*Ambani says rivals running vicious campaign on rcomm special audit*

*Thursday, Oct 15*

*.*

*     --Media reports against ADAG mischievous in intent*

*     --Reports against ADAG at behest of corporate rivals*

*     --No discrepancy in Reliance Communications' accounts*

*     --Reliance Comm compliant with all regulatory norms*

*     --Reliance Comm committed to paying legitimate dues*

*     --Sought SEBI probe into recent hammering of ADAG shares*

*.*

*    MUMBAI - Reliance Communications Ltd Chairman Anil Ambani today
lambasted media reports that suggested irregularities in the company's
revenue reporting, saying they were "stage-managed by known corporate
rivals" to create panic, loss of confidence, and to cause huge losses to
shareholders.*

*    According to media reports, special auditors have detected anomalies in
Reliance Communications' reporting of revenues. "All of you from the
national media are fully aware of the hands of our known corporate rivals
behind these nefarious activities... 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," Ambani
told the media in a conference call.*

*    Reliance Communications plans to discuss issues raised in the special
audit with the Department of Telecommunications and other authorities and
will make all payments if any legitimate dues are found towards licence fee.
Ambani said these events follow a trend of cropping up when there are major
developments concerning the group, like this time it comes just after it
filed papers for Reliance Infratel's initial public offering and a week
before the hearing of Reliance Natural Resources Ltd case against Reliance
Industries Ltd in the Supreme Court.*

*    Ambani alleged that these "rivals" resorted to circulation of e-mails
from false identifications, distribution of papers in unsigned and unmarked
envelopes, and spread of "false and vicious rumours". *

*    The Reliance-Anil Dhirubhai Ambani Group's telecom company is being
probed by DoT for alleged under-reporting of revenues to reduce licence and
spectrum fee outgo.*

*    In January, DoT had appointed Jaipur-based Parakh and Co to conduct a
special audit of the company's books and examine the "gap" between revenue
from wireless services that Reliance Communications reported in 2007-08
(Apr-Mar).     DoT is also probing the accounts of other telecom operators,
Bharti Airtel, Vodafone, Tata Teleservices, and Idea Cellular for similar
violations.*

*    Denying any irregularity or discrepancy in Reliance Communications
accounts, Ambani said they were duly audited by reputed statutory auditors
and alleged that any conclusion arrived at by the special auditors, as
reported by the media, are completely unilateral, biased, and prejudiced.*

*    "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," he said adding that the
report or findings have not even been discussed by the special auditors with
Reliance Communications.*

*    Ambani also alleged that the special auditors have far exceeded their
terms of reference and recorded "unwarranted and unnecessary" as well as
"completely incorrect findings" on matters beyond the scope of their audit,
"apparently at the instance of our corporate rivals".*

*    He claimed that Reliance Communications has followed all norms with
regards to its accounts, which were done in line with telecom, and general
industry practice and the company complied with Securities and Exchange
Board of India's disclosure guidelines, listing guidelines of the exchanges.
*

*    The group will, meanwhile, lodge a formal complaint with SEBI to probe
the hammering of group stocks over the last several days.     It will also
lodge a complaint with the cyber crime police authorities to investigate the
dissemination of false and malicious mails against the group from bogus
e-mail IDs as well as take up the conduct and action of the special auditors
with Institute of Chartered Accountants of India.*



* ------Koffee-----Toffee ---------the fight Never End but we as investor
should know to protect ourself----*





-- 
A.K.Prabhakar

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