Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

March 2010

RCom wants action against its special auditor:

By Raman Jokhakar
Tarunkumar G. Singhal
Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d

New Page 1

68 RCom wants action against
its special auditor:


Reliance
Communications (RCom) has asked the Department of Telecommunications (DoT) to
take action against its special auditor, Parakh & Co, for alleged breach of
confidentiality and misconduct. It has also asked DoT to scrap Parakh’s report,
saying the conclusions are incorrect, unilateral and biased.

The
audit report, commissioned by the DoT, had alleged that RCom had hidden revenues
of Rs 2,799 crore for the financial years 2006-07 and 2007-08, costing the
government Rs 315 crore in licence and spectrum fees that are charged as a
percentage of revenue.

The
auditor also said RCom inflated wireless revenue by 23 per cent or Rs 2,915
crore, to Rs 15,213 crore in the report to shareholders in 2007-08.

The
terms of reference did not require the auditor to make observations on
consolidated financial statements. Moreover, they have finalised the report
without any discussion or communication with us, the company said.

(Source:
Internet & Media Reports dated 25.01.2010)

 

 

Download PDF

You May Also Like

Licences of Entities Would Be Revoked If TheyzSource Funds From India –Mauritius:

CBDT seeks report on Mumbai I-T refund scam: