Auditors of listed airlines Jet Airways, SpiceJet and Vijay Mallya's grounded carrier Kingfisher have raised red-flags on their 'going concern' status.

The auditors said that the `going concern'  status of a company depends on its ability to generate sufficient finance to meet short-term as well as long-term obligations and avoid any potential insolvency risks.

Of the three listed airlines, Kingfisher received the most stringent set of adverse auditor comments.

The carrier's auditors said, "Notwithstanding the fact that the company's net worth is completely eroded .  and the consortium banks have recalled their debts to the company. These events cast significant doubt on the ability of the company to continue as a going concern,"

Kingfisher Airlines, which has not operated any flight for more than a year, recently posted a net loss of Rs 715 crore for three-month period ended September 30, but it claimed that it was confident of raising sufficient finance to meet its obligations.

Auditors of SpiceJet also raised red-flag on the company's `going concern' status, citing the carrier's operating results were materially impacted by a number of factors and its accumulated quarterly losses fully eroded its net worth.

Jet Airways also announced its quarterly results on a going concern basis, despites the fact that it suffered a net loss of Rs 891 crore in the July-September quarter of the current fiscal, and its proposed deal to sell a 24 per cent stake to Etihad is still entangled in regulatory hurdles, which was enough for the auditors to raise red flag.

However, all three listed carriers have defended their decisions to prepare their respective quarterly financial statements on 'going concern' basis.