Citigroup Global Markets has put out a research report cautioning investors about an alleged discrepancy in revenue reconciliation of RCom. The report says the differential has widened in fiscal year 2009 and the first quarter of fiscal year 2010, by 25% and 36%, respectively. Going beyond the FY08 difference between Trai revenue data and the financial statement already audited by a special auditor, the Citi Investment Research and Analysis report says “the difference between Trai revenue data and financial statements has increased from Rs 2,570 crore (17%) in FY08 to Rs 4,360 crore (25%) in FY09, and further to Rs 1,740 crore (36%) in Q1FY10’’. “While Data/VAS revenues would have increased during this period, this alone seems inadequate to explain the widening difference, thus amplifying these concerns beyond FY08, with a potential impact on valuation,’’ the report adds. TOI has a copy of the analyst report. On Sunday, RCom had decried the report of a special audit taskforce appointed by DoT. The report adds: “Restated profitability may have been materially lower...we believe that the ‘true’ ARPU and wireless EBITDA in FY08 may have been lower by 15% and 26% respectively’’.
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