Audit firm Ernst & Young says chances of beleaguered Kingfisher Airlines siphoning off the loans it received from its lenders for purposes other than its sanctioned use is 'highly positive'.
According to a report in DNA , which quoted the finance ministry, the Rs 336 crore loan sanctioned by Union Bank of India (UBI), which is not part of the SBI led consortium, was withdrawn and deposited in another account with a private bank by Kingfisher, which is not allowed.
"In a similar fashion, the loans and advances taken from the banks in the SBI consortium has also been diverted, according to the findings of the report. The ministry is closely examining the report and we have already asked SBI to act fast on the NPA issue," a FinMin official was quoted in the DNA report.
Three major PSU banks SBI , PNB and IDBI have initiated the process to declare Kingfisher Airlines and others as wilful defaulters after the firms failed to service their debt. As part of the process, E&Y was hired to conduct a forensic audit on the Vijay Mallya-led carrier to check and see whether there was any misuse of the loans.
As per RBI guidelines, it would have to be proven that the borrower had diverted funds which he took from the bank and was not paying up despite having the ability to pay.
The Department of Financial Services, after reviewing top 50 Non Performing Accounts (NPAs) of public sector banks, had asked the state-owned banks to initiate action against defaulters.
According to a Business Standard report, Kingfisher is at the number one spot on defaulters. The list also has Winsome Diamond (Rs 3,243 crore), Electrotherm India (Rs 2,653 crore), Corporate Power (Rs 2,487 crore) and Sterling Biotech (Rs 2,031 crore).
Kingfisher Airlines has an outstanding debt of about Rs 4,022 crore to a consortium of banks, led by SBI. United Bank of India , part of the consortium, has already initiated the process to declare the company a wilful defaulter.
Once a company is declared wilful defaulter, criminal proceedings can be initiated against promoters and directors of the company. Besides, it would not be allowed to raise fresh funds from banks and set up new ventures for five years.
As part of the recovery process, banks in February last year decided to sell a portion of the collateral with them, including shares of group companies United Spirits and Mangalore Chemicals & Fertilizers Ltd, Mallya's Goa villa, Kingfisher House in Mumbai and the Kingfisher brand, which was valued at over Rs 4,000 crore at the time it was pledged.
Kingfisher Air stock price
On August 14, 2014, Kingfisher Airlines closed at Rs 2.77, up Rs 0.22, or 8.63 percent. The 52-week high of the share was Rs 6.84 and the 52-week low was Rs 2.06.
The latest book value of the company is Rs -166.59 per share. At current value, the price-to-book value of the company was -0.02.
Anda sedang membaca artikel tentang
Highly positive says auditor on Kingfisher siphoning funds
Dengan url
https://kebugaranhidup.blogspot.com/2014/08/highly-positive-says-auditor-on.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Highly positive says auditor on Kingfisher siphoning funds
namun jangan lupa untuk meletakkan link
Highly positive says auditor on Kingfisher siphoning funds
sebagai sumbernya
0 komentar:
Posting Komentar