in 2010, the RBI had outsourced printing of Rs. 500 and Rs. 1000 currency notes to companies in Germany, UK and USA. The companies were supplying counterfeited currency notes to the RBI, which was distributing them to the banks in India. The German company had even leaked details of genuine Indian currency notes to Pakistan, which then printed and supplied genuine Indian money to terrorists and separatists in Kashmir! Online transactions are quicker, easier and safer to do than transactions with hard cash. The problem of black money can also be reduced by doing transactions online. Online transactions are still in their infancy in India. Online transactions in India account for only 2% of the total volume of transactions done in India. The same parameter is between 40% and 60% in developed countries like USA, France, UK etcetera. For the above mentioned reasons, I request all of our dear readers to do as much of online transactions as possible and make India a cashless and safe economy. Read more on Startup News
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