Jet Airways auditor finds complete net worth erosion

One of the Jet Airways auditors has found complete erosion in net worth of the airline, sources have told ETNow’s Nayantara Rai.

BSR & Co, a KPMG affiliate, also found the airline to not be a 'going concern, which means it won’t be able to carry out any transactions. According to the sources, BSR and KPMG were mulling the possibility of quitting as the auditors.

Shares of the carrier plunged as much as 9 per cent on Friday after the company postponed announcing its first-quarter earnings.


Sources meanwhile have told ETNow that the audit committee has refused to submit BSR's conclusion to the Jet's board.

Commenting on the fresh developments, BSR told ETNow: “We respect our clients confidentiality arrangements and never comment on their matters.”

Jet Airways on its part said that the BSR saying Jet was not a going concern was completely baseless and incorrect.

BSR & Co continues to be the auditors for Jet Airways and the airline maintains that there were no differences of opinion between the management and its auditors.

In a BSE filing last night, the Naresh Goyal-run airline said its board has decided not to review the unaudited financial performance for the June quarter.

"The audit committee did not recommend financial results to the board for its approval, pending closure of certain matters," the airline had said.