Companies & Sectors
Debt-ridden Kingfisher Airlines' Q2 loss widens to Rs754 crore

Kingfisher's revenues in September quarter tumbled to Rs200 crore from Rs1,553 crore in the same period last year due to disruption in operations and eventual suspension of its licence by aviation regulator DGCA

Mumbai: Debt-ridden Kingfisher Airlines on Thursday reported a net loss of Rs754 crore for the July-September quarter, a sharp increase from Rs469 crore in the year-ago period, reports PTI.

 

The Vijay Mallya-owned carrier said it is working on a plan to resume its services.

 

Kingfisher's total revenue plunged to Rs200 crore during its second quarter from Rs1,553 crore in the same period last year due to disruption in operations and eventual suspension of its licence by aviation regulator the Directorate General of Civil Aviation (DGCA).

 

Even as the company's expenses declined across various heads, the firm suffered huge restructuring cost. Its tax expenses also rose sharply.

 

Announcing the result, the carrier said it is in discussions with various stakeholders to ensure that there are no future disruptions and expects to resume operations in the near future.

 

"Kingfisher Airlines is preparing a comprehensive plan for re-start of operations which will be shared with the DGCA and bankers," the carrier said in a BSE filing.

 

The carrier is already saddled with accumulated loss of Rs8,000 crore besides a debt burden of over Rs7,524 crore, a large part of which has not been serviced.

 

The DGCA had recently suspended the flying licence of Kingfisher following the airline's failure to come up with a viable plan of financial and operational revival.

 

It faces the risk of losing its licence if a revival plan is not submitted by next month, while bankers are working on plans to handle large scale defaults by the airline.

 

At 12.16pm, Kingfisher shares were trading at Rs12.81, down 0.16% on the BSE, while the benchmark Sensex was also marginally down at 18,813.

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Bajaj Allianz launches 'extended warranty plan' for consumer durables

Bajaj Allianz would provide 12 months extended warranty for consumer durables purchased through Bajaja Finserv's zero percent loan schemes

Mumbai: Bajaj Allianz General Insurance has launched an 'extended warranty plan' for consumer durables, under which a customer will be able to extend the warranty period for 12 months after expiry of the manufacturer's product warranty, reports PTI.

 

The company has launched this product in association with Bajaj Finserv Lending, its release said.

 

"Launched in association with Bajaj Finserv Lending, this product is specifically for those customers who have availed the company's (Bajaj Finserv) zero percent interest consumer durable finance for purchasing durables of their choice," the company said.

 

According to the general insurance firm, the premiums for this new product will start from Rs350 onwards.

 

"The cover kicks in after expiry of the manufacturer's product warranty period and will be in force for the next 12 months. The sum insured of the policy shall be equal to the invoice price of the consumer durable or appliance," Bajaj Allianz General Insurance Head (Market Management and Bancassurance) Alpana Singh said.

 

Bajaj Allianz is a joint venture between Bajaj Finserv and Allianz SE of Germany.

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Kwality Dairy pays Rs3 crore to SEBI to settle allegations

SEBI said the proceedings against Kwality Dairy for non-compliance with the guidelines, 'stand settled and it will not initiate any enforcement action against the company

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of the case against Kwality Dairy (India) Ltd after the company paid Rs3 crore to settle alleged violation of disclosure norms related to preferential allotment of shares, reports PTI.

 

The case related to non-compliance with certain norms in connection with Kwality Dairy's preferential allotment of five lakh shares to its promoters during 1999-2000.

 

In an order dated 30th October, SEBI said the proceedings against Kwality Dairy for non-compliance with the guidelines, "stand settled and SEBI shall not initiate any enforcement action against the applicant for the same".

 

Post the preferential allotment of shares, stock exchange BSE noticed that Kwality Dairy did not comply with certain disclosure norms. Subsequently, the bourse directed the company to obtain a no-objection certificate from SEBI.

 

Among others, SEBI rules require a company to furnish various details of proposed shares issue in the notice for general meeting that is sent to shareholders.

 

Pursuant to the preferential allotment, the shares were converted into equity shares on 14 June 2002.

 

"Subsequently, when these equity shares were proposed to be listed on the BSE, it was then advised by the BSE that that above-mentioned clauses of the DIP Guidelines had not been complied with by the applicant and that the applicant should obtain a no-objection letter from SEBI," the order said.

 

In view of the aforesaid non-compliances, the applicant filed the consent application, it added.

 

SEBI said its High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of Rs3 crore. The same was approved by the panel of whole time members of SEBI, it added.

 

The market regulator said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by Kwality Dairy is found to be untrue.

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