Time for existing CA's to quit the profession and make way for new aspirants
We all CA students have seen your SATYAM SCAM, and now great RCOM will soon come into picture.
Where is PEER REVIEW BOARD ? Slept OFF ? What Action taken on satyam auditors [may be only on paper] ?
ICAI as usual charges CA students only. No immediate and proper action on qualified CA's is this the law in our country ?
ARISE AWAKE STOP NOT TILL YOU FIND FRAUDULENT FCA AND ACA's
BREAKING NEWS HAVE A LOOK AT IT CA STUDENTS
RCom may have inflated revenues, evaded licence fee
A government appointed auditor is understood to have found inflation of revenues by Rs 2,915 crore (Rs 29.15 billion) by Anil Ambani group firm Reliance Communications in 2007-08, besides evasion of Rs 315 crore in licence fee --findings termed as 'biased' by the company.
"RCom is in full compliance of licence terms and conditions," a company spokesperson said, adding, "auditors' alleged comments are biased and appear instigated by corporate rivals. . . Premature leakage of confidential report to media reflects the Special Auditors' prejudice/bias."
"All revenues for FY'07 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 special audit committee report that has been submitted to the DoT found that for FY'08 actual wireless revenue earned by the company was only Rs 12,298 crore (Rs 122.98 billion) as against Rs 15,213 crore (Rs 152.13 billion) reported to the shareholders, which is an over reporting of Rs 2,915 crore (Rs 29.15 billion).
It also found that RCom evaded licence fee and spectrum fee to the tune of Rs 315 crore (Rs 3.15 billion).
DoT is awaiting the report of four other companies namely Tata Teleservices , Bharti Airtel , Vodafone and Idea from the respective auditors appointed by it and the government, if warranted, will take necessary action after examining the reports.
Sources, quoting the report, said that the telecom firm may have also violated TRAI and DoT rules.
Alleging overstatement and fudging of revenues, the auditors have said that the company accounted twice, a revenue of Rs 617 crore (Rs 6.17 billion) in two different accounting years.
Elsewhere, Rs 379 crore (Rs 3.79 billion) allegedly fudged by way of selling expired pre-paid cards to two companies namely Macronet Pvt Ltd and Inference Systems ltd, an ADAG company.
The report on RCom would now be examined by a four-member committee of department of telecommunication, headed by member (finance), sources said.
The special audit was initiated to check if revenues by the company were diverted to segments which attracted lower licence fee.
In case of wrongdoings detected during the audit, sources said the operators could be subjected to penalties under the provisions of licences.
Source: PTI
Date: 12-10-2009
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