Kingfisher Airlines auditor hints scam?
The carrier today posted net loss of Rs 754 crore for the fiscal's second quarter ended September 30 - a widening of 61 per cent from Rs 469 crore in the year-ago quarter – taking its accumulated losses to close to Rs 9,000 crore.
In their 'limited review report' for its second quarter results, the auditors said the losses would have been Rs 1,031.77 crore if their certain "observations" about the company's accounting procedures had been considered.
Besides, its 'reserves and surplus' would have been a debit of Rs 12,155 crore as on September 30, 2012, as against a debit of Rs 7,339 crore reported by the company, auditors said.
The "observations" refer to the issues flagged by the auditors about the financial statements being reviewed by them.
The auditors have drawn attention to Kingfisher's financial statements being prepared on a 'going concern' basis despite its net worth having been eroded.
"The appropriateness of the said basis is inter-alia dependent on the company's ability to obtain restoration of the scheduled air operator's permit by the DGCA, infuse requisite funds for meeting its obligations, rescheduling of debt and resuming normal operations," the auditors said.
Kingfisher's Q2 revenues plunged to Rs 200 crore, from Rs 1,553 crore in the same period last year because of disruption in operations and eventual
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