Air India made Rs 321 crore operating loss last fiscal, not profit: CAG

Air India, which is staying afloat on taxpayers' money, reported an operational profit of Rs 105 crore in 2015-16 -- its first in more than a decade.

Published: 10th March 2017 08:46 PM  |   Last Updated: 10th March 2017 08:46 PM   |  A+A-

Air India (File Photo | PTI)

By PTI

NEW DELHI: Apex auditor CAG today said Air India "actually incurred" an operating loss of Rs 321.4 crore last fiscal instead of an operating profit as reported by the
airline.

While making it clear that there was no fudging of numbers, officials at the Comptroller and Auditor General (CAG) said figures reported by the airline are "actually
under-reporting of loss".

Air India, which is staying afloat on taxpayers' money, reported an operational profit of Rs 105 crore in 2015-16 -- its first in more than a decade.

"For 2015-16 where Air India has reported an operating profit of approximately Rs 105 crore, the audit of Air India's standalone accounts for 2015-16 has been completed," Deputy CAG Pradeep Rao said.

About the operating profit which Air India has stated it has made in 2015-16, Rao said that in the view of CAG, "it is actually an operating loss of Rs 321.4 crore".

Based on the observations made by statutory auditor of the company and the subsequent check by CAG, "we have found that they have not made provisions which they should have made in terms of standard accounting procedures", he noted.

Rao spoke about Air India's financial performance during the 2015-16 fiscal while briefing reporters about the CAG's performance audit on 'Turnaround Plan (TAP) and Financial Restructuring Plan (FRP) of Air India Ltd'.

The performance audit report, which covered the period from 2010-11 to 2015-16, was tabled in the Parliament today.

V K Kurien, Director General at CAG, said there was an under-reporting of loss by Air India in the last fiscal.

"Since we have separately completed the audit of AI'sstandalone financial statement for 2015-16, this Rs 105 crore (of operating profit) does not represent the actual...," he
said.

CAG's observations also come at a time when concerns persist in certain quarters about the viability of Air India even as the government has been talking about last fiscal's operational profit to counter the concerns. 

Stay up to date on all the latest Nation news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL2018