MCA asks Jet auditors to explain defering of Q1 results’ announcement

NEW DELHI: The Ministry of Corporate Affairs is seeking clarifications from the auditors of Jet Airways on the airline deferring announcement of its June quarter results, sources said.

The board of crisis-hit Jet Airways -- which is working on ways to reduce costs amid financial woes -- on August 9 deferred the matter of consideration of the unaudited financial results for the June quarter.

Sources said the ministry is seeking clarifications from the auditors of Jet Airways on delay in announcement of results.

The auditors are believed to have issues regarding the airline being a going concern, they added.

In accounting parlance, the going concern assumption means that the company would remain in business for the foreseeable future without being forced to halt operations and liquidate its assets. Markets regulator Sebi is also looking into the air

line delaying the June quarter results.

The airline's board is scheduled to meet on August 27 to consider and approve the unaudited financial results for the first quarter ended June 30.

Earlier this month, sources said that Sebi is looking into the airline delaying June quarter results after the carrier's audit committee expressed reservations.

Shares of Jet Airways dropped nearly 3 per cent to close at Rs 292.35 on BSE.