Govt plans special audit on RCOM
The government on Thursday informed Parliament that it will do a special audit on the books of Reliance Communications (RCOM) and its subsidiaries.
By ET Bureau |
NEW DELHI: The government on Thursday informed Parliament that it will do a special audit on the books of Reliance Communications (RCOM) and its subsidiaries over allegations that the telecommunications company had diverted revenues earned from its mobile services to a subsidiary to bring down the total amount it had to pay to the government as licence fee and spectrum charge.
���Parakh & Co have been selected as auditor to carry out the special audit of Reliance Communications (standalone), Reliance Telecom and Reliance Communications Infrastructure for 2006-07 and 2007-08. The special auditor will verify whether there is any evasion of licence fees,��� minister of state for telecom and IT, Jyotiraditya Scindia said in a written reply in the Rajya Sabha.
Mr Scindia also added that the auditor had been chosen from a list of companies provided by the Comptroller and Auditor General of India (CAG).
RCOM has strongly denied any wrongdoing on its part. The company said its ���books are audited by BSR & Company, a member firm of KPMG International and Chaturvedi & Shah, a member firm of Nexia International. As these auditors had approved the company���s calculations and accounts, there was no basis for any allegations relating to alleged discrepancies in the accounts.���
���Parakh & Co have been selected as auditor to carry out the special audit of Reliance Communications (standalone), Reliance Telecom and Reliance Communications Infrastructure for 2006-07 and 2007-08. The special auditor will verify whether there is any evasion of licence fees,��� minister of state for telecom and IT, Jyotiraditya Scindia said in a written reply in the Rajya Sabha.
Mr Scindia also added that the auditor had been chosen from a list of companies provided by the Comptroller and Auditor General of India (CAG).
RCOM has strongly denied any wrongdoing on its part. The company said its ���books are audited by BSR & Company, a member firm of KPMG International and Chaturvedi & Shah, a member firm of Nexia International. As these auditors had approved the company���s calculations and accounts, there was no basis for any allegations relating to alleged discrepancies in the accounts.���
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