<p>The Corporate Affairs Ministry has ordered an inspection of the account books of debt-ridden Kingfisher Airlines after receiving complaints from stakeholders alleging violation of company law like provisions on debt-equity ratio, sources said.<br /><br /></p>.<p>The Registrar of Companies, Bangalore, has been asked to carry out inspection of the books of accounts of Kingfisher Airlines under section 234 of the Companies Act, it said.<br /><br />The RoC has sought information from the company about its debt-equity ratio, details of secured and unsecured loans of 2009-10 and 2010-11, daily operational expenses and administrative costs, among other things, the sources said. The order for inspection was issued last week.<br /><br />The RoC has also been asked to look into possible violations of accounting norms by Kingfisher Airlines in its balance sheet, it said.<br /><br />Section 234 of the Companies Act provides powers to seek more explanation or details from a company or inquire into its financial details if the Registrar is not satisfied.<br /><br />When contacted, a Kingfisher spokesperson said it was a "technical issue" and he would revert only after consulting the company secretary.<br /><br />Kingfisher had on Saturday reported widening of net loss for the quarter ended June 30, 2012 to Rs 650.8 crore mainly due to costs associated with non-operating aircraft. Its Chairman Vijay Mallya had acknowledged that the airline's net worth had been adversely affected, even though it was a going company.<br /><br />The airline had posted a net loss of Rs 263.5 crore in same period last year.<br /><br />In January, the private air carrier had allotted preferential shares to a consortium of lenders, besides promoter firms United Breweries (Holdings) and Kingfisher Finvest India Ltd, under a scheme to recast its debt.<br /><br /><br /><br /></p>
<p>The Corporate Affairs Ministry has ordered an inspection of the account books of debt-ridden Kingfisher Airlines after receiving complaints from stakeholders alleging violation of company law like provisions on debt-equity ratio, sources said.<br /><br /></p>.<p>The Registrar of Companies, Bangalore, has been asked to carry out inspection of the books of accounts of Kingfisher Airlines under section 234 of the Companies Act, it said.<br /><br />The RoC has sought information from the company about its debt-equity ratio, details of secured and unsecured loans of 2009-10 and 2010-11, daily operational expenses and administrative costs, among other things, the sources said. The order for inspection was issued last week.<br /><br />The RoC has also been asked to look into possible violations of accounting norms by Kingfisher Airlines in its balance sheet, it said.<br /><br />Section 234 of the Companies Act provides powers to seek more explanation or details from a company or inquire into its financial details if the Registrar is not satisfied.<br /><br />When contacted, a Kingfisher spokesperson said it was a "technical issue" and he would revert only after consulting the company secretary.<br /><br />Kingfisher had on Saturday reported widening of net loss for the quarter ended June 30, 2012 to Rs 650.8 crore mainly due to costs associated with non-operating aircraft. Its Chairman Vijay Mallya had acknowledged that the airline's net worth had been adversely affected, even though it was a going company.<br /><br />The airline had posted a net loss of Rs 263.5 crore in same period last year.<br /><br />In January, the private air carrier had allotted preferential shares to a consortium of lenders, besides promoter firms United Breweries (Holdings) and Kingfisher Finvest India Ltd, under a scheme to recast its debt.<br /><br /><br /><br /></p>