The government has initiated action against Kingfisher Airlines for recovering and so far have recovered Rs103.03 crore
New Delhi: Vijay Mallya-promoted Kingfisher Airlines owes Rs269.06 crore income tax and I-T Department has initiated penalty and prosecution proceedings against the private carrier, Government informed the Lok Sabha on Friday, reports PTI.
Kingfisher Airlines was found to have deducted tax at source (TDS) on salary payments but had not deposited it in Government account, Minister of State for Finance SS Palanimanickam said in a written reply.
"Survey...was conducted at the business premises of the aforesaid company and subsequently tax demand (including interest) amounting to Rs372.09 crore pertaining to FYs 2009-10 to 2011-12 were raised," he said.
"Action for recovering has been undertaken and a total of Rs103.03 crore has already been recovered. Penalty and prosecution proceedings under the Income-tax Act have also been initiated," Palanimanickam said.
He said in case of Employees State Insurance Corporation, an amount of Rs23.42 lakh is outstanding against the Bangalore unit of Kingfisher Airlines towards 'interest and damages', for which recovery action has been taken. The matter is pending in a court, he said.
The Minister said proceedings under Employees' Provident Funds and Miscellaneous Provisions Act, 1952, have been initiated against Spice Jet Ltd for assessment of dues from November 2008 to January 2012.
To another question, Minister of State for Finance Namo Narain Meena said as on September, 2011, exposure of public sector banks to private airlines was Rs15,700 crore.
Meena said the Reserve Bank of India has not issued any specific guidelines to banks for providing loan to private airline companies.
Credit related matters have been deregulated by RBI and banks are free to take their decision in the matters of loan eligibility based on their commercial judgement and in accordance with their policy framed within the overall framework of RBI, he added.
Bajaj Auto has reported a 31% higher operating profit due to increased exports but vehicular sales have declined domestically as consumers feel the pinch of higher interest rates
Bajaj Auto, the Pune-based and third largest manufacturer of motorcycles (it also manufactures three-wheelers), posted robust fourth quarterly earnings. It reported 12% y-o-y increase in its net sales, for the quarter ended 31 March 2012, at Rs4,651.44 crore. It was mostly driven by higher export realisations. Exports revenues increased 40% y-o-y, to touch Rs1,477 crore for the quarter ended March 2012. It exported around 3,47,414 vehicles in the quarter, which was 26% higher than the corresponding quarter last year. This helped negate the higher costs incurred during the quarter, which increased on par with net sales. The higher realisation led to swelling of its operating profit by 31% to Rs920.55 crore, which saw its operating profit margins grow by 288 basis percentage points to 19.79%. Its net profit was Rs772 crore for the reporting quarter, down Rs628.39 crore, from Rs1,400 crore when compared to the same quarter last year. However, this is due to an exceptional item the company recorded last year.
Bajaj Auto sells in markets which are seemingly immune to the challenging economic environment, as seen in the western world, namely—Africa and Latin America—where the market profiles are similar to the Indian market. However, it remains to be seen whether it can sustain the momentum going forward as it could be difficult to replicate the success, as global demand is more dynamic and varied than local tastes. In order to gain knowledge in international technologies, the company has tied up with KTM PowerSports AG, an Austrian motorcycle major, by investing 40.87% in the latter through its Netherlands-based subsidiary Bajaj Auto International Holdings BV.
On the other hand, it has disappointed on the domestic front, as it sold 2,602 fewer vehicles in the March 2012 quarter, compared to the corresponding period last year, with 6,69,753 being sold. The quantum of vehicles sold is one of the more broadly used indicators to gauge the economic well-being. Much of vehicular sales depend on external financing, as most middle-class consumers take loans to buy two-wheelers. However, even through the Reserve Bank of India (RBI) had cut interest rates, they are still high enough to warrant consumers to postpone purchase. Therefore, Bajaj Auto has not been an exception to the industry-wide dependence on interest rates.
It has a healthy cash balance, at Rs5,451 crore as of 31 March 2012, which is higher than Rs4,239 crore compared to the corresponding quarter last year. It has even reduced long-term liabilities by nearly 14%, to Rs414.84 crore.
The company has recommended a dividend of Rs45 per share, which works out to a dividend yield of 2.93%, which is decent by today’s standards.
According to the company, its motorcycles enjoy a market share of 32%. The company sells motorcycle brands such as Avenger, Pulsar and Discover.
About 2,492 account-holders owing Rs1 crore and above had defaulted in 2010-11 and the total amount to be recovered is Rs25,041 crore
New Delhi: Ruling out any relief to bank loan defaulters owing Rs1 crore and above, the Indian government on Friday said all efforts will be made to recover the dues from such companies and individuals, reports PTI.
Maintaining that the government was under no pressure to waive loans of Rs one crore and above, Minister of State for Finance Namo Narain Meena said in Lok Sabha that no relief will be given to defaulters.
"Recovery is an on-going process. All loans will be recovered," Meena said during Question Hour.
He said 2,492 account-holders owing Rs1 crore and above had defaulted in 2010-11 and the total amount to be recovered is Rs25,041 crore.
Meena said banks were required to monitor non-performing assets (NPAs) and take steps to bring them down through recovery and other channels. RBI also monitors the NPA levels in banks.
"This aspect is reviewed during annual financial inspections and monitored on an ongoing basis through regulatory returns submitted by banks and periodical meetings with banks," Meena said.
The banks are also advised by RBI from time to time to take effective measures to strengthen the credit appraisal and post-credit monitoring to arrest the incidence of fresh NPAs and adopt a more realistic approach to reduce the existing and chronic NPAs in all categories.
Banks resort to write-off only after exhausting all other possible avenues for recovery or when the asset coverage is not enough, Meena said. During FY11, around Rs23,364.62 crore were written off, he added