DoT likely to appoint firms to audit revenues of private telcos by month-end
The audit will be carried out to check for any under reporting of revenue by telecom companies, and is expected to be completed by middle of next year
New Delhi: The telecom department is likely to appoint at least 4-5 auditors this month to conduct the planned special audit of private telecom companies for period FY12 to FY18, according to a source.
The bids are expected to be submitted by December 18 by interested auditors that are empanelled under Comptroller and Auditor General of India, and the appointment is likely to take place by the month-end, said an official familiar with the entire process.
The audit will be carried out to check for any under reporting of revenue by telecom companies, and is expected to be wrapped up by middle of next year, the official added.
Audits will be conducted for all large private telecom companies as also those which have announced an exit or are in the process of merging with bigger rivals.
The work on auditing will start from January, the source said.
“The idea is to see whether there is any concealment of revenue... because our licence fee is based on their revenue. We want to ensure that the accounts reveal a fair and true picture of the revenue earned,” the source added.
Telecom service providers pay licence fees and spectrum usage charges to the government on the basis of their income.
The telecom sector has been bruised by falling tariffs, eroding profitability, and mounting debt in the face of stiff competition triggered by disruptive offerings of Reliance Jio, owned by Mukesh Ambani. The industry has been seeking urgent relief measures entailing debt restructuring, cut in levies, and release of GST input tax credit locked up with the government.
Reflecting the financial stress of the industry, the gross revenue of telecom service providers and licence fee paid to the government declined by around 10% to ₹58,401 crore and ₹2,929 crore, respectively, in April-June 2018 compared to the year-ago period, according to recent data by telecom regulator Trai.
“Gross revenue (GR) and adjusted gross revenue (AGR) of the telecom service sector for the quarter ended June 2018 has been ₹58,401 crore and ₹36,552 crore, respectively,” Telecom Regulatory Authority of India (Trai) had said in its Indian Telecom Services Performance Indicator report released in October.
The GR and AGR declined by 10 and 8.11%, respectively, on year-on-year basis. The decline in AGR -- which is revenue earned from sale of telecom services alone -- led to fall in licence fees paid to the government by around 10% to ₹2,929 crore.
This story has been published from a wire agency feed without modifications to the text.
- RBI governor Shaktikanta Das: Once bitten, second time lucky
- Detention of Nissan’s Carlos Ghosn extended through 20 December
- India to add 10GW of renewable power in FY20: ICRA
- Flipkart to invest in furniture, groceries; claims to be a market leader in e-commerce
- Shaktikanta Das, who oversaw demonetization, is new RBI governor
Editor's Picks »
- Reverse Pitch| “Out of 5,000 ventures, only 2% get showcased to our members”
- Congress wins Chhattisgarh by a landslide, puts an end to Raman Singh era
- Opinion| A comprehensive rejection of BJP by Chhattisgarh
- Opinion: Why Urjit Patel will not be missed as RBI governor
- Even the Raman Singh factor could not prevent the BJP debacle in Chhattisgarh
- Steel stocks get winter chill as China demand issues resurface
- Why Uday Kotak’s defiance is scaring his bank’s investors
- Exit RBI governor Urjit Patel, enter wrath of the markets?
- The government has a troubling message for minority shareholders
- Opec-allies’ output cut may not amount to big shift in oil prices