A~
ARINDAM MAJUMDERNew Delhi, 23 October
This year, the government has had topostpone bidding for Air
India fourtimes on account of the pandemic. Afifth postponement
looks imminent.Ahead of that, the government has alteredbidding
conditions — the second changesince the airline went on the block
in 2018— to allow prospective suitors to bid onthe global norm of
enterprise value. Will italter the prospects for this ailing
airline tofind a buyer?
Covid-19 has certainlytaken its toll. In January,for instance,
as the Tatagroup’s full-service air-line Vistara, a 51-49 ven-ture
between Tata Sonsand Singapore Airlines,was preparing to wel-come
its first wide-bodyaircraft and launch long-haul destinations, a
jointteam was putting the fin-ishing touches to a pres-entation for
the TataSons board on the acqui-sition of Air India.
The arithmetic was all done: AcquiringAir India, the
presentation said, wouldtransform the Tata group’s aviation
busi-ness — which has a market share of just 10per cent between
Vistara and its AirAsiajoint venture — into a leading Indian
inter-national player and enable it to challengemarket leader
IndiGo on the domestic front(where Air India has a 12.7 per cent
share).Acquiring this heft was worth the financialoutgo, the
Tata-SIA presentation suggested.
“Which company would not be interes-ted in evaluating a
sovereign airline of thecountry?... Whether we bid or not comes
lat-er. We are evaluating it as a joint venture,”Bhaskar Bhat,
chairman of Vistara and adirector on Tata Sons board, had then
said.In fact, the Tata group was widely consid-ered the favourite
to win back the airline ithad owned till the 1960s.
Then the Covid-19 pandemic hit. In thesecond week of March,
India closed inter-
national flights and imposed a total shut-down. With the
infection raging over theglobe, the International Air Transport
Asso-ciation, the global trade association, down-graded its traffic
forecast for 2020 and pre-dicted a recovery of international air
travelonly from 2022. In fact, sources said, withSingapore
Airlines’ bread and butter —international traffic — under pressure,
thegroup doesn’t find it feasible to support amajor acquisition
now.
For Air India, with accumulated losses ofaround ~5,300 crore in
FY 21, the timingcould not have been worse. “We were pro-
ceeding at a very goodpace before the pan-demic. We had issued
anew Expression ofInterest (EoI), we hadworked out certain
debtlevels, we have a veryimportant condition ofnet current
liabilities tobe zero,” said a seniorgovernment officialinvolved in
the process.
The government sou-ght a solution from tran-saction advisor
EY,which suggested either
postponing the sale for two years in orderfor the market to
improve or close downthe airline. Waiting two years would entaila
cost of ~15,000 crore, which the govern-ment believes will be
difficult to recovereven in 2022. Closure will also extract ahuge
cost. Air India has sovereign-backeddebt of almost ~58,000 crore,
which wouldmean the government has to repay it overand above
severance pay for the airline’s9,900-odd employees.
Indeed, the debt burden has been thesticking point in the
sell-off effort. In 2018,an EoI drew no responses,
principallybecause it entailed the government retain-ing a 24 per
cent stake and debts and liabil-ities that were ~33,000 crore at
the time.
The 2020 EoI included major changes;this time the government was
offering 100per cent equity. Meanwhile, in the run-up tothe October
31 deadline, the governmentsought to improve the bidding terms
by
proposing the enterprise value model.Enterprise value includes
the equity valueof a company along with short-term andlong-term
debt as well as any cash on thecompany’s balance sheet.
According to the current sale terms, thebuyer is required to
take over debt of around~23,286 crore. The debt is mainly on
accountof aircraft purchase, which is backed bysovereign guarantees
(those guarantees willbe withdrawn when the airline moves toprivate
ownership). The new bid model,the government believes, will entice
bidd-ers because till now the market saw ~23,286crore as minimum
threshold of bid amount.
The sweetener, as a government officialexplained, is this. “Air
India’s equity value isnegative. Hardly anyone will be willing
topay for equity. But under current disinvest-ment rules, a
negative bid isn’t allowed. So,a prospective bidder had to take
over thedebt amount. Now the bidders can quote acombined value
based on equity and debt.”Subtracting the negative equity
potentiallyreduces the debt component, and the pro-ceeds from the
bid can be used to retirewhatever debt remains on the
airline’sbooks, he pointed out.
