Sunday, March 12, 2017

Yes, Air India Never Made Any Profit, It Under- Reported It's Original Loss Of Rs 321 Crore

Apex Auditor, Comptroller and Auditor General (CAG) has revealed that Air India had actually incurred an operating loss of Rs 321.4 crore last fiscal year. However, Air India reported that it had made an operating profit.
The CAG said that there was no fudging of numbers, however, the figures reported by the airline are "actually under-reporting of loss".
Air India, still alive on taxpayers’ money, reported an operation profit of Rs 105 crore in 2015-16, a first in over a decade.
"For 2015-16 where Air India has reported an operating profit of approximately Rs. 105 crore, the audit of Air India's standalone accounts for 2015-16 has been completed," Deputy CAG Pradeep Rao said.
About the operating profit which Air India has stated it has made in 2015-16, Rao said that in the view of CAG, "it is actually an operating loss of Rs. 321.4 crore".
Based on the observations made by statutory auditor of the company and the subsequent check by CAG, "we have found that they have not made provisions which they should have made in terms of standard accounting procedures", he noted.
Rao spoke about Air India's financial performance during the 2015-16 fiscal while briefing reporters about the CAG's performance audit on 'Turnaround Plan (TAP) and Financial Restructuring Plan (FRP) of Air India Ltd'.
12/03/17 India Times