Kingfisher says lenders' assessment shows company is viable

Mumbai: Kingfisher Airlines Ltd., controlled by liquor baron Vijay Mallya, needs to infuse required funds to continue as a "going concern", its auditor has said, raising concerns about the future of the loss-making carrier.
The auditors, B.K. Ramadhyani & Co, in its report, which is part of the company's annual report for the fiscal year that ended March 31, 2011, has mentioned that the company's accumulated losses at the end of the financial year "were more than fifty per cent of its net worth."
Kingfisher shares fell Thursday more than 5 per cent to a low of 24.8 rupees, hovering close to its year-low of 23.35 rupees.
The airline has not posted a profit since its inception in 2005. For the quarter ended June, Kingfisher widened its net loss by 43 per cent to 2.64 billion rupees.
The term "going concern", in accounting parlance, refers to a company's ability to continue operations in the near future.
15/09/11 Reuters/Economic Times

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Categories: Kingfisher Sep 2011