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Rcom debunks special auditor reports; says no irregularities in accounts

Rcom debunks special auditor reports; says no irregularities in accounts
PTI
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First Published: Wed, Oct 28 2009. 02 50 PM IST
Updated: Wed, Oct 28 2009. 02 50 PM IST
Mumbai: Anil Ambani group firm Reliance Communications debunked the special audit report on Wednesday and said it has neither inflated revenues nor evaded licence fees to be paid to the government.
“Rcom strongly affirms that it anticipates no additional financial liability towards licence or spectrum fee. The Special Auditor’s report estimating alleged additional liability of Rs316 crore is incorrect, hopelessly biased, one-sided and prejudiced,” Rcom said.
The company has made due disclosures and is fully complaint with listing agreements entered with the BSE and the National Stock Exchange and all Sebi disclosure guidelines, the company said in a statement.
The Special Auditor’s report is in fact in conflict with industry practice and judgements of telecom tribunal (TDSAT) and Customs Excise and Service Tax Appalette Tribunal (CESTAT) on several issues, it said.
The special auditors appointed by the Department of Telecom has alleged that Rcom inflated revenues by over Rs2,900 crore while under reported the same to Trai for evading licencing fees of an estimated over Rs300 crore.
The Special Auditor’s report is also liable to be rejected outright, as, contrary to all norms of audit and professional conduct, they did not discuss their findings and observations with the company at any stage.
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First Published: Wed, Oct 28 2009. 02 50 PM IST