CAG red flags Air India's FY 17 accounts, says loss understated by Rs 35 bn

The Comptroller and Auditor General of India has said Air India underreported its FY 2017 loss by Rs 35.46 billion due to the treatment of certain receivables as other income, lower provisioning and overstatement of deferred tax assets.

The government auditor's report is a part of the airline's FY 2017 accounts which was tabled before the Parliament on Wednesday.

Last fiscal the airline made a net loss of Rs 57.6 billion on a total revenue of Rs 221 billion.  Net Loss for the year widened from Rs 38.3 billion in FY 16.

In its observations, CAG has said the