September 15, 2011 9:33:03 am
Shares in Kingfisher Airlines Ltd. fell over 5 percent in opening trades after its auditor said in the company’s annual report that the carrier needs to infuse required funds to continue operations.
At 9.20 a.m.,shares were at 25.50 rupees,down 2.86 percent.
Kingfisher Air needs to infuse funds to continue operations-auditor
Kingfisher Airlines Ltd.,promoted by liquor baron Vijay Mallya,needs to infuse required funds to continue as a going concern,its auditor has said in the company’s annual report for the fiscal year that ended March 31,2011.
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The auditors,B.K. Ramadhyani & Co,in its report,has mentioned that the company’s accumulated losses at the end of the financial year were more than fifty percent of its net worth.
The term going concern in accounting parlance refers to a company’s ability to continue operations in the near future.
The annual report has been posted on the Bombay Stock Exchange website.
In late August,Kingfisher Airlines Ltd said its board had approved a rights issue of shares to raise up to 20 billion rupees ($434 million).
The company gave no timing or details of the proposed issue.
Kingfisher says lenders’ assessment shows co is viable
Kingfisher Airlines said on Thursday its lenders have independently assessed that the airline is viable as a going concern.
During the year,RBI had directed the banks to independently assess the viability of KFA and this was in fact,carried out by the lenders with the assistance of SBI Capital Markets confirming that KFA is viable i.e. as a going concern,the airline said.
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