(The Kingfisher Saga)
The Good Beginning!
Son: The beleaguered Kingfisher Airlines is once again in the limelight, dad.
Father: What is the good news? Go on, son.
Son: Vijay Mallya the owner of the airline appears to have made a very good beginning, dad.
Father: Like what? Go on, son.
Son: He has offered 3 kg of gold to the Lord of Tirupati, dad!
Father: Go on, son.
Son: His son Siddhartha is also said to be ready to join hands with his beloved father, dad.
Father: How? Go on, son.
Son: He is said to have assured his dad that he would ensure the release of the famous Kingfisher Calendar for 2013 early, dad!
Father: I don’t know, son!
Mallya to Infuse Rs425 crore!
Son: According to State Bank of India, Vijaya Mallya is ready to infuse Rs425 crore into the airline, dad.
Father: Go on, son.
Son: One of the bankers is said to have reacted that it is good that Mallya has exceeded the figure of Rs420 crore (though marginally), dad!
Father: What for? Go on, son.
Son: The banks are said to be averse to the figure 420 for their own reasons, dad.
Father: Like what? Go on, son.
Son: The banks had previously converted a portion of their loan to equity at Rs65 per share and the market price of the share stands at Rs15 per share as on date, dad.
Father: Go on, son.
Son: The share conversion was done under a debt-restructure scheme in 2010 and the bankers are reminded about their huge loss the moment they hear the number 420, dad!
Father: I don’t know, son!
A Minor Problem!
Son: The airline is said to be facing a minor problem, however, dad.
Father: Like what? Go on, son.
Son: A majority of aircrafts of the airline are said to be either seized by the aircraft leasing companies for non-payment of lease rentals, or by the Tax Authorities for non-payment of service tax or by the Airports Authority of India for non-payment of airport charges, dad.
Father: Go on, son.
Son: However, one particular aircraft is said to encumbrance free, dad.
Father: Which one is it? Go on, son.
Son: That is the personal aircraft of Vijaya Mallya, dad!
Father: I don’t know, son!
The May (may or may not) Salary!
Son: There is yet no word on the salary dues of the hapless employees of the airline so far by Vijaya Mallya or the officials of the airline, dad.
Father: True. Go on, son.
Son: The salary for the month of May onwards is said to be still in arrears, dad.
Father: True. Go on, son.
Son: On a query from journalists, one of the officials is said to have told that the airline may or may not pay the salary for May, dad!
Father: I don’t know, son!
The Innovative Financial Accountancy!
Son: The Kingfisher Airline can take the credit for redefining the financial accounting terminology in the cash-flow statement, dad!
Father: How come? Go on, son.
Son: All items connected with income tax and service tax (other than refunds) are considered as cash outflows in the financial accounting, dad.
Father: True. Go on, son.
Son: But Kingfisher Airline has created a record of sorts by treating income tax and service tax as cash inflows, dad!
Father: How come? Go on, son.
Son: The airline has held back and diverted the service tax collected from passengers and tax deducted from the salaries of employees, dad.
Father: Go on, son.
Son: In other words, the tax items have become a sort of cash-flow for the airline, dad!
Father: I don’t know, son!
A V Krishnamurthy
21st December 2012
1 comment:
The entire collection of this week is rightly focused on Kingfisher Airlines. No other corporate has achieved such notoriety in recent times. There is no level to which they will not descend to!!
Post a Comment