SENSEX NIFTY
Dec 18, 2012, 06.52 PM IST | Source: PTI

RIL has agreed to CAG audit: Oil Ministry

Reliance Industries has agreed to audit by the Comptroller and Auditor General of India (CAG) of its spending in KG-D6 gas block, the Rajya Sabha was informed.

Reliance Industries has agreed to audit by the Comptroller and Auditor General of India (CAG) of its spending in KG-D6 gas block, the Rajya Sabha was informed. "RIL has agreed to audit by CAG for block KG-DWN-98/3 (KG-D6) for the years 2008-09 to 2011-12 without prejudice to the rights and contentions of the contractor under the contractual provisions," Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi said in a written reply to a question in the House.

Also Read: RIL, BP shut seventh well at KG-D6 gas block: Source

The company had initially objected to audit by CAG for time barred years as per Production Sharing Contract (PSC) and had not accepted the 'exceptional circumstances' advanced by the ministry, she said. As per PSC, audit of spending has to be done within two years.

"However, RIL has agreed for audit for those years with mutual consent," the minister said. RIL had sought confirmation from the ministry that the audit report would be submitted by CAG to ministry and all information submitted during the course of the audit would be kept confidential and not disclosed to any third party. Also, it wanted all such information not to be used for any other purpose other than as allowed under the PSC, she said.

"Ministry of Petroleum has advised RIL that Parliament is part of Union of India, a signatory to the contract (PSC), and not a third party," she said. "RIL has been directed to provide access to all records, documents, accounts of the block to CAG as per the contractual provisions." Lakshmi said CAG had not asked the ministry not to approve any of RIL's investment plan.

But it has "recommended that pending complete submission of all supporting records...relating to expenditure for previous years up to 2011-12 and comprehensive and detailed scrutiny thereof to verify that government's financial interests have not been adversely affected in any way, the Ministry may examine all relevant issues closely and carefully before considering the desirability of any further approvals of capital expenditure through the annual work programme and budget, development plans or otherwise, except those of an emergent nature," Lakshmi added.

Reliance stock price

On October 23, 2014, Reliance Industries closed at Rs 952.95, up Rs 7.00, or 0.74 percent. The 52-week high of the share was Rs 1142.50 and the 52-week low was Rs 794.00.


The company's trailing 12-month (TTM) EPS was at Rs 69.66 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 13.68. The latest book value of the company is Rs 609.28 per share. At current value, the price-to-book value of the company is 1.56.

Set email alert for

ADS BY GOOGLE

video of the day

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.