Shares of Reliance Communications (RCom), a pan-India telecom service provider, on Tuesday fell sharply following a report by Canadian research firm Veritas raising questions about its accounting and governance practices.
“We believe that the company’s accounting policies are whimsical and do not provide a clear picture of the underlying operating and business trends,” said the report. “We neither believe in the reported book equity of the company nor in its reported fixed asset base.”
RCom reacted to Veritas report saying that the research firm had dishonest motives. “Veritas report lacks any credibility and is mala fide,” said RCom’s official spokesperson.
RCom shares touched a record low of Rs 60 on the BSE before closing at Rs 64.