Auditor commentary for SpiceJet, Kingfisher Airlines and Jet Airways

Credit- CAPA

Carrier	Auditor’s report
Kingfisher Airlines	Kingfisher Airlines' auditors have raised concern over its ability to remain a "going concern", stating it would need to inject more funds to remain in such a position. "The financial statements being prepared on a going concern basis, notwithstanding the fact that the company's net worth is eroded. The appropriateness of the said basis is inter-alia dependent on the company's ability to infuse the requisite funds for meeting its obligations," BK Ramadhayani & Co said in its report. Kingfisher Airlines chairman and MD Vijay Mallya, upon the release of the carrier's unaudited financial results for the nine months ended 31-Dec-2011, conceded that the company has "incurred substantial losses and its net worth has been eroded". He continued: "However, having regard to capital raising plans, group support, the request made by the Company to its bankers for further credit facilities, planned reconfiguration of aircrafts and other factors, these interim financial statements have been prepared on the basis that the Company is a going concern and that no adjustments are required to the carrying value of assets and liabilities."
Jet Airways	Jet Airways' auditors, Deloitte Haskins & Sells and Chaturvedi & Shah, at the end of 2QFY2012 warned the carrier needs to raise funds in order to meet its obligations, fund the operations of loss-making JetLite and ensure the carrier continues as a 'going concern'. "The appropriateness of the assumption of going concern is dependent upon the company's ability to raise requisite finance or generate cash flows in future to meet its obligations, including financial support to its subsidiary," the auditors said.
SpiceJet	SpiceJet’s auditors, S R Batlibol & Associates, stated as at 31-Dec-2011, "the company’s accumulated losses of Rs 1078 crore has substantially eroded the net worth of the company, indicating the existence of a material uncertainty that may cast doubt about the company’s ability to continue as going concern”. The carrier's net worth reportedly stood at INR238.9 million (USD4.9 million) as at 31-Dec-2011, marking the first time the carrier has been in negative territory since Kalanithi Maran-promoted Sun Group took over its management. The airline has, however, noted its net worth has increased in the last quarter after its promoters infused further funds into the carrier. “In the third quarter of the current fiscal, our promoter infused Rs 131 crore in the company. Even if you deduct the losses made during the quarter, we have got over Rs 90 crore. Money is not an issue for us,” CEO Neil Mills said. Mr Mills added the company has sufficient funds and is paying all bills on time.