CASE STUDY

JET AIRWAYS
SRIKARA SIMHA
QUESTIONS ANSWERS ONLY
1. The depreciation is always affected in profit which not the company
give balance sheet or income statement the depreciation is it's not a
cash expense show company cash balance, Jet Airways used straight
line method because they changed written down method nearly 762
crore loss.

2. The depreciation value for invested on equipment is 66.67% for 3

years it started from 23,333 67.67% In next year 11,667 depreciation
percentage is 57.14 amount 6667 in final year 5000 it comes to 0% no
total depreciation value is 30,000 final closed book values 5000.

3. As per ‘companies Act’ 1956 minimum need of charging is the 10% for
10 years single, double, and triple shift depreciation will be 4.75%,
upto10.34% this is principles

4. If do it in straight line method it will cost it is constant 33.33% and

10,000 per year, when we complete it 5000 will be book value.

5. Because of accounting policies, they get loss of 4.95 billion because of

the over debt of the company, they changes made is in New year they
give good discounts to attract the customer, travel in their aircraft,
then there is lower taxation, so it gets reduction in tax paying.

6. If the profitability increases, then it will be revenue also high for the
company there is slight change it’s a major aspect
7. Because of the change in monetary policy of India it is affected on the
jet airways net worth, many debts in the name of the company

8. They used the two methods of ‘Depreciation methods of SLM and

WDV’ in aircraft of the company it’s impact will be 9000 million to
$212 million.