Bourses question Jet on delaying quarterly results
11 August 2018
A day after Jet Airways (India) Ltd deferred the release of its quarterly results for the April-June 2018-19 period, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have sought answers from the airline as to why its audit committee did not approve financial results for the quarter ended 30 June.
The Naresh Goyal-controlled carrier is reported to have completely eroded its net worth forcing at least one of its auditors to comment that the airline will not be able to make any transactions.
BSR & Co, a KPMG affiliate, has found the airline to be not considered as a 'going concern, according to an ET Now report. BSR and KPMG are also reported to be considering quitting as Jet Airways auditors.
In a BSE filing late on Thursday evening, the airline said the board of directors decided not to review the unaudited financial performance for the June quarter.
"The audit committee did not recommend financial results to the board for its approval, pending closure of certain matters," the airline said in the regulatory filing without offering more details.
The two exchanges have asked the airline whether any matter other than earnings was discussed during the board meeting. The exchanges have also asked the carrier when the adjourned board meeting would now be held.
A fresh date for the meeting will be declared in due course, said a spokesman for Jet Airways, who spoke on condition of anonymity.
“As per your announcement dated August 9, it was stated that there are certain matters which have been not closed. Kindly state us the details of these matters,” NSE asked the company in a message posted on the exchange’s website.
Meanwhile, BSE asked Jet Airways to disclose the matters pending closure, as well as whether any matter other than results was on the agenda which merited disclosure to stock exchanges under listing regulations.
“If so, why have the same not been submitted?” it asked.
Shares of Jet closed 8.4 per4 cent lower on the BSE at Rs276.4.
Higher fuel prices and intense competition has been affecting airlines. Jet Airways posted a net loss of Rs1,036 crore in the March quarter that erased profits from the first three quarters.
Other airline, including InterGlobe Aviation Ltd’s IndiGo, the largest airline by market share, are also facing financial difficulties. IndiGo reported a 97 per cent drop in June quarter profit, its worst quarterly performance.
The company made a net loss of Rs767 crore in the last financial year as spending, mainly fuel costs, employee benefits and distribution expenses, overshot revenue.