This would encourage reluctant biddersto return to the
boardroom. “If I am themarket leader, I will definitely start
calcu-lating: What if someone takes this oppor-tunity of buying Air
India at, say, ~10,000crore. I will definitely redo all my
calcula-tions,” said a merchant banker.
But the catch, again, is the state of theglobal market. “Besides
financials, we willtake the global and Indian peers into acco-unt
while making a valuation for Air India,”a prospective bidder said.
The problem hereis that the valuation of airlines around theworld
has halved on a year-to-date basis.
For the government, the bottom line isthat Air India is now a
distress sale. As anaviation ministry official pointed out, “TheAir
India sale will not generate value forthe government, but it will
cut future bleed-ing. More than revenue, we are seeing it asa
reform.” A possible fifth extension of theOctober 31 deadline by
three months alongwith relaxed guidelines will indicate whe-ther
this “reform” has worked.
New global-standard bid conditions may still not yield optimum
results for the government
Air India sale on anuncertain flight path
ADITI PHADNISNew Delhi, 23 October
Amarinder Singh, chief minister ofPunjab and considered one of
Congressparty’s tallest leaders, has threatened toresign. If he
does, this will be the thirdtime. As in the past, this will be a
sacrificebut, as tactics go, a deeply political one forthis former
army officer.
The first time Singh, a scion of theformer Patiala royal family,
quit the LokSabha and the Congress was in 1984when the army entered
the GoldenTemple. He got the news of OperationBlue Star when he was
playing golf nearShimla. He asked his colleagues in theCongress to
accompany him to meetIndira Gandhi in Delhi and tell her
howdisturbed they all were. They cried off, cit-ing one or other
excuse (one said herchild had diarrhoea). Finally, Singh wentalone
with just one aide.
Indira Gandhi was not hap-py. Rajiv Gandhi called himlater to
pacify him. Singhwas unmoved. “GuruGobind Singh had sent
myancestors a hukumnama [aletter of command to pre-serve the
religion]. There wasno way that I could turnback from my decision,”
hetold his biographerKhushwant Singh. Themove may have been
anemotional one, but it wasalso politically astute.
The second time he re-signed from the Lok Sabhawas in 2016
against theSupreme Court order on theSutlej-Yamuna Link Canalthat
Singh claimed woulddeprive Punjab farmers of theirlegitimate right
to water. Theresignation made eminentpolitical sense. He had come
tothe Lok Sabha after defeatingArun Jaitley from the Amritsar
constituency. State elections were due inPunjab in 2017 and if
the Shiromani AkaliDal (SAD) was to be ousted, onlyAmarinder Singh
could do it.
And he did, trading a Lok Sabha seatfor the chief ministership
of Punjab.
Now, too, the threat of resignation is apolitical one. Having
announced that the2017 election would be his last one, he
haschanged his mind and said earlier thisyear he would be
contesting the 2022state polls. Although still 16 months away,it
makes sense to let his party know he’svery much in the running for
the job he’scurrently holding. And what better timeto spring this
decision when the opposi-tion is trying to organise and defend
itselffrom the charge that it was a collaboratorin actions that are
seen as anti-farmer.
Singh has acted swiftly on the oppor-tunity the Centre has
handed to him ona platter. Punjab has been seething overthe
agricultural reforms introduced bythe Centre. The legislation has
caughtthe opposition SAD on the defensive: andmany see the
resignation of HarsimratKaur Badal from the Union cabinet as
adecision forced on the party after Singh’s
jeering reminders of the SAD’s complic-ity in the passage of the
laws.
In this political game, the actual con-tent of the farm laws
isnot important. The
perception in Punjab is that the laws willmake it harder for
farmers to earn a liveli-hood. Central to this is the notion
thatNew Delhi will eventually do away withthe Minimum Support Price
(MSP),throwing farmers to the wolves.
This may or may not true. But Pun-jab’s response to the central
laws has beento override them and get the Assembly topass laws that
will change the Centre’sversion of the legislation. The
PunjabAssembly, thus, passed a Bill that pro-vides for imprisonment
of not less thanthree years for the sale or purchase ofwheat or
paddy below the MSP. AnotherBill prevents black-marketing of
foodgrains. Farmers owning up to 2.5 acreshave also been given
protection againstthe attachment of their land.
