CAG red flags Air India's FY 17 accounts, says loss understated by INR35b
The Comptroller and Auditor General of India has said Air India underreported its FY 2017 loss by INR35.46b due to the treatment of certain receivables as other income, lower provisioning and overstatement of deferred tax assets. The govt auditor's report is a part of the airline's FY 2017 accounts which was tabled before the Parliament Wednesday. Last fiscal the airline made a net loss of INR57.6b on a total revenue of INR221b. Net Loss for the year widened from INR38.3b in FY 16. In its observations, CAG has said the loss for FY17 should have been higher and has also made certain comments with regard to the turnaround plan and its 'going concern' status. On its part Air India has claimed there was no violation of accounting practices and thus no understatement of loss. <br/>
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CAG red flags Air India's FY 17 accounts, says loss understated by INR35b
The Comptroller and Auditor General of India has said Air India underreported its FY 2017 loss by INR35.46b due to the treatment of certain receivables as other income, lower provisioning and overstatement of deferred tax assets. The govt auditor's report is a part of the airline's FY 2017 accounts which was tabled before the Parliament Wednesday. Last fiscal the airline made a net loss of INR57.6b on a total revenue of INR221b. Net Loss for the year widened from INR38.3b in FY 16. In its observations, CAG has said the loss for FY17 should have been higher and has also made certain comments with regard to the turnaround plan and its 'going concern' status. On its part Air India has claimed there was no violation of accounting practices and thus no understatement of loss. <br/>
