The auditors of debt-ridden Kingfisher Airlines (KFA) said on Sunday the carrier needs to strengthen its internal audit systems and have raised concerns over numerous issues including delayed or no-payment of dues.
Making some serious observations about the books of accounts of KFA, the auditors in their report for 2011-12 have said the company has prepared its financial statements on a ‘going concern’ basis, despite its net worth having been completely eroded. “The appropriateness of the said basis is inter-alia dependent on the company’s ability to infuse requisite funds for meeting its obligations, rescheduling of debt and resuming normal operations,” said the report, being sent to shareholders ahead of the September 26 AGM.
KFA’s net loss more than doubled to Rs. 2,328 crore in 2011-12, from Rs. 1,027 crore in the previous year. Its total long-term borrowings stood at Rs. 5,695 crore as on March 31, 2012, from Rs. 6,306 crore a year ago.