All this legislation was supported bythe entire opposition —
SAD, AAP includ-ed — when the Assembly passed it earli-er this
week. The two Bharatiya JanataParty MLAs were absent when the
Billswere voted — prompting the Congress tochortle that the BJP had
chosen the pathof cowardice because it couldn’t face thefact that
its laws were anti-farmer.
Having achieved what he set out todo, Singh is now asking
farmers to easeup on the pressure, knowing perfectlywell that it is
not possible to keep uppassions in a state of white heat.Farmers
had blocked rail tracks fromOctober 1 on a call given by
several
farmer unions. Some tracks hadbeen blocked since September24.
Earlier this week, somegoods trains were allowed topass, given the
shortage of fer-tiliser and other commodities.
It is now Punjab GovernorVPS Badnore who is caught in abind. He
can refuse assent tothe laws passed by theAssembly. But that will
only fan
the flames of farmer rage. Moreover, itwill put the SAD in a big
political spot.If he decides to put his hand in the fire,Singh will
have to plot his next move.One option, though nobody is men-tioning
it, is the “E” word, as in earlystate elections. And Singh has
alreadyannounced he’s ready for the next one.
NEWSMAKER/ AMARINDER SINGH / CHIEF MINISTER, PUNJAB
Strategic retreater
TURBULENT TIMES(Air India losses, in ~ crore)
6,45
2
5,34
8
7,63
5
‘16-17 ‘17-18 ‘18-19Source: Parliament questions
Having announcedthat the 2017election would behis last, he
haschanged his mindand said earlierthis year he wouldbe contesting
the2022 state polls
NEW DELHI | 24 OCTOBER 2020 TAKE TWO 9. <
SAI MANISHNew Delhi, 23 October
Something peculiar seems to be happeningin Bihar. The state’s
incumbent chief min-ister, Nitish Kumar, has become a com-mon
target of his allies and opponentsalike. The Bharatiya Janata Party
(BJP) maybe trying hard to project itself as standingby him but
unconfirmed reports say manyin the party want to end his twice
inter-rupted decade-long stint at the helm. Thenthere is Chirag
Paswan, former ally-turned-renegade baying for his ouster. Lastly,
theRashtriya Janata Dal (RJD)-Congressalliance is calling the CM a
“tired man” andprojecting itself for a comeback after yearsin the
wilderness.
Both the Narendra Modi government atthe Centre and the Nitish
government inBihar seem to have delivered on many eco-nomic
parameters, especially over the lastyear and a half in the run-up
to the polls.
The Modi government, which owedpart of its success in 2019 to
the Ujwallascheme that offers free LPG cylinders torural
households, has ensured that Biharscores much better on this count
than therest of India. Eighty-five lakh households inBihar — half
of the estimated rural houses— have been given the free cylinders.
WhileBihar accounts for seven per cent of ruralhouseholds in India,
10 per cent of India’sbeneficiaries of the scheme are from
Bihar.
“It’s difficult to gauge the impact of suchschemes. But the
BJP-Janata Dal (United)combine is ahead at the moment.
Thesepolicies have some role to play. But Bihar isabout a lot
more,” said Sanjay Singh of theCentre for the Study of
DevelopingSocieties.
The state has also shown impressiveprogress under the “Har Ghar
Jal” scheme
that aims to provide working a water tapconnection in every
rural household, besi-des an increase in the share of workers
em-ployed under the MGNREGA since 2015-16when Nitish Kumar came to
power. Also,during the lockdown imposed by the Cen-tre, a chunk of
the reverse migrants fromcities were headed for Bihar. Demand
forwork in rural areas saw a steep rise. FromApril to October, the
average wage paid toworkers grew to ~194. During this perioddirect
cash transfers to poor householdsin Bihar also rose. Bihar’s poor
have also in-creasingly benefitted from the Modi’s gov-ernment
small loan scheme, MUDRA.
While Modinomics has seen a height-ened focus on Bihar off late,
Nitish’s per-formance and the state’s 10 per cent GDPgrowth rate
that it has witnessed in recent
years has more to it than meets the eye.Bihar continues to be at
the bottom of thepyramid when it comes to ease of doingbusiness.
According to RBI figures, it hadfewer factories in 2017-18 compared
to 2015-16 when Nitish became CM. While investedcapital in the
state has grown much morethan India’s, rural unemployment
hasreached astronomical levels. Bihar has thehighest rural
unemployment levels amongbigger states. It ranks next to Nagaland
onthis count among states, and its rural un-employment rates are
twice that of India’s.
