Bharti's special audit report out, total impact Rs 98 cr

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Bharti's special audit report out, total impact Rs 98 cr

In the Department of Telecom (DoT) ordered special audit on Bharti Airtel, auditors - Contractor, Nayak & Kishnadwala, in a 306 page report have quantified the licence fee impact on distributor margins. The total impact for FY07 and FY08 has been estimated at Rs 98 crore.

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In the Department of Telecom (DoT) ordered special audit on Bharti Airtel , auditors - Contractor, Nayak & Kishnadwala, in a 306 page report have quantified the licence fee impact on distributor margins. The total impact for FY07 and FY08 has been estimated at Rs 98 crore. The audit report comes after almost nine months. It is the second independent audit of an Indian telecommunications company, the first being Reliance Communications. The report was made available to the DoT and the company last week.

According to the auditor's estimation, there is a license fee liability that it estimates on account of distribution margin at Rs 98 crore. That is the moot financial number that is emerging from this exhaustive report.

There are some other observations by the auditor including the fact that it could not correlate a lot of basic data with books of accounts. It says that Bharti Airtel does not follow a common policy across circles for recording revenues.