Audit row: Anil Ambani flays rivals
Reliance Communications (RComm) chairman Anil Dhirubhai Ambani on Thursday accused corporate rivals for the “biased” special audit report on his company.business Updated: Oct 15, 2009 20:55 IST
Reliance Communications (RComm) chairman Anil Dhirubhai Ambani on Thursday accused corporate rivals for the “biased” special audit report on his company. He said that he would lodge a complaint with Securities and Exchange Board of India (SEBI) against the “vicious campaign” that has resulted in the hammering down of RComm’s share price.
He did not name the rivals.
“Nearly two years ago, in 2007-08, when we were launching our Reliance Power IPO, and on its listing, there was a similarly vicious campaign of disinformation and hammering of our stocks to sabotage the IPO,” Ambani told reporters in a teleconference.
“This time too, all these events are being stage-managed and blown out of proportion by our known corporate rivals, at a
time when there are important developments concerning our group,” he said.
He claimed that the timing of the accusations were intended to hurt the group on two counts. “One, we have filed the draft prospectus for the Reliance Infratel IPO, which we hope to go ahead with. And two, the all-important hearings in the gas matter are coming up before the Supreme Court early next week.”
Ambani alleged that the auditors have far exceeded their terms of reference and recorded “unwarranted and completely incorrect findings on matters beyond the scope of their audit”.
He said that he would approach the authorities, including SEBI, cyber crime police and accounting regulator Institute of Chartered Accountants of India against those involved in the campaign, which has created panic and loss of confidence among the group’s 1.1 crore shareholders.
Earlier, an independent auditor appointed by DoT had found a gap of Rs 2,915 crore between the wireless revenue reported by RComm to the stock exchanges and to Telecom Regulatory Authority of India. This resulted in underpayment of licence and spectrum fee of Rs 315 crore to DoT.
RCom shares have fallen by 8 per cent in the last three days and by 28 per cent in October to close at Rs 229.20 today.