Vijay Mallya gives Kingfisher creditors guarantees worth Rs5,904 cr

Kingfisher Airlines chairman Vijay Mallya has given guarantees worth Rs5,904 crore for the carrier's loans and other liabilities in 2011-12, but has not given any commission for the same due to lenders' opposition.

While guarantees given by Mallya were down from Rs 6,156 crore in the previous year 2010-11, the guarantees provided by Kingfisher's holding and associate companies rose higher from Rs8,863 crore to Rs8,926 crore in this period.

According to the company's latest annual report 2011-12, sent to shareholders last evening ahead of the Annual General Meeting on 26 September, no payments were made to Mallya during the fiscal.

As against this, remuneration paid to its CEO Sanjay Agarwal nearly doubled from Rs 2.12 crore to Rs4.01 crore, although the total employee remuneration was marginally down by 1 per cent to Rs669.5 crore due to lower headcount.

According to the carrier,  its headcount was down by 1,651 people or 22 per cent to 5,696 persons in the last fiscal with the carrier planning further measures for optimising its ''human resources utilisation.''

Writing on behalf of the company's board, chairman Mallya said in the 'Report of Directors for the year 2011-12' that Kingfisher was working on a ''holding pattern'' basis with limited operation, pending policy changes.