New Delhi: Struggling carrier Air India understated losses by R2,842.5 crore in 2011-12, says an audit report. This means the state-owned airline’s actual net loss was R10,402.24 crore, not R7,559.74 crore as it reported. The auditors were not convinced by the airline directors’ reply expressing confidence of realising the deferred tax asset based on its turnaround steps.
Auditors R Devendra Kumar & Associates, Kapoor Tandon & Co and PKKG Balasubramaniam & Associates were appointed by the Comptroller and Auditor General of India to review Air India’s accounts for 2011-12.
“The company has been carrying the net balance of deferred tax asset amounting to R2,842.5 crore which was recognised in 2007-08 and 2008-09. In the subsequent years, deferred tax asset has been recognised only to the extent of deferred tax liabilities as a prudent measure,” auditors said in their report to the management. The report is part of Air India’s FY12 annual report, a copy of which has been reviewed by FE.
16/04/13 Debabrata Das/Financial Express
