Companies & Sectors
Deccan Chronicle rejects reports about its debts

Deccan Chronicle Holdings said the real issue is not about its loan outstanding but liquidity crisis arisen due to significant reduction in ad spend by domestic and multinational companies in India


New Delhi: Deccan Chronicle Holdings Ltd (DCHL) has said its networth far exceeds its current outstanding and rejected reports that its debts ran to the tune of thousands of crore, reports PTI.
 
"The net worth of DCHL far exceeds its current outstanding. The loan outstanding and the overdue sums relate to payments that were due only in the last couple of months.
 
"Deccan Chronicle's value as a 75-year-old leading newspaper, the value of its fixed assets comprising land and buildings as well as plant and machinery at multiple locations, and the value of the Deccan Chargers IPL team far exceed the company's debt," T Venkattram Reddy, Chairman of DCHL, which owns Deccan Chronicle and Asian Age dailies, said.
 
His statement referred to news reports about the financials of DCHL and default in dues under loan agreements in the last few days.
 
DCHL would like to clarify that the real issue is a liquidity crisis that has arisen due to significant reduction in ad spend by domestic and multinational companies in India.
 
The Indian economy has been significantly affected due to the global meltdown and the European crisis, Reddy said.
 
The debt that the company has incurred is in usual course of business, and the amount stated in a section of media, that it is to the tune of thousands of crores, is false, he said.
 
IFCI which has filed a case before the debt recovery tribunal at Delhi filed another petition before the Andhra Pradesh High Court seeking liquidation of the company for delay in payment of Rs25 crore, the statement said.
 
"DCHL is grateful and fully committed to its lenders, who have supported it in all its endeavours. It is actively engaging with them to find a solution to the current liquidity issue," Reddy added.

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COMMENTS

Krishnaraj Venkataraman

4 years ago

Mr Chairman is misrepresenting facts. Firstly DCHL has not yet filed 2012 balance sheet with exchanges. TOI reported with MCA data backing that DCHL has more than 1500 cr of debt. IFCI has filed a petition saying it expresses doubt about the solvency of the firm. CARE said it does not know why DCHL defaulted despite having 350 odd crores in the balance sheet. Karvy has accused DCHL promoters of forging documents to avail loan against the same shares multiple times.

God, please have mercy on unsuspecting shareholders.

REPLY

Rajkumar Singh

In Reply to Krishnaraj Venkataraman 4 years ago

God always has mercy on unsuspecting share-holders.

He regrets that the share-holders never consult or cross check with TOI, IFCI, CARE or Moneylife, at the time of investment, but do it surreptiously after falling in the GREED net to claim later as being unsuspect about it!

Krishnaraj Venkataraman

In Reply to Rajkumar Singh 4 years ago

Sir,

Can God please send a list of people to check with before investing? It may be TOI, IFCI etc this time, what will it be next time? Would you know?

Manesar plant can resume operations but safety comes first: Suzuki

Suzuki, the parent of Maruti Suzuki India, is still apprehensive of the safety and security of its employees as far as reopening of its Manesar plant is concerned


Tokyo: Japanese auto maker Suzuki Motor Corp said the Manesar production facility of its Indian subsidiary Maruti Suzuki is in a condition to resume operations but will not do so as safety is yet to be restored, reports PTI.
 
While speaking to reporters after declaring quarterly results, Suzuki Motor Corp (SMC) Executive Vice President Toshihiro Suzuki said the Manesar plant is "in a condition to resume production" as there was no major damage to the plant machineries during the violence on 18th July, in which one senior executive was killed.
 
Maruti Suzuki India (MSI) had earlier claimed that 100 others employees were injured in the violence, but SMC on its website said "41 people were hospitalised and 46 people were treated in the hospital".
 
Following the violence and arson, MSI had on 21st July announced an lockout at the plant.
 
Kyodo reported that the company is still apprehensive of the safety and security of its employees as far as reopening of the plant immediately was concerned.
 
The plant "is nowhere in sight as safe working conditions have yet to be established", the report said quoting Suzuki.
 
SMC had earlier said a mob of approximately 100 workers damaged "the buildings of the plant office and the security office" but "there is no heavy damage to the plant facilities".

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Federal Bank Q1 net profit jumps 30% on asset quality, higher advances

While Federal Bank's provisions came down by 25% to Rs156.16 crore, its advances rose 19% to Rs38,042.90 crore driven by SMEs, corporate advances and retail segments apart from gold loans


Mumbai: Kochi-based old generation private sector lender Federal Bank has reported a 30.23% growth in the June quarter net profit at Rs190.35 crore up from Rs146.16 crore a year ago on the back of an improvement in the asset quality as well as higher advances, reports PTI.
 
While provisions came down by 25% to Rs156.16 crore in the reporting quarter from Rs207.89 crore a year ago, advances rose 19% to Rs38,042.90 crore from Rs31,971.61 crore driven by SMEs, corporate advances and retail segments apart from gold loans.
 
The RBI tightening on the pure-play gold loan companies had a positive impact on the bank as its gold loan books soared 99% to Rs4,256 crore during the reporting quarter.
 
Accordingly, its asset quality too improved with the gross NPA bettering to 3.60% from 3.94% and net NPA to 0.62% from 0.74%, the fourth largest private sector bank by network said in a statement.
 
Total income grew 22% to Rs1,661.04 crore while net interest margin (NIM) stood at 3.42% while capital adequacy ratio stood at 15.45% a tad down from 15.57%.
 
Provisions, including taxes cames down by 25% to Rs156.16 crore from Rs207.89 crore. Slippages in SME/agri sector came down to 0.83%.
 
Core fee income continues its consistent upward movement registering 16.02% growth, while other income rose 6.36% to reach Rs124.33 crore from Rs116.90 crore.
 
Deposits rose 17.75% to Rs50,558 crore from Rs42,935.62 crore, while advances rose 19% to Rs38,042.90 crore from Rs 31,971.61 crore and investments rose 23% from Rs15,703.15 to Rs19,313.48 crore, the lender said.

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