Auditor says Kingfisher needs funds to continue operations
15 Sep 2011
Mumbai: The future of Vijay Mallya-owned Kingfisher Airlines Ltd has suddenly come under a cloud with an audit report suggesting that funds need to be infused in order for the firm to continue as a "going concern". The loss-making carrier is yet to report a single quarters profit since its inception in 2005.
In accounting parlance, the term "going concern", refers to a company's ability to continue operations.
In its report firm auditors BK Ramadhyani & Co has mentioned that the company's accumulated losses at the end of the financial year "were more than fifty per cent of its net worth."
The report is part of the company's annual report for the fiscal year ended 31 March 2011.
The annual report has been posted on the Bombay Stock Exchange website.
For the quarter ended June, Kingfisher widened its net loss by 43 per cent to Rs264 crore.
