CAG to audit accounts of leading telcos

The Comptroller and Auditor General of India (CAG), the apex audit body, has said it would audit the accounts of five telcos - Bharti Airtel, Reliance, Tata, Vodafone and the state-run BSNL - for 2009-10.

The Telecom Regulatory Authority of India (TRAI) had also appointed a nodal officer to facilitate the audit exercise.

"The audit is aimed at giving a reasonable assurance to the government on the revenue share from the licencees. In the current year, I propose to take up audit of the accounts of Bharti Airtel, Reliance, Tata and Vodafone along with BSNL," director-general of audit (post and telegraph) R P Singh said in a communication to telecom secretary P J Thomas said.

According to a senior TRAI official, Manoj Mishra, a deputy advisor had been appointed to the post of nodal officer.

As per a department of telecom (DoT) notification of 2002, operators are required to provide all details, including financial statements, to TRAI to calculate the licence fee to be paid to the government. The regulator would also act as a facilitator as and when CAG decided to audit the telcos' accounts.

The DG (audit) would seek a meeting with the operators next week to finalise the audit plan and to enhance mutual understanding between the service providers and auditors. The DG also wants the operators to extend full cooperation for the audit.