CAG says AI’s loss at Rs 321 cr while airline claims Rs 105 cr profit

March 12, 2017

New Delhi, Mar 12: The CAG today said Air India “actually incurred” an operating loss of Rs 321.4 crore in 2015-16, even the airline maintained it had an operating profit of Rs 105 crore based on generally accepted accounting standards.

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While making it clear that there was no fudging of numbers, officials at the Comptroller and Auditor General (CAG) said figures reported by the airline are “actually under-reporting of loss”.

Air India said the “operating profit of Rs 105 crore is as per the generally accepted accounting standards” and was calculated on the basis of reducing total expenditure excluding only the financing costs from total revenue.

“It is therefore the equivalent of earnings before interest and tax (EBIT) and includes provision of Rs 1,867.78 crore of depreciation.

“Had depreciation been excluded from the expenditure the operating profit would have significantly increased,” the airline’s spokesperson said in a late evening statement.

Air India, which is staying afloat on taxpayers’ money, reported an operational profit of Rs 105 crore in 2015-16 -- its first in more than a decade.

“For 2015-16 where Air India has reported an operating profit of approximately Rs 105 crore, the audit of Air India’s standalone accounts for 2015-16 has been completed,” Deputy CAG Pradeep Rao said.

About the operating profit which Air India has stated it has made in 2015-16, Rao said that in the view of CAG, “it is actually an operating loss of Rs 321.4 crore”.

Based on the observations made by statutory auditor of the company and the subsequent check by the CAG, “We have found that they have not made provisions which they should have made in terms of standard accounting procedures,” he noted.

Rao spoke about Air India’s financial performance during the 2015-16 fiscal while briefing reporters about the CAG’s performance audit on ‘Turnaround Plan (TAP) and Financial Restructuring Plan (FRP) of Air India Ltd’.

The performance audit report, which covered the period from 2010-11 to 2015-16, was tabled in Parliament today.

CAG’s observations also come at a time when concerns persist in certain quarters about the financial viability of Air India even as the government has been talking about last fiscal’s operational profit to counter the concerns.

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March 19,2024

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New Delhi, Mar 19: The Supreme Court today came down heavily on Patanjali Ayurved for failing to respond to a contempt notice for issuing misleading advertisements and ordered yoga guru Ramdev to appear before it.

A bench of Justices Hima Kohli and Ahsanuddin Amanullah also summoned Patanjali managing director Acharya Balkrishna.

The Supreme Court last month pulled up Patanjali for prima facie violation of its assurances about its products and statements claiming their medicinal efficacy. The court had issued a notice to Patanjali and Balkrishna, asking why contempt proceedings should not be initiated against them.

It noted today that Patanjali did not file a response even though it had held a press conference after its previous order. "Why haven't you filed your response yet? We will ask the managing director to appear in the court during the next hearing," the court said.

The order states both Ramdev and Balakrishna were prima facie in violation of Sections 3 and 4 of the Drugs and Remedies Act, which deal with misleading ads of medicines.

The court also issued a contempt notice to Ramdev, co-founder of Patanjali, and asked him to explain why he should not face action for contempt of court.

Senior lawyer Mukul Rohatgi, appearing for Patanjali Ayurved, opposed the move and sought to know, "How Ramdev comes into the picture?"

"You are appearing. We will see on the next date. Enough," the court replied.

"We had our hands tied earlier but not now. As an officer of the court, you (Mr Rohatgi) should know your position," said Justice Amanullah.

The court was hearing a petition by the Indian Medical Association (IMA) alleging a smear campaign by Ramdev against the vaccination drive and modern medicines.

On February 27, it had issued a contempt notice to Patanjali and cautioned them against from making any statements against any system of medicine in the media. It had also pulled up the centre for not taking action and said they were sitting with their eyes closed.

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March 16,2024

AIE.jpg

Budget carrier Air India Express has launched a new fare family, offering travelers the option to save on flight tickets by traveling light, with an increased baggage allowance of up to 40kg or no check-in luggage at all.

The new fare categories, applicable to flights to and from the UAE and other international destinations, are:

•    Xpress Lite
•    Xpress Value
•    Xpress Flex
•    Xpress Biz

Xpress Lite offers cabin baggage-only fares, making it the most economical option for passengers traveling with the airline.

Xpress Value fare includes 15 kg check-in bag fares, while Xpress Flex offers unlimited changes with no change fees. Xpress Biz features business class seats, complimentary meals, and priority services.

A subsidiary of Air India and a part of Tata Group, the airline introduced Xpress Lite on February 20 for UAE passengers who prefer traveling without check-in baggage.

Xpress Biz fares are accessible on all the new Air India Express Boeing 737-8 aircraft. Travelers can benefit from increased baggage allowances of 25kg for domestic flights and 40kg for international flights when booking Xpress Biz fares. This fare offers priority check-in, baggage, and boarding services.

Air India Express is already operating aircraft with Biz seats across 70-plus routes in India.

In a previous interview with a news channel Aloke Singh, managing director of Air India Express, stated that the carrier was looking to increase capacity to the Gulf region, including the UAE, as well as to provide better connectivity to Gulf travelers.
 

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March 16,2024

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New Delhi: The 2024 general election for 543 Lok Sabha seats will be held in seven phases from April 19, Chief Election Commissioner Rajeev Kumar said today, announcing the largest democratic exercise in the world. Results will be announced on June 4.

The seven phases: 
April 19
April 26
May 7
May 13
May 20
May 25
June 1

Simultaneous election for Lok Sabha and assembly will be held in four states -- Sikkim, Odisha, Arunachal Pradesh and Andhra.  

By-elections will also be held for 26 assembly seats across multiple states, including Bihar, Gujarat, Haryana, Jharkhand, Maharashtra, Rajasthan and Tamil Nadu.

Mr Kumar, announcing the dates, sent out a strong message on fake news on social media, saying political parties should ensure responsible social media behaviour -- "verify before you amplify".

"Fake news will be dealt with severely as per existent laws.. Section 79 (3)(B) of the IT Act empowers nodal officers in each state to remove unlawful content," he said.

The other strong message was on violation of model code in terms of hate speeches. "There should be issue-based campaign, no hate speeches, no speeches along caste or religious lines, no criticism of anyone's personal lives," he said.

The media must clarify when they carry political adverts, those cannot masquerade as news, he said. Individual messages regarding this would be sent to the candidates, he added.

The commission has employed 2,100 advisors to keep an eye on these issues and strong action will be taken regarding this, he said.

Voters above the age of 85 years and persons with disabilities, with 40 per cent disability can vote from home, Mr Kumar said. Around 82 lakh voter are above the age of 85, he said.

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