Companies & Sectors
More trouble ahead for Kingfisher Airlines over dues

The Revenue Department has decided to move the Supreme Court to expedite recovery of about Rs330 crore dues from Vijay Mallya-owned Kingfisher 

 
New Delhi: Kingfisher Airlines, which days ago emerged out of an impasse over salary payment to its staff, is likely to face more trouble soon with the Revenue Department deciding to move the Supreme Court to expedite recovery of about Rs330 crore dues, reports PTI.
 
The department's decision to move a special leave petition (SLP) comes in the backdrop of the Airports Authority of India (AAI) also asking it to vacate two hangars in Kolkata and Chennai airports to recover dues worth Rs293 crore, official sources said.
 
The SLP, which is to be filed jointly by the Income Tax and Service Tax departments, would apprise the apex court "of the magnitude of pending dues to the government" and seek vacation of a 26th September Karnataka High Court order restraining the I-T department from making "further recovery".
 
Following this, the I-T department had lifted its attachment orders on the airline's bank accounts.
 
While the I-T department dues stand at around Rs269 crore, the airline owes Rs60 crore to Service Tax department.
 
The sources said the SLP would be moved soon by both the arms of the Revenue Department jointly.
 
The decision to move the SLP was taken recently by the apex policy making body of both the departments - the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) - at a meeting in the Finance Ministry.
 
"It has been decided in the meeting that a proposal should be moved by the Chief Commissioner Income Tax Bangalore for filing SLP against the vacation of stay of recovery proceedings (against Kingfisher) granted by the Karnataka High court," a note prepared by the CBDT said. The beleaguered carrier is assessed by the Bangalore I-T circle.
 
In a separate development, the AAI has shot off a letter to Kingfisher asking it to vacate two hangars it occupies at Kolkata and Chennai airports, official sources said.
 

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COMMENTS

rajeshpai

4 years ago

Isn't it possible to initiate criminal action against the great Dr Vijay Mallya, for having misused and utilised Government money that he had no business to divert in the first place??
Why are the agencies going slow on this?
Because he is the King Of Good Times??

Till such time he clears everyone to the last rupee, his airline should not be allowed to fly.
Otherwise the same story will repeat.
Has he paid all his creditors including the oil companies?
He has been taking everybody for a royal ride using his name and connections at high places.

It is time he is brought down to earth or rather shot down and shown his real place.Why not change him for incompetent management from all of his group companies??

Siyaram Silk Mills posts decent 9% sales growth despite stiff competition and economic challenges

The Poddar-owned company has weathered economic difficulties quite well by managing to keep sales steady and finance costs down  

 
Siyaram Silk Mills, known for its upscale suiting range and premium garments, has posted decent net sales and net profit considering an otherwise challenging quarter for textiles. Its net sales were up 9% year-on-year (y-o-y) when compared to its three-quarter y-o-y average growth rate of 11%, despite stiff competition and a benign economy. It clocked Rs267.28 crore worth of textiles and textile-related sales for the quarter ended 30 September 2012. Similarly, its net profit was marginally up by 5.54% y-o-y, from Rs16.98 crore to Rs17.92 crore. 
 
Higher cost of goods sold (up 7.37%) and salaries (38.05% higher) dented its Siyaram Silk Mills’ operating profit which declined 22% to Rs25.59 crore. However, a closer analysis found out that Siyaram Silk Mills’ operating profit declined only twice in the last three years. The fall in operating profit was made up by some prudent interest-cost management. It managed to rein in finance cost and keep it steady. This meant the bottomline wasn’t affected that much. The valuation of this company is on the lower end, with market capitalisation quoting at just 2.73 times operating profit while its return on equity is impressive at 22%. 
 
