The auditors of Kingfisher Airlines Ltd have said the latest quarterly results of the airline are not in accordance with the generally accepted accounting standards.
The airline, which has not operated for over a year now, reported a net loss of ₹822.42 crore. A year ago, it reported a net loss of ₹766.17 crore. Revenues were nil while EPS was negative at ₹10.33 (₹9.50). The company’s accounting ought to have recognised profit and loss in its statement as and when incurred.
BK Ramadhyani and Company, chartered accountants, said in its report: “In our opinion, the virtual certainty test for recognition of deferred tax credit as laid down in AS 22 was not satisfied. Further, the derecognition of deferred tax credit recognised up to march 31, 2012 of ₹4045.86 crore during the year ended March 31, 2013 should have been done through the statement of profit and loss and not directly in the surplus account.”
The reserves as at March 31, 2013 would have been debit of ₹14,340.42 crore against debit of ₹14,281.64 crore.