Millennium Post

Corp Affairs Min seeks details from crisis-hit Jet Airways

New Delhi: The corporate affairs ministry has sought details from crisis-hit Jet Airways about certain issues as well as from its auditors on the postponement of quarterly results, a senior official said.

The full service carrier, whose board is scheduled to consider the financial results for the June quarter tomorrow, is exploring ways to reduce costs amid financial woes.

A senior ministry official said the Registrar of Companies (RoC) has asked for details from the airline about certain issues and that the process is going on.

Specific details could not be immediately ascertained.

Query sent to a Jet Airways spokesperson on whether the airline has received queries from the RoC regarding financial issues and delay in announcement of quarterly results remained unanswered.

Information has also been sought from the airline's auditors against the backdrop of the airline deferring the announcement of June quarter results, he added.

With respect to Jet Airways, the RoC has only sought details and things are at a preliminary stage. As of now, there is no decision on whether to carry out inspection of its books or an investigation, the official said.

Last week, sources had said that the ministry is seeking clarifications from the auditors of the airline for the delay in announcement of results.

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

The board of Jet Airways would consider cost reduction initiatives and turnaround plan along with June quarter results at its meeting on August 27.

The airline's board, on August 9, deferred announcement of unaudited financial results for the June quarter.

Amid reports that the ministry has opened a preliminary probe into alleged diversion of funds at Jet Airways, the airline, on August 21, said that it has not received any communication from the ministry in this regard.

Recently, Jet Airways CEO Vinay Dube said that the carrier has been working very diligently and has been implementing for some time a mission plan that looks at every element of structuring from cost perspective, and revenue perspective among others.

"We are looking at costs related to fuel, fleet, sales and distribution. And the return to profitability will come with the execution of these measures," he had told shareholders at the annual general meeting on August 9.

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