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  Business   Companies  08 Mar 2017  Reliance Jio showed lesser revenue to avoid license fee

Reliance Jio showed lesser revenue to avoid license fee

THE ASIAN AGE
Published : Mar 8, 2017, 11:45 am IST
Updated : Mar 8, 2017, 11:45 am IST

Audit report claims non-inclusion of forex gains in adjusted gross revenue is a violation of license conditions.

Reliance Jio has offered free voice data and free voice calls.
 Reliance Jio has offered free voice data and free voice calls.

Mumbai: Billionaire Mukesh Ambani-led group’s telecom arm Reliance Jio did not reveal its full income and hid Rs 63.77 crore in forex gains to end up paying lesser license fee to the government, The Economic Times reported.

A draft audit report has disclosed Jio excluded foreign exchange gains in its income disclosure. Forex gains amounting to Rs 63.77 crore Jio had realised during three fiscal years, FY13, FY14 and FY15.

News report also adds 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,” ET quotes draft report as saying.

The audit report arrived at the conclusion based on annual financial statements and revenue reconciliation statements Jio had submitted. “Non-inclusion of forex gains in AGR is a violation of license conditions,” the report pointed it out.  

Jio, however, said doubts raised by the auditor had already been settled twice back in 2015 at Telecom Disputes Settlement Appellate & Tribunal.

Director general of audit for post and telecommunications has sent the audit report to the Mukesh Ambani-owned telco and the department of telecom for their responses.

Tags: reliance jio, foreign exchange gains, forex gains, tdsat, telecom license fee
Location: India, Maharashtra, Mumbai (Bombay)