New Delhi: Auditors of Jet Airways have raised red flag over the carrier’s ‘going concern’ status, saying the assumption is dependent on various factors including its synergy with Etihad and ability to raise funds.
A company is termed as a ‘going concern’ if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks.
Jet Airways, which turned profitable in the three months ended December 2014, today said strategic investment by Etihad Airways and other initiatives are expected to provide sustainable cash flows for its business.
Hence, the financial results continue to be prepared on a ‘going concern basis’, it said while announcing the latest quarterly results.
Drawing attention to the aspect of ‘going concern basis’, the company’s independent auditors have said the same is dependent on various factors.
“The appropriateness of assumption of going concern is dependent upon realisation of the synergies from alliance with the strategic partner, the company’s ability to raise requisite finance/generate cash flows in future to meet its obligations, including financial support to its subsidiaries,” they said.
06/02/15 PTI/Financial Express
A company is termed as a ‘going concern’ if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks.
Jet Airways, which turned profitable in the three months ended December 2014, today said strategic investment by Etihad Airways and other initiatives are expected to provide sustainable cash flows for its business.
Hence, the financial results continue to be prepared on a ‘going concern basis’, it said while announcing the latest quarterly results.
Drawing attention to the aspect of ‘going concern basis’, the company’s independent auditors have said the same is dependent on various factors.
“The appropriateness of assumption of going concern is dependent upon realisation of the synergies from alliance with the strategic partner, the company’s ability to raise requisite finance/generate cash flows in future to meet its obligations, including financial support to its subsidiaries,” they said.
06/02/15 PTI/Financial Express
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