'Campaign Targeted at Reliance Infratel IPO'

by CXOtoday Staff    Oct 16, 2009

Linking the allegations of over-reporting by auditors Prakash & Company to its upcoming IPO for Reliance Infratel, ADAG Chairman Anil Ambani said the manner of the leakage of the report s findings as well as the way the audit was handled "smacked of a well-thought-out media campaign against the firm by known corporate rivals".

Ambani said that a similar campaign was unleashed against the Group two years back when the IPO of Reliance Power was on cards.

"I must straightaway point out that whatever alleged remarks the special auditor has arrived at are completely unilateral, biased and prejudiced, because, contrary to basic standards of professional conduct, and against all auditing norms and practices, the alleged report/findings have not even been discussed by the special auditors with RCom till date — even though they have been conducting the audit for the past more than six months," said the chairman.

He added, "In addition, the special auditors, apparently at the instance of our corporate rivals, have far exceeded their terms of reference and recorded unwarranted and completely incorrect findings on matters beyond the scope of their audit, thereby again demonstrating their bias and prejudice."
He further pointed out that the revenue figures have been reported by the company itself in its filings with the stock exchanges, DoT and Trai from quarter to quarter, over the last many years. "This is not something that has been ‘discovered’, as made out by a section of the media, by the special auditors," Ambani said.

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