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Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer?.

Solutions for Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer? in English & in Hindi are available as part of our courses for Banking Exams. Download more important topics, notes, lectures and mock test series for Banking Exams Exam by signing up for free.

Here you can find the meaning of Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer?, a detailed solution for Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer? has been provided alongside types of Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction:Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.The Union government is sparing no effort toexpeditethe process of strategic disinvestment from Air India, the largest such exercise in Independent India. It has put in place a high-level group of ministers to decide the modalities of this crucial process. The intent is to offload at least 51 per cent in the bleeding national carrier to a private entity so that the government no longer stays in the airline business.The key question is: despite the noble intentions, does the government have a handle on the actual financial condition of the Maharaja to dress it up for sale? Are the books of the airline in order?The elephant in the room, according to potential bidders, is the extent of liabilities on the airline’s books. A representative of one potential bidder said no one seems to know the extent of liabilities, present, andcontingent, on the airline and this one figure may well determine the success of the disinvestment.“Everyone more or less knows the extent of losses at Air India. But different figures are emerging on the liabilities. What are the valuations for ground handling, land assets, bilateral traffic rights, aircraft – all this needs to be assigned. Then, liabilities need to be accounted for. These figures are beingbrushed under the carpet,” this person said.Remember, Civil Aviation Minister A Gajapathi Raju has said several times in the past that the airline’s books are “bad”. Late last month, he was quoted saying that the debt on Air India’s books may be closer to Rs 70,000 crore rather than the previously thought Rs 50,000 crore.That is an increase of about 40 per cent. Are there hidden gems in the airline’s books which are only now being discovered as it readies for sell-off? Air India officials pointed out that the debt was close to Rs 50,000 crore if only long-term debt and working-capital debt were considered. But if all the current and contingent liabilities were included, another about Rs 20,000 crore gets added, taking the total debt close to Rs 70,000 crore. While this is sound accounting, it is certain to send out confusing signals to potential investors.The government has now indicated that it wants to break up the airline into four distinct entities and transfer some of the unsustainable debt into a separate entity. This will likely unlock valuations and help potential bidders in evaluating the merits of each part of Air India.How clueless the government is about Air India’s books is apparent from the latest disclosure about the airline’s financial performance in 2016-17. On the face of it, it seems the airline added about Rs 1,930 crore to its net loss overnight due to certain accounting practices.In this written reply in Lok Sabha, Minister of State for Civil Aviation Jayant Sinha said on 21 December last year that the provisional net loss of Air India was Rs 3,643 crore for 2016-17. Since this was marginally lower than the net loss declared in the previous fiscal (2015-16) and also because this was the second year that Air India was expected to declare a modest operational profit, there was all-round cheer. The loss-laden and over-leveraged airline was finally turning around!Q. Why has the Civil Aviation Minister, A Gajapathi Raju, called the airline’s books “bad”?a)Because of the adverse effect of Air India’s account books on the other airlines.b)Because of Air India’s negligent attitude in maintaining their accounts in a clear and concise manner.c)Because of the constant complaints of the substandard quality of Air India’s service.d)Because the airline has not been doing good business for a long time.e)Because the account book shows that Air India has been running losses of thousands of crores.Correct answer is option 'E'. Can you explain this answer? tests, examples and also practice Banking Exams tests.