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Kingfisher class

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Moneycontrol, Firstpost, HT, etc have an identically worded report, presumably from their PTI source:

Among the country’s three listed airlines also, Kingfisher CEO Sanjay Agarwal’s pay package was the second highest in the last fiscal ended March 31, 2012, as per the remuneration details provided in their annual reports.

Recently, Kingfisher had to announce a temporary lockout due to employee unrest, triggered by non-payment of salaries to the staff.

While Agarwal has said that he has also not been paid any salary since April as there were no funds, his remuneration in the fiscal year 2011-12 rose to nearly Rs. 4.01 crore from Rs. 2.12 crore in 2010-11.

As per the annual reports of seven listed companies of the UB group, its Chairman and main promoter Vijay Mallya was paid a total amount of about Rs. 1.43 crore (mostly in sitting fees) from various group companies.

While Mallya was not paid anything at Kingfisher and another group firm UB Engineering, he got sitting fees of Rs. 1.2 lakh from United Spirits, Rs one lakh each at United Breweries Ltd and Mangalore Chemicals and Fertilizers, Rs 34,550 at McDowell Holdings and Rs 1.4 lakh at United Breweries (Holdings) Ltd.

Besides, Mallya received remuneration from two overseas subsidiaries, amounting to $ 120,000 (nearly Rs. 63 lakh) and 89,600 (about Rs 76 lakh) British Pound during the year 2011-12.

Two of the seven listed companies – McDowell Holdings and UB Holdings Ltd – did not pay any remuneration to their Managing Director (MD) Harish Bhat while Mangalore Chemicals and Fertilisers’ MD Deepak Anand took a token salary of Re 1 per month.

However, Harish Bhat received remuneration of Rs 1.31 crore as an executive of an associate company of UB Holdings Ltd.

Among other group firms, UB Engineering paid its MD J K Sardana a remuneration of Rs. 65.5 lakh, up from Rs. 39.1 lakh in the previous year. This included salary, perquisites, allowances and companies contribution to Provident Fund.

At United Spirits Ltd, Managing Director Ashok Capoor was paid total remuneration of Rs. 3.41 crore, while United Breweries Ltd MD Kalyan Ganguly was the highest paid among his peers at the group.

Ganguly’s remuneration rose from Rs. 4.51 crore in 2010-11 to Rs. 6.7 crore in the last fiscal 2011-12, but his pay increase in percentage terms at about 60 percent was lower than that of the Kingfisher CEO at about 90 percent.

Kingfisher said in its annual report that Agarwal’s stated remuneration “excludes accrued leave encashment and gratuity since the same have been recognised for the Company as a whole and cannot be determined at an employee level.”

Meanwhile, IBN Live reports:

Adding to the woes of a beleaguered Vijay Mallya, liquor baron and Kingfisher Airlines chairman, the National Human Rights Commission has admitted a plea on Saturday for initiating a case against him against the backdrop of the recent suicide of the wife of an employee of the sinking airline.

The NHRC has accepted a written plea from M Madasamy, Guinness World Record Holder for the longest speech, hailing from Peermade in Idukki district. The complaint has been indexed in the NHRC diary as 128279 and acknowledged on October 6.

Madasamy had pointed out that Sushmita Chakravarthy, wife of Manas Chakravarthy, a ground staff in the Mallya-owned airlines, had cited her family’s poor financial condition as the reason for taking the extreme step on October 4.

The crisis that had engulfed Kingfisher Airlines had led to the non-payment of salaries of employees, it was cited. The DCP of the area where the suicide was reported had confirmed that the police had received a suicide note in Bangla, which states that the woman was depressed because of the financial condition of the company where her husband was an employee, as he was not getting salary for a few months, the complaint avers. She was afraid that the company might eventually close down its operations owing to its financial crisis.

Live Mint reported:

A group of 17 banks is willing to provide fresh loans to Kingfisher Airlines Ltd if the carrier pays salaries immediately and provides guarantees from its parent UB Group, promoted by liquor baron Vijay Mallya.

The lenders on Friday decided to release Rs.60 crore to the cash-strapped airline so it can pay its staff, who haven’t received salaries since March. The wife of a Kingfisher employee on 4 October killed herself, allegedly due to financial distress.

The banks are willing to help the airline further if the UB Group infuses fresh funds into the debt-laden carrier that has stopped services since 1 October, according to two bankers who spoke on condition of anonymity.

“We are not planning to pull the plugs now. We are willing to wait for little more as the government has recently relaxed the norms and permitted foreign carriers to invest in local carriers. Moreover, Kingfisher Airlines is claiming that it is in discussions with two global airlines and two domestic investors,” said one of the bankers at a state-owned lender. “We are hopeful that promoters will find a way out as a lot of assets of promoters are pledged to raise funds for Kingfisher Airlines.”

The airline hasn’t shown a profit since its inception in 2005. It has Rs.5,695 crore in debt and accumulated losses of Rs.7,262 crore.

October 9, 2012

The Hindu reports:

The Directorate General of Civil Aviation (DGCA), on Tuesday, asked the beleaguered Kingfisher Airlines to stop booking tickets immediately, following reports that the airline planned to resume normal operations from October 13.


Written by Arhopala Bazaloides

October 8, 2012 at 4:21 am

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