Another one bites the dust! After Jet Airways and Kingfisher Airlines, it is Pawan Hans Limited which is now facing a financial crisis.
In the circular issued by Pawan Hans management to its employee, it states that the company is not in a position to disburse employee’s salaries for the month of April due to “uncomfortable financial position in Pawan Hans.”
“While reviewing the overall performance of the company, it has been observed that the company is facing an uncomfortable financial position. The industry’s future is uncertain as many of our established businesses and our associated challenges are threatening future deployments. In terms of financial performance, the revenue has sharply declined in the financial year 2018-19 and the company has incurred a net loss to the tune going to ₹89 crore during this financial year,” the circular said.
“Also, search trends have been financially downturn owing to serious mismatch that has been built up between the revenue income depending on the present business volume and the expenses, particularly on the staff cost. The situation has further turned critical as the outstanding amount lying with various customers has risen to alarming levels of over ₹230 crores. Therefore, there is a need for complete transformation by adopting corrective measures in various areas of management,” it said.
The circular further said, “Keeping in view the crucial financial position of the company, it has been decided to defer the salary for the month of April 2019 of the employees other than who are directly contributing to the production till the time a target recovering 60 percent of the outstanding dues by bringing the receivable below ₹100 crore on achieving the task. The issue would be reviewing with alternative methods of cost-cutting with and improve the deficiency in Pawan Hans Ltd operations with a contribution of each individual employees.”
Replying to this circular Pawan Hans Employees Union has replied to the management saying the act is inhuman and not appreciated.
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Also, the union members have threatened to approach the CAG and CBI over Pawan Han’s financial issues in case the management fails to listen to their grievances.
