Google India revenues fall

NEW DELHI: Google has shifted the changed the revenue recognition for its ‘AdWords’ business from India to Singapore-based Google Asia Pacific, resulting in a fall in revenues for the local unit by 56% to Rs 4,147 crore for the financial year ending March 2019. This has also resulted in fall in share of advertising revenues for Google India Private Limited from 69% to 28%, with majority of the revenues coming from what is classified as IT (information technology) and IT-enabled services now.
Profits of Google India increased by 16% to Rs 473 crore during FY19, according to ministry of corporate affairs (MCA) filings obtained from Tofler.
The changes have been done because of changes in accounting standards from IND AS 18 to IND AS 115, according to the filing made by Google India. “As the control to operate the adword platform is with GAP (Google Asia Pacific) and not with the company (Google India), accordingly, revenues and associated direct cost of sales are presented on a net basis in the statement of profit or loss and comprehensive income,” according to the filing.