New Delhi: As airlines continue to find it tough to generate profits and raise funds, auditors of all three listed carriers -- Jet Airways, Spicejet and Kingfisher -- have raised red-flags on their 'going concern' status.
In their latest quarter review reports, the auditors of all three airlines have said that the "appropriateness of the going concern basis" is dependent on the respective company's ability to generate adequate finance to meet short-term and long-term obligations and to operate profitably.
A company is typically known as a 'going concern' if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks.
Troubled air carrier Kingfisher Airlines, part of Vijay Mallya-led UB Group, has faced the most stringent set of adverse auditor comments, while auditors for Naresh Goyal-led Jet Airways and Maran family-run Sun Group's Spicejet have also commented on their 'going concern' status.
10/11/13 PTI/Business Standard
To Read the News in full at Source, Click the Headline
In their latest quarter review reports, the auditors of all three airlines have said that the "appropriateness of the going concern basis" is dependent on the respective company's ability to generate adequate finance to meet short-term and long-term obligations and to operate profitably.
A company is typically known as a 'going concern' if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks.
Troubled air carrier Kingfisher Airlines, part of Vijay Mallya-led UB Group, has faced the most stringent set of adverse auditor comments, while auditors for Naresh Goyal-led Jet Airways and Maran family-run Sun Group's Spicejet have also commented on their 'going concern' status.
10/11/13 PTI/Business Standard