Although rural agricultural and non-agricultural wages have
increased inrecent years, they still remain below thenational
level. The per capita availabilityof electricity is just a fifth of
what everyother Indian has access to. Although percapita incomes
have increased by almosta third during the Nitish regime, they
stillcontinue to be just a third of what everyother Indian earns.
Although Bihar isgrowing, its people still seem to be as farbehind
other Indians in 2020 than theywere in 2015.
Add to the mix the metamorphosedpolitical dynamics unfolding
this timearound in Bihar and the going might justget tough for the
JD(U). A significant partof the damage that could potentially
bedone to JD(U) would come from ChiragPaswan’s Lok Janashakti Party
(LJP).Chirag would be hoping to ride the sym-pathy wave following
the recent demise ofhis father Ram Vilas Paswan — a strongDalit
face. He continues to support the BJPand attack its ally JD(U)
openly. After hisfather’s demise, Paswan went as far as call-ing
himself “Modi’s Hanuman” and hasbeen openly calling for Nitish’s
ouster.
More on business-standard.com
Can Modinomics & Paswaneffect derail Nitish in Bihar?
Source: Govt of India
‘15-16 ‘16-17 ‘17-18 ‘18-19 ‘19-20
24,0
64
25,8
20
26,6
99
28,6
68
31,2
87
77,6
59
83,0
03 87,8
28
92,0
85
94,9
54
NITISH KUMAR’SPERFORMANCE AS CMNetper capita income
�Bihar �India
th
Notice of the 74 Annual General Meeting and E-voting
Information
Dear Members,
Notice is hereby given that 74thAnnual General Meeting (AGM) f
the Company will be held at 10.00 AM IST, on Monday,
the 16th day of November, 2020 through Video Conference (VC) /
Other Audio Visual Means (OAVM) to transact the st
business, as set out in the Notice of AGM dated 1 October
2020.nd
The Company has sent the Notice of AGM to those shareholders
holding shares of the Company as on 22 October
2020, through e-mail to Members whose e-mail addresses are
registered with the Company / Depositories in th
accordance with the Circular No.20/2020 issued by the Ministry
of Corporate Affairs dated 5 May, 2020 read with th th
Circular No. 14/2020 dated 8 April, 2020 and Circular No.
17/2020 dated 13 April, 2020 (“MCACirculars).
The AGM Notice along with the explanatory statement and the
Annual Report for the financial year 2019-20 is available
and can be downloaded from the Company's website
www.kannapiran.co.in.
Members can attend and participate in the Annual General Meeting
through VC/OAVM facility only. The instructions for
joining the Annual General Meeting are provided in the Notice of
the Annual General Meeting. Members attending the
meeting through VC/OAVM shall be counted for the purposes of
reckoning the quorum under Section 103 of the
Companies Act, 2013.
In compliance with Section 108 of the Companies Act, 2013 read
with Rule 20 of the Companies (Management and
Administration) Rules, 2014 as amended from time to time, the
Members are provided with the facility to cast their votes
on all resolutions set forth in the Notice of the AGM using
remote electronic voting system (remote e-voting) provided by
Central Depository Services India Limited. Additionally, the
Company is providing the facility of voting through e-voting
system during the Annual General Meeting (“e-voting”). Detailed
procedure for remote e-voting/ e-voting is provided in
the Notice of the Annual General Meeting. For further details in
connection with e-voting, members may also visit the
website https://www.evotingindia.com.
The Board of Directors of the Company has appointed Sri.M.R.L
Narasimha, Company Secretary in Practice as
Scrutinizer to scrutinize the voting process in a fair and
transparent manner.
Members are requested to carefully read the instructions printed
for voting through e–voting on the AGM Notice.
Members are also requested to note the following:
Those Members, who shall be present in the AGM through VC / OAVM
facility and had not cast their votes on the
resolution through remote e-voting and are otherwise not barred
from doing so, shall be eligible to vote through e-voting
system during the AGM.
A person whose name is recorded in the Register of Members or in
the register of beneficial owners maintained by the
depositories as on the cut-off date only shall be entitled to
avail the facility of remote e-voting or voting at the Annual
General Meeting. The voting rights of Members shall be in
proportion to the shares held by them in the paid-up equity
share capital of the Company as on the cut-off date.