Earlier this year, in April, it had announced plans to invest Rs160 crore in FY12-13 to enhance its fabrics and garments manufacturing capacity. The firm operates four plants at Tarapur near Mumbai for weaving and yarn dyeing, two at Daman for garments and one at Silvasa for weaving. It produces around 700 metric tonnes of yarn per month, in a wide variety of compositions ranging from polyester, cotton, viscose and wool to linen. In the area of fabrics, Siyaram Silk Mills produces premium suiting, work-wear fabrics, shirting fabrics, and such. It owns brands like J Hampstead, Oxemberg, Siyaram MSD. It plans to open 40 stores during the fiscal, mostly through the franchise route. 
 
Siyaram Silk Mills stock price ended the day up 0.12%, at Rs299 on Bombay Stock Exchange (BSE). 
 
To read about quarterly results of more companies (http://www.moneylife.in/investing/stocks)

To read more about Siyaram Silk Mills click here.
 

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RBI indicates that rate cut likely in Tuesday's policy review

According to the central bank, monetary policy needs to be cautious in the interim, focusing on inflation while using the available space to support growth to the degree it can


Mumbai: Indicating that a cut in interest rate is likely, the Reserve Bank of India (RBI) has said despite high inflation it would take steps to support growth in the half- yearly review of monetary policy on Tuesday, reports PTI.

 

"Monetary policy needs to be cautious in the interim, focusing on inflation while using the available space to support growth to the degree it can," RBI said in its macroeconomic and monetary development review.

 

RBI said the Survey of Professional Forecasters has lowered the GDP growth projection to 5.7% from 6.5% for the current fiscal. Average wholesale price based inflation forecast is revised upwards to 7.7% from 7.3%.

 

It said the global growth prospects, both in advanced and emerging economies, have weakened and the euro zone troubles have affected business confidence and caused deceleration in global trade.

 

"Risks of spillovers from global financial markets remain. Unconventional monetary policies have transitorily moderated uncertainties, but the underlying stress has not diminished with incomplete deleveraging and unfinished financial sector reforms," RBI said.

 

It said sustaining the reform initiatives of the government would be the precursor for a turnaround in economic activity.

 

The government has in the recent past undertaken a host of reform initiatives including hiking diesel prices by over Rs5 a litre and foreign investment norms for retail, pension, insurance, information and broadcasting sector.

 

RBI said aggregate demand is weakening, led by the investment slowdown. However, persistent high core inflation remains a cause of concern.

 

In its last policy review, RBI held interest unchanged, though it had lowered CRR by 0.25% to infuse Rs17,000 crore liquidity into the system.

 

The RBI said the recent spate of reform measures have helped in arresting the downfall in growth, but called for a greater coordination between different government agencies and removal of structural bottlenecks on infrastructure as the key factors for revival.

 

"It is necessary to remove the pending constraints in the power, coal and road sectors at the earliest ... Fiscal consolidation and removal of impediments to infrastructure investments hold the key to growth revival," RBI said.

 

It said there would be fiscal slippages during the year, beyond the budgeted 5.1% deficit, and that the final number may not be better than last fiscal's 5.8%.

 

Earlier in the day Finance Minister P Chidambaram had unveiled a five year roadmap for fiscal consolidation pegging the fiscal deficit for the current fiscal at 5.3% by bringing in tax reforms and expenditure management.

 

The budgeted fiscal deficit for the current fiscal was 5.1%.

 

"As macro-risks from inflation and twin deficits recede further, that could yield space down the line for monetary policy to respond more effectively to growth concerns," it said.

 

The WPI inflation as of September stood at 7.81%, much above the RBI comfort level of 5-6%.

 

While a majority believes RBI may go in for a cut in the cash reserve ratio (CRR) or the amount of deposits parked with RBI, a few also say a cut in the policy rate (repo) would be a good way of address the issue of sagging growth.

 

Blaming the high inflation on a wage-price spiral, RBI said, "In the short-run, inflation may turn out to be slightly higher than anticipated ... It is likely to soften from Q4 (January-March period)".

 

On growth, RBI said, it will fall below its July estimate of 6.5%, but a "modest recovery" can be expected later during the year. Economic growth fell to a nine-year low of 6.5% in 2011-12.

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