PLI scheme set to spruce up Ebitda of companies, even before they receive benefits
Companies can account for future income even when they are eligible for PLI.
The benefits are available for sectors including automobiles and auto components, pharmaceuticals, specialty steel, capital goods, technology products, white goods (ACs and LEDs), telecom and networking products, textiles, high efficiency solar PV modules and advanced battery cells. It gives incentives to companies that opt for incremental output.
MUMBAI: Many companies in the manufacturing sector are set to see their operating margins improve, based on the accounting treatment of benefits under the government's production-linked incentive (PLI) scheme.A number of these companies are rushing to make themselves compliant to be eligible to receive the benefits of PLI, and when they do they are set to account for those as future revenue.“The incentive would be recognised only when the