Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: TDS :: cpt :: list of goods taxed at 4% :: VAT RATES
 
 
Service Tax »
 GST to rate taxpayers, businesses on payment record, make ratings public
 7 major benefits of Goods and Services Tax
 100 Opening GST Profiles- Indirect Taxation- ALL Industries
 New Opening Sr. Manager-Indirect Tax For A Leading Power Company
 Tax Collected At Source Under GST Regime
 India's GST challenge makes Donald Trump's tax overhaul look easy
 What does GST hold for Indian youth?
 GST will help India move towards becoming a commercial union
 Friendly advance ruling mechanism to smoothen ride under GST regime
 GST impact: Small businesses could under-report income initially
 The art of doing business under GST

AI to seek norms waiver from RBI
July, 05th 2011

Bleeding national carrier Air India is planning to approach the Reserve Bank of India (RBI) for a special waiver of its provisioning norms. AI has defaulted on payment of service tax and interest on working capital, and owes around Rs 48,000 crore in loans and payments to vendors.

Its loans would become non-performing assets (NPAs) as per RBI provisioning norms, if the interest liability or the repayment of loan is not made by July-end.

Documents accessed by Hindustan Times reveal that the airline will approach RBI once the business plan prepared by SBI Caps is cleared by lenders.

The airline would also approach the finance ministry for a suitable commitment on equity support as well as comfort letter which the lenders may seek.

Banks have already stopped lending to AI and in the event of a default government guarantees would be triggered affecting the credibility of the sovereign. The cross default clause would also apply thereby invoking the guarantee under various aircraft loans.

If AI's loans become NPAs, banks may sell off the assets that it had pledged to secure loans and freeze its accounts, which would bring operations to a halt.

The restructuring is likely to bring an interest relief of Rs 600 crore by way of reduction in interest cost on working capital as well as ease the liquidity position. Refinancing of certain long term loans would provide interest relief of Rs 280 crore.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions