MCA seeks clarifications from auditors on Jet Airways deferring results
23 August 2018
The ministry of corporate affairs is reported to have sought clarifications from the auditors of Jet Airways on the airline deferring announcement of its June quarter results, following reports that the auditors had issues regarding the airline being a going concern.
The board of Jet Airways, at its meeting on 9 August, decided to defer the matter of consideration of the unaudited financial results for the June quarter and also decided to work on cost-cutting measures.
Jet airways, India`s biggest full-service carrier, however, refuted reports of stake sale, terming them as factually incorrect as well as malicious.
“Jet Airways (India) Limited would like to clarify that recent media reports about the sustainability of the airline are not only factually incorrect, but also malicious. The airline would also like to deny any conjecture of a stake sale,” the company said in a statement last week.
The airline's board is scheduled to meet on 27 August to consider and approve the unaudited financial results for the first quarter ended 30 June.
Reports, earlier this month, said Sebi was also looking into the airline delaying June quarter results after the carrier's audit committee expressed reservations.
The aviation industry, which has been enjoying a comfortable run during the past few years due to softer oil prices, has been seeing a repeat of the oil spike. Almost all airlines in India have been passing through hard times and have reported losses.
Jet Airways, part owned by Gulf carrier Etihad Airways, had net debt of Rs8,150 crore ($1.2 billion) as of end-March with the bulk of it being US dollar denominated.
Last week, some media reported quoted that the company had asked its senior staff and pilots to take a pay cut. Jet, however, said that in line with the company's stated focus of creating a healthier and more resilient business, it has been implementing several measures to reduce costs as well as realize higher revenue.