Reliance comm said on Oct. 31 that income nosedived almost 50 percent to 740 crore in the quarter ended
Sept. 30, missing the 11.5 billion-rupee median of 27 analyst
estimates compiled by Bloomberg. Credit Suisse Group cut its
estimate for the stock by 17 percent to 150 rupees.

Under Reporting of Revenue
A special auditor was assigned by DGA

"The special auditors noted that the company under-reported
its wireless revenues of Rs 2,799.19 crore to the Telecom Regulatory
Authority of India (TRAI) for the financial years 2006-07 and 2007-08,
costing the Government Rs 315.9 crore in fees that are charged as a
percentage of revenue. The company denies the under-reporting while the
auditor maintains his stance. "

RCom responded the following about licence fees: "The company
accounts for its liabilities in respect of licence fees payable by way
of revenue share to be computed on the gross revenue of the company
after taking into account the decision of the TDSAT (Telecom Disputes
Settlement and Appellate Tribunal) on August 30, 2007, specifying that
revenues not related to UAS (Unified Access Service) and other licences
under which the company operates are not to be included in the
computation of revenue share. "

So where is the gape. Reliance Anil Group has been in news about the way revenue and net profit has been reported. Reliance comm is under pressure in business and now this extra accounting issue.

There is definitely something not very correct. But here is the way I look at it ..

Since the company is big and it has been in news going forward they are not going to do the same thing.. I hope so. In that case one could trust the accounts of this company in future.