The Members who have cast their votes by remote e-voting prior
to the AGM may also attend / participate in the AGM
through VC / OVAM but shall not be entitled to cast their votes
again.
Any person, who acquires shares of the Company and becomes a
Members of the Company after the Notice has been
sent electronically by the Company, and holds shares as of the
cut-off date, may obtain the login id and password by
sending a request to [email protected]. However, if he/she
is already registered with CDSL for remote e-
voting then he/she can use his/her existing User ID and Password
for casting the votes.
In case the shareholder's email ID is already registered with
the Company/its Registrar & Share Transfer Agent
“RTA”/Depositories, log in details for e-voting are being sent
on the registered email address.
If you have not registered your e-mail address with the Company
/ Depository you may please follow below instructions
for obtaining login details for e-voting:
Shareholders holding shares in physical mode are requested to
send a request to the Registrar and Transfer Agent of
the Company, M/s Cameo Corporate Services Limited” at
[email protected] by providing Folio No., Name of
Shareholder, scanned copy of the share certificate / allotment
advice (front and back), PAN (self-attested), Aadhar
(Self- attested) for registering the e-mail address.
Shareholders holding shares in Demat mode are requested to
contact your Depository Participant (“DP”) and register
your e-mail address in your Demat account, as per the process
advised by your DP.
For details relating to remote e-voting on AGM, please refer to
the Notice of the AGM. If you have any queries relating to
remote e-voting, please refer to the Frequently Asked Questions
(FAQs) and e-voting user manual for shareholders
available at www.evotingindia.com under help section or write an
email to [email protected] or contact
no. 022 -23058543
In case of any grievances connected with facility for voting by
electronic voting means, please contact e-mail:
[email protected], Tel: (022-23058543).
The result of voting will be announced by the company in its
website www.kannapiran.co.in and on the website of
Central Depository Services India Limited (CDSL).
Notice is hereby given that the Register of Members and Share
Transfer Books of the Company will remain closed from th th
Tuesday, 10 November, 2020 to Monday, 16 November, 2020 (Both
days inclusive) for AGM.
CIN : U17111TZ1946PLC000188
Registered Office : Post Bag No.1, Sowripalayam, Coimbatore 641
028 Tel: 0422- 235 1111 Fax 0422 2351110
Email : [email protected] Website : www.kannapiran.co.in
SRI KANNAPIRAN MILLS LIMITED
Date : 22.10.2020
Place : Coimbatore
1 Date of completion of dispatch of Notice Thursday, 22 October
2020
2 Date and time of Commencement of remote e-voting
3 Date and time of end of remote e-voting / postal ballot
Sunday, 15
Remote e-voting will not be allowed beyond this date and time
(05.00 PM IST)
4 Cut-off date of determining the members eligible for e-voting
/ postal ballot Monday, 9
nd
th
Friday, 13 November, 2020
(09.00 AM IST)th
November, 2020
th
November, 2020
For Sri Kannapiran Mills Limited
KG Balakrishnan
Chairman
DIN : 00002174
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SKP SECURITIES LIMITEDCIN: L74140WB1990PLC049032
Regd. O���� Cha�erjee Interna�onalCentre, Level-21, 33A,
Jawaharlal
Nehru Road, Kolkata - 700 071E-mai�� ��p�����e��om
Web�te: www��p�����e��omPhone & Fax: 033-40077000/7007
Place: KolkataDate : 18.07.2020
For SKP Secur��es LimitedSd/-
Alka KhetawatCompan� ���retary
A47322
NOTICENo��e i hereby given that pur��ntto Regula�on 29 read with
Regula�on47 of the SEBI (Li�ng Obliga��� andDi����re Requirement�
Regula���,2015, a Mee��� of the Board ofDir��tor of the Company
will be heldon Saturday, 25th July 2020 at 10:15AM, inter-alia, to
�on�der and approvethe Unaudited Finan���� Re�ltof the Company for
the �rt quarterended 30th June 2020.Pleae note that the trading
windowfor dealing in equity ��re of theCompany ha already been
�l�ed andthe ��� hall re-open 48 hour a�erthe above Fi����ial Re�lt
are madepub���. Thi No��e may be a��eedo n t h e C o m pa ny ’ we b
i tewww.skp����� ��es .com andonweb�te of the Sto�� Ex�hange
atwww.bseindia.com
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