Kingfisher Airlines needs to infuse required funds to continue as a "going concern", its auditor has said in the company's annual report for the fiscal year that ended March 31, 2011. 

As per a Reuters report Audit firm BK Ramadhyani & Co, which examined the books of the airline, said in remarks published in the airline's annual report that Kingfisher's ability to remain a "going concern" will depend on its promoters bringing in money into the company. It also said Kingfisher has not deposited with the government money it collected from employees as tax deducted at source and provident fund contribution, painting a dire picture of the airline's finances. 

The term 'going concern' is accounting shorthand for a company's ability to continue its operations in the near future, and analysts say it is extremely rare for auditors to refer to it lightly. Kingfisher, which had accumulated losses of Rs 4,321 crore - more than 50% of its net worth - at the end of the financial year ended March 2011, strongly defended its ability to remain in business. 

"It is incorrect to say that Kingfisher Airlines (KFA) auditors have raised serious doubts about the survival of the Airline," Ravi Nedungadi, CFO of UB Group, of which Kingfisher is a part, said in a statement. "In fact, Para [9] of the Auditors' Report only draws attention of the members to the reasons (which have been accepted by the Auditors) for preparing the accounts under the going concern concept," it added. He added that as per RBI directives, Kingfisher's lenders, along with the assistance of SBI Capital Markets, had independently assessed the airline's viability.