Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TDS :: list of goods taxed at 4% :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: empanelment
 
 
« News Headlines »
 How to respond to a tax notice under section 143
 Income-tax (22nd Amendment) Rules, 2017
 All about Exports under GST
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states

Government auditor says, but company refutes
October, 13th 2009

The government-appointed auditor Parekh & Company is understood to have revealed that Reliance Communications (RCOM), the flagship company of the R-ADAG group, has inflated the companys revenues by Rs 2,915 crore in 2007-08 and also evaded licence fee of Rs 315 crore. An RCOM official termed the disclosures revelation as biased. It appears instigated by corporate rivals, he said and added RCOM is in full compliance of licence terms and conditions.

When contacted, department of telecom (DoT), senior officials confirmed receipt of the report by auditors Parekh & Co and said that it is yet to examine the findings. However, he refused to comment. In January 2009, the government had appointed a special committee to audit RCOM account. Subsequently, it appointed special auditors for all the major telecom operators. DoT is awaiting the report of four other companies - Tata Tele, Bharti Airtel, Vodafone and Idea - from the respective auditors.

The report of Parekh & Co submitted to DoT found that for FY08 actual wireless revenue earned by the company was only Rs 12,298 crore as against Rs 15,213 crore reported to the shareholders, which is an over reporting of Rs 2,915 crore. It also found that RCOM evaded licence fee and spectrum fee of Rs 315 crore.

The auditors stated that the consolidated wireless revenues reported in consolidated financial statement (CFS) include an income of Rs 617 crore from sale of debts (already written off) to a group of companies.

This transaction is financial in nature and is not wireless revenues earned during the period from provision of wireless services to subscribers in India and would have been already accounted as wireless revenues in the year in which the debtors were created resulting in the same revenues being accounted as wireless revenues twice in two different accounting years, the auditors have reportedly qualified in its report.

Similarly the consolidated wireless revenues of Rs 1,352 crore reported in CFS include one time and other incomes, which ought to be, classified as others segment rather than wireless segment. The Institute of Chartered Accountants of India president Uttam Agarwal said: Nobody has filed a complaint with ICAI so far. However, after seeing media reports and enquiries, the institute will ask RCOM, the DoT, KPMG and Chaturvedi & Shah for information on the matter. ICAI is the nodal body for regulating auditors.

Auditors said although its still early to comment, if even partially true, it will project a bad picture for auditors.

The industry is yet to recover from the Satyam fraud, where the role of the auditors is still being investigated. This audit report, which indicts KPMG (BSR & Co) and Chaturvedi & Shah for overlooking irregularities, will invite strict action from the government, said a senior auditor, who has audited the accounts of some of the countrys largest companies.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions