According to the new Audit reports which claims that, Reliance Jio Infocomm has reportedly understated its revenue by Rs 63.77 crore for it’s three fiscal years till March 2015, for not including realized foreign exchange gains, which led to a lower payment of the license fee to the government. Which was done by not adding the realized foreign exchange profit, because of it pad a lower license fee to the Government.
The five page audit report, which was prepared by Chief audit officer for post and telecommunications, has been sent to the telecommunication company and the department of telecommunications (DoT), and their answer are still expected.
The audit report stated that Jio “realized exchange profit in the amount of of Rs 63.77 for fiscal years from 2012-13 and to 2014-15 in accordance with the annual financial statements and reconciliation of revenue that the company has together provided with the annual income reports. In Fiscal year 2013 Jio generated Rs 1.29 crore. Rs 4.67 crore in FY14 and Rs 20.81 crore in 2015 respectively.
Nevertheless, the forex trading profit was not included in the adjusted gross revenue (AGR) for the reason of the revenue share, thereby paying less royalty fee as a license to the government.
Rules says,”Not counting the profit from forex in the AGR is a violation of the license conditions.”
However, ET calimes that all those doubts that the auditor raised has already resolved in Telecom Disputes Settlement Appellate & Tribunal (TDSAT), in April 2015 and then in December.
[graphiq id=”6zMrhLTKUyF” title=”Jio” width=”500″ height=”788″ url=”https://w.graphiq.com/w/6zMrhLTKUyF” ]