Processing .....please wait.. 
The article has been forwarded.... 
Auditor blames RCOM for inflating revenues
By siliconindia
|
4 Comments
2,915 crore in 2007-08, but an RCOM official termed the disclosures revelation as biased, reports The Economic Times. "It appears instigated by corporate rivals. RCOM is in full compliance of license terms and conditions," said RCOM official.
Senior official of Department of Telecom (DoT) have confirmed the receipt of the report by government auditors, and said that it is yet to examine the findings. In January 2009, the government had appointed special auditors for all major telecom operators. DoT is waiting the report of other companies - Tata Tele, Bharti Airtel, Vodafone and Idea - from the respective auditors.
The report submitted by Parekh and Company to DoT stated that the financial year (FY) 2008's actual wireless revenue earned by the company was only 12,298 crore as against 15,213 crore reported to the shareholders, which is an over reporting of 2,915 crore. It also found that RCOM evaded licence fee and spectrum fee of 315 crore. The auditors stated that the consolidated wireless revenues reported in consolidated financial statement (CFS) include an income of 617 crore from sale of debts (already written off) to a group of companies.
"This transaction is financial in nature and is not wireless revenues earned during the period from provision of wireless services to subscribers in India and would have been already accounted as wireless revenues in the year in which the debtors were created resulting in the same revenues being accounted as wireless revenues twice in two different accounting years," the auditors have reportedly qualified in its report.
The consolidated wireless revenues of 1,352 crore reported in CFS include one time and other incomes, which ought to be, classified as 'others' segment rather than 'wireless' segment. Uttam Agarwal, President, The Institute of Chartered Accountants of India (ICAI) said, "Nobody has filed a complaint with ICAI so far. However, after seeing media reports and enquiries, the institute will ask RCOM, the DoT, KPMG and Chaturvedi and Shah for information on the matter." ICAI is the nodal body for regulating auditors.