Icai seeks Rcom’s financial details to act against auditor

Icai seeks Rcom’s financial details to act against auditor

New Delhi: Accounting regulator Icai on Wednesday said it has asked Reliance Communication, which is under attack for alleged fudging of accounts and evasion of licence fee, to provide financial details before it can initiate action against the telecom’s auditors.

A special audit is believed to have found that Anil Ambani group company RCom has overstated revenues to the tune of Rs2,915 crore in 2007-08 fiscal year and also evaded payment of Rs315 crore in licence fee, a charge dismissed by the company.

“I have asked the Icai director (Discipline) to gather information on this matter. We have asked the company management (RCom), DoT and also the auditor to provide us the data (financial statement) and we will also approach Registrar of Companies (RoC) to provide us with data," Uttam Prakash Agarwal, Icai president, said.

“It is only after that we can take any action against the auditor," he added.

RCom spokesperson had said, “RCom is in full compliance of licence terms and conditions."

“All revenues for FY07 and ’08 are correctly reported in RCom’s audited account. Alleged comments of special auditor do not reflect any under-reporting of revenue... licence fees."

The government has appointed special auditors to vet the books of mobile operators, including Tata Teleservices, Bharti Airtel, Vodafone and Idea. DoT is awaiting report from them and may take action after examining these reports.