Air India profitable under GAAP, says Jayant Sinha

IN AVIATIONIn Aviation, Aviation Box On
- Updated

Days after CAG concluded that Air India incurred operational loss last fiscal, the government today said “it is possible to declare the operational profit” as per generally accepted accounting principles.

While acknowledging that there is a grey area associated with depreciation charge that CAG has brought up, Union Minister Jayant Sinha said, “We think from an accounting perspective the number we have put through is quite reasonable”.

On March 10, the Comptroller and Auditor General (CAG) had said that Air India “actually incurred” an operating loss of Rs 321.4 crore in 2015-16.The airline, which is staying afloat on taxpayers’ funds, had reported an operating profit of Rs 105 crore in the last fiscal — the first time it turned operationally profitable in a decade.

“We have full respect for CAG’s opinions and we went through their recommendations and inputs very carefully and we did it thoroughly.

“Our view, based on what our accountants have told us about Air India following Generally Accepted Accounting Principles (GAAP), (is that) indeed it is possible to declare the operational profit that we did,” Sinha said. The Minister of State for Civil Aviation was speaking to reporters on the sidelines of an event organised by SpiceJet.

“In accounting, there are some grey areas and you can either stay on one side of it or on the other side of it. Both interpretations are plausible but again following GAAP the manner in which we have dealt with the challenges is entirely appropriate,” he said.

While making it clear that there was no fudging of numbers, officials at the CAG on March 10 had said figures reported by the airline are “actually under-reporting of loss”.

Read More…


Credit By:

You may also read!

CAG Slams Navy For Delay In ASW Corvettes Project

The Comptroller and Auditor General has come down hard on the Indian Navy for causing inordinate delay in construction


CAG Slams OFB For Critical Deficiency In Supply Of Ammunition

The Comptroller and Auditor General has slammed the state-run Ordnance Factory Board (OFB) for critical deficiency in availability of


29 IAF Aircraft Have Crashed Since Last Five Years: Govt

Twenty-nine aircraft of the Indian Air Force have crashed due to technical defects and human error over the last


Leave a reply:

Your email address will not be published.

Mobile Sliding Menu