When auditors B K Ramadhyani & Co put out a discouraging report about Kingfisher Airlines based on the financials of the debt-laden 2003-founded company, it sent shock waves through the aviation industry. The partners of Ramadhyani say the exercise, which concluded the UB Group subsidiary’s net worth was “completely eroded”, was part of their regular work for the 73-year-old audit firm.
“We have done our job in a holistic manner, based on the financials of the Kingfisher Airlines and statutory requirement,” says Sathyanaraya Murthy, one of Ramdhyani’s partners. This boutique audit firm, which offers the entire range of audit, taxation and management consultancy, came on board at Kingfisher Airlines after its 2007 takeover of Deccan Aviation. Ramadhyani replaced PwC, the then auditor for Deccan Aviation.
Ramadhyani, located in the traditional Malleswaram area in the city’s north-west, has immense respect in audit circles. “They have a good standing in the industry,” notes a well-known management consultant. “They have been long-time auditors for the Kirloskar Group, in addition to various public sector units and banks, including PNB, among others.”
Shyam Ramadhyani, who signed off the latest auditor note to shareholders of Vijay Mallya’s Kingfisher Airlines, is one of the five partners in this firm. He is the son of B K Ramadhyani, who founded the company in 1938. Since that date, the audit firm has grown in strength and has a team of around 70 professionals. For nearly 50 years, this firm was housed in one the landmark stone buildings, George Oakes Building in central Bangalore, before moving out to Malleswaram.
With pan-India clients and professional relationships with global majors, Ramadhyani, many say, prefer to go by the book. “They did just that when they put out their views on Kingfisher Airlines,” says an observer, referring to the report that also wondered whether the firm would be able to weather the storm unless it could infuse requisite funds.