Kingfisher Airlines can't release results unless MoCA clears Lalit Bhasin's appointment

Written by fe Bureau | Mumbai | Updated: May 21 2014, 18:02pm hrs
Kingfisher Airlines on Tuesday said that it can't conduct board meetings and hence is unable to release its annual and quarterly results for the last fiscal and quareter respectively, until obtaining a security clearance from the Ministry of Civil Aviation for the appointment of Lalit Bhasin as a director of the company.

The Vijay-Mallya led airline, which has been grounded since October 2012, said that it has informed the Registrar of Companies that it can't publish its audited financial results for FY 2014 on a letter dated May 19, 2014, it said in a Bombay Stock Exchange (BSE) notification.

In terms of Clause 41(d) of the Listing Agreement, the Company is required to submit audited financial results for the entire financial year within sixty days of the end of the financial year. Further, Clause 41 (II)(e) requires that the annual audited financial results should be approved by the Board of Directors and shall be signed by the Chairman or Managing Director and in terms of Clause 41(VI)(a), the Company is required to publish the audited financial results within forty eight hours of conclusion of the Board Meeting at which the financial results were approved, the company in a BSE notification on Tuesday.

In view of what is stated above, it is impossible for the Company to publish the audited financial results for the year ended March 31, 2014 unless the security clearance for the appointment of Lalit Bhasin is granted by the Ministry of Civil Aviation, and as a result there is quorum to hold a Board meeting, it added.

The airline further elaborated that it is currently operating with skeletal staff making it difficult to audit and publish result in time.