Welcome Guest Login | Register | Site Map | | Make TelecomTiger my homepage     
Telecom News
Enterprise |  Policy & Regulation |  Mobiles & Tabs |  Corporate |  VAS |  People Movement  |  Technology  |  LTE
Corporate
Reliance Jio underreported AGR by Rs 63.77 crore and paid less licence fee, says government auditor
Pankaj Gujral |  New Delhi |  08 Mar 2017

Reliance Jio underreported its revenue by Rs 63.77 crore for three fiscal years to March 2015. The company didn’t include foreign exchange gains in its adjusted gross revenue (AGR), as per a draft audit report of director general of audit for post and telecommunications.
 
Telcos have to pay a percentage of AGR to the government as annual licence fee. By underreporting AGR, the company paid less licence fee to the government.
 
Even though it is a small amount for a company that claims to have invested Rs 1.5 lakh crore in the project, it shows work ethics and the culture of Reliance Jio. It is highly unlikely that the Reliance officials do not know the definition of AGR.
 
As per a report in ET, Auditor report has been sent to the Reliance Jio for its response. Jio had “realised foreign exchange gain amounting to Rs 63.77 crore” during fiscal years 2012¬13 to 2014¬-15 as per annual financial statements and revenue reconciliation statements the company furnished along with annual revenue statements. The forex gains were Rs 1.29 crore in FY13, Rs 41.67 crore in FY14 and Rs 20.81 crore in FY15.
 
“However, this gain was not included in the AGR (adjusted gross revenue) for the purpose of revenue share, which resulted in short payment of licence fee,” as per the draft report.
 
The report also points out that non-¬inclusion of forex gains in AGR is a violation of license conditions. ET has, however, reported that Jio sources told the reporter that the issue had already been settled at the Telecom Disputes Settlement Appellate & Tribunal (TDSAT) in April 2015 and again on December 10 same year and upheld that forex gains should not be part of AGR.

    
Other Stories in this Section
 mail this article    print this article    Show and Post comment
08 Mar 2017(IST)  
ad1
Whitepaper
Maintain Business Continuity with Cisco ASR 9000 nV Technology
It is a virtual chassis solution where a pair of ASR 9000 routers acts as a single device by maintaining a single contr...read more
Simplify Your Network with Cisco ASR 9000 nV Technology
With the new Cisco Network Virtualization (nV) technology in the Cisco ASR 9000 Series Aggregation Services Routers, se...read more
Cisco Small Cell Solution: Reduce Costs, Improve Coverage
It is designed to address the challenge of mobile service coverage and to expand network capacity...read more