KG-D6: No objection to CAG audit, says Reliance Industries

Never contested govts right to audit

KG-D6: No objection to CAG audit, says Reliance Industries

Reliance Industries (RIL) said on Saturday it had never contested the government's right to get the company's spending on KG-D6 gas fields audited by any agency, but hoped that being a private operator, it expects no “performance-related audit issues applicable to the government would be applied to any audit.

"RIL has at no time contested the government’s right to conduct an audit by any agency, including the CAG as provided in Section 1.9 of the Accounting Procedure of the PSC. At all times, RIL has fully co-operated with any auditor appointed by the government, including in several cases where the government had already exercised its audit rights earlier or where such audit was beyond the period stipulated in the PSC,” RIL said on Saturday. Stating that it was a private operator functioning under a Production Sharing Contract (PSC), RIL said it "appreciates" CAG's reported statement that it does not conduct performance audit of private firms”.

RIL is India’s largest private sector company with revenues of Rs 3,39,792 crore, cash profit of Rs 31,994 crore and net profit of Rs 20,040 crore as of March 31, 2012.

According to reports, CAG has objected to the government's move to narrow the scope of audit. It has said the provisions of the CAG Act gives it "unfettered right of access to all records required for such audit and would override any conditions sought to be imposed on the audit process". It added it is confident of its technical capabilities and welcomes comments on operational matters “if such comments come from experts having the requisite knowledge of the complexities of deep water operations in oil and gas sector”.

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