Accounting changes cut Jet losses

New Delhi: Naresh Goyal-led Jet Airways has recovered a part of interest-free loan to its low-cost airline subsidiary JetLite, whose accumulated losses are more than the net worth, according to financial statemets of the company.
Jet Airways, whose net loss widened to Rs 214 crore in third quarter of this fiscal from Rs 91 crore a year-ago, has equity and preference investments as on December 31, 2008 aggregate to Rs 1,645 crore in JetLite (known as Air Sahara prior to its acquisition).
While the value of investment Jetlite has remained unchanged from the level as on September 30, 2008, the size of interest free loans has declined in the three months.
Net loss of the Jet would have been Rs 2,307.6 crore for the nine months ended December 31 and Rs 572.09 crore for the quarter ended on the same date, instead of Rs 455.33 crore and Rs 214.18 crore respectively as reported by the company, had certain foreign currency differences been treated in books as per the Accounting Standard (AS)-11, Jet had said recently while releasing the latest quarter results.
As per the company notes, signed by its Executive Director Saroj Datta, attached to its third quarter results, Jet Airways has "an amount of Rs 367.83 crore advanced on account of interest free loans as on December 31, 2008" to JetLite.
18/01/09 PTI/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Jet Airways Jan 2009