Auditors raise red flag over Jet Airways' going concern status


Auditors of Jet Airwayshave raised red flag over the carrier's 'going concern' status, saying the assumption is dependent on various factors including its synergy with Etihad and ability to raise funds. 

A company is termed as a 'going concern' if it has sufficient resources to continue to operate indefinitely and to avoid any potential bankruptcy risks. 
Jet Airways, which turned profitable in the three months ended December 2014, today said strategic investment by Etihad Airways and other initiatives are expected to provide sustainable cash flows for its business. 
Hence, the financial results continue to be prepared on a 'going concern basis', it said while announcing the latest quarterly results. 

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