Friday, August 10, 2018

Pressure mounts on Jet Airways to clear the air on financials after auditor trouble

Disagreement on reporting of a particular expense or income item with the auditor may have led to the audit committee of Jet Airways not recommending its April-June result to the board.
In a late night announcement on Thursday, the airline said its board hadn’t considered the financial result after the audit committee’s decision. “It may be noted that the Audit Committee did not recommend the said financial results to the Board for its approval, pending closure of certain matters,” it said in a release.
Jet has two auditors: BSR & Co and DTS & Associates. Observers said 'certain matters' would pertain to specific items under expenses or income. “For example capitalisation of interest costs could be an issue. A company’s management may not want to show a loss and the auditor will not agree,” a senior official said.
Jet Airways’ Audit Committee comprises three directors - Srinivasan Vishvanathan (who heads the committee), Vikram Mehta and Harsh Mohan.
10/08/18 Prince Mathews Thomas/