Kingfisher Airlines Ltd, promoted by liquor baron Vijay Mallya, needs to infuse required funds to continue as a "going concern", its auditor has said in the company's annual report for the fiscal year that ended March 31, 2011.
The auditors, B.K. Ramadhyani & Co, in its report, has mentioned that the company's accumulated losses at the end of the financial year "were more than 50 per cent of its net worth".
The term "going concern" in accounting parlance refers to a company's ability to continue operations in the near future.
The annual report has been posted on the Bombay Stock Exchange website.
In late August, Kingfisher Airlines Ltd said its board had approved a rights issue of shares to raise up to Rs 20 billion ($434 million).
The company gave no timing or details of the proposed issue.
Lenders' Assessment Shows Kingfisher Is Viable
Kingfisher Airlines (KFA) said on Thursday its lenders have independently assessed that the airline is viable as a going concern.
"During the year, RBI had directed the banks to independently assess the viability of KFA and this was in fact, carried out by the lenders with the assistance of SBI Capital Markets confirming that KFA is viable i.e. as a going concern," the airline said in an e-mail to Reuters.
Kingfisher, promoted by liquor baron Vijay Mallya, needs to infuse required funds to continue as a "going concern", its auditor has said in the company's annual report for the fiscal year that ended March 31, 2011.
