vvinayakpai 26 Report post Posted January 28, 2009 DoT appoints Parekh & Co to do special audit of RCom accounts NEW DELHI: The Department of Telecom (DoT) is all set to appoint Mumbai-based auditor Parekh & Co to scrutinise the accounts of Reliance Communications and its subsidiaries under a special audit to ascertain if there is any violation of revenue reporting norms to avoid payment of licence fees. DoT sources said Parekh & Co was selected out of the five shortlisted firms that included Chhajed & Doshi, Nayak & Kishnadwala, Varma & Varma and G D Apte & Co. Meanwhile, RCom has vehemently denied the accusations, saying its payment of Licence Fees and Spectrum Charges is based on the revenue arising from businesses covered by the UAS licence. This is first time that a special audit is being conducted since N ew telecom Policy of 1999. “Parekh & Co has been finalised for the purpose,'' sources said. They added that a special audit is taken up when the Department doubts the figures and statements offered by the company, thus necessitating a verification. Once on job, the firm would examine the Anil Ambani-led company's accounts for 2007-08, as it has been alleged that the firm was showing income from non-voice services under its Internet services licence to avoid paying dues to the Government. RCom is alleged to have reported income from services like R-World, SMS, rural telephones under support from USO fund, and Internet browsing under its Internet services business. The Government levies a lower revenue share on ISP licence. If proved guil ty, DoT can impose a penalty as per the licence conditions. - PTI Share this post Link to post Share on other sites
