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Air-India logs Rs 380 million loss in 2000-01

Puja Mehra

Air-India has recorded a loss of Rs 380.4 million for 2000-01 against a profit before tax of Rs 542.9 million for 1999-2000, as per its audited financial results for the year ended March 31, 2001.

The auditors have however, pointed out that in the process of making its accounts compatible with the accounting practices prescribed by the Institute of Chartered Accountants of India, AI has reported increased liabilities of Rs 2.23 billion.

As a result, if Air-India had stuck to its original accounting practices, it would have posted a profit of Rs 1.85 billion for 2000-2001.

The national carrier has seen an increase of 9.55 per cent in its operating revenue to Rs 48.73 billion for 2000-01, from Rs 44.48 billion for the previous year. The total revenue was up from Rs 47.18 billion to Rs 62.24 billion during the last fiscal, marking an increase of 31.93 per cent.

The payments and provisions for employees including crew allowances dropped from Rs 10.08 billion during 1999-2000 to Rs 9.67 billion during 2000-01, a fall of 4.10 per cent.

The outgo on fuel and oil however, increased by a whopping 40 per cent from Rs 7.06 billion to Rs 9.88 billion. Total operating expenses increased from Rs 43.72 billion to Rs 48.69 billion.

Total losses carried forward to the balance sheet have increased from Rs 8.89 billion during 1999-2000 to Rs 9.34 billion in 2000-2001.

In the notes to the accounts, the auditors have said that in order to comply with the accounting standards issued by the Institute of Chartered Accountants of India, the liability towards retirement benefits for staff directly recruited at foreign stations has been fully provided as against one fourth of the total liability provided in 1999-2000 resulting in an additional burden of Rs 235 million.

Similarly there have been additional outgoes to the tune of Rs 693.9 million, Rs 132.2 million, Rs 316.8 million, Rs 678.8 million and Rs 172 million towards liabilities on gratuity, leave encashment for employees recruited in India, depreciation on airframe equipment, obsolescence for spare parts, current liabilities pertaining to advance from customers and calculation of productivity linked bonus to agents and payments to employees on accrual basis as against cash basis.

If Air-India had accounted for the above, this year as it had last year, liabilities would have been lower by Rs 1.99 billion.

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