Air India, Indian propose to revalue assets

New Delhi: Air India and Indian are to undertake a revaluation exercise of their assets ahead of the proposed merger of the two state-owned airlines.
Sources told Business Line that a valuation consultant is to be appointed shortly to put a realistic figure on the assets of both the airlines. "The value of the airlines assets that have been built over the years shows a very depreciated value in their respective balance sheets. Currently, the net worth of both the airlines is in three digits figures, but post valuation the net worth is bound to be in five digit figures," sources said.
Generally, a revaluation of assets is done to show the true rate of return on capital employed and to facilitate loans from banks or financial institutions through a mortgage.
The valuation consultant is to be appointed shortly and the report would be ready before the merger gets underway, sources indicated.
25/02/07 Ashwini Phadnis/Business Line

To Read the News in full at Source, Click the Headline

Categories: air india feb 2007, indian feb 2007