BSE seeks further clarification from Jet Airways over deferred results
The BSE has sought information from Jet on the issues raised by the audit committee, if any, since the results were deferred
New Delhi: The BSE on Monday sought further clarifications from Jet Airways regarding the postponement of the unaudited financial results for the quarter ended June 30, 2018.
According to the BSE, the outcome of the board meeting of by Jet Airways states that on August 9, “the audit committee did not recommend the said financial results to the board for its approval, pending closure of certain matters.”
However, the airline in response to a BSE query on why it deferred the June-quarter results told the exchanges on August 10 that “since the management informed the audit committee that they needed more time to finalise the accounts, the audit committee on their request agree to accord them further time to finalise the same and directed that the finalised accounts be placed before the audit committee thereafter.”
So, according to the BSE, there is “clear contradiction” between the two, and the exchange has sought further explanations from Jet on the matter.
The exchange has also sought information from Jet on the issues raised by the audit committee, if any, since the results were deferred.
The BSE also asked the Naresh Goyal-led airline to clarify on media reports on the airline’s auditor BSR’s plan to quit if issues were not resolved and its plans to sell $400-million stake private equity firms.
The airline’s stock fell more than 13% on the BSE on Friday. It, However, recovered some ground to end 4% up on the BSE on Monday.
After reporting an operating loss in the March quarter, Jet Airways would be hard-pressed for cash, as the operating environment has turned more hostile in financial year 2019, said analysts from SBICAP Securities Ltd in a report on 3 August, Mint reported earlier.
Besides, Jet Airways’s balance sheet is not in good shape. As on 31 March, the company’s negative net worth was more than ₹ 7,000 crore. Cash and cash equivalents were ₹321 crore and other bank balances were ₹ 1,044 crore. High debt on the books results in high finance costs for Jet. In FY18, interest costs were as high as ₹ 843 crore, eating into its profits substantially, what with Jet Airways reporting a loss of ₹ 767 crore. Apart from higher fuel costs, Jet Airways’s international operations have also been suffering for sometime now.
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