Under cloud Rolls-Royce's revenue up from India
Amidst investigations for bribery allegations in India, Britain and the United States; Rolls Royce has reported an increase of revenue from its groups's operations in India from £148 million in 2012 to £244 million in 2013.business Updated: Mar 07, 2014 00:24 IST
Amidst investigations for bribery allegations in India, Britain and the United States; Rolls-Royce has reported an increase of revenue from its groups's operations in India from £148 million in 2012 to £244 million in 2013.
The increase in revenue from India has been announced in its latest annual report, which mentions the ongoing investigations, and says that the company "is engaging with the SFO (Serious Fraud office) and other authorities in the UK, the USA and elsewhere".
The company has come under the scanner in India after new allegations of bribery emerged in relation to a deal with Hindustan Aeronautics Limited (HAL), and in Britain for similar allegations to win contracts in Indonesia.
The report lists three indirectly held company subsidiaries in India: Rolls-Royce India Private Limited Diesel (engine project management and customer support), Rolls-Royce Marine India Private Limited (provision of marine support services) and Rolls-Royce Operations (India) Private Limited (engineering support services).
Besides, it is also part of a jointly held entity in India: International Aerospace Manufacturing Private Limited (manufacture of compressor shrouds, compressor rings, turbine blades and nozzle guide vanes).
Stating that "national governments are often our customers and we aim to build strategic relationships with governments in our key markets", the report says that "Rolls-Royce does not make corporate contributions or donations to political parties or to any organisations, think-tanks, academic institutions or charities closely associated to a political party or cause, as outlined in our Global Code of Conduct".
The annual report says it is too early to predict the outcome of the various investigations, but admits that they could include the prosecution of individuals and of the Rolls-Royce group of companies.
"Accordingly, the potential for fines, penalties or other consequences (including debarment from government contracts, suspension of export privileges and reputational damage) cannot currently be assessed," the reprt says.
John Rushton, chief executive, says in the report: "We have co-operated fully with the regulatory authorities and will continue to do so…I have made it explicit that we will not tolerate improper business conduct of any sort."