Auditors cast ‘significant doubt’ over Garuda’s survival

Auditors have raised “significant doubt” over Garuda Indonesia’s ability to continue as a going concern, after the beleaguered flag carrier plunged to a record full-year loss. In a report accompanying the carrier’s financial results, KAP Tanudiredja, Wibisana, Rintis & Rekan, a member firm of accounting giant PwC, assigned a disclaimer of opinion — given when auditor cannot judge whether the accounts have been created properly — on Garuda’s financial results. It notes that Garuda’s financial situation weakened due to the coronavirus pandemic, which has impacted the airline group’s performance and liquidity. “The adverse impact on the group’s operation and liquidity has directly affected the group’s ability to meet its financial obligations to its lenders and its significant vendors such as fuel suppliers, airport operators and aircraft lessors,” note the auditors. The carrier already has several leased aircraft grounded, after it failed to meet its obligations to its lessors, the auditors state. “All of these conditions indicate the existence of material uncertainties which may cast significant doubt about the Group’s ability to continue as a going concern,” they add. <br/>